Schroder European REIT declares dividend, stable NAV despite French tax dispute

Schroder European Real Estate Investment Trust plc (SEREIT) announced a third quarterly interim dividend of €1.48 cps, 90% covered by adjusted EPRA earnings, reflecting a total annualised dividend yield of approximately 7.6%. This brings total interim dividends for the nine months to €4.44 cps, 96% covered by adjusted EPRA earnings. The company reported a positive NAV total return of 1.0% for the quarter, bringing the nine-month total to 1.3%.

The unaudited net asset value (NAV) as at June 30, 2025, stood at €157.6 million, or €119.8 cps, a slight decrease from €158.9 million (€120.1 cps) at March 31, 2025. The direct property portfolio was independently valued at €193.9 million, materially unchanged from the prior quarter, benefiting from robust industrial valuations and an uplift in Berlin, which offset declines in other sectors.

A new 12-year lease extension with Hornbach at the Berlin DIY asset resulted in a €1 million valuation increase. SEREIT maintains a strong balance sheet with approximately €24 million in available cash and a loan-to-value ratio of 19% net of cash. The company also disclosed a €14.2 million payment demand from the French Tax Authority, which it intends to appeal.