Schroder real estate rental collections improve from 89% to 93%
CAPE TOWN - SCHRODER European Real Estate Investment Trust (Sere), which is invested in European growth cities, had collected 93 percent of rent due for the quarter ended March 31, 2021, ahead of the 89 percent collected in the previous two quarters.
The property portfolio was independently valued at €274 million (about R4.7 billion) as at March 31, a 0.6 percent decrease on its December 31 valuation, the company said in an update yesterday.
The valuation fell by €3.2m, or 1.2 percent net of about €1.4m of capital expenditure invested in the refurbishment of Boulogne-Billancourt over the quarter.
The like-for-like valuation during the quarter was driven by the improved yield re-rating at the Berlin DIY investment, delivering a valuation increase of €1.1m, or 4 percent.
The yield re-rating improved across the industrial portfolio, delivering a valuation increase of €1.9m or 3.9 percent. The value of the 50 percent interest in the Seville shopping centre fell by €6.2m, reflecting the recent increase in vacancy and increase in risk to trading at shopping centres from the pandemic.
Most of this decline was reflected in the December 31, 2020 net asset value, with the remaining exposure to this asset now representing 2.9 percent of the net asset value.
The bank financing the property will do a new valuation to test the loan-tovalue covenant in June, which, based on the company’s revised asset value, was likely to show that the 60 percent LTV covenant had been breached.
The loan is secured against the Seville investment, with no recourse back to the group or any other property and Sere was working with its lending partner on the next steps.”