Schroder Real Estate Investment Trust saw its NAV dip to £366m from £372.2m, during the six-month period to 30 September 2022.
EPRA earnings increased 3.6% to £8.6m compared with £8.3m in September 2021 and dividends paid during the period increased 20% to £7.8m.
Alistair Hughes, chairman of the board, said: “The company’s portfolio is well positioned for this more challenging environment, with high exposure to sectors and locations experiencing stronger occupational demand, a granular and resilient tenant base, an above-average income yield and a near term pipeline of asset management initiatives to support returns.
“Crucially, we have a long-term, fixed-rate debt profile, with no near-term maturities, which positions us favourably and gives us additional confidence against the uncertain backdrop. Having increased the dividend earlier this year ahead of the pre-pandemic level, we expect the dividend to remain fully covered for the current financial year.”
Nick Montgomery, fund manager, added: “Despite a volatile and uncertain economic backdrop, good progress has been achieved over the period delivering on the strategy, resulting in a positive NAV total return, sustained outperformance of the underlying portfolio and a further increase in the dividend level, which is fully covered.
“Whilst a rising cost of capital will continue to put downward pressure on real estate values and a recession will challenge businesses, our diversified, higher yielding portfolio, robust occupier mix and strong balance sheet should support continued income growth against the volatile and uncertain backdrop.”
