LONDON - Schroder European Real Estate Investment Trust Plc (SEREIT), a company focused on property investments in European cities, has initiated a share buyback program. The move comes as the firm seeks to capitalize on the current share price, which is trading at a discount to its net asset value.
SEREIT has appointed Panmure Liberum Limited as its broker to manage the market purchases of its Ordinary Shares. The buyback is part of a strategy to enhance shareholder value and improve the income and asset quality of its portfolio. The company's financial health appears solid, with around €25 million in cash as of September 30, 2024, and a net loan-to-value ratio of 25%. The expected sale of a Frankfurt grocery investment by March 31, 2025, is projected to boost cash reserves to approximately €28 million and reduce the net loan-to-value ratio to about 21%.
The authorization for the buyback was granted during the company's annual general meeting on March 18, 2024, allowing the repurchase of up to 20,046,829 of its Ordinary Shares. This authority will remain in effect until the next annual general meeting, where the company will seek renewal.
The buyback will adhere to the UK Financial Conduct Authority's Listing Rules and the Market Abuse Regulation's technical standards, which are part of the retained EU law post-Brexit. SEREIT has not disclosed a maximum expenditure for the buyback but has clarified that purchases will not exceed the net asset value per share.
Any repurchase transactions will be publicly announced by 7:30 a.m. the following business day. This buyback program reflects the company's proactive approach to management and its commitment to shareholder interests.
The information in this article is based on a press release statement from Schroder European Real Estate Investment Trust Plc.
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