Property Portfolio Valuation

RNS Number : 8863M

Schroder Eur Real Est Inv Trust PLC

17 January 2023

 

17 January 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 December 2022: 

-  The direct property portfolio was independently valued at €211.5 million, reflecting a slight like-for-like decrease over the quarter of -3.3%, or €7.2 million [1] . This change was primarily driven by circa 25 basis points of outward yield movement, increasing the portfolio net initial yield to 6.0%, which more than offset the positive impact of rental growth.

-   With 100% of the portfolio leases subject to indexation, rising inflation is starting to contribute to rental growth and will increasingly mitigate further value declines.

-  Based on 31 December 2022 values and following the recent refinancing of the Hamburg/Stuttgart loan, the portfolio LTV is approximately 32% based on gross asset value and 22% net of cash.

-  The Company is well positioned with significant cash reserves, with potential investable fire power of up to approximately €50 million, including further gearing.

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 

FTI Consulting                                                                                Tel: [phone]

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

 

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