THE HAGUE (dpa-AFX) - Schroder European Real Estate Investment Trust plc said its tenant Koninklijke KPN N.V. (KPN.AS) has formally notified the company of its intention to terminate the lease at its Apeldoorn property in the Netherlands, with the exit taking effect on December 31, 2026.
The mixed-use office and data centre asset currently accounts for around 19 percent of the trust's portfolio income and approximately 6 percent of portfolio value as of September 30, 2025.
The investment manager said it is actively evaluating mitigation options, including marketing the property to new tenants, assessing alternative uses such as medium-density residential development, or selling the asset to redeploy capital into higher-return opportunities.
The property was acquired in February 2018 for its income-generating profile and has delivered an unlevered total return of more than 8 percent per annum to date. As of September 30, 2025, it was valued at €11.8 million, with valuations reflecting the shortening lease term.
The company reiterated that KPN's departure is expected to weigh on future income. If the loss from the Apeldoorn asset cannot be fully offset, future dividend levels or earnings cover may be affected.
KPN.AS currently trades at €3.897 or 0.86% lower on the Amsterdam Stock Exchange.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
