Schroder Real Estate Investment Trust Ltd · LSE:SREI
Schroder Real Estate Investment Trust — H1 2026 Earnings Presentation
32 slides from Schroder Real Estate Investment Trust's earnings presentation, Nov 27, 2025
Slide 1: Schroder Real Estate Investment Trust Limited
27 November 2025 SCHRODER REAL ESTATE INVESTMENT TRUST LIMITED Unaudited results for the six months ended 30 September 2025 Nick Montgomery Bradley Biggins Fund Manager Fund Manager Marketing material.
Slide 2: High income and low debt cost provides platform for accelerated growth
High income and low debt cost provides platform for accelerated growth 6.6%1 dividend yield, with dividends up 5% on prior year and commitment to delivering progressive dividend policy 02 Reversionary yield of 8.3% (MSCI Benchmark: 6.2%), equating to additional rent of £12.1 million Robust balance s
Slide 3: Increasing exposure to higher growth sectors drives NAV and dividend growth
Increasing exposure to higher growth sectors drives NAV and dividend growth 45 letting transactions totalling £4.0 million completed during the period and since the period end in line with ERV as at 30 Sept 2025, with lease renewals and rent reviews 27% ahead of the previous rent 64% portfolio expos
Slide 4: NAV per share increase of 0.5% and a NAV total return of 3.5%
NAV per share increase of 0.5% and a NAV total return of 3.5% NAV movement over the six months ended 30 September 2025 £m PPS NAV as at 31 March 2025 301.4 61.6 Unrealised net increase in the valuations of the direct real estate Portfolio capital value growth of 0.7% 6.0 1.2 portfolio and joint vent
Slide 5: Dividends up 5% versus prior year
Dividends up 5% versus prior year Dividend to be fully covered in the full year, and earnings growth to accelerate Six-month period ended 30 September (£m) 2024 2025 Change Rental income – direct portfolio 13.2 14.0 6% Share of total net income in joint ventures 1.8 1.4 (22%) Asset management activi
Slide 6: Long term debt at an attractive interest rate
Long term debt at an attractive interest rate Canada Life fixed rate loan value of £19.1 million is not reflected in the Company’s NAV Debt Debt available drawn £204.6m £184.1m Undrawn RCF £20.5m Non-utilisation cost of 0.62% Overall loan to value, net of cash RBSI RCF, £75.0m £24.0m £30.5m Drawn RC
Slide 7: Outperformance of the portfolio vs. MSCI Benchmark
Outperformance of the portfolio vs. MSCI Benchmark1 Higher income and asset management generating relative outperformance Six months portfolio total return Three-year portfolio total return Five-year portfolio total return2 0.6% relative outperformance p.a. 3.8% relative outperformance p.a. 3.8% rel
Slide 8: Market Context
MARKET CONTEXT
Slide 9: BoE leaves interest rate in November unchanged
BoE leaves interest rate in November unchanged More evidence of inflation falling is required before further cuts are instituted 5Y GBP interest rate swap Interest rate implied probabilities (%) from options on 26 November 4.6% Bank of England Rate (%) 4.5% 2.25 2.50 2.75 3.00 3.25 3.50 3.75 4.00 4.
Slide 10: 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 11: Turning point for UK real estate
Turning 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 Five-year avg total return: 8.1% p.a. 10 5 0 -5 -10 -15 -20 -25 -30 Income return Capital growth Total return Source: MSCI, Schroders,
Slide 12: Strategy
STRATEGY
Slide 13: Sustainability at the centre of SREIT's investment proposition
Sustainability at the centre of SREIT’s investment proposition Capturing the green premium Investment strategy Proof of concept – Stanley Green Trading Estate, Manchester 1 2 Investment policy includes Clear governance and sustainability objectives and proprietary ESG Scorecard two sustainability KP
Slide 14: Strong progress through the period and post period end
Strong progress through the period and post period end Leasing momentum maintained, with significant pipeline 45 lettings completed totalling £4.0 Progressing sales of smaller assets Cost control million across 434,000 sq ft, in line with ERV as at 30 Sept 2025: Truro, 15/16 King Street (Retail) – C
Slide 15: Sustainability focused asset management initiatives
Sustainability focused asset management initiatives £1.9 million p.a. of new rent following high quality, sustainability focused refurbishments St Ann’s House, Manchester (£13.6m) Millshaw Park Industrial Estate, Leeds (£49.7m) Asset Incremental +£0.6m vs. 30 September 2025 +£0.5m vs. 30 September 2
Slide 16: Sustainability focused asset management initiatives
Sustainability focused asset management initiatives £1.9 million p.a. of new rent following high quality, sustainability focused refurbishments Headingley Central, Leeds (£22.1m) Churchill Way West, Salisbury (£11.3m) Asset Incremental +£0.2m vs. 30 September 2025 +£0.6m vs. 30 September 2025 rent £
Slide 17: Portfolio reversion of £12.1m compares with annualised dividend of £17.5m
Portfolio reversion of £12.1m compares with annualised dividend of £17.5m Attractive reversionary rental yield of 8.3% (Benchmark1 6.2%) – with uplifts locked in £m +43% 4.9 40.1 40.0 1.3 2.7 0.8 2.4 30.4 30.0 28.0 £0.5m let or sold 20.0 £1.2m under offer £1.1m under refurb 10.0 0.0 Annual rent Univ
Slide 18: Summary
SUMMARY
Slide 19: High income and low debt cost provides platform for accelerated growth
High income and low debt cost provides platform for accelerated growth 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 outpe
Slide 20: Appendix
APPENDIX
Slide 21: Discrete yearly performance
Discrete yearly performance 12 months to 12 months to 12 months to 12 months to 12 months to Discrete yearly performance (%) Sep–2025 Sep–2024 Sep–2023 Sep–2022 Sep–2021 Share Price Total Return1 4.1 36.0 -4.7 -0.3 61.8 SREIT NAV Total Return 10.5 4.0 -14.8 18.5 18.3 SREIT Real Estate Total Return 8
Slide 22: Portfolio's attractive reversion underpinning progressive dividend policy
Portfolio's attractive reversion underpinning progressive dividend policy Quarterly dividend payments (pence per share) Term loan Postponed due to Sustainable and progressive dividend policy refinancing market uncertainty 1.000 0.879 0.897 0.897 0.897 0.897 0.900 0.853 0.853 0.795 0.803 0.803 0.819
Slide 23: Portfolio analysis
Portfolio analysis Highly diverse portfolio with attractive income profile Diversified portfolio Structure as a % of portfolio value¹ 51.5 95% multi-let industrial Metrics as at 30 Sep 2025 SREIT/(MSCI) Industrial 32.7 estates Portfolio value (£m) 481.8 Office - 9.7 100% let to University London 13.
Slide 24: Diversified portfolio of assets with good fundamentals
Diversified portfolio of assets with good fundamentals Offering significant asset management potential # Property Sector Value (£m) % Portfolio 1 Milton Keynes, Stacey Bushes Ind Est Industrial 53.9 11.2 2 Leeds, Millshaw Park Industrial Estate Industrial 49.7 10.3 3 Cheadle, Stanley Green Trading E
Slide 25: 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 5.14 2 Buckinghamshire New University 1.30 4.64 3 Express Bi Folding Doors Limited 0.90 3.21 4 Jupiter Hotels Limite
Slide 26: Void analysis – an opportunity to drive income
Void analysis – an opportunity to drive income 11.4% with further 3.0% under offer and 2.8% under refurbishment Void ERV as at Void ERV as a % of portfolio Under offer as at Under refurb as at Asset 26 Nov 2025 ERV as at 26 Nov 20251 26 Nov 2025 26 Nov 2025 Manchester, City Tower – 25% £805,268 2.0%
Slide 27: 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 28: 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)1 ESG ESG i. Target reduction in whole building scope 1, 2, and 3 operational greenhouse gas intensity by Valuation as at Target ESG 2030 to be
Slide 29: Debt details as at 30 September 2025
Debt details as at 30 September 2025 Net LTV is 36.7% 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 £54.5 million is drawn Net LTV Forward Maximum Maximum Total Asse
Slide 30: 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 31: 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 32: Thank you
THANK YOU Schroder Real Estate Investment Management Limited 1 London Wall Place London EC2Y 5AU
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