New acquisitions to help Schroder European Real Estate Investment Trust weather economic storm
Dealmaking and buyouts will help Schroder European Real Estate Investment Trust weather the geopolitical and economic storm brewing over the continent, one fund manager has said today.
“New acquisitions will provide further diversification and help maintain the attractive dividend,” fund manager Jeff O’Dwyer said in a statement this morning, as the firm seeks “sustainable rental income” and to “maximise shareholder returns”.
The Trust’s net asset value offered returns of 5.5 per cent in the six months to 31 March, signalling progress on its deficit of 0.4 per cent in the same period last year.
Schroder paid out its first-ever special dividend of €6.4m in January, having had its portfolio value continue to increase to €247.9m, up four per cent on a like-for-like basis.
While the London-listed Trust has enjoyed full rent collection over the six months and a high portfolio occupancy of 95 per cent, Schroder is “alert to the challenging macroeconomic backdrop”, O’Dwyer added.
“The company is well placed to continue outperforming,” he continued. “This income offers a strong hedge against inflation given the underlying annual indexation clauses, while the majority of exposure is to Europe’s dominant metropolitan centres including Berlin, Hamburg, Stuttgart and Paris.”