Schroder Real Estate Investment Trust Ltd - Market Uncertainty and Strategic Highlights
PR Newswire
London, March 18
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.
- Increaseddividend - 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 |
