Schroder European Real E... Share Discussion Threads

[skyship] 03/10/2024 09:41

Another trust sells up as sub-scale and unable to grow due to the large NAV discount.

This today from ROOF:

"As described further below, the Board determined that a sale of the Portfolio was the best means of maximising Shareholder value against a backdrop of persistently wide share price discounts in the investment trust sector, the subscale nature of the Company and consistent shareholder feedback to sell the Portfolio."

About time Schroders recognised that SERE too is too small. It needs to sell in-house, sell to a third party or opt to wind-up.

[lord gnome] 16/9/2024 14:16

Uptrend continues and seems to be gathering momentum.

[hindsight] 13/9/2024 08:19

Some volume and life at last

[hindsight] 07/9/2024 09:14

Not sure I would say £170m isnt worth bothering about, and a figure that many could swallow. What is clear is £170m isn't economic now so something needs to happen
If API, ASLI, EBOX, BCPT depart it will be my largest REIT and would certainly welcome an approach too

[skyship] 06/9/2024 19:32

Indeed; but such a minnow, surely not worth bothering about!

Still. I hold a few and would certainly welcome an approach...

[bench2] 06/9/2024 19:09

Wow , +4% share price on decent volume , but will it hold ? With Tritax Eurobox agreeing to a bid by Segro SERE looks a sitting duck on such a big discount .

[skyship] 28/7/2024 13:27

Agreed - a 19k UT at 62.2p rather bizarre v. an share price of 65.0-65.6p!

Schroders need to do the right thing here; but they are not noted for assisting shareholders; preferring to hang on to their fees.

[hindsight] 27/7/2024 10:58

Ok the weak close was the auction trade but it only toke £12k to shift it down, so shows the underlying weakness here

Thought the valuation update was quite good two weeks ago. Office still weak but its 33% here, its not an RGL

So wondering what am I missing on my 4th largest reit holding ?
Agree with Skyship it needs to join my bigger ones winding up

[aishah] 25/6/2024 08:05

Recent ECB rate cut puts the spotlight on SERE’s 40% discount and 8% covered dividend yield...

[skyship] 20/6/2024 08:09

Problem with buybacks is they would just further reduce the size of SERE.

They recognise they have a problem; but are failing to deal with it.

Voluntary Liquidation really the only solution.

[giltedge1] 20/6/2024 07:35

Apeldoorn lease €3m rent, Asset valued at €14m seems odd, no explanation. Obviously imperative this lease renewed. Think I'll wait until more clarity. Rest of portfolio fine.

[ferrox5] 19/6/2024 19:14

They talked about share buybacks in the presentation this morning

[skyship] 19/6/2024 07:27

Steady as she goes sort of statement; though the Chairman tries to beef up SERE's credentials:

"The Company provides a compelling and differentiated investment proposition compared to our UK-listed peers. We have the flexibility to grow earnings through exposure to strongly performing assets in higher growth European cities, as well as executing on value-enhancing asset management opportunities."

The fact is that SERE is really too small to continue; they should wind-down as per API & ASLI - both more than twice the size.

Still, at 64p these are on a 39% discount and an 8% yield - so certainly value for the patient whilst we wait for Schroders to do the right thing.

[giltedge1] 11/6/2024 07:33

Hello raj k, I agree major concern Apeldoorn lease 17% income & over rented, I have been there only a small town, so not many alternative tenants I would have thought. Better value in stablemate SREI, of course if new KPN lease signed would change risk profile. Like other assets in fund & low gearing.

[spectoacc] 11/6/2024 05:44

Posted on multiple threads and best filtered.

[raj k] 09/6/2024 08:16

In the kepler report mentioned before it states that the data center in Apeldorn is over rented by 50%. The lease expires in 2026. What is stopping them moving as they are paying over the odds? Current contracted rent 3.0m and ERV is 2.0%.

[chico hamilton] 06/6/2024 18:38

They show 9% because they are not taking into account the currency conversion of the dividend back to GBP

[raj k] 05/6/2024 13:03

Thanks Sky i have made a starter position . Not sure if tomorrow ECB interest rate decision will have an impact and it will run away from me while i build but at least its a proper watchcard now.

[skyship] 05/6/2024 12:24

Raj - divi stats correct as you state. Never trust other websites; just these threads!

[raj k] 05/6/2024 11:35

Does anyone know what the current divdiend yield is for SERE. i make it 1.48 cents a quarter which is 1.26 pence x 4 = 5.04 pence. On buy price of 64.2 thats 7.85%. Where are Hargraeaves Lansdown and AIC website getting 9.0% from?

[hugepants] 05/6/2024 09:25

Yes the portfolio is quite concentrated. These offices are close to central Paris so you'd think have potential alternative use if the demand for offices does not hold up.

[raj k] 05/6/2024 09:18

I want to invest in SERE my concern being the office exposure , trying to look through their latest presentations. What is Ian Cowie referring to as luxury shopping malls?

SERE manager did a presentation


So they have three offices.
Manager is not worried about the two in Germany , even though they are grade B there is demand for the lower rents compared to prime office

Says office block in France is more challenging. Factsheet from 30 september 2023 show this as 16% of total portfolio. Let to SME's on shorter leases so reuqires lots of management. Id feel more comfortable if they didnt have this but at a 40% discount to NAV might be a good investment