Schroder European Real E... Share Discussion Threads

[skyship] 12/9/2023 15:46

Getting close - 70.5p today. 36.5% discount and 7.2% yield certainly a more interesting proposition again. But not yet for me...better value in API, EBOX & SREI.

[skyship] 11/7/2023 20:33

Now has the look of 70p about it...

[riverman77] 28/6/2023 21:52

I noted in post 195 back in April that dividend didn't look secure so not too surprised by the cut. Not too keen on sector mix either with 34% in offices, and the significant refinancing needed over next couple of years is another slight concern. Factoring all this is, I think there is much better value in something like EBOX.

[skyship] 28/6/2023 13:35

... & of course if they continue with 1.48c/Qtr for next year then the total dividend will be c5.1p for a yield of just 6.0%.

This has the look of 80p about it; and I see they're now headed down there at c84p...

[skyship] 28/6/2023 07:23

Coupled with the 3% fall in NAV, SERE now looks rather toppy. At 87p the discount is 23.4% and the yield 6.55% for this year.

[skyship] 28/6/2023 07:20

Dividends

The Board has elected, for this quarter, to continue with the 1.85 euro cps quarterly dividend. Total dividends declared relating to the six months of the current financial year are now 3.7 euro cps. The dividend cover for the interim period was c.80%. Whilst the option to continue paying an uncovered dividend, as many of the peer group, was strongly considered, the Investment Manager and Board believe that the more prudent, responsible and decisive course of action, and the one that best protects the interest of shareholders, is to rebase the target quarterly dividend level to 1.48 euro cps commencing with our third interim dividend payable in October 2023.

[kenmitch] 24/6/2023 16:32

I agree EBOX looks massively oversold, as long as the market knows something sinister we don’t. I.e significant bad news leaking. But I can’t fathom what that could be, and anyway the massive discount is pricing in bad news that might well never come.

I’ll watch how the astonishing but dangerous events in Russia develop before buying or topping up anything! Putin’s replacement, if he is overthrown, might turn out to be even more dangerous.

[skyship] 24/6/2023 14:14

Certainly the share price movement is in stark contrast to that of fellow continental REIT EBOX.

EBOX really down and out at 52p on a 43% discount and 8.35% yield. Looks massively oversold.

[hindsight] 23/6/2023 12:08

I reduced too Sky, better value about elsewhere but has the hallmarks of a bid

[skyship] 22/6/2023 16:42

With the sector weakness I reluctantly decided to take the profit in SERE - the only REIT holding its own recently.

Expected a bid at 85p; surprised to be bid just over 87p.

Perhaps a sign of something going on there; but happy to bank a nice turn nevertheless.

[skinny] 12/6/2023 16:45

Interesting!

[skyship] 11/6/2023 17:01

Breaking through the long-term downtrend and the 200day SMA:


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[skyship] 31/5/2023 14:54

85p the pivot point for SERE. If we hold the current 86p Bid to the close, then share price could be signifying a breakout, with no resistance up to the 3 figure level.

Could SERE attract a bid perhaps?


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[skyship] 10/5/2023 16:23

You'll see it on Google; then compare with above.

[hindsight] 10/5/2023 16:05

Never heard of WYCOFF Accumulation Pattern. But clearly showing relative strength against the sector which is good

[skyship] 10/5/2023 15:19

Learnt the other day, over on the GGP thread, that this extended consolidation phase can be known as a WYCOFF Accumulation Pattern. Usually inevitably breaks to the upside - as GGP did just last week.

At 84p the discount is c29% and the yield 7.8%. Very solid value...

Hopefully we'll see some asset management initiatives to break out of the trading range; though wouldn't discount a bid for this, one of the smallest REITS with a MCap of just £112m.


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[hindsight] 13/4/2023 20:46

I made it ex divi 1.95% today, so had + a reaction to the news

[skyship] 13/4/2023 15:23

I make EPRA earnings cover mow at 81% after the Alkmaar purchase. As stated, that will increase further. As stated in the last Presentation, divi looks secure.

Dividend cover discussed c21mins into the Presentation on P.No 179 above.

[riverman77] 13/4/2023 14:37

Looks pretty solid update although as you know dividend only 75% covered. If the dividend was based on EPRA earnings it would be on a 6% yield, which is OK but nothing special. They say they have eur 40m cash to deploy to boost dividend cover, although this would also increase gearing and risk - on balance would probably prefer them to use that cash to reduce debt a bit rather than buy more properties.

[skyship] 13/4/2023 14:03

The above stats suggest the NAV has slipped only slightly from 120.3p to 118.0p.

I've taken the opportunity to add today at c82.5pXD. At which level the discount = 29.7% and the yield 7.89%.

[skyship] 13/4/2023 13:40

13 April 2023

PROPERTY PORTFOLIO VALUATION

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 as at 31 March 2023:

- The direct property portfolio was independently valued at EUR220.2 million, reflecting a marginal like-for-like decrease over the quarter of -1.3%, or -EUR2.8 million (1) , excluding the recent acquisition of an industrial warehouse in Alkmaar, located in the Netherlands and valued at EUR11.5 million. This change was primarily driven by circa 25 basis points of outward yield movement, which more than offset the positive impact of rental growth, increasing the portfolio net initial yield to 6.2%.

- The portfolio office exposure (c. 34%(2) ) comprises investments in Hamburg, Stuttgart and Paris. Over the quarter, the marginal valuation decline for these assets has been mitigated by market rental growth in the respective sub-markets, supporting the Company's strategy of targeting sub-markets that are supply constrained, benefit from competing demands and are accessible and affordable. In addition, office occupancy figures in Continental Europe's major cities are close to the pre-pandemic European average of 70% (3) .

- Based on 31 March 2023 values and following the recent refinancing of the German Hamburg/Stuttgart loan and proposed repayment of the French Rumilly loan, the portfolio LTV is approximately 31% based on gross asset value and 23% net of cash.

- The Company remains well positioned with significant cash reserves, with potential investable fire power of up to approximately EUR40 million, including further gearing.

(1) In addition, the Company has a 50% interest in a joint venture in Seville which continues to be recognised at nil value

(2) Including cash
(3) Savills

[speedsgh] 23/3/2023 11:28

Recent Netherlands acquisition announcement...

Acquisition of Warehouse in the Netherlands (20/3/23) -

Schroder European Real Estate Investment Trust Plc (the "Company"), the company investing in European growth cities, announces that it has acquired, via a sale and leaseback, a freehold industrial warehouse in Alkmaar, the Netherlands, for approximately €11 million, reflecting a net initial yield of 5.6%.

The 9,115 sqm property is fully let to W.A. Schuurman Beheer B.V., an electrical engineering and renewable energy specialist that has been in operation for over 100 years and serves as its headquarters and as its key distribution hub. The 20 year triple net lease, with a break at 15 years, benefits from annual indexation.

The property, which has won a number of architectural awards for its design, has been built to a high standard with excellent sustainability credentials, including on-site renewable energy and an EPC rating of A+.

In line with the Company's 'Winning Cities' strategy, the asset is situated in Alkmaar, an established light industrial and distribution location c. 40km north of Amsterdam in the Randstad which is one of the Netherlands' fastest growing regions from a population and manufacturing perspective. Located near to the A9 motorway, it benefits from supply constrained dynamics and excellent arterial connectivity, with direct access to Amsterdam as well as the A1, A2 and A4, providing links to the Netherlands' wider motorway network.

Commenting on the acquisition, Jeff O'Dwyer, Fund Manager at Schroder Capital Real Estate commented:

"Whilst we continue to be patient in our investment strategy, this was a rare opportunity to acquire a highly sustainable asset with a strong and visible income profile that enhances the Company's sector weighting, average unexpired lease term and credit strength.

"We continue to seek ways to further diversify by both number of assets and tenants, as well as increasing our allocation to high growth pockets of the industrial sector via selective acquisitions. As well as increasing the portfolio industrial weighting from 25% to 29%, this investment deploys a portion of the proceeds from the sale of Paris Boulogne Billancourt in 2022 as part of our strategy to improve dividend cover."

[speedsgh] 23/3/2023 11:26

ANNOUNCEMENT OF NAV AND DIVIDEND -

- Unaudited NAV as at 31 December 2022 decreased by (3.4%) to €181.8 million, or 136.0 euro cents per share, driven primarily by a fall in the valuation of the investment property portfolio;

- NAV total return decreased by (3.4%) over the quarter and by (1.5%) for the twelve months to 31 December 2022;

- A first interim dividend of 1.85 euro cents per share to be paid for the year ending 30 September 2023, in line with target;

- Underlying adjusted earnings from operational activities ("EPRA earnings") increased to €1.9 million (€1.8 million for the quarter ended 30 September 2022), which will grow with the redeployment of the Paris Boulogne-Billancourt sale proceeds and rental indexation;

- The direct property portfolio was independently valued at €211.5 million, reflecting a like-for-like decrease over the quarter of (3.3%), or €7.2 million;

- Post period end, the Company acquired, via a sale and leaseback, a freehold industrial warehouse in Alkmaar, the Netherlands, for approximately €11 million, reflecting a net initial yield of 5.6%;

- The Company has a strong balance sheet and maintained a prudent gearing approach with an investable cash balance of approximately €37 million and a loan to value ratio ("LTV") of approximately 18% net of cash and 30% gross of cash.

--------------------------------------

Interim dividend

The Company continues to pay a full dividend. The first interim dividend of 1.85 euro cents per share for the year ending 30 September 2023 represents an annualised rate of circa 8% based on the 13 March share price (c. 81 pence sterling).

The quarterly dividend is 75% covered by EPRA earnings. Underlying adjusted EPRA earnings of €1.9 million (€1.8 million for the quarter ended 30 September 2022), which will increase with the redeployment of available investment cash and rental indexation.

The interim dividend payment will be made on Friday, 5 May 2023 to shareholders on the register on the record date of Friday, 14 April 2023. In South Africa, the last day to trade will be Tuesday, 11 April 2023 and the ex-dividend date will be Wednesday, 12 April 2023. In the UK, the last day to trade will be Wednesday, 12 April 2023 and the ex-dividend date will be Thursday, 13 April 2023...