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Announcement Of NAV And 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
9 February 2017
ANNOUNCEMENT OF NAV AND DIVIDEND
Schroder European Real Estate Investment Trust plc (“SERE” or the “Company”), the
company investing in European growth cities, today announces its unaudited net asset
value for the three months to 31 December 2016 together with its first interim dividend
for the period to 30 September 2017.
Net Asset Value
The Company generated an unaudited net asset value (“NAV”) as at 31 December
2016 of €174.6 million or 130.6 cents per share (110.0 pence per share). This reflects
an increase of 0.5 cents per share compared with the NAV as at 30 September 2016.
A breakdown of the NAV increase over the quarter is set out below, split between pre
and post the impact of the equity placing completed in October 2016:
€m€ €m(1) cps
NAV as at 30 September 2016 157.8 130.1*
Unrealised gain in property valuation 0.4 0.3*
Operating profit 1.1 0.9*
Approved dividend payable (1.2) (1.0)*
Other 0.1 0.1*
NAV as at 31 December 2016 excl. equity raise impact 158.2 130.4*
Equity raise impact 16.4 0.2**
NAV as at 31 December 2016 174.6 130.6**
(1) Management reviews the performance of the Company principally on a proportionally consolidated basis. As a
result, figures quoted in this table include the Company’s share of joint ventures on a line-by-line basis and excludes
non-controlling interests in the Company’s subsidiaries.
* Reflects a base of 121,234,686 shares pre capital raise
** Reflects a base of 133,734,686 shares post capital raise
Interim Dividend
The Company announces a first interim dividend for the year to 30 September 2017 of
1.0 euro cents per share. The dividend represents an annualised rate of 3.0% based
on the euro equivalent of the issue price as at admission.
The dividend is fully covered from income receivable from the committed portfolio.
Once fully invested, including the debt being drawn, the Company’s objective is to pay
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 17 March 2017 to shareholders on the
register on the record date of 3 March 2017. In South Africa, the last day to trade will
be 28 February 2017 and the ex-dividend date will be 1 March 2017. In the UK, the
last day to trade will be 1 March 2017 and the ex-dividend date will be 2 March 2017.
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 21
February 2017. 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 Equiniti no later than 3 March 2017. 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 6 March 2017.
Shares cannot be moved between the South African register and the UK register
between 21 February 2017 and 3 March 2017, both days inclusive. Shares may not
be dematerialised or rematerialised in South Africa between 1 March 2017 and 3
March 2017, both days inclusive.
The Company has a total of 133,734,686 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 21 February 2017.
Property Portfolio
As at 31 December 2016, the Company owned seven properties independently valued
at €148.5 million (€148.2 million as at 30 September 2016), representing a like for like
increase of 0.2% over the quarter. In addition, the portfolio delivered a net property
income of €2.2 million over the quarter, resulting in an ungeared property income
return of 1.5% and a total return of 1.7% over the quarter.
The current valuation reflects an increase of 4.9% compared to the combined purchase
price of the seven asset portfolio. Over 60% of the transaction costs have been
recovered through valuation uplifts since acquisition.
In addition, the Company committed to acquire a €30 million high yielding office
building in Saint Cloud, Paris which completed on 2 February 2017. This purchase will
increase the portfolio value to approximately €180 million.
Including Saint Cloud, the occupancy rate of the portfolio is approximately 100%. The
portfolio generates €12.2 million p.a. contracted rental income, representing a net
initial property yield of 6.3% and a geared property yield of over 8%. The average
unexpired lease term is 5.0 years to first break and 7.1 years to expiry.
The portfolio's country and sector allocations, pre and post the Saint Cloud acquisition
are set out in the table below.
Country Portfolio Portfolio Sector Portfolio at 31 Portfolio
allocation (% at 31 Dec ‘16 including St allocation Dec ‘16 including
contracted rent) Cloud (% contracted Saint Cloud
rent)
France 52% 65% Office 48% 63%
Germany 48% 35% Retail 52% 37%
Total 100% 100% Total 100% 100%
Investment Progress
The Company’s shares began trading on 9 December 2015. Total capital of €183.3
million (£136.7 million) has been raised at the initial public offer and subsequent
placings up to 31 December 2016. The Company has invested over €185 million and
has drawn €48.7 million of debt across three loan facilities. The loans have an average
duration of 8 years and an average interest cost of 1.19% p.a.
The Company has remaining investment capacity of approximately €60 million and a
pipeline of suitable opportunities in growth cities.
Tony Smedley, Head of Continental European Investment at Schroder REIM, said:
“Today’s announcement is further evidence of the good progress we are making in
delivering on our strategy to provide investors with exposure to high quality income
producing real estate in Europe’s growth markets. We are pleased with the
performance of the portfolio to date as well as our debt strategy, which is very accretive
to shareholder returns.”
SERE will host a live webcast for investors and analysts on Monday 13 February at
1230GMT/12.30SAST. To register please use the following link: http://bit.ly/2kl1SCq.
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/Richard Gotla Tel: 020 3727 1000
FTI Consulting
JSE Sponsor: PSG Capital Proprietary Limited
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