Schroder European Reit benefits from valuation increase
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SCHRODER European Real Estate Investment Trust, which invests in real estate in European growth cities, said yesterday that its direct property portfolio was valued at €201.1 million (R3.4 billion), a 1.1 percent like-for-like increase in the quarter to September 30 over the previous quarter.
The valuation increase excluded two recently announced acquisitions in Nantes and St Cloud.
In addition, the company has a 50 percent interest in a joint venture in Seville which was recognised at nil interest.
The company said previously that it intended to declare two further distributions with a target of approximately 4.75 euro cents per share each, by way of special dividend, over the next nine months, which would allow shareholders to benefit from the profit associated with the successful execution of the Paris, Boulogne-Billancourt business plan.
The valuation increase over the quarter was mainly driven by improved yield at the Hamburg office investment, which delivered a valuation increase of €1.2m, or 5.5 percent.
Improved rental growth and yield re-rating at the Stuttgart office investment delivered a valuation increase of €1.1m, or 5.6 percent.
Some 95 percent of rent due for the quarter had been collected, up from the March quarter’s 92 percent and the June quarter’s 94 percent.