Investments  

Schroder Real Estate trust sees £21.9m rise in net assets

Interim management figures from the Schroder Real Estate Investment Trust reports an unaudited net asset value of £190.4m at March 31 2014, an increase of more than £20m since the end of 2013.

The figures are equivalent to 48.9 pence per share, an increase of 2.7 per cent compared with the NAV at December 31, which was equivalent to 47.3 pence per share.

However, the results stated the uplift of 2 per cent excludes the impact of the recent acquisitions of The Arndale Centre in Leeds and Morgan Sindall House in Rugby, for £16.23m and £3.95m respectively. The results noted these properties were revalued at March 31 2014, resulting in a combined uplift of 5.8 per cent.

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In the first quarter the company completed a share placing, raising £17.2m to help fund the purchase of the two properties. Meanwhile a second placing on April 17 raised a further £40.2m, and was oversubscribed reflecting a premium to the NAV at March 31 of 3.4 per cent.

The statement added the investment manager is actively targeting a pipeline of potential acquisitions currently under negotiation and where terms have been agreed, and confirmed the company had also secured shareholder consent to issue a further 120m shares in the period between April 18 2014 to March 19 2015 “as and when potential acquisitions are identified”.

It added: “This should enable the investment manager to act opportunistically by making a series of accretive property acquisitions while also mitigating the risk of cash drag on shareholders funds. All shares issued under the placing programme will be issued at a premium to the prevailing NAV at that point in time.”

The company’s direct property portfolio currently comprises of 54 properties, independently valued at £306.5m, and has delivered a one year share price total return of 142.8 per cent compared with the AIC Property Direct – UK sector return of 124.8 per cent, according to AIC data.