Schroder European Real Estate Investment Trust PLC reported on Thursday its third-quarter net asset value was virtually flat, and noted that leasing activity remained encouraging.

The London and Johannesburg-listed property investor said its net asset value per share was almost unchanged at 61.6 pence for the third quarter that ended June 30, compared to 61.5p in the second quarter to March 31.

There has been strong leasing activity since the second quarter, with 25 new lettings, renewals and rent reviews completed, reflecting an uplift of 4% compared to the estimated rental value at the beginning of the quarter.

Schroder European Real Estate noted ‘good progress’ with ongoing letting activity, which could generate a further £1 million per annum of rent.

‘Notwithstanding market volatility, leasing activity remains encouraging across all sectors, with a high volume of deals done and under offer above the prevailing valuation rental value assumptions,’ said Nick Montgomery, fund manager at Schroder European Real Estate.

Chair Alastair Hughes said that despite continuing real estate market uncertainty due to elevated interest rates, the company remains well placed with an above average rental income profile and the longest duration.

‘These factors enable us to continue paying an attractive dividend with good visibility on future earnings,’ Hughes said.

Shares in Schroder European Real Estate were down 0.1% to R 17.75 on Thursday afternoon in Johannesburg. But they were up 1.9% at 76.44 pence in London.

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