Schroder REIT suspends dividend

Schroder Real Estate Investment Trust has postponed payment of its dividend due to the impact of covid-19.

The group said it intends to pay the postponed dividend, which was due to be paid in June 2020, in part or whole at a later stage.

As at 3 April 2020, the company had received payments reflecting 63% of contracted rents relating to the first quarter of the financial year ending 31 March 2021. This compares to an average collection rate of 87% at the equivalent stage over the past four quarters.

An analysis of property sectors for rent collection showed that 82% of office rent had been collected, 61% of warehousing collected, 33% of retail and leisure collected, and 78% of ‘other’ collected.

The company said it would work with tenants that have “genuine challenges” including agreeing repayment plans, moving to monthly payments and considering other solutions such as extensions of leases.

The company, which owns a diverse property portfolio of 39 assets and 304 tenants, said it was in good financial shape to combat the effects of the pandemic.

Following the significant sales programme and refinance in 2019, the company has around £35m of free cash and an undrawn £52.5m revolving credit facility. It said the cash and undrawn debt facilities provide capacity of approximately £87.5m for attractive investment opportunities and income enhancing capital expenditure initiatives.

The company has one drawn debt facility with Canada Life comprising a £129.6m with a remaining term of 16.2 years at a total interest rate of 2.5%. Its net loan-to-value ratio is 21% and it has significant headroom on all loan covenants.

Full year results to 31 March 2020 are expected to be made during June 2020.

SREI : Schroder REIT suspends dividend

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