Wrap Text
Full year results for the year ended 30 September 2024
Schroder European Real Estate Investment Trust PLC
(Incorporated in England and Wales)
Registration number: 09382477
JSE Share Code: SCD
LSE Ticker: SERE
ISIN number: GB00BY7R8K77
("SEREIT"/ the "Company" / "Group")
FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2024
Positive NAV total return with portfolio indexation underpinning earnings growth and fully
covered dividend, supported by low LTV
Schroder European Real Estate Investment Trust plc, the company investing in European growth
cities and regions, announces its full year results for the year ended 30 September 2024.
- Underlying EPRA earnings increased 3% to €8.2 million (2023: €8.0 million), primarily
due to rental growth offsetting the impact of higher interest costs
- Total dividends declared for the year totalled 5.92 euro cps, 103% covered by EPRA
earnings, offering an attractive dividend yield of c.7.1% based on the closing share
price of 69.2pps as at 29 November 2024
- Net Asset Value ("NAV") of €164.1 million, or 122.7 cps, (30 September 2023: €171.4
million or 128.2 cps), primarily driven by outward yield movement in the first half
- IFRS profit of €0.6 million contributing to a positive NAV total return of 0.4% (30
September 2023: -5.0% total return / €9.4 million IFRS loss)
- Strengthened balance sheet with completion of all near-term refinancings on
attractive terms, with no further debt expiries until June 2026 and a low average
interest cost of 3.2%
- Low Loan to Value ("LTV") of 25% (net of cash) and c.€25 million of available cash,
providing significant flexibility
- As previously announced, the French tax authorities are proceeding with a tax audit.
The potential exposure is up to €12.6 million (excluding penalties). Based on
professional advice, the Board continue to believe that an outflow is not probable, and
therefore no provision is recognised. The Group will continue to monitor the situation
and provide further updates as required.
Operational expertise and exposure to winning sectors supporting rental growth and
recovery in capital values
- Direct property portfolio independent valuation declined 3.6% to €208.1 million (or
€7.6 million net of capex), entirely weighted towards the first half of the year, due to
outward yield movement as investor sentiment was negatively impacted by higher
interest rates
- Concluded 16 new leases and re-gears, totalling c.8,000 sqm, which generated €1.4
million of contracted rent, at a weighted lease term of eight years
- Portfolio benefits from high occupancy level of 96% with an average portfolio lease
term of 4.7 years
- 100% of rent due collected
- Progressed the Company's sustainability strategy, including the completion of third-
party sustainability and Net Zero Carbon ("NZC") audits for 12 assets.
Sir Julian Berney Bt., Chairman, commented:
"Despite the broader challenges facing smaller REITs, the Company is well positioned, with a
differentiated and compelling investment thesis focused on assets with robust property
fundamentals in higher growth European cities.
"We have a high conviction, shared by our shareholders and supported by the stabilisation in
values that we have seen in more recent quarters, that the current strategy and pipeline of value-
enhancing asset management initiatives will continue to drive earnings, support a covered and
ultimately growing dividend, and deliver risk-adjusted returns for shareholders."
Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited,
added:
"The portfolio has demonstrated notable resilience, which is testament to the quality of our
assets and local teams, as well as the focus on high performing sub-markets. Although further
short term macroeconomic volatility is expected, the medium term outlook is supportive of real
estate investment. Our focus moving forward is to maintain our balance sheet strength whilst
capturing the portfolio reversion to boost earnings and asset liquidity, with the aim of reducing
the current share price discount."
Short-form announcement
This short-form announcement is the responsibility of the directors of the Company. It contains
only a summary of the information in the full accounts ('Full Accounts') and does not contain full
or complete details. The Full Accounts can be found at:
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/SCDE/SEREITFY24.pdf
Any investment decisions by investors and/or shareholders should be based on consideration of
the Full Accounts, as a whole.
The Full Accounts have been audited by the Company's auditors, Ernst & Young LLP who
expressed an unmodified audit opinion thereon. This auditor's report is available, along with the
Full Accounts, on the Company's website at www.schroders.co.uk/sereit.
A presentation for analysts and investors will be held at 9 a.m. GMT/11 a.m. SAST today.
Registration for which can be accessed via:
https://www.schroders.events/SEREFY24
Enquiries:
Jeff O'Dwyer 020 7658 6000
Schroder Real Estate Investment Management
Limited
Natalia de Sousa 020 7658 6000
Schroder Investment Management Limited
Dido Laurimore/Richard Gotla/Ollie Parsons 020 3727 1000
FTI Consulting Schroderrealestate@fticonsulting.com
The Company has a primary listing on the London Stock Exchange and a secondary listing on
the JSE Limited.
London
6 December 2024
JSE Sponsor
PSG Capital
Date: 06-12-2024 09:00:00
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