18 June 2025
SCHRODER REAL ESTATE INVESTMENT TRUST LIMITEDAsset tour - Manchester and Leeds
Marketing material.
Nick Montgomery Fund Manager
Bradley Biggins Fund Manager
Investment objective and policy Investment strategy
The investment objective of the Company is to provide shareholders with an attractive level of income and the potential for income and capital growth from owning and actively managing a diversified portfolio of UK commercial real estate, while achieving meaningful and measurable improvements in the sustainability profile of the majority of the portfolio's assets considered against a range of objective environmental, social and governance metrics).
The Company's strategy is focused on delivering sustainable dividend growth by improving the quality of its underlying portfolio through a disciplined, research-led approach to transactions and active
asset management, focused on delivering sustainability improvements and operational excellence. This activity is complemented by maintaining a robust balance sheet and efficient management of costs.
The investment policy of the Company is to own a diversified portfolio of UK commercial real estate assets which are underpinned by good fundamental characteristics, and whose sustainability profiles can be improved while they are owned by the Company. The Company may invest across the full range of commercial real estate sectors.
The Company aims to own a diversified portfolio of properties delivering an above average income return and benefitting from structural changes driving income and capital growth such as urbanisation, innovation
in technology and changing demographics. These properties may benefit from favourable supply and demand characteristics and by improving their environmental performance, the Company can capture the rental and valuation premium that buildings with genuine green credentials can command, sometimes called the 'Green Premium'.
Source: Schroders, June 2025.
Diversified portfolio of assets with good fundamentalsOffering 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 Estate | Industrial | 43.3 | 9.0 | |||
4 | London, University of Law Campus (50% share) | Office/university | 38.4 | 8.0 | |||
5 | Bedford, St. John's Retail Park | Retail warehouse | 33.7 | 7.0 | |||
6 | Manchester, City Tower (25% share) | Office/hotel/retail | 28.3 | 5.9 | |||
7 | Chippenham, Langley Park Industrial Estate | Industrial | 25.6 | 5.3 | Headingley Central, Leeds | ||
8 | Norwich, Union Park Industrial Estate | Industrial | 24.2 | 5.0 | |||
9 | Leeds, Headingley Central | Hotel/retail | 21.7 | 4.5 | |||
10 | Telford, Horton Park Industrial Estate | Industrial | 14.4 | 3.0 | |||
11 | Birkenhead, Valley Park Industrial Estate | Industrial | 13.1 | 2.7 | |||
12 | Manchester, St Ann's House | Office/retail | 12.2 | 2.5 | |||
13 | Edinburgh, The Tun | Office | 11.5 | 2.4 | |||
14 | Salisbury, Churchill Way West | Retail warehouse | 10.8 | 2.3 | |||
15 | Milton Keynes, Matalan | Retail warehouse | 10.8 | 2.3 | |||
Sub-total top 15 properties 389.1 81.1
Cheadle, Stanley Green Trading Estate
Note: Portfolio data as at 31 March 2025. ¹Column does not sum due to rounding.
Attractive and granular tenant base increases resilience3 | Express Bi Folding Doors Limited (Millshaw Park - Units 23, 24, 25) | 0.9 | 3.11 |
4 | Jupiter Hotels Limited (City Tower) | 0.65 | 2.25 |
5 | Public Sector Income (Secretary of State - £0.20m) | 0.6 | 2.08 |
Focused on operational excellence to attract occupiers on better terms
# | Tenant | Annual rent (£m) | % of portfolio |
1 | Siemens (Stanley Green Trading Estate - Unit 6A - £0.21m) | 1.44 | 4.98 |
2 | Buckinghamshire New University | 1.3 | 4.5 |
6 Matalan Retail Ltd | 0.57 | 1.97 | |||||
7 Premier Inn Hotels Ltd (Headingley Central) | 0.47 | 1.63 | |||||
8 IXYS UK Westcode Ltd | 0.47 | 1.63 | |||||
9 Trioworld UK Ltd | 0.46 | 1.59 | |||||
10 Lidl Great Britain Limited (Parker Street - £0.09m) | 0.43 | 1.49 | |||||
11 | Jaguar Land Rover | 0.41 | 1.42 | ||||
12 | Wickes Building Supplies Ltd | 0.4 | 1.38 | Lease type | % of annual rent | ||
13 | Balfour Beatty Group Limited | 0.39 | 1.35 | Inflation linked | 12% | ||
14 | The Gym Limited (Headingley Central - £0.24m) | 0.37 | 1.28 | Fixed uplifts | 8% | ||
15 | Cine-UK Limited | 0.37 | 1.28 | OMV RRs or flat rent to expiry | 80% | ||
Total | for the top 15 tenants by annual rent | 9.23 | 31.94 | Total | 100% | ||
Notes: Portfolio data as at 31 March 2025. Highlighted rows indicate tenants within assets that are part of the Asset Tour. Note that the University of Law, the tenant at Store Street in Bloomsbury and City Tower in Manchester, is in a 10-month rent free period at Store Street ending on 16 October 2025. Following expiry of the rent free, the tenant will be the Company's largest tenant.
Portfolio analysisGranular portfolio with attractive income profile
Diversified portfolio Structure as a % of portfolio value¹50.7
32.6
9.8
13.9
7.1
4.2
6.5
4.1
12.7
9.8
7.5
9.6
5.7
20.3
-
2.0
Portfolio value (£m)
480.0
Average lot size (£m)
12.6
8.4 (6.2)
Reversionary yield (%)
5.62 (5.1)
Net initial yield (%)
312
Number of tenants
38
Number of properties
Metrics as at 31 Mar 2025 SREIT/(MSCI)
95% multi-let industrial estates
Industrial
100% let to University occupiers for teaching use
Office -London
'Big 6' or well-located multi-let i.e. Cheltenham, Fareham
Office - Big 6
Annual rent (£m) 28.9
Estimated rental value (£m) 40.3
WAULT (years)3 5.3 (11.5)
Void rate (%)4 12.3 (8.7)
Office - Other
Retail warehousing and convenience retail in densely populated areas at affordable rents
Retail warehouse
Retail
2x hotel, car park, leisure
Others
Shopping centres
Notes: ¹MSCI Benchmark as at 31 March 2025, unattributed indirects not shown. 'Office - London' includes Central and Greater London. ²Note that the University of Law, the tenant at Store Street in Bloomsbury, is in a 10-month rent free period ending on 16 October 2025. Adding back the Company's share of its annual rent, being £2,359,885, would result in a net initial yield of 6.1%. ³Weighted average unexpired lease term assuming earlier of lease break and expiry. ⁴Void estimated rental value as a percentage of portfolio estimated rental value.
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