11 April 2024
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 March
2024:
- The
direct property portfolio was independently valued at €208.1
million. The marginal like-for-like decrease over the quarter of
-1.0% (31 December 2023 -1.8%), or -€2.2 million,1 was driven by continued outward yield movement,
particularly for offices and select retail. The
rental income has remained stable with a continuing high level of
rent collection and the portfolio benefiting from indexation and
high occupancy of 96%
- The portfolio office assets
(33%2) witnessed a valuation decline of
-€0.9 million, or -1.1%, comprising:
o Stuttgart
(-€1.0m/-5.0%) and Hamburg (-€0.3m/-1.4%), reflecting 25 basis
points and 15 basis points of outward yield movement
respectively.
o The St Cloud,
Paris valuation increased €0.4 million, or 1.1%, driven by
indexed-led income growth and a new 6/9/12 year lease for 540 sqm
of office space.
- The portfolio industrial assets (30%2)
witnessed a valuation increase of €0.3 million, or
0.4%, driven by index-linked income growth in Rennes, France, as
well as estimated rental value ("ERV") growth in Venray, the
Netherlands.
- The German retail portfolio (17%2) valuation declined -€0.9 million, or -2.3%,
due to 15 basis points of outward yield movement in the Berlin
DIY investment, whilst the Frankfurt grocery asset
valuation remained unchanged.
- The valuation of the two alternative investments
(9%2) declined
marginally to €0.7 million, or -3.2%, as a result of c.15-35 basis
points of outward yield shift.
- Based on 31 March 2024 values and following the recent Rennes
logistics loan refinancing, the portfolio LTV is
approximately 33% based on gross asset value and 24% net of cash
(31 December 2023 LTV 33% gross and 24% net of cash).
- The Company remains well positioned with significant cash
reserves and is continuing to review 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