Schroder European Real E... Share Discussion Threads

[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.

[skyship] 08/1/2024 11:35

Yes, back in with a quite high allocation. Like you was relieved to have banked a reasonable profit up at c. the 87p level - see P. No.204.

After the sensible re-basing of the dividend the 37% discount and 7.3% yield certainly looks like good value.

[boystown] 08/1/2024 11:10

Did you buy back in here Skyship? I sold at over 87p last time - but am tempted to buy back for the relatively safe yield even if the share price stagnates.

[skyship] 06/1/2024 13:16

30mins into this video presentation, the investment manager talks about possible buybacks, which, with the 40% NAV discount, is a subject constantly discussed with the BoD:

[skyship] 02/1/2024 20:19

Major shareholders:

# Truffle Asset Management = 10%

# Schroders = 8%

[cwa1] 02/1/2024 16:52

Agreed, too small to survive as a lone entity IMO and that's partly why I took a stake in the hope that something would happen to consolidate/take it out

[skyship] 02/1/2024 16:46

Indeed; however SERE is 100% in Euroland - so an entirely different proposition.

[riverman77] 02/1/2024 16:30

Will probably merge with another REIT - that seems to be the way things are going, although means no premium for shareholders.

[skyship] 02/1/2024 16:26

I wonder what 2024 holds for SERE. Surely far too small to continue as an independent entity - £92m MCap!

Personally feel that they should put up a For Sale notice; and if no-one approaches then opt to liquidate. Should realise something in the range of 95p-100p.

95p would provide c 33% upside. I'd be happy with that!

[skyship] 20/12/2023 08:59

Whoops - O'Dwyer working for a different company:)

[cwa1] 20/12/2023 07:33

From above announcement:-

Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited, commented: "We have successfully managed the Company's main re-financing risk, pre-empting the tougher lending environment we anticipate facing select offices. The Company has a robust balance sheet, providing the necessary flexibility to deliver on our strategy and react to changing market conditions as new opportunities arise."

[hugepants] 13/12/2023 12:40

Worth noting perhaps that it has quite a concentrated portofolio with one tenant, a datacentre/office in Netherlands, being 17% of the rent. Otherwise the portfolio looks pretty good with offices at 33% but these appear well located in major European cities. Industrial properties are about 30% and retail about 15% which looks to be mainly retail warehouse. Rent is linked to inflation. LTV, net of cash, is 24%.
On a 40% discount and the share price hasn't really bounced yet.

[garbetklb] 12/12/2023 09:36

I'd not seen that the JV was in administration. I did see that it was in breach of covenants on its loan, so all income directed to the loan. I was just concerned that it might come with some obligations.......

[skyship] 12/12/2023 08:30

Agreed, an £88m MCap is really too small; needs to be absorbed by someone - however - who? The Euro portfolio not of interest to the UK REITs; so a pension fund or a continental player perhaps. But perhaps too small to bother with!

[skyship] 12/12/2023 08:00

Dividends

The Board has elected to continue with the 1.48 euro cps quarterly dividend, bringing the total dividend announced in relation to the financial year to 6.66 euro cents per share. Dividend cover for the period was 89%, increasing to 106% for the last six months. This follows the decision in June to re-base the dividend to a quarterly minimum dividend of 80% of the then current level. This decision was not taken lightly, but as we stated at the time, our priority is to protect shareholder value over the long term. It provides significant flexibility, enabling us to pay a covered dividend that can be grown over time.
=====================================

So, last year pd 2 x 1.85c + 2 x 1.48c; for a total of 6.66c.

For the year ahead I'm assuming:

3 x 1.48c + 1 x 1.56c for a covered total of 6.00c (5.15p)

That provides a prospective yield of 7.8% at 66p.

[langland] 12/12/2023 07:51

The forward yield is 7.75% based on 4x1.48 cents. I bought on Friday on discount, yield and low LTV. But surely with such a low mkt cap this is unlikely to stay independent? Some sort of merger/takeout at 80ish?

[skyship] 12/12/2023 07:20

Have no detail; but mention of a JV in administration down in Seville. Attributed nil value.

[garbetklb] 11/12/2023 21:32

I've a small holding in SERE and am researching further. One thing I see mentioned in passing is a Spanish Joint Venture - but I'm struggling to find any details. I asked a question in the recent presentation - but it was ignored.......
Anyone able to shed light?

[skyship] 11/12/2023 16:49

Also added at 65.6p. Missed the earlier cheaper stock. Excellent trade CWA!

At 66p (inc. SD) the discount is 40% and the yield 8.67% on the 6.66c total for the year.

Anyone have anything different?

[spooky] 11/12/2023 15:34

I have added some more.