9 October
2024
SCHRODER EUROPEAN REAL
ESTATE INVESTMENT TRUST PLC
("SEREIT"/ the "Company" / "Group")
PROPERTY PORTFOLIO
VALUATION
STABILISATION OF
PORTFOLIO VALUES CONTINUES AS GLOBAL INTEREST RATE HIKING CYCLE
COMES TO AN END
Schroder European Real
Estate Investment Trust plc, the company investing in real estate
in European growth cities, today provides an update on the
independent valuation of the property portfolio as at 30 September
2024:
-
The direct property portfolio was independently valued
at €208.1 million, reflecting a marginal decrease of -0.1% (30
June 2024 +0.1%), or €0.20 million, over the quarter1.
This is the second consecutive quarter of stabilising values and
recent European central bank rate cuts are expected to have a
further positive impact on investor and occupier confidence,
liquidity and values
-
Two properties witnessed a valuation increase over the
quarter:
o
The Cannes Car
Showroom increased €0.20 million, or +2.9%, driven, by index-linked
income growth of ca 5%;
o
The Stuttgart office
increased by €0.05 million, or +0.3%
-
All other property values remained flat, except for the mixed-used
data centre in Apeldoorn which reduced by €0.45 million, or -3.2%,
due to the declining remaining lease term
-
The portfolio's income profile remains robust, benefitting from
100% rent collection over the quarter and high occupancy
(96%)
-
Based on 30 September 2024 values, the portfolio Loan-to-Value is
approximately 33% based on gross asset value and 25% net of cash,
providing significant flexibility.
Sir Julian
Berney Bt., Chairman, commented:
"Following the recent
period of macro volatility, there is increasing evidence that the
market has reached an inflection point. Falling inflation and
interest rates are providing an underpin for improving investor
sentiment and liquidity, which is translating into valuation
resilience, and provides an encouraging platform as we look ahead
to 2025."
Footnote 1: In
addition, the Company has a 50% interest in a joint venture
in Seville which continues to be recognised at nil
value.
Enquiries:
Jeff
O'Dwyer
Schroder Real Estate
Investment Management Limited
Tel: 020 7658
6000
Natalia de
Sousa
Schroder Investment
Management Limited
Tel: 020 7658 6000
Dido Laurimore/Richard
Gotla/Ollie Parsons
FTI Consulting
Tel: 020 3727
1000