Our opinion on the current state of SEREIT(SCD)Here is the text with paragraphs added:
Schroder European Real (SCD), Sereit, is a real estate investment trust (REIT) which invests in properties in Europe. The company listed in London and on the JSE on 9th December 2015. It owns a range of properties in high-growth cities across Europe, especially in London, Paris, Frankfurt, and Zurich. Its properties are logistics, office, retail, and leisure, and it targets a dividend of 5.5% per annum.
In its results for the six months to 31st March 2024, the company reported a loan-to-value (LTV) of 24% with 96% occupancy and 100% of rents collected. The company said, "Despite macroeconomic headwinds, the resilience of the portfolio together with local sector specialist teams has delivered rental growth, largely offsetting the impact of higher interest rates. Management has successfully completed the recent refinancings which, combined with significant cash reserves, has further strengthened the balance sheet."
On 9th October 2024, the company announced an independent valuation of its assets at 208.1 million euros as at 30th September 2024.
Technically, the share has been in a decline since February 2022. We believe that this rand-hedge REIT is one of the better options on the JSE. We especially like its low LTV, but its portfolio may still be impacted by the war in Ukraine. The company is expecting to spend 50 million euros on acquisitions.
