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UK REIT centres strategy on sustainability

21st November 2023

A UK real estate investment trust is proposing to amend its investment objectives in order to focus on a sustainability improvement and decarbonisation strategy.

The Schroder REIT, which manages a £466 million ($585 million) diversified portfolio of 40 properties across the UK, today published a circular proposing amendments to its investment objective and policy, and to the company's investment management agreement.

The new strategy will focus on adapting existing buildings to make them “modern and fit for purpose, to achieve a green premium and capitalise on mispricing”, REIT manager Schroder Real Estate Investment Management said in a statement accompanying its interim results.

Alastair Hughes, chair of the REIT’s board, said: “As sustainability considerations become even more important for investors and occupiers, we have a strong conviction that it will clearly help to differentiate the company and drive more sustainable, risk-adjusted returns.”

Schroder REIT said there is: “an opportunity to offer investors a genuinely differentiated proposition, whilst also attracting new investors who have specific sustainability objectives which are aligned to the real estate sector’s decarbonisation targets, and improve the liquidity and rating of the company’s shares”.

The REIT announced net asset value (NAV) down 1.6% to £296 million in the six months to 30 September and a 1.1% NAV total return. It also announced the completion of Stanley Green Trading Estate, 80,000 sq ft operational net zero warehouse scheme in Manchester (pictured above). 

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