Schroder European Real E... Share Discussion Threads

[spectoacc] 19/4/2024 10:34

Coming back into range (either that or about to drop through support).

This bear market reminded me of 2000-03 from the off - suspect we're well into 2002 now.

[hugepants] 11/4/2024 22:40

Portfolio valuation as at end March


...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%...

That would imply NAV is around 105p now. So still on a 40%+ discount.

[speedsgh] 05/4/2024 13:35

According to pg18 of the Annual Report for the year to 30/9/2023, there is an outstanding principal of EUR11.68m on SERE's 50% share of external debt in the Seville joint venture. The loan is provided by Münchener Hypothekenbank eG and has a maturity date of 22/5/2024.



In the current FY SERE has refinanced 2 loans against properties in France:

rns 20/12/23 re St Cloud, Paris office -

rns 3/4/24 re Rennes logistics asset -

[garbetklb] 05/4/2024 12:30

The RNS, dated 23/05/17, has the ringfenced loan running for 7 years. Does anyone know if it's been refinanced along the way, or is D day in about 7 weeks?

[essentialinvestor] 05/4/2024 12:09

Original RNS on the Seville acquisition, if you like your humour on the dark side, it's worth a read.

[hugepants] 05/4/2024 12:01

Yes its written down to squat. Kepler make the following observation on the debt attached to the shopping centre;

"Although the headline figure for gearing is 24%, in effect SERE is geared c. 20%. This is because one asset, a Seville retail asset, is written down to a value of zero. There is €11.7m of debt secured against this asset, with no recourse to any other assets . The lender collects all income from this asset which it uses to pay interest. Thus, from an investor perspective, having written the investment to zero from both an income and capital perspective, it has no day-to-day impact on the rest of the portfolio. Jeff believes that there is very little chance of recovering any value from this asset and all the cashflows from the asset go to servicing the debt. Although a conclusion hasn’t been reached, one possible outcome is that the asset is handed over to the lender at the end of the loan's term. Because shareholders have already foregone any value for this asset, which is held within a structure with no recourse to the rest of the company, this tranche of debt would have no effect positively or negatively on SERE's NAV should the rest of the portfolio rise or fall in value, and so one can consider the gearing to be c. 20% from the perspective of what gearing will mean for net asset value total return. In a scenario where this specific asset rises in value significantly, which is very unlikely at this stage, then of course this would have a positive impact on NAV."

[skyship] 05/4/2024 11:54

No. ARTL disposed of the H2O shopping centre in Madrid. SERE still hold the Seville shopping centre - though written down to ZERO.

[essentialinvestor] 05/4/2024 11:40

Just reading back here I see rhe Spanish asset was a disaster.

I mentioned here a few years back what they were they doing buying a southern Spanish shopping centre.

[essentialinvestor] 05/4/2024 11:26

Did they dispose of the Spanish shopping centre?.

[hugepants] 26/3/2024 12:13

I'm keeping it simple and just focussing on yield and discount to nav spec. Sere's 8.3% yield is covered whereas labs 4.6% yield isn't. The discounts are approx the same.

[hugepants] 26/3/2024 11:47

I sold my LABS shares (another disaster!) to top up down here at 61.2p

[skyship] 21/3/2024 15:20

thnx - edited accordingly

[skyship] 21/3/2024 10:33

Well Kepler has that totally wrong. Divi rebased to 1.48c/Qtr, ie 5.92c pa. At 1:17 forex, that = 5.06p for a yield of 7.97% at 63.5p.

[ammons] 21/3/2024 10:07

The Kepler research note dated yesterday says the yield is 6.3%, not 8%.

"......A key difference between European and UK commercial property is that there are often explicit inflation links via CPI in lease terms in Europe, which is referred to as ‘indexation217;. SERE's portfolio is 100% exposed to some form of local indexation, and Jeff reports that even at higher inflation rates, indexed rents have all been accepted by tenants. SERE's dividend yield of 6.3% is fully covered, following a rebasing of the dividend in 2023....."

[hugepants] 21/3/2024 09:23

New research (Kepler)

[ntv] 20/3/2024 17:11

Happy to sit and hold on an approx 8% yield and wait for a recovery
Good to see dividend cover expanding

[skyship] 20/3/2024 10:58

Results as expected. NAV 124.8c (106.7p at forex 1:17). Divi covered 110%; so continue like that and we could see a minor increase at the end of the year. 96% occupancy and 100% rent collection.

Sir Julian Berney Bt., Chairman, commented:

"The Company is very well placed, with one of the strongest balance sheets - a net LTV of 24% and €27 million in cash - and dividend covers amongst the UK-listed peer group. The Board continues to assess opportunities to grow earnings and the evolution of the strategy to maximise shareholder returns and liquidity. The current share price discount does not reflect the strength of the portfolio, growth city exposure and local expertise of the investment manager."

At the offer price of 63.5p these are now on a 40.5% discount & an 8.03% yield.

Rating does seem more than a little harsh.

[skyship] 15/3/2024 08:59

Should see the Q4'23 NAV & Divi Update next week.

At 64p these are now on a 40% discount and 8% yield. So now down to good value; but currently unable to see what might put them any better.

[neilyb675] 26/2/2024 14:10

I post when, where and what I like.

Comprehend.

[skyship] 26/2/2024 14:08

Thnx Neily - but we can all see the share price - so no need for yr pricing updates!

[neilyb675] 26/2/2024 13:59

65.40 - 67.80 (GBX) at 08:09:15
on Market (LSE)

[neilyb675] 19/2/2024 15:12

66.20 - 67.80 (GBX) at 14:02:53
on Market (LSE)

[speedsgh] 12/1/2024 14:52

Not the most positive of updates...

Property Portfolio Valuation -

[boystown] 08/1/2024 11:40

Thanks Skyship, I'll have a closer look, but I like their portfolio.