Schroder Real Estate Investment Trust (SREI) H2 2024 earnings summary

Executive summary

• Net asset value (NAV) decreased 4.4% year-over-year to £287.4m (58.8p per share), outperforming the MSCI Benchmark's 5.7% decline.

• Portfolio value remained stable in the last quarter, with a 2.8% annual decline versus the benchmark's 5.7% drop.

• Dividends increased 4% to £16.4m (3.34p per share), fully covered by EPRA earnings, and a further 2% quarterly dividend increase announced.

• Positive NAV total return of 1.1% for the year, compared to -15.1% last year.

• Strategic focus on sustainability, with improved GRESB score and new decarbonisation initiatives.

Financial highlights

• EPRA earnings rose to £16.3m (3.3p per share), up 1.9% year-over-year.

• IFRS profit for the year was £3.0m, reversing a £54.7m loss last year.

• Portfolio value at £459.3m, with annualised rental income of £29.8m.

• Underlying portfolio total return of 3.2% versus -1.3% for the MSCI Benchmark.

• Ongoing charges (including fund and property expenses) increased to 2.53% from 2.28%.

Outlook and guidance

• Market sentiment expected to improve as interest rates peak and rental growth continues, especially in industrial and retail warehousing sectors.

• Strategy to reduce net loan-to-value (LTV) from 37.1% to the long-term target range of 25–35% through further disposals.

• Continued focus on sustainability and decarbonisation to enhance long-term returns.