Schroder European REIT has provided an update on its rental collections alongside an independent valuation of its property portfolio as at the 30th of June 2021.
Investing in real estate in European growth cities, the company reported approximately 94% of rent due for the quarter ended was collected which is ahead of the amount it collected in the previous two quarters (92%).
As at the 30th of June 2021, the property portfolio was independently valued at €204.7 million, an increase of 0.9% or, €1.8 million on the 31st of March 2021’s valuation of €202.9 million. Excluding its 50% interest in Metromar Seville, which has now been reflected at nil in its balance sheet, the portfolio increased in value by €2.3 million (1.25).
The valuation increase over the quarter was primarily driven by full occupation, an improved yield re-rating and ERV growth at the Hamburg office investment, delivering a valuation increase of €1.9 million (9.5%) and an improved ERV growth at the Stuttgart office investment which delivered a valuation increase of €1.0 million (5.4%).
Schroder has an aggregated loan-to-value (LTV) ratio of approximately 29% (gross of cash) as at the 30th of June 2021, with no recourse to the company and no debt maturity before 2023.
It continues to review, and it is in various stages of the acquisition process regarding new investments that will diversify and strengthen its exposure to growth cities and regions. This follows the signing of a €6.15 million logistics investment in Nantes, France in June 2021 which reflects a net initial yield of 5.5% and an unexpired lease term of approximately seven years.