A strategy of investing in Europe’s “winning cities” has helped deliver a 157% post-tax profit rise for global asset manager Schroder.
In the six months to 31 March, the Schroder European Real Estate Investment Trust made €10.8 million after tax, compared with €4.2 million during the same period last year.
Schroder said this was “driven by an uplift in portfolio values and growth in net income” helped by a buoyant European property market.
France provides the lion’s share of income
Profit per share was 8.1 euro cents, up from 7.7 euro cents in the full year to 30 September 2017, while dividends per share in the half-year, at 3.7 euro cents, were well over half the 5.2 euro cents in the full year.
Net asset value was €187.1 million, up 4.9% on the €178.3 million for the full year to 30 September.
The results cheered investors, with shares in the trust rising 0.87p today, or 0.76%, to 114.87.
income, Biarritz and Rennes in France, where, again, retail properties provided, respectively, 7.8% and 5.9% of total income, and Paris, where office rentals accounted for 36.3% of income.
Retail properties in Frankfurt and Berlin contributed 4.3% and 10% of income respectively, while office properties in Stuttgart and Hamburg accounted for 5% and 3.4% respectively of total income.