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SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC - Rent Collection And Property Portfolio Valuation Update

Release Date: 22/10/2020 11:45
Code(s): SCD     PDF:  
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Rent Collection And Property Portfolio Valuation Update

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

22 October 2020

RENT COLLECTION AND PROPERTY PORTFOLIO VALUATION UPDATE

Schroder European Real Estate Investment Trust plc ("SERE" or the "Company"), the company investing in
European growth cities, today provides an update on rent collection, alongside a quarterly independent
valuation of the property portfolio as at 30 September 2020.

    -   Approximately 88% of rent due as at 21 October 2020 has been collected, which is ahead of the amount
        collected in the previous two quarters.
    -   As at 30 September 2020, the property portfolio was independently valued at €268.6 million, an
        increase of 9.8%, or €23.9 million, on the 30 June 2020 valuation of €244.7 million.
    -   The valuation increase during the quarter was driven by a number of successful asset management
        initiatives across the portfolio which included:
              o Exchanged contracts to sell its Boulogne-Billancourt office asset in Paris for approximately
                  €104 million. The sale is structured as a forward funding, with the building being handed over
                  to the purchaser in H1 2022, following completion of a comprehensive refurbishment which is
                  being undertaken by the Company. The refurbishment and sale follows the agreement of a
                  new 10-year pre-let contract with existing tenant Alten in June this year at a rent 39% higher
                  than the previous rent paid. As at 30 September, the property is held at a valuation of €65.2
                  million, which reflects the sale price, less an adjustment for the costs, risk and process of the
                  refurbishment. The asset was valued at €41.6 million as at 30 June 2020.
              o A new five-year lease agreement for a further floor at its Hamburg office investment,
                  representing c. 10% of the lettable area. This resulted in a valuation increase of €0.6 million.
              o SERE’s 50% interest in the Seville shopping centre witnessed a valuation decline of €350,000
                  or 1.6% over the quarter, resulting in a total valuation decline of 8.6% since the 30 December
                  2019 valuation (the last quarter not impacted by Covid-19). Recent successful asset
                  management initiatives, including the expansion of the supermarket has helped defend
                  further valuation declines.
    -   The Company remains prudently geared with a loan to value, net of cash, of approximately 25% as at
        30 September 2020, with no debt maturity before 2023.

In line with previous years, the 30 September 2020 NAV will be included in SERE’s full year results for the year
ending 30 September 2020, which will be announced on 9 December 2020. There will be a live webcast
presentation for analysts and investors on the morning of the results.

Enquiries:

Jeff O’Dwyer / Duncan Owen
Schroder Real Estate Investment Management Limited             Tel: 020 7658 6000

Ria Vavakis
Schroder Investment Management Limited                         Tel: 020 7658 2371

Dido Laurimore/Richard Gotla/Methuselah Tanyanyiwa
FTI Consulting                                                 Tel: 020 3727 1000

JSE Sponsor
PSG Capital

Date: 22-10-2020 11:45:00
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