Schroder REIT proposes investment objective change and variable fee structure
The proposal will be voted on in an extraordinary general meeting, held on 15 December.
In a circular today (21 November), the trust said it would be proposing changes to include sustainability «at the centre» of the trust's investment proposition, focused on sustainability improvement and decarbonisation for its buildings.
The proposal will be voted on at an extraordinary general meeting, held on 15 December.
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According to the firm, the changes have been «specifically developed» to allow the trust to take on the ‘sustainable improver' label when the Financial Conduct Authority's SDR system is introduced and «achieve a Green Premium and capitalise on mispricing».
It said that by implementing this strategy the trust «should be able to differentiate itself in the market, leveraging the active asset management capabilities and specific sustainability resources the investment manager employs».
In turn, the board said this should help increase total returns and the «attractiveness» of the trust, which is currently trading on a 31.3% discount to net asset value, according to data from the Association of Investment Companies.
It has returned 41.3% over the last three years, compared to an IT Property — UK Commercial average of 7.5%, according to data from FE fundinfo.
«Given that the real estate industry accounts for approximately 40% of global energy related carbon emissions, and the majority of buildings are likely to still be in use in 2050, there is increasing investor concern regarding the investment required to upgrade assets, which the company believes can be reflected indiscriminately in market valuations of assets,» the trust added.
«Many studies
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