Announcement of NAV and Quarterly Dividend

Schroder Eur Real Est Inv Trust PLC

28 September 2023

 

28 September 2023

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

("SEREIT"/ the "Company" / "Group")

ANNOUNCEMENT OF NAV AND QUARTERLY DIVIDEND

Schroder European Real Estate Investment Trust plc, the company investing in European growth cities and regions, provides a business update and announces its unaudited net asset value ("NAV") and quarterly dividend as at 30 June 2023.

-     Unaudited NAV of €174.4 million, or 130.4 euro cents per share ("cps") as at 30 June 2023 (31 March 2023: €177.1 million, or 132.4 euro cps), reflecting a NAV total return of -0.1% over the quarter and -4.8% over the nine months of the current financial year;

-    The real estate portfolio continues to demonstrate valuation resilience; the direct property portfolio was independently valued at €218.4 million, reflecting a marginal like-for-like decrease over the quarter of -0.8%, or -€1.8 million;

-     Third quarterly interim dividend of 1.48 euro cps which is 108% covered; reflecting an annualised dividend exceeding 7% on the current share price¹;

-      The portfolio income, value and debt is Euro denominated, with 100% of the income subject to indexation.

Net Asset Value

The table below provides a breakdown of the movement in NAV during the quarter ended 30 June 2023:

	€m(1)	Cps(2)	%(3)
Brought forward NAV as at 1 April 2023	177.1	132.4
Unrealised loss in the valuation of the property portfolio	(1.8)	(1.3)	(1.0)
Capital expenditure	(0.7)	(0.5)	(0.4)
EPRA earnings	2.1	1.6	1.2
Non-cash items	0.2	0.1	0.1
Dividend paid	(2.5)	(1.9)	(1.4)
NAV as at 30 June 2023	174.4	130.4	(1.5)

(1) Management reviews the performance of the Company principally on a proportionally consolidated basis. As a result, figures quoted in this table include the Company's share of joint ventures on a line-by-line basis and exclude non-controlling interests in the Company's subsidiaries.

(2) Based on 133,734,686 shares.

(3) % change based on starting NAV as at 1 April 2023.

Interim dividend

Announcement of a third quarterly interim dividend of 1.48 euro cps which is 108% covered by EPRA earnings. The intention is to grow the dividend progressively as rental growth and asset management initiatives positively impact earnings.

Annualising the dividend provides investors with a dividend yield of in excess of 7%, based on the share price as at 25 September 2023¹.

Total dividends declared relating to the nine months of the current financial year are 5.18 euro cps, being 85% covered by EPRA earnings.

The interim dividend payment will be made on Friday 17 November 2023 to shareholders on the register on the record date of Friday 20 October 2023. In South Africa, the last day to trade will be Tuesday 17 October 2023 and the ex-dividend date will be Wednesday 18 October 2023. In the UK, the last day to trade will be Wednesday 18 October 2023 and the ex-dividend date will be Thursday 19 October 2023.

The interim dividend will be paid in British pound sterling ("GBP") 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 South African Rand ("Rand") will be confirmed by way of an announcement on Tuesday 3 October 2023. UK shareholders are able to make an election to receive dividends in Euro rather than GBP should that be preferred. 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 20 October 2023. 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 23 October 2023.

Shares cannot be moved between the South African register and the UK register between Tuesday 3 October 2023 and Friday 20 October 2023, both days inclusive. Shares may not be dematerialised or rematerialised in South Africa between Wednesday 18 October 2023 and Friday 20 October 2023, both days inclusive.

The Company has a total of 133,734,686 shares in issue on the date of this announcement. The dividend will be distributed by the Company (UK tax registration number 21696 04839) and is regarded as a foreign dividend for shareholders on the South African register. In respect of South African shareholders, dividend tax will be withheld from the amount of the dividend noted above at the rate of 20% unless the shareholder qualifies for the exemption. Further dividend tax information for South African shareholders will be included in the exchange rate announcement to be made on Tuesday 3 October 2023.

Property portfolio

Demonstrating continued valuation resilience, the direct property portfolio was independently valued at €218.4 million, reflecting a marginal like-for-like decrease over the quarter of -0.8%, or -€1.8 million. The change partially reflects the valuers increasing sustainability-led provisions across select assets, whilst outward yield movement in the wider real estate market was partially offset by asset management initiatives and portfolio rental growth. The portfolio net initial yield is now 6.4%.

Balance sheet

The Company remains well positioned with cash reserves in excess of €20 million, retaining capital to manage the two re-financings due in 2024.

Based on 30 June 2023 values, and following the recent repayment of the French Rumilly loan, the portfolio LTV is approximately 31% based on gross asset value and 23% net of cash (31 March 2023 LTV 32% gross and 23% net of cash).

1. Based on share price of c. 71p as at 25 September 2023

-Ends-

Enquiries:

Jeff O'Dwyer

Schroder Real Estate Investment Management Limited                  Tel: [phone]

Shilla Pindoria

Schroder Investment Management Limited                                       Tel: [phone]

Dido Laurimore/Richard Gotla/Ollie Parsons                                      Tel: [phone]

FTI Consulting   

 

END