Our opinion on the current state of SEREIT(SCD)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 year to 30th September 2024, the company reported EPRA earnings up 3% to 8,2m euros, a net asset value (NAV) of 164,1m euros, and a loan-to-value (LTV) of 25%. Occupancy was at 96%.
In an announcement on 18th March 2025, the company reported that its NAV on 31st December 2024 was 120,5 euro cents per share compared with 122,7c on 30th September 2024. The company said, "The direct property portfolio was independently valued at €206.2 million, including Frankfurt which was held for sale as at 31 December 2024, reflecting a marginal like-for-like decrease over the quarter of -0.9%, or -€1.9 million, with robust industrial portfolio valuations offsetting declines in offices and the Berlin DIY investment as a result of a shortening unexpired lease term."
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 developments in the war in Ukraine. The company is expecting to spend at least 50m euros on acquisitions.
Unfortunately, it is relatively thinly traded, with only R173000 worth of shares changing hands on average each day, which makes it more risky for private investors.
