MIDAS SHARE TIPS: ½êͭʪ¡¿»ñ»º¡¿ºâ»º ²ñ¼Ò¡¿·ø¤¤ Schroder Real ¹­¤¤ÃϽê Åê»ñ ¿®ÍÑ building a green and clean empire

Buildings are ÀÕǤ¤¬¤¢¤ë more than a £´È¾´ü/4ʬ¤Î1 of all ²¹¼¼ gas Êü½Ð¡¿È¯¹Ôs ¡½ central heating in winter, ¶õµ¤¡¿¸øɽ¤¹¤ë ¾ò·ïing in summer, lighting all year °ìÏ¢¤Î²ñµÄ¡¢¸ò¾Ä¡¿´°À®¤¹¤ë and ÎÏ¡¿¶¯ÎϤˤ¹¤ë used by ´ï¶ñs from computers and phones to fridges and dishwashers, ¤Ë¤è¤ì¤Ð the ÀìÌç²Ès.

With À¯¼£²È¡¤À¯¼£²°s in Britain and À¤³¦Åª¤Ê Ìó«ing to bring É餫¤¹¡¿·âÄƤ¹¤ë Êü½Ð¡¿È¯¹Ôs, °µÎÏ is growing on ½êͭʪ¡¿»ñ»º¡¿ºâ»º groups to make ¹­¤¤ÃϽês greener.?

Schroder Real ¹­¤¤ÃϽê Åê»ñ ¿®ÍÑ?has ÄϤàd the bull by the horns and its ³ô, now 42p, should Åú¤¨¤ë¡¿±þ¤¸¤ë.?

Eco-friendly: With politicians in Britain and worldwide promising to bring down emissions, pressure is growing on property groups to make estates greener

Eco-friendly: With À¯¼£²È¡¤À¯¼£²°s in Britain and À¤³¦Åª¤Ê Ìó«ing to bring É餫¤¹¡¿·âÄƤ¹¤ë Êü½Ð¡¿È¯¹Ôs, °µÎÏ is growing on ½êͭʪ¡¿»ñ»º¡¿ºâ»º groups to make ¹­¤¤ÃϽês greener

With 39 ¾ì½ê¡¿°ÌÃÖs and more than 320 tenants, Schroder REIT has a diverse Âç¿Ã¤ÎÃÏ°Ì of ¾¦¶È¤Î buildings, from »º¶È¤Î ¹­¤¤ÃϽês to office Éõº¿¤¹¤ës and ¾®Çä parks.

½êͭʪ¡¿»ñ»º¡¿ºâ»º ²ñ¼Ò¡¿·ø¤¤s have not had an Ê¿°×¤Ê time but ·Ð±Ä¼Ô¡¿»ÙÇÛ¿Ís Nick Montgomery and Bradley Biggins have outperformed peers and ÇÛ㤹¤ëd °ÂÄꤷ¤¿ ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö growth. Now they are ÀÀÌó¡Ê¤¹¤ë¡Ëing to turn their Âç¿Ã¤ÎÃÏ°Ì from 'brown to green', using renewable energy, special boilers and a ÆÀÅÀ¤¹¤ë¡¿ÈóÆñ¤¹¤ë¡¿£²£° of other ΨÀès.

The Àïά is rooted in sound ¾¦Çä¡¿»Å»ö sense. New »ÙÇÛ¤¹¤ës are ͽÄê by 2030, ¶¯¤¤¤ëing ½êͭʪ¡¿»ñ»º¡¿ºâ»º owners to ºï¸º¡Ê¤¹¤ë¡Ë buildings' úÁÇ Â­À×. By moving Áá´ü¤Ë, Schroder can show it is in the ÀèƳ, winning friends ¤ÎÃæ¤Ç À¸Âֳؾå-minded ³ô¼çs and others.

Better still, the group can ¹ðȯ¡Ê¤¹¤ë¡Ë¡¤¹ðÁʡʤ¹¤ë¡Ë¡¿ÎÁ¶â tenants more, many of whom are under °µÎÏ from Åê»ñ²Ès, ¸ÜµÒs and ½¾¶È°÷s to become 'green and clean'.

While this may sound È¿ÂФ¹¤ë-intuitive when ·ÐºÑŪ¤Ê ¾ò·ïs are ·ø¤¤ and ¾¦Çä¡¿»Å»ös are strapped for cash, energy-efficient buildings are frequently cheaper to run so, even if rents are higher, Á´ÂΤˤ錄¤ë costs should be on a par or lower than ¤É¤³¤«¤è¤½¤Ç.

Montgomery and Biggins choose their ¾ì½ê¡¿°ÌÃÖs carefully, too, looking for areas where good ºß¸Ë¡¿³ô is in short ¶¡µë¡Ê¤¹¤ë¡Ë and ¼ûÍס¦Í׵᤹¤ë is ¶¯·ò¤Ê.

The company bought a ¾¦Çä¡¿»Å»ö park just outside Cheadle, Manchester, surrounded by a couple of acres of land. After getting planning µö²Ä, they turned the space into the UK's first ÂáÊ᤹¤ë ̵ ÁҸˡ¿Ìä²° ³«È¯, with solar ¥Ñ¥Í¥ëÈ×s, heat pump boilers and even a wildflower meadow.

Schroder paid ¡ò17million for the ½êͭʪ¡¿»ñ»º¡¿ºâ»º, spent ¡ò10million upgradi ng it and has just had it valued at ¡ò40million, with ²ñ¼Ò¡¿·ø¤¤s ´Þ¤àing German »º¶È¤Î µðÂç¡Ê¤Ê¡Ë Siemens happy to »Ùʧ¤¦¡¿Ä¶⠾ÞÍ¿¶â Ψs to °ÂÁ´¤Ê¡¦Êݾڤ¹¤ë space on this modern ¾ì½ê¡¿°ÌÃÖ.

Office Éõº¿¤¹¤ës are turning greener under Schroder's ´ÉÍý¡¿·Ð±Ä too, such as The Tun in Edinburgh, where Montgomery and Biggins have introduced LED lighting, ¾º³Êd heating systems and Ä´°õ¤¹¤ëd ¾ÞÍ¿¶â ÄÂÂߤ·¤Î ¶¨Äês with blue-ȾƳÂÎÁÇ»Ò tenants.

Other ½êͭʪ¡¿»ñ»º¡¿ºâ»ºs ´Þ¤à academic ¾ì½ê¡¿°ÌÃÖs, such as the University of ˡΧ, Central London and °æ¸Í¡¿ÊÛ¸î»ÎÀÊ-°ÌÃÖ¤ò¼¨¤¹d shopping ¾ì½ê¡¿°ÌÃÖs, such as St John's ¾®Çä Park, Bedford, where Lidl and B&M ͶÏǤ¹¤ë a °ÂÄꤷ¤¿ stream of ¼è°ú hunters.?

»º¶È¤Î ¹­¤¤ÃϽês attract a ÈÏ°Ï of tenants, too, from widget-À½Â¤¼Ôs to ʸ½ñ Ãù¢ ²ñ¼Ò¡¿·ø¤¤s, food ÇÛã¡¿±éÀâ¡¿½Ð»º chains and even gyms.

¾º³Ês are a feature across the Âç¿Ã¤ÎÃÏ°Ì and Montgomery and Biggins make a point of engaging with tenants Äê´üŪ¤Ë. That Íưפˤ¹¤ës ÄÂÂߤ·¤Î growth and the Æó¿ÍÁÈ ¿´ÇÛ¤¹¤ë growing income as ·ÐºÑŪ¤Ê ¾ò·ïs ²þÁ±¤¹¤ë.

Schroder Reit is already in a ¶¯·ò¤Ê ºâÀ¯¾å¤Î position. The group's year end runs to March 31 and a total ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅö of 33.5p is ¿äÄꤹ¤ë¡¿Í½ÁÛ¤¹¤ëd, putting the ºß¸Ë¡¿³ô on a »º¤¹¤ë¡¿À¸¤¸¤ë of almost 8 per cent. Payouts should Áý²Ã¤¹¤ë over time, ÆÃ¤Ë as the ²ñ¼Ò¡¿·ø¤¤ took out long-¾Î¤¹¤ë¡¤¸Æ¤Ö¡¿´ü´Ö¡¿ÍѸì ľ¤¹¡¿Çã¼ý¤¹¤ë¡¤È¬É´Ä¹¤ò¤¹¤ëd-Ψ ÉéºÄ when Íø±×¡¿¶½Ì£ Ψs were low.

Yet Schroder has been punished by the market, in line with other, ¤¤¤Ã¤½¤¦¾¯¤Ê¤¯ innovative ½êͭʪ¡¿»ñ»º¡¿ºâ»º groups. ÆÈΩ¤·¤¿¡¦Ìµ½ê° valuers ¼¨º¶¤¹¤ë the company's Âç¿Ã¤ÎÃÏ°Ì is ²ÁÃ͡ʤ¬¤¢¤ë¡Ë ¡ò458million. On the ³ô¼°»Ô¾ì, Schroder is valued at just ¡ ò203million, with ³ô more than 50 per cent below a 2018 ĺÅÀ¡Ê¤Ë㤹¤ë¡Ë.

Midas Ƚ·è: Schroder Reit has been ¹¶·â¤¹¤ë¡¤¾×Æͤ¹¤ë hard by ÉáµÚ¤·¤¿ È¿´¶ ¤Ë¸þ¤«¤Ã¤Æ the ½êͭʪ¡¿»ñ»º¡¿ºâ»º ÉôÌç but ´¶¾ð should change and Schroder ³ô should ·èµ¯Âç²ñ¡¿·ë½¸¤µ¤»¤ë. At 42p, the ºß¸Ë¡¿³ô is a buy, while generous ¡Ê³ô¼ç¤Ø¤Î¡ËÇÛÅös Äɲ乤ë to its ¹µÁÊ¡¤¾å¹ð.

Ëǰסʤ¹¤ë¡Ëd on: Main market Ticker: SREI ÀÜ¿¨¤¹¤ë: schroders.com or 020 7658 6000