Schroder European Real Estate Investment Trust PLC on Monday said the valuation of its direct property portfolio fell marginally in the third quarter.

The London and Johannesburg-listed property investor said the direct property portfolio was independently valued at €218.4 million as at June 30, reflecting a marginal like-for-like decrease of 0.8% from March 31.

The change partially reflected the valuers increasing sustainability-led provisions across select assets, Schroder European Real Estate said.

The company said it was reviewing select sustainability-led capital expenditure initiatives in the portfolio, which will best optimise earnings growth and asset liquidity.

The portfolio’s office assets witnessed a marginal valuation decline of 2.4%, reflecting additional sustainability-led provisions, but industrial assets saw a marginal valuation increase of 1.2%, driven by estimated rental value growth.

The German retail portfolio valuation was flat, while the alternative investment portfolio declined by 3.0%, as a result of shortening unexpired lease terms.

Copyright 2023 Alliance News Ltd. All Rights Reserved.