Schroder Eur Real Est Inv Trust PLC Property Portfolio Valuation (1191Q)

TIDMSERE

RNS Number : 1191Q

Schroder Eur Real Est Inv Trust PLC

16 October 2023

16 October 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 30 September 2023:

- The direct property portfolio was independently valued at EUR214.1 million. The like-for-like decrease over the quarter of -1.9%, or -EUR4.2 million, (1) was driven by continued outward yield movement, as investor sentiment continues to be affected by the higher interest rate backdrop.

- The portfolio office assets (32%(2) ) witnessed a marginal valuation decline of -EUR0.75 million, or -0.9%. The St Cloud, Paris yield was unchanged, whilst Hamburg and Stuttgart saw a decline of c.10 basis points and 35 basis points respectively, with the latter offset by rental growth, reflecting the tight market supply.

- The portfolio industrial assets (30%(2) ) witnessed a valuation decline of -EUR1.9 million or -2.6%, driven by c.25 basis points of outward yield shift across the French logistics portfolio and select Dutch investments.

- The German retail portfolio witnessed a valuation decline of -EUR1.5 million, or -3.6%, solely as a result of a 25 basis points outward yield shift in the Berlin DIY investment.

- Based on 30 September 2023 values and following the recent Dutch industrial loan refinancing, the portfolio LTV is approximately 33% based on gross asset value and 24% net of cash (30 June 2023 LTV 31% gross and 23% net of cash).

   -     The Company remains well positioned with significant cash reserves and is reviewing 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: [phone] 

Shilla Pindoria

   Schroder Investment Management Limited                                     Tel: [phone] 

Dido Laurimore/Richard Gotla/Ollie Parsons

FTI Consulting Tel: [phone]

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCBXBDGGXBDGXX

(END) Dow Jones Newswires

October 16, 2023 02:00 ET (06:00 GMT)