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Schroder European Real Estate Investment Trust PLC said on Monday the values across the portfolio held up well despite worsening economic outlook.
The London and Johannesburg-listed property investor said its net asset value per share was down 0.7% to 147.9 euro cents as at the end June 30.
In the third quarter to June 30, the direct property portfolio, including the recently acquired car showroom in Cannes, France, was independently valued at €218.4 million, decreasing marginally by 0.5%.
Schroder European said the economic outlook had continued to worsen over the last three to six months, with the eurozone facing a number of headwinds such as the energy crisis, inflationary concerns and rising interest rates.
‘Values across the portfolio are holding up well, although recent bond yield rises are likely to put pressure on this. The company expects the portfolios diversification characteristics, income profile and location strengths will help in mitigating this pressure,’ the company said.
Looking ahead, it said the expectation is that rental affordability and its local expertise will be an increasing positive regarding retention of occupiers.
The company currently has €50 million of 'firepower' to deploy and expects to see an improving pipeline of opportunities over the next twelve months.
Shares in Schroder European were up 2.4% at 90.09 pence in London on Monday morning. But the stock was flat at R 17.85 in Johannesburg.
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