Schroder European Real E... Share Discussion Threads

[t-trader] 18/1/2023 15:15

Also doubled my holding here today at 82.77p

[skyship] 18/1/2023 14:27

Doubled my position here today; paid 82.75p - though disappointed that I also had to pay darned Stamp Duty - bit strange that!

At that price of 82.75p the discount = 30.9% and the yield = 7.71%.

I've taken the portfolio valuation fall of 3.3% into account by reducing the NAV by 3.8% to 119.8p.

[skyship] 17/1/2023 08:51

Today's RNS reveals a very acceptable Q4'22 performance. A mere 3.3% pv decline which reduces the NAV from 140.8c to 135.4c - that equals 119.8p at forex rate of 1:13.

So at 83.5p the discount = 30.3% and the yield still a very welcome 7.64%.

[speedsgh] 22/12/2022 14:15

Early Refinancing of Largest 2023 Debt Expiry -

Schroder European Real Estate Investment Trust plc, the Company investing in European growth cities and regions, is pleased to announce that it has completed the early refinancing of the Company's largest debt expiry in 2023, a €14 million loan with VR Bank Westerwald, secured against its Hamburg and Stuttgart office investments.

Competitive financing terms were obtained from five different lenders with VR Bank Westerwald being the most competitive. The refinancing is for 4.75 years and based on a margin of 0.85%, in line with the existing margin. Due to the competitive terms, the Company has elected to extend the facility by a further €4 million. The facility will be drawn on 1 April 2023 with expiry 30 December 2027. The total interest cost has been fixed at the time of signing at 3.80% being the 5 year euro swap rate (2.95%) plus 0.85% margin.

With this new facility, the Company's third party debt totals €84.7 million across seven loan facilities. This represents a loan to value ('LTV') of c. 30%1 against the Company's gross asset value (c. 20%1 net of cash) and well below the LTV prospectus limit of 35% net of cash. All facilities are on a non-recourse lending basis.

Following draw down, the weighted average loan term increases by one year from 1.6 years as of December 2022 to 2.6 years. The Company's blended all-in interest rate increases around 60 basis points from 1.9% to 2.5%. The Company is in various discussions with lenders regarding its other two debt expiries which occur within the next 12 months and is confident in its ability to refinance these loans.

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

"The willingness of VR Bank Westerwald and four other lenders to offer very competitive financing terms for a regear of the current loan facility, even extending the existing loan amount, is indicative of our strong relationship with existing financing partners and good reputation in the market with lenders. It is a sign of confidence that they have in our investment management team with its local multi-sector expertise and the portfolio's exposure to indexed linked, high quality real estate in growth locations. The Company has a robust balance sheet which is well positioned to offer flexibility to both strengthen the strategy and react to changing market conditions as opportunities arise."

[gopher] 06/12/2022 18:16

They see a fully covered dividend by the end of 2023 and prospective dividend of 8% being maintained. Investments are in cities that are attractive In below prime property. No special divs on the horizon, but the property which resulted in last years special is not quite played out.

[skyship] 06/12/2022 16:03

They seem intent on holding the uncovered 7.4c dividend, relying mainly upon reinvestment of the Paris proceeds to make up the shortfall.

Unable to find the sector split, though did see Industrial now at 26%.

=====================================================================

Dividends

Despite the deteriorating economic and geopolitical conditions, the Board has elected to continue with the 1.85 euro cps quarterly dividend. However, it will continue to review this position taking into account the level of tenant occupation, rent collection, refinancing and dividend cover. Dividend cover has improved over the last three quarters partly due to the additional investments in Cannes and Venray and is at around 70%. As announced previously, it is expected that dividends from net income will remain uncovered whilst the proceeds from the sale of Paris BB are reinvested. The Board expects to allocate some of the net sale proceeds towards covering the shortfall in income, pending the reinvestment of the remainder. Total quarterly dividends declared relating to the year are 7.4 euro cps, with a dividend cover for the year of 61%. Including the special dividends, total dividends paid increased 195% to EUR25.2 million (18.8 euro cps) versus the previous financial year.

Share price

The shares continue to trade at a discount, which as at 28 November 2022 reflected a circa 35% discount to the 30 September 2022 NAV. The Board and the Investment Manager remain frustrated in the share price performance, particularly given the differentiated strategy, strength of the underlying real estate, attractive dividend, local management expertise, strong balance sheet and cash reserves. Annualising the quarterly dividend of 1.85 euro cps (to 7.4 euro cents per annum) provides an attractive circa 8.0% dividend yield based on current share price. The Board will continue to review the discount, and at its discretion to execute a share buyback programme, as well as new acquisitions consistent with the current strategy.

[badtime] 06/12/2022 13:57

Ta for reply

[skyship] 06/12/2022 11:37

Yes, a few at 76.5p - a bit slow off the mark this AM...

[badtime] 06/12/2022 11:11

Did you buy?

[2wild] 06/12/2022 10:08

Picked up a few this morning at 75.312p.
On the back of increased dividend at EU 1.85 a quarter and decent NAV performance.

[2wild] 06/12/2022 10:05

Duplicated

[skyship] 06/12/2022 09:33

Seems as though everybody left and turned out the lights!

Over on the CP+ thread Riverman suggested SERE could be an interesting prospect down at the 75p level; and the Finals today suggest he may well be right.

At 76p the discount = 37% and the yield = 8.4%.

Not massively cheap; but for some currency diversification reasonable value.

[speedsgh] 22/6/2022 07:05

Hi hindsight. I no longer have a holding in SERE but maintain a passing interest.

[hindsight] 21/6/2022 17:45

Thanks speedsgn. Roughly what I expected

[speedsgh] 21/6/2022 12:34

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2022 -

SECOND INTERIM DIVIDEND AND SPECIAL DIVIDEND -

[speedsgh] 11/3/2022 15:39

Announcement of NAV and Dividend -

Schroder European Real Estate Investment Trust plc ("SERE" or the "Company") provides a business update and announces its unaudited net asset value ("NAV") as at 31 December 2021, together with its first interim dividend for the year ending 30 September 2022:

- Unaudited NAV as at 31 December 2021 increased by 0.8% to 201.2 million or 150.4 cents per share

- NAV total return amounted to 2.1% over the quarter and 4.5% for the twelve months to 31 December 2021

- A first interim dividend of 1.85 euro cents per share to be paid for the year ending 30 September 2022

- Property portfolio is independently valued at €221.4 million, reflecting a like-for-like increase of the directly held properties over the quarter of 2.2%, or €4.4 million

- Key portfolio level initiatives during the period included:

o the strategic purchase of a 3,800 sqm industrial warehouse in Venray, the Netherlands, increasing the portfolio's industrial weighting to c.23%

o The Paris Boulogne-Billancourt refurbishment remains on budget from both a cost and timing perspective. The remaining 40% (c.€40 million) of the sale price is due to be received during 2022, with the proceeds partially used to fund the remaining c.€16 million refurbishment cost

o rent collection during the quarter, and January and February 2022, of 96%

- The Company has an investable cash balance of approximately 30 million and a loan to value ratio on the total portfolio of approximately 18% net of cash and 28% gross of cash...

Interim dividend

The Company continues to pay a full dividend equating to the pre-covid dividend level. The first interim dividend of 1.85 euro cents per share for the year ending 30 September 2022 represents an annualised rate of 6.2% based on the current share price 5 . As announced previously, the Company allocates a portion of the forward funded net sales proceeds from the Paris Boulogne-Billancourt asset towards covering the dividend income shortfall whilst it is being refurbished and pending the reinvestment of the remainder of the sale proceeds.

Dividend cover from income for the quarter ended 31 December 2021 was 64% excluding extraordinary items incurred in the quarter. These comprised a withholding tax provision of €634,000 and one-off service charge-related costs relating to the Group's Frankfurt and Hamburg assets. Including both these items, the dividend cover is 27%.

The interim dividend payment will be made on Wednesday, 20 April 2022 to shareholders on the register on the record date of Friday, 1 April 2022. In South Africa, the last day to trade will be Tuesday, 29 March 2022 and the ex-dividend date will be Wednesday, 30 March 2022. In the UK, the last day to trade will be Wednesday, 30 March 2022 and the ex-dividend date will be Thursday, 31 March 2022...

[speedsgh] 10/1/2022 07:32

Property portfolio valuation and rent collection -

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 and rent collection as at 31 December 2021:

- The direct property portfolio was independently valued at €207.1 million, reflecting a like for like increase over the quarter, excluding the impact of a recently acquired industrial warehouse in Venray, Netherlands (valued at €1.65 million), of 2.2%, or €4.35 million. In addition, the Company has a 50% interest in a joint venture in Seville which continues to be recognised at nil interest

- The valuation increase over the quarter was driven by yield compression achieved across office, retail and logistics assets within the portfolio reflecting the benefit of having a diversified portfolio as well as the strength of those individual assets

- The majority of the valuation uplift was driven by:

o Improved yield re-rating at the Berlin retail DIY investment, delivering a valuation increase of €1.8 million, or 6.2%

o Improved yield re-rating at the Hamburg office investment, delivering a valuation increase of €1.2 million, or 5.2%

o Improved yield re-rating at the Rennes logistics investment, delivering a valuation increase of €0.9 million, or 4.8%

- Approximately 96% of rent due for the quarter ended 31 December 2021 has been collected.

[speedsgh] 30/12/2021 11:58

NOTICE OF DIVIDEND CURRENCY EXCHANGE RATE (STERLING) -

On 7 December 2021, Schroder European Real Estate Investment Trust plc (the "Company") announced its fourth interim dividend for the year ended 30 September 2021 of 1.85 euro cents per share and a special dividend of 4.75 euro cents per share, resulting in a combined interim dividend of 6.6 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 24 December 2021.

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 --- Exchange rate --- Dividend to be paid for those receiving dividends in sterling

1.85 euro cents per share --- 0.84050 --- 1.55492 pence per share
4.75 euro cents per share --- 0.84050 --- 3.99238 pence per share

The dividend will be paid on 14 January 2022 to shareholders who were on the register at the close of business on 24 December 2021.

[alan pt] 22/12/2021 17:08

CWA1 Did the same today for exactly the same reasons :)

I thought it would stick above 110 in August, but was proved very wrong there, so a little bit of "bird in the hand" seems prudent

[cwa1] 22/12/2021 12:32

For the zero it is worth, I've taken a small slice off the table at 118p ahead of XD day tomorrow. Hoping I might get back in more cheaply-but no worries if I don't as I've got enough left and had a nice run on the ones I clipped

[spin doctor] 22/12/2021 10:12

And another special dividend and of course decent ordinaries to come in '22.
Alan - some of this rerating will stick IMO.

[alan pt] 22/12/2021 09:41

Going crazy this morning, buys at 119.5 going through. Will be interesting to see what happens when it goes ex - will we be back under 105, or will at least some of the rise stick?

[cwa1] 22/12/2021 08:03

So ex the ordinary AND special dividend tomorrow, paid 14/1

[alan pt] 15/12/2021 15:41

Nice bounce! Seems that the Mail on Sunday is more popular than I realised :)