Property Portfolio Valuation

RNS Number : 5107S

Schroder Eur Real Est Inv Trust PLC

14 July 2022

 

14 July 2022

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 and rent collection as at 30 June 2022:

-  The direct property portfolio was independently valued at €218.4 million, reflecting a marginal like for like decrease over the quarter of -0.4%, or -€0.9 million, excluding the impact of a recently acquired car showroom in Cannes, France (valued at €8.3 million). In addition, the Company has a 50% interest in a joint venture in Seville which continues to be recognised at nil interest.

-  The majority of the portfolio's valuation change was driven by:

o  Increased vacancy assumptions at the Paris, St Cloud office investment, resulting in a valuation decrease of -€0.5 million, or -1.2%;

o  Increase in the capital expenditure provision for the upgrading of heating, air conditioning and renewable energy at the Houten industrial investment in the Netherlands, being the main driver of a valuation decrease of -€0.5 million, or -5.6%;

o  Five year lease extension for c. 1,000 sqm, equating to c.20% of the floorspace, at the Stuttgart office investment, delivering a valuation increase of €0.3 million, or 1.4%.

-  With 100% of the portfolio leases subject to indexation, rising inflation is starting to contribute to rental growth.

-  Approximately 100%  of rent due for the quarter ended 30 June 2022 has been collected from the direct property portfolio.  

-  The Company has significant cash reserves and potential investable fire power of approximately €50 million including further gearing.

Enquiries:

Jeff O'Dwyer

Schroder Real Estate Investment Management Limited  Tel: [phone]

Ria Vavakis

Schroder Investment Management Limited  Tel: [phone]

Dido Laurimore/Richard Gotla/Ollie Parsons 

FTI Consulting  Tel: [phone]

 

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