TIDMSERE
RNS Number : 0847S
Schroder Eur Real Est Inv Trust PLC
07 March 2019
7 March 2019
ANNOUNCEMENT OF NAV AND DIVIDEND
Schroder European Real Estate Investment Trust plc ("SERE" or
the "Company"), the company investing in European growth cities,
today announces its unaudited net asset value ("NAV") for 31
December 2018, together with its first interim dividend for the
year ending 30 September 2019:
- Unaudited NAV as at 31 December 2018 of EUR183.5 million or 137.2 cents per share;
- Annual NAV total return for 12 months to 31 December 2018 of 6%;
- An interim dividend of 1.85 euro cents per share relating to the quarter to 31 December 2018.
Since the period end the Company has made further progress with
its investment strategy and has exchanged contracts to acquire two
logistics warehouses in Rennes, France for EUR17.3 million,
reflecting an attractive net initial yield of 5.9%. The acquisition
is expected to complete before March quarter end and will be part
funded with two new loan facilities totaling EUR12.3 million
secured against both the Rennes asset and the Rumilly logistics
property, which was acquired in 2018. Upon completion of the
purchase, SERE will have redeployed the net proceeds raised from
the sale of the two Casino supermarkets in 2018 into five warehouse
investments, growing the portfolio's exposure to the high growth
industrial sector to 19%.
Jeff O'Dwyer of Schroder REIM said:
"The portfolio's investments offer strong diversification
benefits from a sector, city and tenant perspective, and have an
average unexpired lease term of approximately 6.5 years. Our
current dividend yield of c. 6% is highly attractive relative to
other asset classes and looking forward, we have a number of asset
management initiatives that will assist in delivering continued
income and capital growth.
"Recent geo-political uncertainty caused by events such as
Brexit and the US-China trade wars have had a dampening effect on
global growth. Notwithstanding this, we have invested in 'Winning
Cities' such as Berlin, Hamburg, Frankfurt and Paris that will
continue to remain attractive irrespective of political risk and
where the real estate fundamentals remain compelling. They are
cities that are forecast to grow from GDP, tourism numbers and
population perspectives at faster rates relative to their
respective economies, and with an established footprint in all of
them, we believe that there is a real opportunity to build a REIT
of significant size and scale that can outperform and deliver
attractive shareholder returns."
Net Asset Value
The table below provides a breakdown of the movement in NAV
during the reporting period:
EURm Cps %
Brought forward NAV as at 1 October
2018 182.1 136.2
------ ------ ------
Unrealised gain in valuation of the
property portfolio 0.7 0.5 0.4
------ ------ ------
Capital expenditure (0.8) (0.6) (0.5)
------ ------ ------
EPRA earnings 1.9 1.4 1.0
------ ------ ------
Non-cash items (0.4) (0.3) (0.2)
------ ------ ------
NAV as at 31 December 2018 183.5 137.2 0.7
------ ------ ------
(1) Management reviews the performance of the Company
principally on a proportionally consolidated basis. As a result,
figures quoted in this table include the Company's share of joint
ventures on a line-by-line basis and exclude non-controlling
interests in the Company's subsidiaries.
(2) Based on 133,734,686 shares
(3) % change based on starting NAV 1 October 2018
Interim Dividend
The first interim dividend of 1.85 euro cents per share for the
year ending 30 September 2019 represents an annualised rate of 5.5%
based on the Euro IPO issue price of 137 euro cents per share. This
is in line with the Company's target dividend, which is based on
paying a sustainable covered dividend from income expected to be
generated from the portfolio. Based on the GBP IPO issue price of
100 pence per share the annualised yield is 6.8% (based on FX rates
as at 31 December 2018).
The dividend for the period to 31 December 2018 is 75% covered
from income received during the quarter. The lower level of
dividend cover this quarter is the result of the reduced income
being generated at the Company's Hamburg office asset following the
lease surrender with City BKK announced last year. The Company has
already re-let 20% of the surrendered space, is in advanced
discussions on approximately a further 20% of the space and will
also receive EUR1.5m in 2019 in respect of the second tranche of
the surrender payment from City BKK. Based on the net income
predicted to be generated during the year (including the surrender
premium), it is anticipated that the total dividends for the year
will be fully covered.
The interim dividend payment will be made on Friday, 12 April
2019 to shareholders on the register on the record date of Friday,
29 March 2019. In South Africa, the last day to trade will be
Tuesday, 26 March 2019 and the ex-dividend date will be Wednesday,
27 March 2019. In the UK, the last day to trade will be Wednesday,
27 March 2019 and the ex-dividend date will be Thursday, 28 March
2019.
The interim dividend will be paid in GBP to shareholders on the
UK register and Rand to shareholders on the South African register.
The exchange rate for determining the interim dividend paid in Rand
will be confirmed by way of an announcement on Monday, 11 March
2019. UK shareholders are able to make an election to receive
dividends in Euro rather than GBP should that be preferred. The
form for applying for such election can be obtained from the
Company's UK registrars (Equiniti Limited) and any such election
must be received by the Company no later than Friday, 29 March
2019. The exchange rate for determining the interim dividend paid
in GBP will be confirmed following the election cut off date by way
of an announcement on Monday, 1 April 2019. Conversion to rand will
take place two business days following the announcement.
Shares cannot be moved between the South African register and
the UK register between Monday, 11 March 2019 and Friday, 29 March
2019, both days inclusive. Shares may not be dematerialised or
rematerialised in South Africa between Wednesday, 27 March 2019 and
Friday, 29 March 2019, both days inclusive.
The Company has a total of 133,734,686 shares in issue on the
date of this announcement. The dividend will be distributed by the
Company (UK tax registration number 21696 04839) and is regarded as
a foreign dividend for shareholders on the South African register.
In respect of South African shareholders, dividend tax will be
withheld from the amount of the dividend noted above at the rate of
20% unless the shareholder qualifies for the exemption. Further
dividend tax information for South African shareholders will be
included in the exchange rate announcement to be made on Monday, 1
April 2019.
Property Portfolio
As at 31 December 2018, the Company owned 12 properties located
in growth cities of Continental Europe, independently valued at
EUR222.7 million. Over the quarter, the portfolio value, net of
capex, remained stable. The portfolio generated a net property
rental income of EUR3.6 million, representing an ungeared quarterly
property income return of 1.6% (equating to 6.5% on an annualised
basis).
Following the purchase of the Rennes asset, the portfolio
comprises 13 properties with a value of approximately EUR240
million and a blended net initial yield of 6.2%. The annual
contracted rent is EUR17.7 million, with an average unexpired lease
term to first break and expiry of 5.0 years and 6.5 years.
The country and sector allocations for the portfolio as at 7
March 2019 are set out in the table below:
Country Allocation Sector Allocation
(inc committed Rennes (inc committed Rennes
purchase) purchase)
France 43% Office 46%
Germany 29% Retail 27%
Netherlands 17% Industrial 19%
Spain 11% Mixed 8%
Total 100% Total 100%
Enquiries:
Duncan Owen/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 Tel: 020 3727 1000
FTI Consulting
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCJFMFTMBJMBFL
(END) Dow Jones Newswires
March 07, 2019 02:00 ET (07:00 GMT)
Schroder European Real E... (LSE:SERE)
Historical Stock Chart
From Apr 2024 to May 2024
Schroder European Real E... (LSE:SERE)
Historical Stock Chart
From May 2023 to May 2024