Schroder Real Estate Investment Trust Ltd · LSE:SREI
Schroder Real Estate Investment Trust — Schroders Capital Global Innovation Trust — FY2024 Earnings Presentation
32 slides from Schroder Real Estate Investment Trust's earnings presentation, March 2025
Slide 1: Schroders Capital Global Innovation Trust plc Annual Report and Accounts 2024
March 2025 SCHRODERS CAPITAL GLOBAL INNOVATION TRUST PLC Annual Report and Accounts 2024 Investment update Tim Creed and Harry Raikes Lead Portfolio Manager and Co-Portfolio Manager Marketing material.
Slide 2: Contents
01 3 02 8 Introduction Financial performance CONTENTS 03 20 04 23 Outlook Appendix
Slide 3: Introduction
01 INTRODUCTION 3
Slide 4: Key messages
Key messages Schroders became the Portfolio Manager in 2019 with the immediate focus on selling legacy holdings to eliminate the debt Since then, legacy investments have continued to reduce in value contributing 95% of the fair value decline In 2021, Schroders started making new investments which ha
Slide 5: Recap: Portfolio evolution from 2019 to 2024
Recap: Portfolio evolution from 2019 to 2024 Legacy investments account for 95% of the total fair value movement since 2019 Legacy investments Schroders public equity investments Schroders private equity investments 19 (276) 561 95% of fair value movement driven by legacy investments (245) (11) (3)
Slide 6: Recap of progress against 2024 strategic priorities
Recap of progress against 2024 strategic priorities Support business growth Maximise sales Execute Complete new investments and profitability proceeds the buyback Work closely with portfolio company Maximise the sale proceeds from Rebalance the portfolio ensuring the Complete new investments that al
Slide 7: New investments made by Schroders Capital
New investments made by Schroders Capital Exited Announced Realised¹ 3.3x MoIC² with upside potential to 6.3x MoIC² investments exit Sector Country Initial investment Performance Growth Revolut Financials UK August 2021 Ada Health Health Care Germany December 2021 Back Market Consumer France Decembe
Slide 8: Financial performance
02 FINANCIAL PERFORMANCE 8
Slide 9: Financial performance
Financial performance As at 31 December 2024 Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the
Slide 10: Calendar year performance
Calendar year performance Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overse
Slide 11: 2024 net asset value performance attribution
2024 net asset value performance attribution Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the
Slide 12: 2024 net asset value performance attribution
2024 net asset value performance attribution Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the
Slide 13: Portfolio as at 31 December 2024
Portfolio as at 31 December 2024 Company Sector Strategy Fair value (£m) NAV (%) Breakdown by type1 Breakdown by strategy/stage1 Atom Bank Financials Growth 23.1 14.2% 3% 3% Revolut Financials Growth 14.6 9.0% 16% Salica ET Fund Industrials Growth 8.2 5.0% Back Market Consumer Growth 8.1 5.0% AI Com
Slide 14: Exit: Immunocore
Exit: Immunocore Immunocore is a biotech company that develops treatments for cancer, infectious diseases, and autoimmune conditions. Their technology called ImmTAC® helps the immune system find and attack diseased cells. Immunocore went public in February 2021. Share price (USD) since IPO1 £25.3m M
Slide 15: Exit: Oxford Nanopore Technologies
Exit: Oxford Nanopore Technologies Oxford Nanopore Technologies is a UK-based company that specialises in nanopore sequencing. Its products enable the direct, electronic analysis of single molecules, such as DNA and RNA. Oxford Nanopore went public in September 2021. Share price (p) since IPO1 Gradu
Slide 16: Development of life science investments
Development of life science investments Legacy investments Clinical - Clinical - Lead candidate/ Lead disease Application for Holding Discovery Pre-clinical pre proof of post proof of Approval product indication market approval concept concept CT-388 Obesity NXTX-0001 Epilepsy Abelacimab Thrombosis
Slide 17: Sale agreed: Anthos Therapeutics
Sale agreed: Anthos Therapeutics Therapeutics for patients with cardiovascular disease Transaction details Investment thesis Transaction Co-investment alongside Blackstone Life Sciences (fka Clarus) • Abelacimab is in phase 3 clinical trials and is further Size $2.8m (£2.2m) advanced in clinical tri
Slide 18: Sale agreed: Araris Biotech
Sale agreed: Araris Biotech Next generation antibody drug conjugates to treat cancer Transaction details Investment thesis Transaction Direct investment • Nectin-4 shows best in class / first class data so far with Size CHF 3.0m (£2.6m) significant potential in triple-negative breast cancer and Best
Slide 19: Update: Revolut
Update: Revolut Highly disruptive UK-founded and headquartered global neobank Overview Exceptional growth profile² Diverse revenue mix² – One app for all things money - current 40 2,000 accounts, debit cards, fee-free currency exchange, stock & crypto trading, peer-to-peer payments and 35 28% 27% Pa
Slide 20: Outlook
03 OUTLOOK 20
Slide 21: Managed wind-down
Managed wind-down DISTRIBUTION OF Initial capital return REALISATIONS The Board anticipates that capital will be Initial capital return (gross) returned to Shareholders over time by C ash & equivalents¹ way of successive tender offers, £30.0m² although other forms of capital return £31.6m may be con
Slide 22: Principles of an 'orderly managed wind-down'
Principles of an ‘orderly managed wind-down’ Maximise exit value Support (not force) exit events Prudent reserving – Focus on maintaining or increasing – Focus on exits that align with planned – Establish a cash management plan the value of the portfolio and company events (e.g. trade sales or that
Slide 23: Appendix
04 APPENDIX 23
Slide 24: INOV private equity strategy comprised of three sub-strategies
INOV private equity strategy comprised of three sub-strategies LIFE SCIENCES VENTURE GROWTH ‒ Focused on more mature growth-stage companies ‒ Focused on biotech and life science opportunities. ‒ Focused on venture-stage companies with early that have achieved scaled revenues. ‒ Either clinical stage
Slide 25: Q4 2024 net asset value performance attribution
Q4 2024 net asset value performance attribution Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause t
Slide 26: Sale of Oxford Nanopore Technologies
Sale of Oxford Nanopore Technologies Why have we been selling down INOV’s holding since 2023? How have we been Key things we wanted to Fundamentals Portfolio construction approaching the sale see from the company: process? Early-stage loss-making public Outsized share of the portfolio We initi
Slide 27: New investment: AI Company II
New investment: AI Company II High-quality data curation services for generative AI models and application developers Transaction details Transaction Direct investment Size $10.0 million (£7.5 million) Date Q2 2024 Best-in-class products/services/technology ✓ Strategy Growth Geography US Background
Slide 28: New investment: Neurona Therapeutics
New investment: Neurona Therapeutics Focused on breakthrough treatments for neurological disorders Transaction details Transaction Direct investment Size $1.6 million (£1.3 million) Date Q1 2024 Best-in-class products/services/technology ✓ Strategy Life Sciences Geography US Background Significant g
Slide 29: New investment: AI Company III
New investment: AI Company III Developer of a proprietary generative AI foundational model for software development Transaction details Transaction Direct investment Size $5.0 million (£3.9 million) Date Q3 2024 Best-in-class products/services/technology ✓ Strategy Venture Geography US Background Si
Slide 30: Why the Board believes a managed wind-down is in the best interests of shareholders?
Why the Board believes a managed wind-down is in the best interests of shareholders? Key reasons 500 Continued poor performance of legacy investments 450 400 350 300 Persistent discount to NAV £m 250 200 150 Insufficient scale to attract new investors 100 50 Consultation with shareholders concluded
Slide 31: Risk considerations
Risk considerations Schroders Capital Global Innovation Trust plc – Risk Considerations Long-term outcomes are more binary – extremely attractive rewards for success but some businesses will inevitably fail to fulfil their potential and this may expose investors to the risk of capital losses. As it
Slide 32: Important Information
Important Information Marketing material. The views and opinions contained herein are those of the authors as at the date of publication and are subject to change due to market and other conditions. Such views and opinions may not necessarily represent those expressed or reflected in other Schroders
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