The company’s quarterly dividend has fallen 30% to 0.62p per share, equating to a 5.5% yield on the trust’s current share price, according to analysts at Winterflood Securities. The latest dividend payment will be made on 23 August and the trust‘s AGM is to be held on 12 September.
Prospective dividend cover in the trust is now around 74% and the managers intend to continue strengthening this level. As part of this the managers are working to reduce the void rate within the portfolio. Over the past quarter it reduced from 14.4% to 13.9% thanks to increased letting and lease restructuring.
As at 30 June 2013, the Company’s direct property portfolio comprises some 52 properties independently valued at £257.82m, producing rent of £18.1m per annum. Net rental income has fallen in the trust so far this year following £67m in disposals.
As of the start of July the fund had zero exposure to Central London properties, in comparison to a 20.7% weight in the IPD index. With 25.7% SREIT also has almost half the weighting in retail properties versus its benchmark index and is significantly overweight offices at 42% of the fund compared to the IPD’s position of 28.6%.
The managers noted the Investment Property Data Monthly Index total return rose 1.9% over the past quarter, while capital values rose by 0.18%. Although only a marginal increase, it does come on the heels of 18 consecutive months, ending in May 2013, of capital value declines.
Duncan Owen, of Schroder Property Investment Management, said: “These signs of a market recovery follow improving sentiment that has been supported by increased bank lending to the sector. Market activity is increasing with UK commercial property transactions up 28% over the first quarter of 2013 compared with the first quarter of 2012.”
