Schroder Eur Real Est Inv Trust PLC Rent collection and portfolio valuation update (1817V)
April 13 2021 - 2:00AM
UK Regulatory
TIDMSERE
RNS Number : 1817V
Schroder Eur Real Est Inv Trust PLC
13 April 2021
13 April 2021
RENT COLLECTION AND PROPERTY PORTFOLIO VALUATION UPDATE
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 rent collection,
alongside an independent valuation of the property portfolio as at
31 March 2021.
- Approximately 93% of rent due for the quarter ended 31 March
2021 has been collected, which is ahead of the amount collected in
the previous two quarters of 89%
- As at 31 March 2021, the property portfolio was independently
valued at EUR274.3 million, a decrease of 0.6%, or EUR1.8 million,
on the 31 December 2020 valuation of EUR276.1 million. Net of
approximately EUR1.4 million of capital expenditure invested in the
refurbishment of Boulogne-Billancourt over the quarter, the
valuation decreased by EUR3.2 million, or 1.2%
- Excluding the Boulogne-Billancourt capital investment, the
like-for-like valuation movement during the quarter was driven by
the following:
o Improved yield re-rating at the Berlin DIY investment,
delivering a valuation increase of EUR1.1 million, or 4.0%
o Improved yield re-rating across the industrial portfolio,
delivering a valuation increase of EUR1.9 million, or 3.9%. As at
31 March 2021, SERE's industrial exposure represents 19% of the
portfolio by value
o The value of SERE's 50% interest in the Seville shopping
centre declined by EUR6.2 million. This reflects the recent
increase in vacancy, declining ERVs and increase in risk to trading
at shopping centres from the pandemic in general, which has
increased pressure on the yield of the Seville asset as well. The
majority of this decline had been reflected in the 31 December 2020
NAV, with the remaining exposure to this asset now representing
2.9% / EUR5.8M of the NAV. This is the only asset in the portfolio
where the valuers continue to adopt a material uncertainty
clause
- T he bank which is financing the Seville property has
indicated that it expects to instruct a new valuation to formally
test the Loan-to-Value ("LTV") covenant in June 2021, which, based
on the Company's revised asset value, is likely to show that the
60% LTV covenant has been breached. The loan is secured solely
against the Seville investment, with no recourse back to the Group
or any other property. SERE continues to work proactively with its
lending partner regarding next steps and will provide a further
update in due course
- The Company has an aggregated loan to value ratio of
approximately 25% as at 31 March 2021, with no recourse to the
Company and no debt maturity before 2023.
The Company will announce its half year results for the six
months ended 31 March 2021 in early July.
Enquiries:
Jeff O'Dwyer
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Ria Vavakis
Schroder Investment Management Limited Tel: 020 7658 2371
Dido Laurimore/Richard Gotla/Methuselah Tanyanyiwa
FTI Consulting Tel: 020 3727 1000
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END
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