Net asset value return picks up

LISTED Schroder European Real Estate Investment Trust (Sereit) achieved a total net asset value return, including dividends, of 2.5 percent in the six months to March following the negative return of -4.6 percent in the six months to September. The company, listed on the London Stock Exchange and JSE, grew net asset value excluding non controlling interests by 11.4 percent to 175.9 million (R2.56 billion) or 131.5 Euro cents a share in the reporting period, including a gross equity raise of 16.7m. Total dividends a share declared for the half year of 2.2c, including 1.2c a share is to be paid by way of a second interim dividend in July, representing a 29 percent increase in the previous corresponding period. The company reported a profit of 4.2m for the six month reporting period compared to the loss of 2.7m for the 10 months to September. This turnaround reflected additional rental income from acquisitions, property acquisition costs and valuation uplifts of portfolio. The portfolio now comprises nine assets valued at 208.9m and 4.8 years average lease term. Tony Smedley, Sereit investment manager, said the company was now almost fully invested in institutional quality, income-producing commercial real estate, in cities and regions in western Europe that demonstrated above average growth prospects. – Roy Cokayne