UK's Schroder European REIT proposes wind-down as NAV falls

Schroder European Real Estate Investment Trust

Wed 07:10

Overview
UK-listed European property trust to pursue managed wind-down and capital return to shareholders
Underlying EPRA earnings for half-year fell to €3.6 mln from €3.9 mln a year earlier
Net asset value declined, driven by unrealised revaluation losses on the property portfolio

Outlook
Company proposes managed wind-down and return of capital to shareholders, pending investor approval
Wind-down process expected to take approximately two to three years to complete
Company expects dividend payments to decline as portfolio income reduces and capital is returned

Result Drivers
LEASE EXTENSIONS - Successful long-term lease extensions in Rumilly and Stuttgart drove valuation gains for those assets
TENANT DEPARTURES - Valuation declines in Alkmaar and Cannes were driven by tenants vacating, impacting income and asset values
OCCUPANCY AND RENT COLLECTION - High occupancy and robust rent collection supported stable income returns

Company press release: ID:nRSX4942Ja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Development Revenue
 
EUR 6,000
 
H1 Operating Profit
 
EUR 2.69 mln
 
H1 Property Operating Expenses
 
-EUR 2.32 mln
 

Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the commercial reits peer group is "buy."
Wall Street's median 12-month price target for Schroder European Real Estate Investment Trust PLC is GBp80.00, about 33.8% above its June 23 closing price of GBp59.80
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)