Schroder Euro Real - Property Portfolio Valuation

Schroder European Real Estate Investment Trust

17/01/2023 07:00

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RNS Number : 8863M  Schroder Eur Real Est Inv Trust PLC  17 January 2023

17 January 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 31
December 2022:

-    The direct property portfolio was independently valued at €211.5
million, reflecting a slight like-for-like decrease over the quarter of -3.3%,
or €7.2 million 1 . This change was primarily driven by circa 25 basis
points of outward yield movement, increasing the portfolio net initial yield
to 6.0%, which more than offset the positive impact of rental growth.

-    With 100% of the portfolio leases subject to indexation, rising
inflation is starting to contribute to rental growth and will increasingly
mitigate further value declines.

-     Based on 31 December 2022 values and following the recent
refinancing of the Hamburg/Stuttgart loan, the portfolio LTV is approximately
32% based on gross asset value and 22% net of cash.

-     The Company is well positioned with significant cash reserves, with
potential investable fire power of up to approximately €50 million,
including further gearing.

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

 

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

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