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This well-managed Reit offers a 7% yield

Simon Thompson: It continues to outperform its benchmark and is driving up rental income
This well-managed Reit offers a 7% yieldPublished on November 27, 2024
  • Net asset value (NAV) total return of 4 per cent
  • NAV per share up one per cent to 59.4p
  • 7 per cent dividend yield
  • 15 per cent discount to NAV

Schroder Real Estate Investment Trust (SREI:50.5p) continues to outperform its MSCI benchmark by targeting higher growth sectors benefiting from structural trends.

Multi-let industrial warehouses (50 per cent of the portfolio) and retail warehousing (12 per cent) were the key drivers behind the like-for-like 0.9 per cent increase in the value of the £465mn portfolio in the latest six-month trading period. The portfolio is highly reversionary, too. That’s because estimated open market rental value (ERV) of £39.4mn is 30 per cent higher than the current annualised rental income.

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