Wrap Text
Full Year Results tor the Year Ended 30 September 2022
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
("Company")
FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2022
Schroder European Real Estate Investment Trust plc, the company investing in European growth cities
and regions, today announces its full year results for the year ended 30 September 2022.
SALIENT FEATURES
Quarterly dividends at pre-Covid level and payment of special dividends:
- Special dividends totalling €12.8 million, reflecting 9.60 euro cents per share (“cps”), were paid as
a result of the exceptional asset management profits achieved from the repositioning of Paris
Boulogne-Billancourt (Paris B-B);
- Continuation of pre-Covid quarterly dividend of 1.85 cps, equating to 7.40 cps for the financial year,
in line with target.
Financial highlights:
- Net Asset Value (“NAV”) total return of 7.3% based on an IFRS profit of €13.9 million
(30 September 2021: 3.2% /€6.2 million), driven primarily by valuation uplifts in the industrial and
DIY portfolio, together with the German office portfolio;
- NAV of €188.2 million or 140.8 cps (30 September 2021: €199.5 million or 149.2 cps), reflecting
the payment of the special dividends (excluding which the NAV would have been €201.0 million);
- Underlying EPRA earnings of €6.1 million (30 September 2021: €6.6 million), which will increase
with the redeployment of Paris B-B sale proceeds and rental indexation;
- Strong balance sheet with considerable cash reserves and investable firepower of circa €50 million
including additional debt;
- Maintained a prudent gearing approach with a loan to value (“LTV”) of 29% and 20% net of cash
(30 September 2021: 16% net of cash / 28% gross of cash), considerably below target of 35%.
Average cost of drawn debt (interest-only) of 1.9%;
- Approximately 33% of the Company’s debt expires in 2023; positive discussions with lenders
regarding these loans are currently taking place with the Company expecting increased financing
costs to be offset by rental indexation.
Operational highlights:
- Total direct portfolio valuation of €218.7 million, reflecting a like-for-like increase of 3%, or
€7.6 million (€7.2 million net of capital expenditure and incentives);
- Two acquisitions completed totalling circa €10 million, further diversifying the portfolio by sub-sector
and markets and contributing to replacing the lost income from Paris B-B (i.e. a car show room in
Cannes, France and an industrial warehouse in Venray, the Netherlands);
- Concluded 14 new leases and regears across the portfolio totalling 19,065 sqm at a weighted
unexpired lease term of 6.1 years;
- 100% rent collection, excluding the Seville JV interest which has been written to nil;
- 100% of the portfolio leases indexed to inflation, including 80% annually;
- Enhanced ESG performance across the portfolio including:
o Improved 2021 Global Real Estate Sustainability Benchmark (“GRESB”) score from three stars
to four, ranking the portfolio second in the peer group;
o Building Research Establishment Environmental Assessment Method (“BREEAM”)
certifications for the Company’s Frankfurt, Berlin and Venray investments.
Sir Julian Berney Bt., Chairman, commented:
"The Board is pleased with the resilience of the portfolio, sector and winning city allocations as well as
the Investment Manager’s efforts in delivering on its asset management programme. The success of
Paris Boulogne-Billancourt is testament to the strategy of acquiring high quality real estate in growth
locations and using in-house local active management expertise to create value.
“We are well aware of the ongoing challenges facing global markets but real estate continues to remain
attractive relative to other asset classes. By having real asset exposure that is diversified, indexed linked
and located in strong, liquid cities like Berlin, Hamburg, Stuttgart and Paris, the Company is well
positioned to deliver on its strategy longer term. In addition, the Company’s balance sheet is robust and
the existing cash position provides flexibility to strengthen the strategy, either from accessing new
investments, share buy backs or further de-levering.”
Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited, added:
"Despite current headwinds, we currently have approximately €50 million of firepower to deploy and
expect to see an improving pipeline of opportunities over the next six to twelve months that will enable
the Company to further diversify, grow income and strengthen its exposure to growth cities, regions and
sectors.”
A virtual presentation for analyst and investors will be held today at 9am GMT / 11am SAST. To register
please visit:
https://registration.duuzra.com/form/SEREAnnualResults2022
Short-form announcement
This short-form announcement is the responsibility of the directors of the Company. It contains only a
summary of the information in the full announcement (“Full Announcement”) and does not contain full
or complete details. The Full Announcement can be found at:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/SCDE/SEREITFY22.pdf
Copies of the Full Announcement is also available for viewing on the Company’s website at
www.schroders.co.uk/sereit or may be requested in person, at the Company’s registered office or the
office of the sponsor, at no charge, during office hours.
Any investment decisions by investors and/or shareholders should be based on consideration of the
Full Announcement, as a whole.
These annual results have been audited by the Company’s auditors, PricewaterhouseCoopers LLP who
expressed an unmodified audit opinion thereon. The full auditor’s report includes details of key audit
matters. This auditor’s report is available, along with the annual financial statements, on the Company’s
website at www.schroders.co.uk/sereit.
The Company has a primary listing on the London Stock Exchange and a secondary listing on the JSE
Limited.
London
6 December 2022
Sponsor
PSG Capital
Date: 06-12-2022 09:00:00
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