Full Year 2025 Schroder European Real Estate Investment Trust PLC Earnings Call Transcript
Key Points
- Schroder European Real Estate Investment Trust PLC secured 10 new leases and regears, covering over EUR2 million of annual rent, increasing the unexpired lease term to 11 years.
- Post-period end, the company achieved further leasing success in Paris, moving occupancy to 97%.
- The company sold its Frankfurt retail investments at value, reducing retail exposure and using proceeds to reduce debt and implement an accretive share buyback program.
- The company holds around EUR28 million of cash, providing a strong foundation and flexibility for future investments or challenges.
- The company's IFRS profit increased to EUR2.2 million for the financial year, up from EUR0.6 million the previous year, contributing to a NAV total return of 2%.
- KPN has given notice to terminate its lease at the end of December 2026, which is likely to impact the current dividend.
- The ongoing French tax dispute has led the company to ring-fence approximately EUR14.2 million, limiting its ability to use that capital for new investments.
- Dividend cover decreased to 94% for the financial year, down from 103% the previous year, partly due to the sale of an asset in Frankfurt.
- The company experienced unrealized valuation losses of EUR2.3 million during the financial year, with mixed-use office assets in Apeldoorn and some office assets in Paris and Hamburg underperforming.
- The company's shares are trading at a significant discount to NAV, around 35%, reflecting market concerns and impacting investor sentiment.
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Good morning. Thank you for joining us for the annual results for the Schroder European Real Estate Investment Trust for the period ending 30 September 2025. I'm Jefficient O'Dwyer, I'm the Fund Manager. I'm joined by Rick Murphy, the finance manager. Just a little bit of housekeeping to start with.
You should be able to download the annual results, including the annual report and this presentation on your screen. Secondly, we welcome questions. There's an opportunity for you to answer ask questions. We'll answer those at the end of the presentation. And then finally, we welcome any feedback, and there's an opportunity to give some feedback on the website.
Just dealing with a number of the points that we want to sort of touch on, I will address the key factors currently influencing the share price and also the market perception of the European REIT before I'll hand over to Rick to run through the financial results. My main aim is to outline the main issues affecting the
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