Schroder European REIT Reports 3% Earnings Increase and 109% Covered Dividend in H1 2024

  • Schroder European REIT's half-year results show a 3% earnings increase to €4.3 million.
  • The company declared a 109% covered dividend of 2.96 euro cents per share.
  • SEREIT's portfolio occupancy stands at 96% with 100% rent collection, showcasing strong asset management.

Schroder European Real Estate Investment Trust plc (SEREIT) has announced its half-year results. The results cover the six months ending March 31, 2024. SEREIT focuses on investing in European growth cities and regions.

Earnings and Dividend

SEREIT reported a 3% increase in EPRA earnings. Earnings rose to €4.3 million from €4.2 million in the prior six months. Rental growth largely offset higher interest costs. The company declared two quarterly dividends of 1.48 euro cents per share. This brings total dividends for the period to 2.96 euro cents per share. The dividends were 109% covered by EPRA earnings.

Period EndingEPRA EarningsDividends Per ShareDividend Coverage
March 31, 2024€4.3 million2.96 euro cps109%
September 30, 2023€4.2 million2.96 euro cps109%

Net Asset Value

The Net Asset Value (NAV) was reported at €165.3 million. This equates to 123.6 euro cents per share. NAV declined from €171.4 million (128.2 euro cps) as of September 30, 2023. The decrease was driven by continued outward yield movement of the portfolio.

DateNAV (million)NAV Per Share (euro cents)
March 31, 2024€165.3123.6
September 30, 2023€171.4128.2

Financial Performance

The NAV total return was -1.3%, partly based on an IFRS loss of €2.2 million. This compares to a -4.7% total return and €8.7 million IFRS loss for the same period in 2023.

MetricMarch 31, 2024March 31, 2023
NAV Total Return-1.3%-4.7%
IFRS Loss€2.2 million€8.7 million

Strengthened Balance Sheet

SEREIT completed all near-term refinancings on attractive terms. There are no further debt expiries until June 2026. The company maintains a low average interest cost of 3.2%. The Loan to Value ratio is 24%, net of cash. SEREIT holds €26 million of available cash, providing significant flexibility.

MetricValue
Average Interest Cost3.2%
Loan to Value Ratio24%
Available Cash€26 million

Portfolio Performance

The direct property portfolio’s independent valuation declined by 3.1% to €208.1 million. This includes a net decline of €6.6 million after capex. The company concluded 11 new leases and re-gears totaling 6,340 sqm. These new leases generated €1.2 million in contracted rent, with a weighted lease term of eight years.

MetricValue
Portfolio Valuation€208.1 million
Decline in Valuation3.1%
New Leases/Re-gears6,340 sqm
Contracted Rent€1.2 million
Weighted Lease Term8 years

Occupancy and Diversification

SEREIT’s portfolio benefits from a 96% occupancy rate. The portfolio is diversified across 50 tenants. The company achieved 100% rent collection during the period.

MetricValue
Occupancy Rate96%
Number of Tenants50
Rent Collection100%

Conclusion

Schroder European Real Estate Investment Trust has demonstrated resilience and growth. The company remains focused on sustainability and asset management. With a strong balance sheet and diversified portfolio, SEREIT is well-positioned for future growth.


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