Schroder Real Estate Invest (LON:SREI) Releases Earnings Results

Schroder Real Estate Invest (LON:SREI) posted its earnings results on Friday. The real estate investment trust reported GBX 2.90 EPS for the quarter, Digital Look Earnings reports. Schroder Real Estate Invest had a net margin of 80.90% and a return on equity of 9.81%.

Here are the key takeaways from Schroder Real Estate Invest’s conference call:

• The trust said it remains well-positioned thanks to a high income return, a strong reversionary profile and low fixed debt costs, with about 75% of borrowings fixed at 2.5% for roughly 10 years.
• Dividend payments increased 4% year on year, and management reiterated its commitment to a progressive dividend policy as portfolio reversion and lease completions support future earnings.
• Portfolio performance was modestly weaker over the year, with NAV down 1.1% and a NAV total return just under 5%, while the void rate fell below 10% to a three-year low.
• Asset management activity was strong, including more than 70 lease transactions, six asset sales, and major letting progress at industrial properties such as Stanley Green and Millshaw Park, which management says should lift income and reduce vacancies.
• Management argued the proposed Picton transaction would be earnings accretive, improve scale and diversification, and lower costs through fee savings and a fee holiday, helping support earnings and dividend growth.

Schroder Real Estate Invest Stock Down 0.4%

SREI stock traded down GBX 0.20 during midday trading on Friday, hitting GBX 46. 1,699,029 shares of the company traded hands, compared to its average volume of 2,584,133. Schroder Real Estate Invest has a twelve month low of GBX 44.65 and a twelve month high of GBX 59.09. The business has a 50 day simple moving average of GBX 46.99 and a 200-day simple moving average of GBX 50.82. The stock has a market capitalization of £224.99 million, a price-to-earnings ratio of 7.67 and a beta of 0.54.

About Schroder Real Estate Invest

The investment objective of Schroder Real Estate Investment Trust (‘the Company’) is to provide shareholders with an attractive level of income together with the potential for income and capital growth as a result of its investments in, and active management of, a diversified portfolio of UK commercial real estate.