Wrap Text
Announcement of NAV and quarterly dividend
Schroder European Real Estate Investment Trust PLC
(Incorporated in England and Wales)
Registration number: 09382477
JSE Share Code: SCD
LSE Ticker: SERE
ISIN number: GB00BY7R8K77
("SEREIT"/ the "Company" / "Group")
12 September 2025
ANNOUNCEMENT OF NAV AND QUARTERLY DIVIDEND
Resilient portfolio valuations and asset management initiatives underpin positive
total return
Schroder European Real Estate Investment Trust plc, the Company investing in European growth
cities and regions, provides a business update and announces its unaudited quarterly dividend
and net asset value ("NAV") as at 30 June 2025.
- Underlying quarterly earnings from operational activities ("EPRA earnings") of €1.5 million
(quarter ended 30 June 2024: €2.0 million), and €1.7 million adjusted for exceptional items,
the small reduction primarily reflecting the sale of the Frankfurt DIY asset in the previous
quarter;
- The property portfolio was independently valued at €193.9 million, materially unchanged
from the prior quarter, with the total portfolio value remaining resilient over the quarter.
Robust industrial portfolio valuations, and an uplift in Berlin, offset declines in other sectors,
primarily driven by shortening lease terms;
- Third quarterly interim dividend of 1.48 euro cents per share ("cps") declared, 90% covered
by adjusted EPRA earnings, reflecting an annualised dividend yield of c.7.6% based on the
current share price(1);
- Total interim dividends declared relating to the nine months of the current financial year of
4.44 euro cps, 96% covered by EPRA earnings adjusted for exceptional items;
- Unaudited NAV of €157.6 million, or 119.8 euro cents per share ("cps") (31 March 2025:
€158.9 million, or 120.1 euro cps), driven primarily by the share buyback and a shortfall in
dividend cover;
- Positive NAV total return of 1.0% for the quarter; the NAV total return for the nine months of
the current financial year is 1.3%;
- The Company remains well positioned with a strong balance sheet, an available cash
balance of approximately €24 million, and a loan to value ratio ("LTV") of 19% net of cash and
28% gross of cash;
- Several value-enhancing asset management initiatives concluded including:
o At the Berlin DIY asset a new 12-year lease extension was completed with the sole
tenant, Hornbach, which is the second largest tenant in the Company's portfolio by
income; and
o A new 3/6/9 year lease was completed at the Saint-Cloud, Paris, office asset for 609
sqm of space on level two, at a rent in line with market levels.
- Continued to advance lease re-gearing discussions regarding the Stuttgart office and the
French industrial investments in Rumilly, Nantes and Cannes.
Tax disclosure update
As an update to previous disclosures relating to the ongoing discussions with the French Tax
authority, the Group has received a payment demand from the French Tax Authority amounting to
c.€14.2 million, including interest and penalties. The Group considers that this amount is not due
and intends to file an appeal against the decision. Nevertheless, the Board considers it prudent
to ring-fence the amount demanded from its other cash reserves, and is considering its options,
including making a payment of tax on account in line with French judicial procedures. Having
taken professional advice, the Board remains of the opinion that the Group's position is ultimately
more likely than not to prevail, such that a net outflow is not probable, and hence no tax provision
has been recognised.
Interim dividend
Announcement of a third quarterly interim dividend of 1.48 euro cps, which is 90% covered by
adjusted EPRA earnings, reflecting the sale of the Frankfurt DIY asset in the previous quarter and
higher than normal exceptional items. Annualising the dividend provides investors with a
dividend yield of c.7.6%, based on the share price as at 10 September 2025(1).
Total dividends declared relating to the nine months of the current financial year are 4.44 euro
cps, 96% covered by adjusted EPRA earnings.
The interim dividend payment will be made on Friday 7 November 2025 to shareholders on the
register on the record date of Friday 3 October 2025. In South Africa, the last day to trade will be
Tuesday 30 September 2025 and the ex-dividend date will be Wednesday 1 October 2025. In the
UK, the last day to trade will be Wednesday 1 October 2025 and the ex-dividend date will be
Thursday 2 October 2025.
The interim dividend will be paid in British pound sterling ("GBP") to shareholders on the UK
register and Rand to shareholders on the South African register. The exchange rate for
determining the interim dividend paid in South African Rand ("Rand") will be confirmed by way of
an announcement on Tuesday 16 September 2025. UK shareholders are able to make an election
to receive dividends in Euro rather than GBP should that be preferred. The form for applying for
such election can be obtained from the Company's UK registrars (Equiniti Limited) and any such
election must be received by the Company no later than Friday 3 October 2025. The exchange
rate for determining the interim dividend paid in GBP will be confirmed following the election cut-
off date by way of an announcement on Monday 6 October 2025.
Shares cannot be moved between the South African register and the UK register between Tuesday
16 September 2025 and Friday 3 October 2025, both days inclusive.
Shares may not be dematerialised or rematerialised in South Africa between Wednesday 1
October 2025 and Friday 3 October 2025, both days inclusive.
The Company has a total of 133,734,686 shares in issue on the date of this announcement
(including those held in treasury). The dividend will be distributed by the Company (UK tax
registration number 21696 04839) and is regarded as a foreign dividend for shareholders on the
South African register. In respect of South African shareholders, dividend tax will be withheld from
the amount of the dividend noted above at the rate of 20% unless the shareholder qualifies for
the exemption. Further dividend tax information for South African shareholders will be included in
the exchange rate announcement to be made on Tuesday 30 September 2025.
Net Asset Value
The table below provides a breakdown of the movement in NAV during the quarter ended 30 June
2025:
€m cps(2)
Brought forward NAV as at 1 April 2025 158.9 120.1
Unrealised movement in the valuation of the property portfolio (0.1) (0.1)
Capital expenditure 0.0 0.0
EPRA earnings 1.5 1.2
Non-cash items (0.1) (0.1)
Share buyback (0.6) 0.2
Dividend paid (2.0) (1.5)
NAV as at 30 June 2025 157.6 119.8
Property portfolio
The direct property portfolio was independently valued at €193.9 million (30 June 2024 €196.5
million on a like-for-like basis), reflecting stable values across the period. Robust valuations
within the industrial portfolio, along with a positive revaluation of the Berlin asset, helped to offset
declines in other sectors, which were primarily driven by shortening lease terms.
During the period a new 12-year lease extension with Hornbach, at the Berlin investment, was
successfully agreed, resulting in a €1 million valuation increase. This transaction has further
strengthened both the portfolio's income security and the weighted average lease expiry, which
has risen by approximately 1.3 years.
Management is also actively advancing discussions regarding lease re-gears in Stuttgart, Rumilly,
Nantes, and Cannes. Completion of these initiatives will positively impact the portfolio value and
income and the weighted average unexpired lease term.
KPN is still expected to vacate the Apeldoorn asset at the end of December 2026. As a result, we
are assessing options including sourcing a replacement tenant, or securing planning approval for
alternative uses. Should KPN vacate as expected, and as previously announced, there may be an
impact on the Company's ability to maintain its current dividend level. However, management is
taking steps to mitigate any potential effects.
Balance sheet
The Company remains well positioned with cash reserves of approximately €24 million, and of
which €14.2m has been ring-fenced as noted above in relation to the French Tax discussions.
Based on 30 June 2025 values, the portfolio LTV is approximately 28% based on gross asset value
and 19% net of cash.
Footnote (1): Based on a share price of c.66.8p as at 10 September 2025.
Footnote (2): Based on 131,509,386 shares in issue as at 30 June 2025.
-Ends-
Enquiries:
Jeff O'Dwyer
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Natalia de Sousa
Schroder Investment Management Limited Tel: 020 7658 6000
Dido Laurimore/Richard Gotla/Ollie Parsons
FTI Consulting Tel: 020 3727 1000
The Company has a primary listing on the London Stock Exchange and a secondary
listing on the JSE Limited.
JSE Sponsor
PSG Capital
Date: 12-09-2025 08:00:00
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