Schroder European Real E... Share Discussion Threads

[speedsgh] 19/6/2019 08:42

SECOND INTERIM DIVIDEND -

Schroder European Real Estate Investment Trust plc (the "Company") announces its second interim dividend for the year ending 30 September 2019 of 1.85 euro cents per share.

The interim dividend payment will be made on Monday, 22 July 2019 to shareholders on the register on the record date of Friday, 5 July 2019. In South Africa, the last day to trade will be Tuesday, 2 July 2019 and the ex-dividend date will be Wednesday, 3 July 2019. In the UK, the last day to trade will be Wednesday, 3 July 2019 and the ex-dividend date will be Thursday, 4 July 2019.

The interim dividend will be paid in sterling to shareholders on the UK register and rand to shareholders on the South African register. The exchange rate for determining the interim dividend paid in rand will be confirmed by way of an announcement on Monday, 24 June 2019. UK shareholders are able to make an election to receive dividends in euro. The form for applying for such election can be obtained from the Company's UK registrars (Equiniti Limited) and any such election must be received by the Company no later than Friday, 5 July 2019. The exchange rate for determining the interim dividend paid in sterling will be confirmed following the election cut off date by way of an announcement on Monday, 8 July 2019...

[speedsgh] 01/4/2019 15:29

NOTICE OF DIVIDEND CURRENCY EXCHANGE RATE (STERLING) -

On 7 March 2019, Schroder European Real Estate Investment Trust plc (the "Company") announced its first interim dividend for the year ending 30 September 2019 of 1.85 euro cents per share...

Declared dividend - 1.85 euro cents per share
Exchange rate - 0.85940
Dividend to be paid for those receiving dividends in sterling - 1.58989 pence per share

The dividend will be paid on 12 April 2019 to shareholders who were on the register at the close of business on 29 March 2019.

[speedsgh] 01/4/2019 15:26

French logistics acquisition -

SCHRODER EUROPEAN REIT PLC INCREASES LOGISTICS EXPOSURE WITH €17.3 MILLION FRENCH ACQUISITION

Schroder European Real Estate Investment Trust plc ("SERE"), the company investing in European growth cities, has completed the acquisition of two logistics warehouses near Rennes, in Brittany, France, for €17.3 million, reflecting a net initial yield of 5.9%.

The acquisition was part funded with a new loan facility totalling €8.6 million, which has been secured against the Rennes property.

Providing 23,852 sqm of institutional quality space across two adjacent buildings, the property is let on a 12 year lease to C-Log, the logistics subsidiary of Groupe Beaumanoir, the international fashion retailer, which has invested significant capex in equipping the building with automated technology.

The property is located at the junction of two major arterial routes and benefits from excellent sea, high speed rail and air connectivity. In line with Schroders' Winning Cities strategy, Brittany is one of France's fastest growing regions in terms of GDP and population growth.

Jeff O'Dwyer, of Schroder REIM, commented: "The 12 year lease on this asset to a strong covenant in a fast growing region of France makes this another excellent addition to our already high-quality portfolio of assets. We have now deployed all of the proceeds from last year's sale of low yielding retail assets into five warehouse investments, with a blended net income yield of approximately 6.4%, further diversifying the portfolio and increasing its allocation to the high growth industrial and logistics sector."

Following this acquisition, the SERE portfolio comprises 13 properties with a value of approximately €240 million and a blended net initial yield of 6.2%. The portfolio's sector allocation is 46% office, 27% retail, 19% industrial and 8% mixed use.

DEBT FACILITIES

Totalling €8.6 million, the new loan facility has been agreed with Franco-German regional bank SaarLB. It represents a blended loan to value of approximately 50% against the Rennes property.

The loan has a term of 5.0 years and a margin of 1.4% above 3 month Euribor. The Group has acquired an interest rate cap to limit future potential interest costs, with a strike rate of 1.0% p.a.

SERE now has total third party loans of €73.0 million, representing an overall loan to value across the Group of 29% against the gross asset value, at an average weighted interest rate of 1.4%. The average unexpired loan term is 5.5 years.

[speedsgh] 08/3/2019 09:00

Announcement of NAV and dividend -

Schroder European Real Estate Investment Trust plc ("SERE" or the "Company"), the company investing in European growth cities, today announces its unaudited net asset value ("NAV") for 31 December 2018, together with its first interim dividend for the year ending 30 September 2019:

- Unaudited NAV as at 31 December 2018 of €183.5 million or 137.2 cents per share;

- Annual NAV total return for 12 months to 31 December 2018 of 6%;

- An interim dividend of 1.85 euro cents per share relating to the quarter to 31 December 2018.

Since the period end the Company has made further progress with its investment strategy and has exchanged contracts to acquire two logistics warehouses in Rennes, France for €17.3 million, reflecting an attractive net initial yield of 5.9%. The acquisition is expected to complete before March quarter end and will be part funded with two new loan facilities totaling €12.3 million secured against both the Rennes asset and the Rumilly logistics property, which was acquired in 2018. Upon completion of the purchase, SERE will have redeployed the net proceeds raised from the sale of the two Casino supermarkets in 2018 into five warehouse investments, growing the portfolio's exposure to the high growth industrial sector to 19%.

Jeff O'Dwyer of Schroder REIM said:

"The portfolio's investments offer strong diversification benefits from a sector, city and tenant perspective, and have an average unexpired lease term of approximately 6.5 years. Our current dividend yield of c. 6% is highly attractive relative to other asset classes and looking forward, we have a number of asset management initiatives that will assist in delivering continued income and capital growth.

"Recent geo-political uncertainty caused by events such as Brexit and the US-China trade wars have had a dampening effect on global growth. Notwithstanding this, we have invested in 'Winning Cities' such as Berlin, Hamburg, Frankfurt and Paris that will continue to remain attractive irrespective of political risk and where the real estate fundamentals remain compelling. They are cities that are forecast to grow from GDP, tourism numbers and population perspectives at faster rates relative to their respective economies, and with an established footprint in all of them, we believe that there is a real opportunity to build a REIT of significant size and scale that can outperform and deliver attractive shareholder returns."...

... Interim Dividend

The first interim dividend of 1.85 euro cents per share for the year ending 30 September 2019 represents an annualised rate of 5.5% based on the Euro IPO issue price of 137 euro cents per share. This is in line with the Company's target dividend, which is based on paying a sustainable covered dividend from income expected to be generated from the portfolio. Based on the GBP IPO issue price of 100 pence per share the annualised yield is 6.8% (based on FX rates as at 31 December 2018).

The dividend for the period to 31 December 2018 is 75% covered from income received during the quarter. The lower level of dividend cover this quarter is the result of the reduced income being generated at the Company's Hamburg office asset following the lease surrender with City BKK announced last year. The Company has already re-let 20% of the surrendered space, is in advanced discussions on approximately a further 20% of the space and will also receive €1.5m in 2019 in respect of the second tranche of the surrender payment from City BKK. Based on the net income predicted to be generated during the year (including the surrender premium), it is anticipated that the total dividends for the year will be fully covered.

The interim dividend payment will be made on Friday, 12 April 2019 to shareholders on the register on the record date of Friday, 29 March 2019. In South Africa, the last day to trade will be Tuesday, 26 March 2019 and the ex-dividend date will be Wednesday, 27 March 2019. In the UK, the last day to trade will be Wednesday, 27 March 2019 and the ex-dividend date will be Thursday, 28 March 2019.

[speedsgh] 13/12/2018 10:25

Schroders Outlooks 2019: European commercial real estate -

In the latest instalment of Schroders’ series of articles looking at the outlook for the next year, we hear from Duncan Owen, Global Head of Real Estate at Schroders on the outlook for European commercial real estate...

[speedsgh] 03/12/2018 10:47

Dividend Declaration -

Schroder European Real Estate Investment Trust plc (the "Company") announces its fourth interim dividend for the year ended 30 September 2018 of 1.85 euro cents per share.

The interim dividend payment will be made on Friday, 25 January 2019 to shareholders on the register on the record date of Friday, 11 January 2019. In South Africa, the last day to trade will be Tuesday, 8 January 2019 and the ex-dividend date will be Wednesday, 9 January 2019. In the UK, the last day to trade will be Wednesday, 9 January 2019 and the ex-dividend date will be Thursday, 10 January 2019...

[speedsgh] 03/12/2018 10:46

FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 (cont'd)...

Commenting, Sir Julian Berney, Chairman of the Board, said:

"This has been another strong year that has seen SEREIT delivering growth in both NAV and income, chiefly underpinned by the profitable disposal of lower yielding assets alongside new investment into higher growth industrial assets, as well as the active asset management of the existing portfolio and its tenants. This activity has enabled the Company to grow the dividend and achieve its 5.5% IPO target dividend.

"Going forward, the Company's strategic focus on Winning Cities and regions across Europe means the portfolio we have constructed benefits from strong fundamentals, with a diverse occupier base and a number of clear opportunities to realise further rental growth. The quality of the real estate portfolio combined with the robust balance sheet and strong income profile also provide defensive characteristics in periods of uncertainty."

Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited, added:

"Underpinned by the strongly performing Eurozone and wider market stability, the case for continental European real estate remains compelling, particularly for cities that are attractive places to live, work and visit, have diverse economies and are benefiting from infrastructure investment. The Company's assets are all located in these higher growth cities which positions them well to continue capitalising on the underlying growth in those markets.

"Our near term priority is focused on investing the remaining €15 million and, leveraging our 180 strong team, we have already identified a range of potential investment opportunities in our target sectors that would be accretive to the Company's earnings. We remain committed to our ambition to grow the portfolio in a disciplined way in order to deliver enhanced shareholder returns."

[speedsgh] 03/12/2018 10:44

FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2018 -

NEW INVESTMENT AND ASSET MANAGEMENT UNDERPINS GROWTH IN PROFITS AND DELIVERY OF TARGET 5.5% DIVIDEND YIELD

KEY HIGHLIGHTS
‒ Continued benefits of growth in the premier European markets
‒ Acquired five properties in high growth sectors and cities, deploying €52 million at an average net income yield of 8.0%, and disposed of two retail properties totalling €44.8 million at an average net income yield of 5.0%
‒ Achieved IPO dividend target of 5.5% yield on Euro IPO issue price
‒ Active asset management has driven 57% growth in EPRA earnings
‒ Strong diversification from UK market

FINANCIAL HIGHLIGHTS
‒ Profit increased by 28% to €13.2 million (30 September 2017: €10.3 million)
‒ NAV total return of 7.5% (30 September 2017: 6.0%)
‒ Net Asset Value ('NAV') of €182.1 million or 136.2 cps, reflecting an increase over the period of 2.2%
‒ Total dividends declared relating to the year of 7.4 cps, reflecting a 42% increase on the Full Year 2017 dividend
‒ Dividend for the quarter ended 30 September 2018 of 1.85 cps
‒ Underlying EPRA earnings of €10.8 million (30 September 2017: €6.9 million)
‒ Loan to value ('LTV') of 26% (30 September 2017: 25%) at a weighted average total interest rate of 1.4%. Debt is either fixed cost or capped and has a long duration of 6.0 years on average

OPERATIONAL HIGHLIGHTS
‒ 100% of the portfolio's 12 institutional grade properties located in the fastest growing cities and regions of Continental Europe, which are expected to benefit from positive economic growth
‒ Portfolio valued at €222.0 million, reflecting an uplift of approximately 8.1% on purchase price;
‒ Disposal of two French retail properties for €44.8 million, reflecting a €4.9 million premium to the purchase price;
‒ Diversified the portfolio into the high growth logistics / industrial sector with the acquisition of three warehouses in the Netherlands for €21.3 million and a warehouse in France for €9.3 million, increasing the portfolio's industrial weighting to 13%
‒ Acquisition of a long leased Data Centre in the Netherlands for an all in cost of €21 million, generating a net initial yield of approximately 10%;
‒ Execution of asset management initiatives across the portfolio, benefiting from the Investment Manager having local on the ground real estate teams:
o Conclusion of 17 new leases and re-gears, across approximately 8,600 sqm, resulting in an increase in income of c. 3% relative to previous rent and a weighted average lease term of c. 8 years
o Negotiation of a lease surrender in Hamburg, including a surrender premium to the Company of €3.9 million. In advanced discussions on securing new leases over c. 40% of the surrendered space;
‒ Maintained high portfolio occupancy levels of 97% (31 March 2018: 97%), with average portfolio unexpired lease term of 6.6 years (5.0 years to break).

[speedsgh] 19/11/2018 12:47

Notice of full year results -

Schroder European Real Estate Investment Trust plc, the company investing in European growth cities, will announce results for the 12 month period ended 30 September 2018 on Monday, 3 December 2018...

[speedsgh] 21/8/2018 10:14

European logistics yield falls below 6% for first time on record -

The overall European logistics yield dropped 14bps to 5.95% in Q2 2018, the first time it has fallen below 6% since Cushman & Wakefield began consistently tracking the three main property sectors in 1992, according to the firm’s DNA of Real Estate report.

All logistics markets monitored in Germany, Italy and Sweden recorded inward yield movements during the second quarter, and a couple of UK locations also contributed to the overall shift down to 5.95%. About a third of the monitored office locations saw some yield compression with a prime weighted average down from 4.49% to 4.42%. In contrast, high street retail yields softened in a few locations and the overall prime yield moved out by 1bps to 4.19%. Despite the fall in the prime logistics yield below 6%, the gap relative to office and retail is still higher than in the previous cycle.

Office rents grew at a robust rate of 0.8% q-o-q with several markets – across different countries and regions in Europe – seeing increases up to 5%. Limited rental growth was recorded in the retail sector while rental correction in Turkey offset this growth, resulting in the weighted average rent 0.1% lower than the first quarter.

Offices

Office rents remained on a strong upward trajectory for the seventh consecutive quarter. Average office rents grew by 0.8% in Q2 with growth recorded in 11 out of the 47 monitored office markets. Rome led the way with growth at 5.0%, supported by strong occupier demand in Q2. This positive momentum was also evident in other regions. Markets in Benelux, CEE, Germany, Nordics, Semi-core and the UK all saw some level of rent edging up. Barcelona was one of the office markets that outperformed in Q2 with a rental increase of 4.2% q-o-q and 11.1% y-o-y. In the UK, weighted average rent shifted up by 0.1%. Birmingham and Glasgow had small increments in prime rents whereas Central London and other regional markets remained flat.

Nigel Almond, Head of Data Analytics, Cushman & Wakefield EMEA Research & Insight, said: “Berlin is the only German office market where rental growth was recorded in Q2, although with the support of solid economic fundamentals and occupational demand, we expect prime rents to grow further, along with other leading German cities in the second half of 2018. Following recent modest falls, rents across London were flat in Q2, in part supported by relatively strong leasing market activity. But Brexit uncertainties, weaker job creation, and above-average completions places risk on the downside for the evolution of rents in the short to medium term”.

Average European office yields fell 7bps to 4.42%, setting a new low since 2001, with 14 out of the 47 monitored European markets recording inward movement and no outward movement in other markets. Six UK regional markets (Birmingham, Bristol, Leeds, Manchester, Newcastle and Edinburgh) moved down 25bps in Q2, and now every UK regional market had some level of yield compression in the past year following a period of no movement in the 12 months before. Benelux is another region where key markets saw yield compression of 11bps to 4.76%. German yields showed similar trend to rents and had minimum movement in Q2 (down 1bp to 3.09%), as investors take a more cautious approach to pricing with yields across Germany some of the lowest across Europe.

Logistics

Five out of the 45 monitored logistics markets saw some rental growth and all other markets remained flat in Q2. Manchester recorded solid growth of 16.7% q-o-q and 25% y-o-y supported by major leasing transaction activity this quarter. Elsewhere, pockets of growth were found in Helsinki (+4.3%), Budapest (+3.9%) and Rome (+3.8%).

Average yield fell by a substantial 14bps q-o-q and 42bps y-o-y which is the largest annualised reduction in the past nine quarters. Logistics yields fell in 15 out of the 45 monitored markets including all locations in Germany, Italy and Sweden. Benelux and CEE markets, on the other hand, had less substantial yield compression.

Lisa Graham, Head of EMEA Industrial and Logistics Research & Insight, Cushman & Wakefield, added: “Logistics properties have increasingly become a desirable asset for real estate investors on the back of the growth for e-commerce and the streamlining of supply chains, and now account for a growing share of investment activity supporting a strong reduction in yields over this period. Yields in almost all monitored markets are at their 10-year low, although we believe there is still room for further downward movement in selected markets during the second half of the year.”

High Street Retail

Overall high street retail rents softened marginally by 0.1% with growth recorded in just five markets q-o-q. More than half the monitored markets had no movement in rents at all in the past 12 months. Budapest topped the rental growth for a second quarter with a 7.7% increase q-o-q and 16.7% y-o-y, reflecting strong local consumption and demand from retailers. Lisbon followed closely at 4.0% growth q-o-q and 13.0% y-o-y.

High street retail yields edged up 1bp to 4.19%, which put an end to a four-year long yield compression. While yields in most continental European markets stayed flat and on their 10-year low, UK yields started to move out (+1bp to 3.23% in Q2) and further away from its 10-year low of 3.12%. Investors are increasingly cautious towards the UK retail sector as several retailers seek to shrink the number of stores or reductions in rents on the back of weaker trading and growing online sales. This has led to a reduction in overall investment activity. With strong GDP growth, Budapest again ranked first in the yield chart with a 25bps downward shift in Q2 and Cushman & Wakefield research indicating there is still room for further yield compression in the Hungarian capital, along with other key markets in CEE including Warsaw and Bucharest where retail assets are still ranked as fairly-priced.

[speedsgh] 21/8/2018 07:35

Acquisition of three industrial properties -

Schroder European Real Estate Investment Trust plc ("SERE" or the "Company"), the company investing in European growth cities, announces that it has exchanged contracts to purchase three industrial assets in the Netherlands for a total purchase price of €19.8 million, reflecting a combined net initial yield of 6.5%, with a weighted unexpired lease term of approximately 9 years.

· In Venray, the Netherlands, SERE has acquired a freehold 15,290 sqm warehouse, fully let to logistics specialist De Klok Logistics, on a new 10 year lease. The Venray / Venlo region sits next to the German border and the Ruhr region. It is regarded as one of the premier logistic locations in Europe, providing both domestic and European distribution capabilities via its excellent road, rail and ports connectivity.

· In Houten, in the Utrecht province, SERE has acquired a modern freehold 9,149 sqm warehouse which is 100% let to Inventum, a specialist in water heating and boilers, with an unexpired lease term of 8 years. The property is located in the established de Meerpaal Business Park, home to more than 100 occupiers from a cross section of industries. Utrecht is one of the fastest growing regions in the Netherlands; with both GDP and population expected exceed national averages[1] and benefits from its central location, favourable road, rail and port accessibility, education facilities and position as a major employment hub.

· SERE has also acquired a modern, 2,500 sqm mixed use building in Utrecht, fully let on a multi tenanted basis, with an unexpired lease term of approximately 8 years. The property is located in the established De Wetering business park, fronting the A-2 motorway.

On completion of the acquisitions, the portfolio will comprise 12 properties with a value of approximately €222 million. The portfolio will generate contracted rents of €16.1 million with an average unexpired lease term to first break and expiry of 5.1 years and 6.7 years (per end of June 2018). The acquisitions provide further sector diversification, with the portfolio having the following allocations; 49% office, 29% retail, 13% industrial and 9% mixed use.

The Company has now redeployed the majority of net proceeds raised from the July sale of two low yielding Casino supermarkets, part of the Company's investment strategy to actively manage the portfolio to grow income and total returns. Along with the Rumilly logistics acquisition announced in July, the Company has already replaced 90% of foregone Casino income and has a remaining investment capacity of approximately €15 million.

Completion of the transactions will occur towards the end of August (Houten) and September (Venray and Utrecht).

Jeff O'Dwyer, at Schroder REIM, commented:

"We have been actively looking to further diversify the portfolio and increase the Company's allocation to the high growth industrial and logistics sector. These assets are in established industrial locations and offer a stable income profile with growth upside from broader improving city and regional fundamentals. With prime Dutch logistic yields breaking 4.5% we see value in smaller lot sizes, particularly in locations where investment and occupier demand is strong.

"These acquisitions demonstrate our ability to leverage Schroders' European investment expertise to identify new investment opportunities and quickly recycle proceeds from disposals, capitalising on opportunities to realise profit and deliver share holder value."

[speedsgh] 06/8/2018 16:47

NAV and dividend for period to 30 June 2018 (3/8/18) -

Schroder European Real Estate Investment Trust plc ("SERE" or the "Company"), the company investing in European growth cities, today announces its unaudited net asset value ("NAV") for 30 June 2018, together with its third interim dividend for the year ending 30 September 2018 relating to the three months to 30 June 2018:

· Unaudited NAV as at 30 June 2018 of €187.2 million or 140.0 cents per share, an uplift of 0.1% over the quarter;
· Quarterly NAV total return, including the dividend, of 1.4%;
· An interim dividend of 1.85 euro cents per share relating to the quarter to 30 June 2018;
· This dividend is in-line with the target dividend stated at IPO of an annualised rate of 5.5% on the IPO issue price

Since quarter end the Company has made progress with its investment strategy, including realising profit with sales at low yields and reinvestment at higher yields:

· The sale of its investment in two Casino supermarkets in France (as announced on 1 February 2018) for a price of approximately €45 million and a net income yield of sub 5%;
· Contracted acquisition of a logistics investment in Rumilly, France for a purchase price of €8.6 million, representing a net income yield of 7.0%. This is targeted to complete in mid-August;
· Exclusivity granted for the acquisition of three Dutch warehouse investments, totalling over €20 million at a net income yield of between 6% - 7%...

Interim Dividend
The third interim dividend of 1.85 euro cents per share for the year ending 30 September 2018 represents an annualised rate of 5.5% based on the Euro IPO issue price of 137 euro cents per share. Based on the GBP IPO issue price of 100 pence per share the annualised yield is 6.7% (based on FX rates as at 30 June 2018). The dividend is 96% covered from income received during the quarter. Dividends for the first nine months of the financial year are 120% covered from net income received.

The interim dividend payment will be made on Friday, 14 September 2018 to shareholders on the register on the record date of Friday, 31 August 2018. In South Africa, the last day to trade will be Tuesday, 28 August 2018 and the ex-dividend date will be Wednesday, 29 August 2018. In the UK, the last day to trade will be Wednesday, 29 August 2018 and the ex-dividend date will be Thursday, 30 August 2018.

Property Portfolio
As at 30 June 2018, the Company owned ten properties located in growth cities of Continental Europe, independently valued at €238.0 million. Over the quarter, the portfolio value has increased €0.4 million, net of capex. This reflects a property capital return of 0.2%. Over the same period, the portfolio generated a net property income of €3.9 million, representing an ungeared quarterly property income return of 1.7% (on an annualised basis, reflecting an ungeared property income return of 6.7%).

The committed portfolio, which includes the Rumilly purchase and excludes the Casino sales, will comprise nine properties with a value of approximately €202 million. The portfolio will generate contracted rents of €14.6 million and is 97% let with an average unexpired lease term to first break and expiry of 4.7 years and 6.5 years. The rent on all leases is indexed to inflation and individual asset business plans are being implemented to improve future earnings and capital growth potential. An example of this is the lease surrender and remarketing of the Company's Hamburg asset, in a strengthening office sub-market, where SERE is refurbishing part of the property and already has interest from potential tenants.

The fundamentals of the Eurozone economy remain positive and growth continues. Unemployment is falling, contributing to positive sentiment and increasing consumer spend. The strong economic backdrop is benefiting property markets, with office vacancy rates in some of the Company's existing and target markets at record lows, resulting in strong rental growth. (Source: JLL Office Property Clock Q2 2018).

Investment Progress
The Company has invested over €233 million since IPO, constructing a property portfolio with a diversified income profile across key growth cities in Western Continental Europe. A total of €73.4 million of debt has been drawn, equating to an LTV of c.28% at an average weighted interest rate of 1.3% p.a. and an average weighted duration of approximately 6.1 years.

The sale of the Casino supermarkets provides new investment capacity of approximately €45 million (including further gearing). Approximately €9 million will be deployed with the completion of the Rumilly acquisition and the three Dutch warehouse investments in exclusivity total over €20 million. These acquisitions would provide further sector and tenant diversification and are at income yields that are accretive to the Company's existing portfolio. If all these acquisitions complete the Company would have approximately €15 million of remaining investment capacity and the Investment Manager is reviewing and in negotiation on a number of new opportunities.

Jeff O'Dwyer, of Schroder REIM, said:
"The Rumilly logistics commitment adds further diversification to the portfolio which now offers a mixture of income and growth through a programme of ongoing and identified asset management initiatives.

"Approximately 90% of the portfolio is situated in Europe's fastest growing conurbations and includes cities such as Berlin, Frankfurt, Hamburg, Stuttgart and Paris, all of which are set to outperform their domestic economies in the medium to long term. Building on the positive Half Year results, the attractive income distribution and continued growth in property values across the portfolio is a reflection of the team's ability to identify, acquire and manage assets that deliver on the Company's stated objectives.

"We remain well positioned to generate long term shareholder value, benefiting from the favorable Eurozone backdrop, as we explore the different options to grow the company over the medium-to-long term."

[steve3sandal] 09/7/2018 14:21

Been watching SERE a while as it appeals as a dividend diversifier. Spooked by a large premium once upon a time and the resignation of lead manager. However, to me, the promoted deputy and team are improving the initial office retail mix. Not sure why the current share price weakness, but if it goes anywhere near £1 again Yielding 5%, in growthy Euro regions, it would be rude not to. It’s a little small so they’ve every incentive to perform to be able to do a C issue or something. Thanks for the time and effort keeping news up to date speedsgh. It’s property it’s meant to be dull but 5% pa in euros interests me.

[speedsgh] 09/7/2018 13:30

DIVIDEND CURRENCY EXCHANGE RATE (STERLING) -

On 12 June 2018, Schroder European Real Estate Investment Trust plc (the "Company") announced its second interim dividend for the year ended 30 September 2018 of 1.85 euro cents per share.

Shareholders on the UK register will receive their dividends in sterling, unless an election is completed and registered with the Company's registrars. The deadline for the currency election in respect of the forthcoming interim dividend payment was 6 July 2018.

This announcement confirms that the currency exchange rate applicable for the interim dividend for shareholders on the UK register who did not make a currency election before the applicable deadline and who therefore will receive their dividend in sterling is:

Declared dividend: 1.85 euro cents per share
Exchange rate: 0.88270
Dividend to be paid for those receiving dividends in sterling: 1.63300 pence per share

The dividend will be paid on 20 July 2018 to shareholders who were on the register at the close of business on 6 July 2018.

[speedsgh] 21/6/2018 08:20

Acquisition of a French logistics asset -

Schroder European Real Estate Investment Trust Plc (the "Company"), the company investing in European growth cities, is pleased to announce that it has exchanged contracts to purchase a freehold logistics property in Rumilly, southern-eastern France, for €8.6 million, reflecting a net initial yield of 7.0%.

The 16,700 sqm warehouse is fully let to a strong covenant, a subsidiary of the global food and drink manufacturer Nestlé, with an unexpired lease term of c. 7.5 years. In line with the Company's winning centres strategy, it is located in a region that is forecast to grow faster than the national average1 and is leased off affordable / sustainable rents, in an area where there is limited supply.

Close to the A41/A43 autoroutes, Rumilly serves the major metropolitan areas of Lyon and Geneva, which have a combined population of over 2.5 million people living within a 90 minute drive.

Commenting on the acquisition, Thomas Guyot, Head of Real Estate Investment, France at Schroder REIM commented:

"This is a strong fit for the Company as we look to diversify our portfolio, providing us with exposure to the French logistics market which is currently experiencing strong occupational demand and rental growth. Located in an economically buoyant region of France, the warehouse benefits from its close proximity to the large conurbations of Lyon and Geneva. It is one of a number of investments that Schroder REIM is in exclusivity on, as it looks to deploy the proceeds due to be received from the sale of the two French Casino supermarkets, at the end of July."

The purchase is subject to a waiver of statutory pre-emption rights in the French market and is therefore expected to complete at the end of August 2018.

[speedsgh] 13/6/2018 15:54

O'Dwyer hunts for ‘large industrials’ for European Reit -

Schroder European Real Estate (SERE) is looking for industrial assets to redeploy the cash it made from the sale of two French supermarkets.

In half-year results to 31 March, the real estate investment trust (Reit) generated a 6.1% total return on net assets up from 2.5% in the six-month period a year ago.

A €1.85 per share quarterly dividend was fully covered by earnings after the recent €20 million purchase of a data centre in the Netherlands yielding 10%, said manager Jeff O'Dwyer, who took over the €237 million at the start of the year after Tony Smedley resigned.

O'Dwyer said this meant the trust had hit its original dividend yield target of 5.5% for investors who bought the shares at 100p when they floated in December 2015.

The purchase was made from the €30 million war chest the trust had at the end of the year, topped up by the sale of two Casino supermarkets in France, which were sold to their joint venture partner at a 10% premium over their December valuation.

O’Dwyer said he was looking for ‘large industrial assets to redeploy the Casino money’, which had yielded 5%, and would not reinvest in supermarkets as he aimed for ‘higher yields and greater diversification’ within the portfolio.

He said he was ‘in negotiations on a number of new opportunities in both new and existing sectors’.

‘Our aspirations are to grow the portfolio through a disciplined and consistent approach centred on enhancing income and shareholder returns,’ he added.

The trust holds 10 assets, four in Germany, four in France, one in Spain, and the newest investment in the Netherlands. The portfolio is split 46% in retail, 46% in offices, and 8% in mixed assets. O’Dwyer (pictured) picks investments in ‘winning’ cities that are experiencing fast growth rather than countries, including Berlin, Hamburg, Stuttgart, Frankfurt, and Paris.

While the eurozone may face a slowdown in growth and political uncertainty O’Dwyer said it had experienced its strongest period of growth during the last 10 years and forecast eurozone GDP will grow by 2-2.5% through 2018/19.

‘Investment is increasing, while unemployment continues to fall with consumer spending increase,’ he said.

‘The acceleration in world trade means that external demand in the form of export should continue to grow. While stronger growth will feed through to higher inflation, [we] expect it to remain at around 1.5% per annum over the next couple of years.’

Inflation at that level meant the European Central Bank would be ‘unlikely to raise interest rates before 2019’, he said.

O’Dwyer was unconcerned about the political turbulence facing Europe after the election of a eurosceptic, populist government in Italy.

‘Italy is a market that we can invest but it would have to be a very good investment to take on the risk – not just political risk, but transparency risk, litigation risk, and tax risk. We are not seeing – when compared to other areas on a risk-adjusted basis – the attraction,’ he said.

Overall he ‘looks through political risk’ when making investment decisions. ‘If we were worried about political risk each day we would never get anything done,’ said O’Dwyer. ‘We aim to grow irrespective of politics.’

O’Dwyer said he would look to raise more money from investors when the time was right, although with the shares trading 8% below net asset value (NAV), a share issue is not imminent.

‘The intention has been to double the size [of the trust] and take it to €500 million and all the investors would like to see that happen, but as for when – it will be at an appropriate time and we will do it when it will benefit existing shareholders,’ he said.

At yesterday's closing price 114p, SERE yields 4.8%.

[speedsgh] 12/6/2018 10:10

Dividend Declaration -

SECOND INTERIM DIVIDEND

Schroder European Real Estate Investment Trust plc (the "Company") announces its second interim dividend in respect of the year ended 30 September 2018 of 1.85 euro cents per share.

The dividend is approximately 100% covered from recurring income from the portfolio. This excludes the impact of the receipt of €2.4m in respect of the first payment for the Hamburg lease surrender. Including the Hamburg surrender premium receipt the dividend cover is 172%.

The declared dividend represents an annualised rate of 5.5% based on the euro equivalent of the issue price at admission, fulfilling the target dividend stated at IPO. Based on the Euro: GBP exchange rate as at 31 March 2018, this equates to an annualised rate of 6.5% on the GBP issue price at IPO of 100 pence per share.

Total interim dividends declared to date relating to the year ending 30 September 2018 amount to 3.7 euro cents per share. This represents an increase of 68% over the same period in respect of the year ended 30 September 2017.

The interim dividend payment will be made on Friday, 20 July 2018 to shareholders on the register on the record date of Friday, 6 July 2018. In South Africa, the last day to trade will be Tuesday, 3 July 2018 and the ex-dividend date will be Wednesday, 4 July 2018. In the UK, the last day to trade will be Wednesday, 4 July 2018 and the ex-dividend date will be Thursday, 5 July 2018.

The interim dividend will be paid in sterling to shareholders on the UK register and rand to shareholders on the South African register. The exchange rate for determining the interim dividend paid in rand will be confirmed by way of an announcement on Monday, 18 June 2018...

[speedsgh] 12/6/2018 10:05

Half-year Report -

PROFIT INCREASES BY 157% AS PORTFOLIO IS FULLY INVESTED IN WINNING EUROPEAN CITIES

Financial Highlights for six months ending 31 March 2018:

‒ Profit for the six months increased 157% to €10.8 million (31 March 2017: €4.2 million), driven by uplift in portfolio values and growth in net income

‒ Net asset value ('NAV') total return of 6.1% (31 March 2017: 2.5%)

‒ 4.9% increase in NAV to €187.1 million, or 139.9 cps (deducting the interim dividend declared in December 2017 and paid in April 2018, the NAV would have been €184.6 million (138.1 cps) as at 31 March 2018)

‒ EPRA earnings of €6.5 million (31 March 2017: €2.6 million), reflecting the growth in rental income from acquisitions and receipt of €2.4 million of the surrender premium for the Hamburg asset

‒ Dividend for quarter ended 31 March 2018 of 1.85 cps fully covered from income

‒ Annualised dividend rate of 5.5% based on the euro equivalent of the issue price as at admission, achieving the target dividend stated at IPO. Total interim dividends declared to date relating to the year ending 30 September 2018 of 3.7 cps, representing a 68% increase over the same period in respect of the year ended 30 September 2017

‒ Loan to value ('LTV') of 28% (30 September 2017: 22%). The debt has a weighted average total interest rate of 1.3%, is either fixed cost or capped and has a long duration of 6.4 years on average

Operational highlights

‒ Company fully invested

‒ Acquisition of a data centre and office premises in the Netherlands, secured on a long lease to a strong tenant, for a price of €19.8 million, reflecting a net initial yield of 10%

‒ Continued focus on winning cities and regions with 100% of the portfolio by value located in the faster GDP growth locations in Europe (source: Oxford Economics)

‒ Lease surrender agreement at Hamburg office in return for a premium of €3.9 million. Provides the opportunity to re-let space in the strong Hamburg market

‒ Contracted sale of two Casino supermarkets in France at a 10% premium to December 2017 independent valuation

‒ Portfolio valued at €237.3 million, reflecting an uplift of approximately 9.5% on the combined purchase price

‒ Successful execution of asset management initiatives across the portfolio, including six new lettings and re-gears across approximately 5,000 sqm

‒ Portfolio occupancy of 97% and an unexpired lease term of 6.7 years to expiry.

Commenting, Sir Julian Berney Bt., Chairman of the Board, said:

"This has been an active period for the Company, during which we have delivered growth in NAV, net income and shareholder dividends. We have executed on the strategy outlined at IPO, constructing a high quality real estate portfolio, across the growth cities of western continental Europe. Leveraging its local expertise, Schroders is working on a number of asset management initiatives across the portfolio to grow income and value and coupled with the positive economic backdrop in our target markets, we believe the Company is well positioned for the next stage of growth."

Jeff O'Dwyer, of Schroder Real Estate Investment Management Limited, added:

"Our portfolio of assets across winning cities such as Berlin, Hamburg, Stuttgart, Frankfurt and Paris continues to benefit from improving occupational demand and strong investment markets. Combined with the active asset management initiatives that we have been driving, this has generated positive performance.

"Our immediate priority is to invest the capital that we are receiving from the profitable sale of the two Casino supermarket investments and we are in negotiations on a number of new opportunities in both new and existing sectors. As previously stated, our aspirations are to grow the portfolio through a disciplined and consistent approach centred on enhancing income and shareholder returns."

[speedsgh] 26/3/2018 15:28

Dividend Currency Exchange Rate (sterling) -

Declared dividend: 1.85 euro cents per share
Exchange rate: 0.87220
Dividend to be paid for those receiving dividends in sterling: 1.61357 pence per share

The dividend will be paid on 13 April 2018 to shareholders who were on the register at the close of business on 23 March 2018.

[speedsgh] 22/3/2018 13:56

Excerpt from the following article...

Urban logistics: it’s always worth going the ‘last mile’ -

Europe is set to follow the UK’s example

What we have witnessed in the UK is now happening in Europe. Online retailing is a little less advanced in Europe compared to the UK, but it is changing quickly. In 2016, it grew at a faster rate in Europe than the UK a trend expected to be maintained for at least the next five years. This is being driven by several factors: first, the rapid expansion of major online retailers such as Zalando, ASOS, Amazon and others; and second, consumers are becoming increasingly confident in buying online due to wider availability, faster broadband, more mobile devices and simpler payment systems, which in turn is driving yet more online retail growth. Furthermore, major European cities are growing at least as fast as London has been, and they are also experiencing the same shortages of developable land for urban logistics. This makes investment in the sector look appealing.
Trends set to continue and intensify, especially in Europe

Overall, the trends in the logistics sector are set to intensify, and this supports value and growth in urban logistics. There will be no let-up in population growth in major cities and online retail will continue to expand its requirements for urban logistics units. We are becoming increasingly used to seeing Amazon deliveries and the vans of parcel delivery operators such as DPD shuttling around city streets. But this is balanced against a diminishing supply of land for logistics development in major cities. Rental growth should continue to be strong for property investors. As such, it’s always worth going the ‘last mile’, thanks to the logic of urban logistics.

[speedsgh] 22/2/2018 11:50

Announcement of NAV and Dividend -

NET ASSET VALUE
The Company generated an unaudited NAV as at 31 December 2017 of €180.1 million or 134.7 euro cents per share (119.6 pence per share based on 31 December 2017 exchange rates). This represents an uplift of 1.1% over the quarter and an NAV total return of 2.2%...

INTERIM DIVIDEND
The Company announces an increase in its quarterly dividend to 1.85 euro cents per share, being the first interim dividend in respect of the year ending 30 September 2018. The dividend reflects a 23% increase against the previous quarters' dividend and an annualised rate of 5.5% based on the euro equivalent of the issue price as at admission of 137 euro cents per share, achieving the target dividend stated at IPO. At current FX rates, the dividend equates to 6.5% yield on GBP issue price of 100 pence per share.

The dividend is 92% covered from net income received during the quarter. Since the quarter end the Company has announced a number of changes to the portfolio including the acquisition of Apeldoorn for €20 million at a 10% income yield, which took the Company to full investment, as well as the surrender of the City BKK lease at Hamburg and the future sale of two retail properties in France. It is expected the net income of the Company will fully cover the dividends paid out by the Company during the financial year to September 2018...

... The interim dividend payment will be made on Friday, 13 April 2018 to shareholders on the register on the record date of Friday, 23 March 2018... In the UK, the last day to trade will be Wednesday, 21 March 2018 and the ex-dividend date will be Thursday, 22 March 2018...

... The interim dividend will be paid in GBP to shareholders on the UK register... The exchange rate for determining the interim dividend paid in GBP will be confirmed following the election cut off date by way of an announcement on Monday, 26 March 2018.

PROPERTY PORTFOLIO
As at 31 December 2017, the Company owned nine properties, independently valued at €213.7 million (independent valuation as at 31 December 2017 reflecting the Company's ownership share in the properties), up from €211.7 million as at 30 September 2017, representing an increase of 0.9% net of capital expenditure.

The current valuation reflects an increase of 8.1% compared to the combined purchase price of the nine assets in the portfolio. The rent on all leases is indexed to inflation and individual asset business plans are being implemented to improve future earnings and capital growth potential.

The portfolio is 99% occupied and generates €14.4 million p.a. of contracted rental income, representing a real estate net initial yield of 5.6% on valuation and a geared property yield of over 8%. The average unexpired lease term is 4.4 years to first break and 6.6 years to expiry.

[speedsgh] 21/2/2018 07:10

Acquisition of Netherlands data centre -

Schroder European Real Estate Investment Trust plc ("SERE"), the company investing in European growth cities, has completed the acquisition of a data centre in Apeldoorn, the Netherlands, for approximately €20 million. The acquisition reflects an attractive net initial income yield of 10%. SERE has now fully deployed all of its capital currently available for investment in a ten asset portfolio, located in growth cities and regions that are benefiting from the favourable Eurozone economic outlook...

[speedsgh] 09/2/2018 11:14

City BKK leases surrender agreed in Hamburg -

Schroder European Real Estate Investment Trust Plc ("SERE" or the "Company"), the company investing in European growth cities, announces that it has agreed terms for City BKK to surrender its lease at the Hamburg office asset in Germany, in return for a cash payment to the Company of €3.9 million. This cash payment represents 4.7 years of annual rental income from City BKK.

Negotiating a surrender with City BKK was a key initiative within the acquisition strategy. The agreement gives SERE the opportunity to re-position the property, re-leasing the space into a strengthening office sub-market and diversifying the property's income profile.

The building is located in the fast growing City Süd district, where vacancy rates have fallen substantially to approximately 5% since the Company's acquisition. This has been led by strong take up, as occupiers perceive the City Süd district as providing better value relative to the neighboring city centre, combined with reduction of supply via the conversion of office accommodation to residential and hotel uses.

Jeff O'Dwyer, Fund Manager of Schroder REIM, commented: "The surrender payment realises an immediate return for the Company, part of which will be reinvested into the asset to take advantage of favourable office demand conditions and improve the assets longer-term income profile."

[speedsgh] 06/2/2018 12:18

Sale of interest in French retail assets (1/2/18) -

Schroder European Real Estate Investment Trust Plc ("SERE" or the "Company"), the company investing in European growth cities, announces that the Casino Group, the French retailer, has exercised a buy-back option on SERE's 70% share in two retail assets in France. The sale price reflects a 10% premium to current valuation.

SERE acquired the grocery retail assets, in Biarritz and Anglet, in June 2016 by way of a joint venture, acquiring 70% of the investments and the vendor Mercialys, a subsidiary of Casino Group, retaining a 30% interest. The sale price of SERE's 70% interest equates to €44.8 million. Under the option, the re-purchase will exercise on 31 July 2018. The Casino Group will take over SERE's share of the existing debt facility on the assets which amounts to €18.2 million and hence the net equity proceeds to SERE from the sale are approximately €26.6 million.

Following the disposal, SERE will have a combined equity and debt investment capacity of approximately €70 million and as stated at the Full Year Results, SERE continues to advance discussions on a number of acquisitions within its identified pipeline and remains confident of achieving full deployment in the short term.

[speedsgh] 09/1/2018 09:03

NOTICE OF DIVIDEND CURRENCY EXHANGE RATE (STERLING) -

On 6 December 2017, Schroder European Real Estate Investment Trust plc (the "Company") announced its fourth interim dividend for the year ended 30 September 2017 of 1.5 euro cents per share...

...This announcement confirms that the currency exchange rate applicable for the interim dividend for shareholders on the UK register who did not make a currency election before the applicable deadline and who therefore will receive their dividend in sterling is:

Declared dividend -- 1.5 euro cents per share
Exchange rate -- 0.88640
Dividend to be paid for those receiving dividends in sterling -- 1.32960 pence per share

The dividend will be paid on 19 January 2018 to shareholders who were on the register at the close of business on 5 January 2018.