To view the PDF file, sign up for a MySharenet subscription.

SCHRODER EUROPEAN REAL ESTATE INV TRUST PLC - Announcement Of Nav And Dividend For Period To 30 June 2016

Release Date: 29/07/2016 17:00
Code(s): SCD     PDF:  
Wrap Text
Announcement Of Nav And Dividend For Period To 30 June 2016

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

                                                                           29 July 2016

   ANNOUNCEMENT OF NAV AND DIVIDEND FOR PERIOD TO 30 JUNE 2016

Schroder European Real Estate Investment Trust plc (the “Company”) today
announces its unaudited net asset value for the three months to 30 June 2016 together
with its maiden interim dividend.

Net Asset Value

The Company delivered an unaudited net asset value (“NAV”) as at 30 June 2016 of
€157.1 million or 129.6 cents per share (£1.08 per share). This reflects a decrease in
Euro terms of 1.4% per share compared with the NAV as at 31 March 2016. A
breakdown of the NAV movement over the quarter is set out below:

                                  €m       cps
 NAV as at 31 March 2016          159.4    131.5
 Unrealised gain in valuation     2.2      1.8
 property portfolio
 Acquisition costs of             (5.6)    (4.6)
 investments made during
 period
 Unrealised FX gain               0.1       -
 Pre-tax operating profit         1.0      0.9
 NAV as at 30 June 2016           157.1    129.6

Interim Dividend

The Company announces its maiden interim dividend of 0.8 Euro cents per share for
the period from IPO on 9 December 2015 to 30 June 2016. The dividend represents
an annualised rate of 2.4% based on the Euro equivalent of the issue price as at
admission.

The Company commenced receiving income from its investment portfolio from 31
March 2016 and the dividend is fully covered from contractual income receivable from
the current portfolio. Once fully invested, including the debt being drawn, the Company
will target an annualised euro dividend yield of 5.5%, based on the euro equivalent of
the issue price as at admission.

The interim dividend payment will be made on 7 September 2016 to shareholders on
the register on the record date of 19 August 2016. In South Africa, the last day to trade
will be 16 August 2016 and the ex-dividend date will be 17 August 2016. In the UK, the
last day to trade will be 17 August 2016 and the ex-dividend date will be 18 August
2016.
The interim dividend will be paid in 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 Rand will be confirmed by way of an announcement on 15
August 2016. UK shareholders are able to make an election to receive dividends in
Euro. 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 19 August 2016. 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 23 August 2016.

Shares cannot be moved between the South African register and the UK register
between 15 August 2016 and 19 August 2016, both days inclusive. Shares may not
be dematerialised or rematerialised in South Africa between 17 August 2016 and 19
August 2016, both days inclusive.

The Company has a total of 121,234,686 shares in issue on the date of this
announcement. 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 15% 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 15 August 2016.

Property Portfolio

The Company completed its IPO on 9 December 2015 and as at 30 June 2016 it had
assembled a portfolio comprising seven properties independently valued at €147.6
million. This reflects an increase in value of 4.3% compared to the total purchase price
of the assets. The portfolio produces a contracted rent of €8.7 million per annum
reflecting a net initial yield of 5.3% against the independent valuation and 5.6% against
the purchase price.

The portfolio has over 30 tenants with an average unexpired lease term, assuming all
tenants vacate at the earliest opportunity, of 6.8 years. The void rate is less than 1%.
The tables below summarise the key portfolio information as at 30 June 2016:

            Sector weightings                             % Market Value
                 Retail                                        52
                 Offices                                       48

           Country weightings                             % Market Value
               Germany                                        55%
                France                                        45%

Investment Progress

The Company has invested over €150 million (including transaction costs) during the
past seven months, representing all of the initial equity raised and a substantial portion
of the total investment capacity. It is in advanced negotiations to draw debt against a
number of the assets, within the overall gearing cap of 35% LTV. This will provide the
Company with additional investible funds of up to approximately €70 million. In
deploying the additional capital the Company will maintain focus on the growth cities
and regions of continental Europe and is aiming to add further diversification to the
portfolio by acquiring assets of an industrial / logistic nature. In addition, selective value
add investments are being reviewed. The real estate markets in these locations remain
competitive and the Company continues to actively pursue negotiations to make
further investments over the coming months.

Following the UK vote to leave the EU the Manager has seen no negative impact so
far on tenant or investor demand in Continental Europe. However, it has only been a
relatively short period of time and the Board and Manager will continue to monitor the
impact of this on the Company’s strategy. The Company remains positive given its
assets are dominated in Euros and that the investments have been made in
cities/regions which have traditionally proven to be stable and resilient over the long
term.

Tony Smedley, Head of Continental European Investment at Schroder REIM, said:

“We are pleased to be announcing our maiden fully covered interim dividend today,
illustrating the strength of the investment progress achieved to date. With the current
uncertainty overshadowing the UK real estate market, we believe it is positive that the
assets of the Company are denominated in Euros and that the Company owns income
producing assets in cities/regions which have traditionally proven to be stable and
resilient over the long term.”


Enquiries:

Duncan Owen/Tony Smedley
Schroder Real Estate Investment Management Limited          Tel: 020 7658 6000


Ria Vavakis
Schroder Investment Management Limited                      Tel: 020 7658 2371


Dido Laurimore                                              Tel: 020 3727 1000
FTI Consulting

Sponsor: PSG Capital Proprietary Limited

Date: 29/07/2016 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story