The Schroders Real Estate investment trust (SREIT) will begin purchasing its own shares in a bid to narrow its 51.6% discount to net asset value, as the board believes its financial position "remains strong".
According to the board, the £457.6m investment trust had £85.4m of cash on its balance sheet, as well as a loan-to-value ratio of 24%, as at 30 June.
In addition to share buybacks, the board said it will continue to focus on "identifying attractive new acquisitions" and "delivering net income growth through new lettings and asset management".
The investment trust has the authority to repurchase a maximum of 77,725,160 of its ordinary shares, which will last until the next shareholder authority is granted. It has appointed JP Morgan Securities to act as its broker.
SREIT's 51.6% discount currently stands at a 12-month high, having narrowed to as little as 8.71% over the last year. Its one-year average discount stands at 28.75%, while its three-year average discount is 17.76%, according to data from the AIC.
In total return terms, the trust has lost investors 47% and 47.9% respectively over one and three years, according to data from FE fundinfo.