REG - Schroder Euro Real - Property Portfolio Valuation

Schroder European Real Estate Investment TrustAnnouncement

09/10/2024 07:00

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RNS Number : 4047H  Schroder Eur Real Est Inv Trust PLC  09 October 2024

9 October 2024

 

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

("SEREIT"/ the "Company" / "Group")

 

PROPERTY PORTFOLIO VALUATION

 

STABILISATION OF PORTFOLIO VALUES CONTINUES AS GLOBAL INTEREST RATE HIKING
CYCLE COMES TO AN END

 

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 September 2024:

 

-     The direct property portfolio was independently valued at €208.1
million, reflecting a marginal decrease of -0.1% (30 June 2024 +0.1%), or
€0.20 million, over the quarter(1). This is the second consecutive quarter
of stabilising values and recent European central bank rate cuts are expected
to have a further positive impact on investor and occupier confidence,
liquidity and values

-     Two properties witnessed a valuation increase over the quarter:

o  The Cannes Car Showroom increased €0.20 million, or +2.9%, driven, by
index-linked income growth of ca 5%;

o  The Stuttgart office increased by €0.05 million, or +0.3%

-     All other property values remained flat, except for the mixed-used
data centre in Apeldoorn which reduced by €0.45 million, or -3.2%, due to
the declining remaining lease term

-     The portfolio's income profile remains robust, benefitting from 100%
rent collection over the quarter and high occupancy (96%)

-     Based on 30 September 2024 values, the portfolio Loan-to-Value is
approximately 33% based on gross asset value and 25% net of cash, providing
significant flexibility.

 

Sir Julian Berney Bt., Chairman, commented:

 

"Following the recent period of macro volatility, there is increasing evidence
that the market has reached an inflection point. Falling inflation and
interest rates are providing an underpin for improving investor sentiment and
liquidity, which is translating into valuation resilience, and provides an
encouraging platform as we look ahead to 2025."

 

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

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