SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC - Property Portfolio Valuation - Stabilisation of Values Supported by Income Growth

Property Portfolio Valuation - Stabilisation of Values Supported by Income Growth

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")



PROPERTY PORTFOLIO VALUATION
STABILISATION OF VALUES SUPPORTED BY INCOME GROWTH


Schroder European Real Estate Investment Trust plc, the company investing in real estate in
European growth cities, today provides an update on the independent valuation of the property
portfolio as at 30 June 2024:

-   The direct property portfolio was independently valued at €208.3 million, reflecting a marginal
    increase of 0.1% (31 March 2024 -1.0%), or €0.2 million, over the quarter (see footnote 1 below).
    This signals a stabilisation in values, particularly for the industrial and retail sectors, which
    offset the continued outward yield movement for offices. In addition, the portfolio's income
    profile remains robust, benefitting from rental growth, indexation and high occupancy (96%),
    which is diversified across c.50 tenants.

-   The retail assets portfolio witnessed a valuation increase of €0.8 million, or 1.9%, attributed to
    the Frankfurt grocery asset (€0.8m / 6.8%) following the successful completion of a new 15-
    year lease extension with anchor tenant Lidl, whilst the Berlin DIY store valuation remained
    unchanged.

-   The industrial portfolio valuation increased €0.6 million, or 0.8%, driven by estimated rental
    value ("ERV") growth in Houten (4.0%) and Venray II (5.3%), the Netherlands, as well as index-
    linked income growth in Nantes (1.7%), France.

-   The office portfolio valuation declined -€0.7 million, or -0.8% (Hamburg -0.9%; Stuttgart -0.8%;
    and Paris -0.8%), predominantly due to c.10 basis points of outward yield shift in Germany, as
    well as the valuers adjusting their letting assumptions in Paris.

-   The alternative assets portfolio valuation comprised a -€0.5 million, or -3.1%, decline for the
    mixed-used data centre in Apeldoorn due to the declining remaining lease term, whilst the
    Cannes car room valuation remained unchanged.

-   Based on 30 June 2024 values, the portfolio LTV is approximately 33% based on gross asset
    value and 24% net of cash providing significant flexibility.

Footnote 1: In addition, the Company has a 50% interest in a joint venture in Seville which
continues to be recognised at nil value

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.

London
11 July 2024

JSE Sponsor:
PSG Capital

Date: 11-07-2024 08:00:00
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