Schroder Real Estate Investment Trust Ltd · LSE:SREI
Schroder Real Estate Investment Trust — FY2025 Earnings Presentation
36 slides from Schroder Real Estate Investment Trust's earnings presentation, Jun 11, 2025
Slide 1: Schroder Real Estate Investment Trust Limited: Results for the year ended 31 March 2025
11 June 2025 SCHRODER REAL ESTATE INVESTMENT TRUST LIMITED Results for the year ended 31 March 2025 Marketing material. Nick Montgomery Bradley Biggins Fund Manager Fund Manager
Slide 2: Well positioned with high income and low debt cost
Well positioned with high income and low debt cost Portfolio focused on higher growth sectors with a reversionary yield of 8.4% (MSCI Benchmark: 6.2%) 02 6.8%1 dividend yield 100% covered by earnings over the full year2 Robust balance sheet provides dividend protection: 3.5% current average interest
Slide 3: Increasing exposure to higher growth sectors drives NAV and dividend growth
Increasing exposure to higher growth sectors drives NAV and dividend growth Recovery in UK real estate values and fully covered dividend contributed to a Net Asset Value (‘NAV’) total return of 11.0% 63% portfolio exposure to higher growth multi-let industrial and retail warehouse sectors Stacey Bus
Slide 4: NAV per share increase of 4.8% and a NAV total return of 11.0%
NAV per share increase of 4.8% and a NAV total return of 11.0% NAV movement over year ended 31 March 2025 £m PPS Portfolio capital value growth of 3.4% MSCI Benchmark: 1.4% NAV as at 31 March 2024 287.4 58.8 Unrealised net increase in the valuations of the direct real estate 21.6 4.4 Works to enhanc
Slide 5: Dividends 100% covered following 4% increase on prior year
Dividends 100% covered following 4% increase on prior year Healthy earnings growth despite impact of leasing fees and lower other income Year ended 31 March Asset management activity drives increase in rent, more 2024 2025 Change than offsetting the impact of disposals in past 2 years £m Rental inco
Slide 6: Long term debt at an attractive interest rate
Long term debt at an attractive interest rate Fixed or capped interest rates for 88% of drawn debt Debt Debt available drawn £204.6m £181.1m Undrawn RCF £23.5m Overall loan to value, net of cash Non-utilisation cost of 0.62% RBSI RCF, £75.0m £21.0m £30.5m Drawn RCF – no interest rate hedge Floating
Slide 7: Opportunity to capture rental reversion to continue growing dividend
Opportunity to capture rental reversion to continue growing dividend 7.3% increase in quarterly dividend through this financial year Quarterly dividend payments (pence per share) Term loan Postponed due to Sustainable and progressive dividend policy refinancing market uncertainty 1.000 0.853 0.853 0
Slide 8: Long term outperformance of the portfolio vs. MSCI Benchmark
Long term outperformance of the portfolio vs. MSCI Benchmark1 Higher income and asset management generating relative outperformance One year portfolio total return Three-year portfolio total return Five-year portfolio total return 2.8% relative outperformance p.a. 4.6% relative outperformance p.a. 3
Slide 9: Market Context
MARKET CONTEXT
Slide 10: UK borrowing plans in budget sends UK gilt yields up
UK borrowing plans in budget sends UK gilt yields up BoE delivers further rate cut in May – market more cautious about speed of further cuts Interest rate implied probabilities (%) from options on 6 All Property initial yield vs 10-year gilt yields June Yield % 7 Bank of England Rate (%) Preliminary
Slide 11: Supportive real estate market fundamentals, despite uncertainty
Supportive real estate market fundamentals, despite uncertainty Capital values declined by 25% post June 2022, and have started to recover Rents grew over the same period, particularly in structurally supported sectors June 2022 = 100 UK All Industrial rental growth index versus prior downturns 100
Slide 12: An interesting point for UK real estate
An interesting point for UK real estate Forecasting a total return of 8-10% per annum over the next four years UK All Property total return and components % Forecast 20 15 10 5 0 -5 -10 -15 -20 -25 -30 Income return Capital growth Total return Source: MSCI, Schroders Capital, June 2025. Note the for
Slide 13: Strategy
STRATEGY
Slide 14: Sustainability at the centre of SREIT's investment proposition
Sustainability at the centre of SREIT’s investment proposition Investment strategy Proof of concept – Stanley Green Trading Estate, Manchester Investment policy includes sustainability objectives and two sustainability KPIs Clear governance and proprietary ESG Scorecard We believe this strategy shou
Slide 15: Sustainability focused asset management initiatives
Sustainability focused asset management initiatives Generating c.£400k+ p.a. of new rent following high quality, sustainability focused refurbishments St John’s Retail Park, Bedford and Headingley Central, Leeds 19 Hollin Lane, Stacey Bushes Industrial Estate, Milton Keynes Asset Incremental +£146,4
Slide 16: Millshaw Park Industrial Estate, Leeds
Millshaw Park Industrial Estate, Leeds (£48.6m / 460,000 sq ft) Opportunity for sustainability focused asset management initiatives Unit 22 Unit 22 has recently vacated, identified initiatives Financial impact 51,707 sq ft to drive improvement¹ – Replacement of the existing asbestos roof sheets with
Slide 17: University of Law – Store Street, Bloomsbury (50% share)
University of Law – Store Street, Bloomsbury (50% share) Valuation of £38.4 million/£894 per sq ft and passing rent of £2.4 million¹/£55.00 per sq ft University of Law Campus 55 Tottenham Court Road 85,000 sq ft leased to the University of Global Holdings refurbishment/ Law until December 2029 redev
Slide 18: University of Law – Store Street, Bloomsbury (50% share)
University of Law – Store Street, Bloomsbury (50% share) Plans for a major asset repositioning promoting sustainable characteristics 18
Slide 19: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 20: Portfolio analysis
Portfolio analysis Granular portfolio with attractive income profile Diversified portfolio Structure as a % of portfolio value¹ 50.7 95% multi-let industrial Metrics as at 31 Mar 2025 SREIT/(MSCI) Industrial 32.6 estates Portfolio value (£m) 480.0 Office - 9.8 100% let to University London 13.9 occu
Slide 21: Void analysis – an opportunity
Void analysis – an opportunity 4.2% of void let or under offer since year end – focus on driving net income growth Void ERV as a % of Void ERV as at Let or under offer Asset portfolio ERV as at Comment 31 Mar 2025 post 31 Mar 2025 31 Mar 2025 Manchester, City Tower – 25% (Mixed-use) £820,897 2.0% 0.
Slide 22: Portfolio reversion of £11.4m compares with annualised dividend of £17.5m
Portfolio reversion of £11.4m compares with annualised dividend of £17.5m Attractive reversionary rental yield of 8.4% (Benchmark1 6.2%) £m +39% 5.0 40.3 40.0 1.4 3.3 0.9 28.9 0.8 30.0 20.0 £2.36m relates to The University of Law2 10.0 0.0 Annual rent Fixed uplifts Further fixed uplifts AfLs exchang
Slide 23: Summary
SUMMARY
Slide 24: Well positioned with high income and low debt cost
Well positioned with high income and low debt cost UK real estate market values recovering gradually, supported by limited development, positive rental value growth, lower inflation and an interest rate cutting cycle Underlying portfolio continues to deliver strong relative outperformance vs. peers
Slide 25: Appendix
APPENDIX
Slide 26: SREIT resources
SREIT resources SREIT Board Real Estate Sustainability & Impact Key Resources Charlie Jacques Robert Varley Oliver Kummerfeld James Lowe Alexandra Innes Head of Sustainability Head of Sustainability and Head of European Client Director Alastair Hughes Priscilla Davies Sanjay Patel Senior Independent
Slide 27: Discrete yearly performance
Discrete yearly performance 12 months to 12 months to 12 months to 12 months to 12 months to Discrete yearly performance (%) Mar–2025 Mar–2024 Mar–2023 Mar–2022 Mar–2021 Share Price Total Return1 28.1 3.8 -19.7 53.2 7.1 SREIT NAV Total Return 11.0 1.1 -15.1 30.9 3.9 SREIT Real Estate Total Return 9.
Slide 28: Capital growth net of capex
Capital growth net of capex Qtr to Qtr to Qtr to Qtr to 6 months to 12 months to 3 years to 5 years to Jun 24 Sept 24 Dec 24 Mar 25 Mar 2025 Mar 2025 Mar 2025 (p.a) Mar 2025 (p.a) Portfolio Industrial 0.9% 0.7% 2.4% 1.2% 3.6% 5.2% -2.1% 5.9% Offices -0.8% -0.6% -0.9% -0.3% -1.3% -2.7% -9.1% -5.5% Re
Slide 29: Diversified portfolio of assets with good fundamentals
Diversified portfolio of assets with good fundamentals Offering significant asset management potential # Property Sector Value (£m)¹ % Portfolio1 1 Milton Keynes, Stacey Bushes Ind Est Industrial 52.5 10.9 2 Leeds, Millshaw Park Industrial Estate Industrial 48.6 10.1 3 Cheadle, Stanley Green Trading
Slide 30: Attractive and granular tenant base increases resilience
Attractive and granular tenant base increases resilience Focused on operational excellence to attract occupiers on better terms # Tenant Annual rent (£m) % of portfolio 1 Siemens 1.44 4.98 2 Buckinghamshire New University 1.30 4.50 3 Express Bi Folding Doors Limited 0.90 3.11 4 Jupiter Hotels Limite
Slide 31: Sustainability KPIs in the investment policy
Sustainability KPIs in the investment policy Sustainability KPI 1 Sustainability KPI 2 ESG Scorecard (asset level) Net zero carbon commitments (portfolio level) – The Company’s assets will be managed with a view to ensuring – Further, the Company's assets will also continue to be managed that at any
Slide 32: Baseline asset scores and portfolio carbon emissions
Baseline asset scores and portfolio carbon emissions Sustainability KPI 1 ESG Scorecard (asset level) Sustainability KPI 2 NZC commitments (portfolio level) ESG ESG Target reduction in whole building greenhouse gas intensity by 2030 to be aligned to a 1.5°C Valuation as at Target ESG global warming
Slide 33: Debt details as at 31 March 2025
Debt details as at 31 March 2025 Net LTV is 36.9% versus target long-term strategic range of 25–35% – The Company has two debt facilities – a £129.6 million long term fixed loan and a £75.0 million revolving credit facility of which £51.5 million is drawn Net LTV Forward Maximum Maximum Total Assets
Slide 34: Risk considerations
Risk considerations Prospective Investors should be aware of the associated risks and special factors of the Real Estate asset class which are not related to investments in traditional listed instruments. Attention is drawn to the following specific risks: Credit risk A decline in the financial heal
Slide 35: Important Information
Important Information Marketing material. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. The views and opinions contained herein are those of the author's, or the individual to whom they are attributed, and ma
Slide 36: Thank you
THANK YOU Schroder Real Estate Investment Management Limited 1 London Wall Place London EC2Y 5AU
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