Schroder Real Estate Investment Trust's NAV rises

22nd Jan 2014 10:33

Schroder Real Estate Investment Trust's shares rose after reporting a 4.2 per cent rise in quarterly net asset value (NAV).The company's NAV at the end of December 31st 2013 was £168.5m, compared to £161.6 at the end of September. The property portfolio at the end of the quarter was comprised of 52 properties independently valued at £279.59m and produced rent of £18.97m per annum. Based on the Knight Frank independent valuation, the rent reflected a net initial yield of 6.4%. The portfolio's rental value is £21.56m per year, resulting in a reversionary yield of 7.3%. Following letting and lease restructuring activity over the quarter the portfolio will benefit from additional fixed rental uplifts of £1.8m annually due by December 2015. The group said the completion of a refinancing in April and progress with accretive asset management has provided a "solid platform from which to potentially enhance returns to shareholders through a gradual increase in size".Earlier this month the group announced the placement of 35,592,128 new ordinary shares (at a price of 48.25p), raising gross proceeds of approximately £17.17m.Proceeds were used to acquire The Arndale Centre in Headingley for £16.23m, which was completed on January 15th.Shares rose 2.88% to 53.50p at 11:03 on Wednesday.RD