Schroder Real Estate Investment Trust Ltd · LSE:SREI
Schroder Real Estate Investment Trust — Schroder European Real Estate Investment Trust — H1 2025 Earnings Presentation
43 slides from Schroder Real Estate Investment Trust's earnings presentation, June 2025
Slide 1: Schroder European Real Estate Investment Trust
Schroder European Real Estate Investment Trust Half year results presentation for the period ended 31 March 2025 June 2025 Jeff O’Dwyer Rick Murphy This information is a marketing Fund Manager Finance Manager communication.
Slide 2: Contents
Contents 01 3 02 5 03 12 04 17 Highlights Financial results Portfolio Inflation hedge 05 20 06 22 Appendix 25 Debt strategy Priorities and Summary 1. Financial 2. Team 3. Portfolio 4. Markets 5. Glossary 2
Slide 3: Well positioned with low LTV and significant cash reserves
Well positioned with low LTV and significant cash reserves Unique and compelling opportunity to invest in a strongly performing, diversified portfolio of commercial Continental European real estate, against improving valuation backdrop 02 c.100% of leases subject to indexation, offering strong infla
Slide 4: Schroder European Real Estate Investment Trust (SEREIT)
Schroder European Real Estate Investment Trust (SEREIT) Discrete yearly performance Q1 2024- Q1 2023- Q1 2022- Q1 2021- Q1 2020- Q1 2025 Q1 2024 Q1 2023 Q1 2022 Q1 2021 Share Price Total Return (GBP)¹ 15.5% -15.1% -21.0% 30.8% 45.8% NAV Total Return (Euro)² 2.0% -1.7% -3.1% 9.3% 12.6% NAV Total Retu
Slide 5: Financial Results
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Slide 6: Financial highlights
Financial highlights A fully covered dividend, strong balance sheet, modest LTV and successful share buyback • Dividend cover of 100% (103% for the y/e 30.09.2024) underpinned by inflation-linked income and 95% portfolio occupancy; • Strong balance sheet, including a significant available cash balan
Slide 7: NAV movement
NAV movement NAV decrease driven by property yields, offset by the accretive share buyback programme €m cps % Comments NAV as at 30 September 2024 164.1 122.7 Reflects a base of 133,734,686 shares. Venray: €1.325m, Rumilly: €0.65m, Houten: €0.45, Nantes: €0.3m, Utrecht €0.12m, Unrealised movements i
Slide 8: Summary income statement
Summary income statement Fully covered dividend for both interim periods Net income summary Six months ended Six months ended Period-on-period 31 March 2025 31 March 2024 variance % change (€’000) (€’000) (€’000) Rental income 8,150 8,140 10 Other income - 57 (57) Property operating expenses (1,080)
Slide 9: Fully covered dividend
Fully covered dividend Fully covered dividend for both the 2025 interim period and prior 2024 financial year Quarterly dividend payments (€ cents per share); dividend cover reflects 12 months Disposed Paris BB – dividend cover impacted Rebased to provide full cover, strengthen balance sheet and miti
Slide 10: SERE benchmarking favourably vs peer group
SERE benchmarking favourably vs peer group SERE: Low LTV, attractive dividend yield, full cover and significant discount to NAV Net LTV LSE listed real estate vehicles1 40.0% 6.5% div. yield 7.8% div. yield 1.01x div. cover 1.04x div. cover 35.0% No forecast 30.0% 7.5% div. yield Schroder European 1
Slide 11: Momentum over period
Momentum over period Concluded 6 new leases and re-gears at an average weighted lease term of 6 years. Post period end executed a new 12 year lease with Hornbach (11% of portfolio income), increasing WAULT by 1.3 years Pending Managing pending expiries – Stellantis, Hatchette, Nestle, Baden-Württemb
Slide 12: Portfolio
PORTFOLIO Highly diversified with a bias to more liquid lot sizes in growth cities and regions
Slide 13: Portfolio – direct held investments
Portfolio – direct held investments Valued at €206m1 across 15 assets in France, Germany and Netherlands Berlin, Germany Stuttgart, Germany Frankfurt, Germany Rumilly, France Rennes, France Nantes, France Cannes, France Retail warehouse €26.0m Office €17.5m Retail €11.6m, sold post period Logistics
Slide 14: Investment strategy aligned with most liquid part of market
Investment strategy aligned with most liquid part of market European real estate transactions biased to sub €30 million part of market Sub €30m transactions grown from 40% to c.70% 400bps premium to bond yields on average 100% 140,000 Sector Assets Valuation NIY Premium 90% to 2.9% 30% 29% 30% 25% 2
Slide 15: Short, medium and long term asset management initiatives
Short, medium and long term asset General: advancing sustainability / NZC findings to define investment in select management initiatives sustainability led cap ex initiatives 2025 Frankfurt/Seville retail: disposed to reduce gearing and 2026 implement share buy back programme Stuttgart: re-gear Stat
Slide 16: SEREIT Office markets – 32% office exposure
SEREIT Office markets – 32% office exposure Key indicators HAMBURG – City Sud Q1 2024 Q1 2025 Size of office market sqm 1,354,200 1,354,200 Take-up last 12m sqm 38,000 33,100 PARIS – Southern Bend Q1 2024 Q1 2025 10 year avg annual take-up sqm 60,513 59,310 Size of office market sqm 2,540,630 2,540,
Slide 17: Inflation hedge
INFLATION HEDGE c.100% of leases subject to indexation
Slide 18: c.100% of SEREIT income is index-linked
c.100% of SEREIT income is index-linked Occupiers with an average term to break of 4.0 years France Germany Netherlands Hamburg Paris Alkmaar Rennes Berlin Nantes Utrecht 100%1 96%1 100%1 Apeldoorn Houten Rumilly Frankfurt Venray (2) Cannes Stuttgart – All leases subject to annual review and fully i
Slide 19: Top 5 tenants represent 48% of income
Top 5 tenants represent 48% of income KPN HORNBACH C-LOG OUTSCALE DKL Item Apeldoorn Berlin Rennes St-Cloud Venray (18% of income) (11% of income) (8% of income) (6% of income) (5% of income) Sector: Telecommunications Home improvement / DIY Logistics IT Logistics Type: Public Public Private Private
Slide 20: Debt strategy
DEBT STRATEGY Strong balance sheet with modest leverage
Slide 21: Robust balance sheet
Robust balance sheet 18% LTV net of cash1 Loan to value Cost % / duration Lenders Forecast Q2 -251 Forecast Q2 -251 • VR Bank 29% gross c.18% net 3.9% / 2.8 years • SaarLB • Deutsche pfandbrief Mar-25 Mar-25 • BRED 30% gross 21% net 3.7% / 2.7 years • ABN Debt expiry profile 50% €70.9m reducing to €
Slide 22: Priorities and Summary
Schroders PRIORITIES AND SUMMARY O
Slide 23: Management-led priorities to drive future returns
Management-led priorities to drive future returns On the back of recent Hornbach success (new 12 year lease), focus on re-gearing Nestle (Rumilly), State of Baden Württemberg (Stuttgart), Stellantis (Cannes) and Hatchette (Nantes). KPN No formal notice given but expect KPN to vacate at end of 2026.
Slide 24: Schroder European REIT
LTV 18%1 net of cash €230m3 portfolio Schroder European REIT Strong balance sheet providing flexibility primarily invested in Paris, Berlin, Frankfurt, Hamburg and Stuttgart Diversified portfolio, balance sheet strength and indexation to drive earnings Opportunity to improve portfolio – Unique and c
Slide 25: Appendix 1: Financial
APPENDIX 1 Financial
Slide 26: Results for the period ended 31 March 2025
Results for the period ended 31 March 2025 Key Income Statement and Balance Sheet metrics 6 months ended 6 months ended 12 months ended 30 Period/year ended 31 March 2025 31 March 2024 September 2024 EPRA1 earnings (excluding exceptional items) €3.9m €4.3m €8.2m EPRA1 earnings per share in cents (ex
Slide 27: Appendix 2: Team
APPENDIX 2 Team
Slide 28: SEREIT Investment Management Team
SEREIT Investment Management Team ESG Specialists Fund Management Team Key Resources Charlie Jacques Christopher Austin Head of RE sustainability Head of tax & impact Jeff O’Dwyer Rick Murphy Milena Niemann 26 years’ experience 26 years’ experience Fund Manager Finance manager European fund analyst
Slide 29: Appendix 3: Portfolio
APPENDIX 3 Portfolio
Slide 30: Portfolio overview
Portfolio overview COUNTRY Institutional grade assets located in growth markets ALLOCATION¹ By value (%) Rent Wault Wault Value Tenants ERV NIY Vacancy 11% Compl. contr. break exp. Property date % of % incl. €m # €m €m % % yrs yrs France portfolio¹ cash¹ 35% Feb 2017 Paris (SC)/Office 37.3 18% 16% 1
Slide 31: Property portfolio performance
Property portfolio performance Active asset management required to continue growing capital value Property returns (rolling returns/before transaction costs) 5.5% 6.9% 4.8% 6.2% 5.7% 1.7% -0.2% -2.0% -4.4% Q1 2025 (12 mths) Q1 2025 (3 yrs / p.a.) Q1 2025 (5 yrs / p.a.) Income return Capital return T
Slide 32: Diversification
Diversification Highly diversified by asset, city, sector and tenant City allocation2 Sector allocation2 Tenant industry allocation By value By value By income Paris Telecommunications Berlin Manufacturing Hamburg DIY 1% 6% Rennes 9% 10% Logistics 5% 18% 18% Stuttgart 2% 5% 11% Office 2% IT 32% 3% C
Slide 33: Exposure to higher GDP growth, winning centres
Exposure to higher GDP growth, winning centres SEREIT portfolio mostly located in highest growth regions of Western Europe SEREIT’s Investment Universe SEREIT’s portfolio vs. Investment Universe Outer ring shows SEREITs direct exposure as a % of value 25% 13% Inner ring 20% shows 44% average for inv
Slide 34: Growth city strategy
Growth city strategy 75% located in the fastest growing cities and regions Avg % pa Growth 2025-2029 City Sector Population growth GDP Growth Office employment Office / retail 52% City Country Difference City Country Difference City Country Difference Paris Office 0.1% 0.2% -0.2% 1.9% 1.2% 0.6% 0.8%
Slide 35: Appendix 4: Markets
APPENDIX 4 Markets
Slide 36: Eurozone economic growth surprises on upside in Q1'25
Eurozone economic growth surprises on upside in Q1’25 - The recovery of the Eurozone economy continues its fragile path, with the future trajectories of economic growth, inflation, interest rates, now also dependent on the outcome of trade negotiations with the US, Eurozone GDP increased by 0.4% qoq
Slide 37: But when it comes to growth and RE, it's still all about the cities
But when it comes to growth and RE, it’s still all about the cities…. Cities with highly educated workforce and diverse economy to see above average growth Average GDP Growth 2025-2029, % pa What makes a “winning” city? 3.0 2.5 Diverse Quality of Life Economy Cultural attractions, A mix of different
Slide 38: Appendix 5: Glossary
APPENDIX 5 Glossary
Slide 39: Glossary
Glossary – EPRA: European public real estate association, a real estate industry body, which has issued best practices recommendations in order to provide consistency and transparency in real estate reporting across Europe – ERV: Estimated current market rental value from the independent valuations
Slide 40: Important Information
Important Information This information is a marketing communication. For help in understanding any terms used, please visit address https://www.schroders.com/en/insights/invest-iq/investiq/education-hub/glossary/ Past performance is not a guide to future performance and may not be repeated. The valu
Slide 41: Risk considerations
Schroder European Real Estate Investment Trust Risk considerations The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value Concentration risk of the company, both up or down. The
Slide 42: Risk considerations
Schroder European Real Estate Investment Trust Risk considerations Smaller companies risk Smaller companies generally carry greater liquidity risk than larger companies, meaning they are harder to buy and sell, and they may also fluctuate in value to a greater extent. Real estate and property risk R
Slide 43: Thank you
Thank you Schroder Investment Management Limited, 1 London Wall, London EC2Y 5AU. schroders.com
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