REG - Schroder Euro Real - Property Portfolio Valuation

Schroder European Real Estate Investment TrustAnnouncement

14/04/2025 07:00

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RNS Number : 7677E  Schroder Eur Real Est Inv Trust PLC  14 April 2025

14 April 2025

 

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

("SEREIT" or the "Company" and, together with its subsidiaries, the "Group")

 

PROPERTY PORTFOLIO VALUATION

 

INDUSTRIAL VALUATION GROWTH CONTINUES TO UNDERPIN OVERALL PORTFOLIO VALUATION

 

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 31 March 2025.

 

 ·         The direct investment property portfolio was independently valued at €194.0
           million, reflecting a marginal like-for-like decrease of -0.3%, or €0.6
           million, over the quarter, with robust industrial portfolio valuations
           continuing to offset declines in other sectors, primarily driven by shortening
           lease terms.
 ·         In addition, the €11.80 million sale of the Company's grocery asset in
           Frankfurt will complete this month, net of expected transaction costs.
 ·         The industrial portfolio valuation increased 1.8% (€1.3 million), driven by
           a combination of continued positive investment sentiment and rental value
           increases. The assets in Venray I (5%), Nantes (5%), Utrecht (5%), Rumilly
           (2%), and Venray II (1%) all saw valuation growth during the quarter.
 ·         Office portfolio valuations declined 0.9% (-€0.5 million), a significantly
           smaller decline versus the previous quarter (2.4%). The Hamburg asset value
           declined 4% (-€0.9 million) primarily due to outward yield movement. This
           reduction was partially offset by the Paris asset value increasing 1% (+€0.4
           million), as a result of index-linked rents delivering income growth.
 ·         Following the Frankfurt sale, the Berlin DIY store is the sole retail asset in
           the portfolio. Its value decreased by 2% (€0.6 million), as valuers revised
           their cap rates owing to the short remaining lease term. Negotiations are in
           progress regarding a potential lease extension.
 ·         Alternative portfolio valuations fell by 2.7% (€0.6 million), with the
           Cannes car showroom remaining unchanged, while the mixed-use data centre in
           Apeldoorn declined by €0.6 million, or -4%, due to the decreasing remaining
           lease term.
 ·         In line with best practice and governance, the Company will be changing
           valuers from Knight Frank to Savills effective from 30 June 2025. Savills has
           conducted a shadow valuation of the Company's portfolio as of 31 March 2025,
           resulting in a valuation consistent with that of Knight Frank.

 

-Ends-

 

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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