Julian Berney, chairman of a London-listed property trust, Schroder European Real Estate Investment (SERE), has said what many think of the discount to NAV for their own companies.
In a scheduled update to the market, the company had some good news for shareholders announcing it would pay out the first dividend of the year ending September 2024.
It added: 'The company successfully completed the early refinancing of the St Cloud, Paris office loan, extending the term by three years based on a margin of 1.9%. The company remains well positioned with a strong balance sheet, with an available cash balance of approximately €27 mln and loan to value ratio of 24% net of cash and 33% gross of cash.'
The portfolio has 96% occupancy across 50 tenants. Two office lettings concluded after the financial period, highlighting the demand for affordable and accessible offices, it added.
Despite such things, its direct property portfolio was independently valued at €210.2 mln, reflecting a like-for-like decrease over the quarter of -1.8%, or -€3.9 mln, primarily driven by continued outward yield movement, particularly for offices and select industrial assets, it said.
Its portfolio is 33% offices, 29% industrial, 16% DIY and grocery, 12% cash, and 10% other such as a mixed use data centre and office in Apeldoorn, one hour from Amsterdam. For offices, it focuses on submarkets that are supply constrained where rents are modest and sustainable, with assets in Paris, Hamburg, and Stuttgart.
It also owns a core logistics in Rumilly in France, and a DIY home improvement store in Berlin (pictured) among others.
Berney said the company was well placed, but couldn’t resist a statement on the current share price discount. ‘The board continues to assess opportunities to grow earnings and the evolution of the strategy to maximise shareholder returns and liquidity. The current share price discount does not reflect the strength of the portfolio, growth city exposure and local expertise of the investment manager.’
