For release 19
March 2020
Schroder Real Estate Investment Trust
Limited
("SREIT"/ the "Company" / "Group")
MARKET UNCERTAINTY
AND STRATEGIC HIGHLIGHTS
This is an update due to the market uncertainty relating to
COVID-19 (Coronavirus). The Company would like to highlight that
against this backdrop its strategy remains robust and unchanged. A
significant number of disposals were completed at premium prices
last year and the term loan with Canada Life was refinanced and
extended in October 2019. The Company
is now well positioned and the highlights are as follows:
- Disposals completed - £95 million of disposals
completed in 2019 at an average net initial yield of 3.0%.
- Debt refinanced - £129.6 million debt refinanced
in October 2019 generating an
immediate saving of £2.5 million per annum with improved covenant
terms and a weighted term of 16.5 years.
- Increased dividend - 19% increase
to dividend delivered to shareholders in 2019 at 3.086 pence per share per annum.
- Robust balance sheet - low net loan to
value of 21% as at 31 December
2019.
- The Company has a diversified portfolio - 39
assets with approximately 300 tenants with a focus on regional
offices in Winning Cities and industrial warehousing.
- Reinvestment capacity of £90 million - comprising
cash and undrawn debt facilities for future opportunistic
reinvestment and income enhancing capital expenditure initiatives.
This is post all refinance and sales costs.
The Manager is focused on active management to improve the
defensive characteristics of the portfolio. Recent activity with
new lettings was announced two weeks ago and further asset
management initiatives are ongoing.
In light of the rapidly evolving situation, all forthcoming RICS
independent valuations as at 31 March
2020 will include a statement highlighting Material
Valuation Uncertainty - such wording to be applied to all
independent valuations at least in the UK. Accordingly, the
Company’s Independent Valuers have informed us that that the
industry standard wording for our independent valuation as at
31 March 2020 will include a
statement highlighting Material Valuation Uncertainty.
The Company will announce its Full Year results for the year
ended 31 March 2020 in May 2020. There will be an event for analysts and
investors on the morning of the results. For details of the
meeting, please contact FTI Consulting.
-ENDS-
For further information:
Schroder Real Estate Investment
Management Limited:
Duncan Owen / Nick Montgomery / Frank Sanderson |
020 7658 6000 |
Northern Trust:
James Machon |
01481 745529 |
FTI Consulting:
Dido Laurimore / Richard Gotla |
020 3727 1000 |