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Results analysis from Kepler Trust Intelligence
Schroder European Real Estate (SERE) reported a 2.0% NAV total return for the year ending 30 September 2025, with NAV falling to 119.2 pence per share from 122.7 pence in 2024, while dividends remained stable at 5.92 pence per share, resulting in a current yield of approximately 8.2% and a significant discount of around 37%. The company repurchased 2.3 million shares, boosting NAV by 0.5 pence per share, but faces challenges including the anticipated departure of its largest tenant, KPN, from the Apeldoorn asset in December 2026, which accounts for 6% of portfolio value and 19% of contracted rent, and a French tax claim of approximately €14.2 million, which SERE disputes and has appealed. Disclaimer*
About this update from Schroder European Real Estate Investment Trust Plc
[{"type":"text","content":"\n\nSchroder European Real Estate (SERE)\n09/12/2025\nResults analysis from Kepler Trust Intelligence\nSchroder European Real Estate's (SERE) final results to 30/09/2025 show an NAV total return of 2.0%. The NAV was 119.2 cps (2024: 122.7 cps, -2.8%). Dividends of 5.92 cps (2024: 5.92 cps) were declared during the year. SERE currently yields c. 8.2%. SERE trades at a c. 37% discount. During the year 2.3m shares were bought back, enhancing NAV by 0.5 cps. The board notes that alongside broader market factors, specific challenges include SERE's largest tenant's anticipated departure and the French Tax claim (both noted below).\nLargest tenant, Dutch telecoms company KPN, which occupies the Apeldoorn asset accounting for c. 6% of the portfolio value and 19% of contracted rent, has a lease due to expire in December 2026. KPN have verbally advised that they will issue their termination notice and leave at the end of December 2026. The manager continues to work on solutions including re-letting to a replacement tenant or obtaining planning approval for alternative uses and sale.\nTax disclosure update. As previously disclosed, SERE received a notice of adjustment from the French Tax Authority amounting to c. €14.2 million, including interest and penalties. SERE maintains its position that this amount is not payable and has formally appealed the decision. This is now expected to be reviewed within a six-month period. If the claim is dismissed, SERE would escalate the matter to a formal court process, which could take up to two years to resolve. Based on professional advice, SERE's board has decided not to make a provision, as they do not believe that an outflow is probable.\nSir Julian Berney Bt., chair, said: \"The period has been characterised by a cautious recovery in economic sentiment across key European markets, with inflation pressures gradually abating and the outlook for interest rates remaining broadly stable, creating a more favourable borrowing backdrop. There are some encouraging signs that liquidity within the European real estate market is improving,.\"\nKepler View\nAs the board notes, alongside broader market factors, two specific factors play a role in Schroder European Real Estate's (SERE) persistent discount. The largest tenant, KPN, has already provided verbal confirmation and is expected to formally confirm ...
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