Schroder Real Estate Investment Trust (SREIT) reported a net asset value (NAV) increase of 0.5% to £289m in Q2 2024, driven by a 0.3% increase in the value of its portfolio.
The REIT completed 27 new lettings, renewals and rent reviews in the reporting period, generating £2.3m of contracted annual rental income.
SREIT said it anticipated further income and earnings growth thanks to the “significant near-term leasing pipeline” at recently completed industrial refurbishments Manchester, Milton Keynes and Swindon.
Alastair Hughes, chair of the SREIT board, said: “Following a significant correction, there are increasing signs that the UK real estate market is positioned for a recovery in late 2024 and into 2025. Whilst economic growth remains muted, greater political stability, falling interest rate expectations, and resilient occupational markets are stimulating more interest in the sector.”
Nick Montgomery, fund manager for SREIT, added: “The 0.5% quarterly net asset value increase follows the 0.2% increase in the prior quarter and demonstrates the resilience of our underlying portfolio, which is both high yielding and weighted towards higher growth sectors.
“There is an encouraging pipeline of new leasing activity as we continue to capture the high portfolio reversion and significant work is ongoing implementing our ‘brown to green’ strategy, with a full update to be provided with the interim results later this year.”
