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Property Portfolio Valuation
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
PROPERTY PORTFOLIO VALUATION
Schroder European Real Estate Investment Trust plc ("SERE" or the "Company"), the
company investing in real estate in European growth cities, today provides an update on
the independent valuation of the property portfolio as at 31 March 2024:
- The direct property portfolio was independently valued at €208.1 million. The
marginal like-for-like decrease over the quarter of -1.0% (31 December 2023 -1.8%),
or -€2.2 million (see footnote 1 below), was driven by continued outward yield
movement, particularly for offices and select retail. The rental income has remained
stable with a continuing high level of rent collection and the portfolio benefiting
from indexation and high occupancy of 96%
- The portfolio office assets (33% - see footnote 2 below) witnessed a valuation decline
of -€0.9 million, or -1.1%, comprising:
o Stuttgart (-€1.0m/-5.0%) and Hamburg (-€0.3m/-1.4%), reflecting 25 basis
points and 15 basis points of outward yield movement respectively.
o The St Cloud, Paris valuation increased €0.4 million, or 1.1%, driven by indexed-
led income growth and a new 6/9/12 year lease for 540 sqm of office space.
- The portfolio industrial assets (30%-see footnote 2 below) witnessed a valuation
increase of €0.3 million, or 0.4%, driven by index-linked income growth in Rennes,
France, as well as estimated rental value ("ERV") growth in Venray, the Netherlands.
- The German retail portfolio (17% -see footnote 2 below) valuation declined -€0.9
million, or -2.3%, due to 15 basis points of outward yield movement in the Berlin DIY
investment, whilst the Frankfurt grocery asset valuation remained unchanged.
- The valuation of the two alternative investments (9% - see footnote 2 below) declined
marginally to €0.7 million, or -3.2%, as a result of c.15-35 basis points of outward
yield shift.
- Based on 31 March 2024 values and following the recent Rennes logistics loan
refinancing, the portfolio LTV is approximately 33% based on gross asset value and
24% net of cash (31 December 2023 LTV 33% gross and 24% net of cash).
- The Company remains well positioned with significant cash reserves and is
continuing to review select sustainability-led capex initiatives in the portfolio, which
should optimise earnings growth and asset liquidity.
Footnote 1: In addition, the Company has a 50% interest in a joint venture in Seville which continues to be recognised
at nil value.
Footnote 2: Including available cash.
Enquiries:
Jeff O'Dwyer
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Shilla Pindoria
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 April 2024
JSE Sponsor:
PSG Capital
Date: 11-04-2024 08:00:00
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