Business update

RNS Number : 1228O

Schroder Eur Real Est Inv Trust PLC

28 May 2020

 

28 May 2020

Business Update

Schroder European Real Estate Investment Trust plc ("SEREIT"/the "Company"/"Group"), the company investing in European growth cities, provides a further business update in light of the COVID-19 pandemic and prior to the announcement of its half year results expected to be published towards the end of June 2020.

The Company continues to benefit from the diversification of its portfolio which comprises 13 assets, located in the growth cities and regions of Continental Europe. The portfolio has approximately 100 tenants across a range of sectors and benefits from being well balanced with approximately 75% in the office and industrial/data centre sectors, in cities including Paris, Berlin, Frankfurt, Hamburg and Stuttgart.

Jeff O'Dwyer, Fund Manager, Schroder REIM, commented: "Already we are seeing the easing of lockdown measures across the geographies that we operate in positively impacting on the portfolio. We are taking a methodical approach to asset management, working closely with all our tenants to ensure we have a clear pathway to income visibility, whilst taking measures to protect the long-term interests of our shareholders."

Rent collection

As at the close of business on 20 May 2020, the Company had received payments on 83% of monthly rents in respect of April and May 2020. The analysis between sectors for rent collection over April and May is as follows: 98% of office; 84% of industrial/data centre use; and 57% of retail and leisure. We continue to work closely with a number of tenants to agree payment plans/rent deferral and or amendments to lease terms.

Portfolio update

Retail represents 25% of the portfolio, of which 15% is invested in a Lidl supermarket in Frankfurt and a Hornbach DIY unit in Berlin, both of which have remained open for trade throughout.  The Metromar Centre in Seville is the sole shopping centre in the portfolio and represents 10% of the portfolio by value.  The centre partly re-opened on 25 May 2020 and the Company is implementing a plan and working with tenants to establish on-going trading positions. The strategy is also focused on working with centre management and tenants to create a safe environment for tenants and consumers.

The Company also continues to progress the previously announced refurbishment of its largest investment in Paris which is leased to engineering and technology consulting specialist, Alten. There will be further updates as we progress matters.

Dividend

As previously announced, the Board will continue to consider carefully future dividend payments, which are under review in light of the short term cash position, in conjunction with longer term sustainable income generated from the portfolio. This will be monitored and a decision will be taken as clarity improves around the economic backdrop.

For further information:

Schroder European Real Estate Investment Management Limited: Duncan Owen / Jeff O'Dwyer	020 7658 6000
Schroder Investment Management Limited: Ria Vavakis	020 7658 2371
FTI Consulting: Dido Laurimore / Richard Gotla	020 3727 1000

 

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