REG - Schroder Euro Real - Property Portfolio Valuation

Schroder European Real Estate Investment TrustAnnouncement

16/10/2023 07:00

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RNS Number : 1191Q  Schroder Eur Real Est Inv Trust PLC  16 October 2023

16 October 2023

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 30
September 2023:

-   The direct property portfolio was independently valued at €214.1
million. The like-for-like decrease over the quarter of -1.9%, or -€4.2
million,(1) was driven by continued outward yield movement, as investor
sentiment continues to be affected by the higher interest rate backdrop.

-      The portfolio office assets (32%(2)) witnessed a marginal
valuation decline of -€0.75 million, or -0.9%. The St Cloud, Paris yield was
unchanged, whilst Hamburg and Stuttgart  saw a decline of c.10 basis points
and 35 basis points respectively, with the latter offset by rental growth,
reflecting the tight market supply.

-      The portfolio industrial assets (30%(2)) witnessed a valuation
decline of -€1.9 million or -2.6%, driven by c.25 basis points of outward
yield shift across the French logistics portfolio and select Dutch
investments.

-      The German retail portfolio witnessed a valuation decline of
-€1.5 million, or -3.6%, solely as a result of a 25 basis points outward
yield shift in the Berlin DIY investment.

-     Based on 30 September 2023 values and following the recent Dutch
industrial loan refinancing, the portfolio LTV is approximately 33% based on
gross asset value and 24% net of cash (30 June 2023 LTV 31% gross and 23% net
of cash).

-    The Company remains well positioned with significant cash reserves
and is reviewing select sustainability-led capex initiatives in the portfolio,
which should optimise earnings growth and asset liquidity.

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

(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

 

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