Schroder loses retail tenant at Metromar

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Schroder loses retail tenant at Metromar

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Published Date: 2021-02-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Schroder loses retail tenant at Metromar

The real estate investment trust says any reduction in income from the vacancy will not have a material impact on expected dividends.

Schroder European Real Estate Investment Trust says one of the anchor tenants at its Metromar shopping centre in Spain has given notice to terminate its lease. Metromar, in which it holds a 50% stake, will continue to collect rent from the fashion retailer until the end of July.

Schroder said current occupancy at the shopping centre was 84% and it represented just 3.6%, or €7.4 million of its net asset value at the end of September. Any reduction in income from the vacancy wouldn't have a material impact on its current dividend expectations.

The company's total retail exposure is 21.8% of the value of its property portfolio, across three investments. Alongside Metromar, which makes up 7.7% of the value, it also owns a DIY unit in Berlin that is leased to Hornbach and a grocery unit in Frankfurt that is leased to supermarket chain Lidl.

Schroder said it remained prudently geared with an overall loan to value, net of cash, of approximately 25% as at the end of December, with no debt maturities before 2023.

The company's shares didn't trade yesterday, closing unchanged at R18.99.





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