Schroder European Real Estate plans wind-down; interim profit robust

Schroder European Real Estate Investment Trust says it plans to wind down its business after posting robust interim results, aiming to address the discount between its share price and net asset value. The company’s shares rose 7.6% to 64.33 pence in London and increased 9.6% to ZAR14.50 in Johannesburg on Wednesday, following the announcement. Management and the board reviewed options to maximize shareholder value and concluded that a “managed” wind-down with a return of capital is the best path, subject to investor approval. The trust expects the process to take about two to three years, given market conditions and heightened geopolitical risk. For the six months ended March 31, pretax profit (gain) rose to EUR1.5 million from EUR544,000, while net rental income increased 6.7% to EUR7.3 million. The firm kept its quarterly dividend at 1.48 euro cents, maintaining a total first-half payout of 2.96 cents.