SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC - Half Year Results for the Six-Month Period Ended 31 March 2022

Half Year Results for the Six-Month Period Ended 31 March 2022

Schroder European Real Estate Investment Trust plc
(Incorporated in England and Wales)
Registration number: 09382477
JSE Share Code: SCD
LSE Ticker: SERE
ISIN number: GB00BY7R8K77
(“SEREIT”/ “the Company”)


HALF YEAR RESULTS FOR THE SIX-MONTH PERIOD ENDED 31 MARCH 2022


Schroder European Real Estate Investment Trust plc, the company investing in European growth cities
and regions, today announces its half year results for the six months ended 31 March 2022.

SALIENT FEATURES

Key Financial highlights
• Net asset value (“NAV”) total return of 5.5% (31 March 2021: -0.4%)
• IFRS profit of €10.9 million (31 March 2021: €0.7 million loss), primarily driven by yield compression
   and estimated rental value (“ERV”) growth across the industrial and DIY portfolio and the release
   of €1.4 million of the Paris BB development post-tax profit
• Ordinary dividends declared of €4.9 million/3.7 cents per share (“cps”) and a second special
   dividend declared of €6.4 million/4.75 cps for the six months to 31 March 2022
• NAV decreased 0.2% to €199.1 million or 148.8 cps (30 September 2021: €199.5 million), reflecting
   the payment of the Company’s first special dividend of €6.4 million in January 2022
• Underlying EPRA earnings of €2.5 million (31 March 2021: €2.8 million); this is expected to increase
   with the redeployment of the Paris BB sale proceeds
• Low loan to value ratio (“LTV”) of 18% net of €36.9 million of available cash (28% gross of cash),
   with a low weighted average total interest rate of 1.4%

Operational highlights
• Portfolio value increased to €247.9 million (directly held real estate portfolio only and including cash)
   (31 September 2021: €215.7 million) including like-for-like growth of 4.0%, or €8.0 million (net of
   capex over six months)
• Continued income resilience, with 100% rent collection over the period; high portfolio occupancy of
   95%; and an average lease term to expiry of 4.5 years
• 100% of leases benefit from inflation-linked rent reviews offering strong inflation hedge
• Paris BB refurbishment delivered to business plan in Q2 2022
• Acquisition of a €1.7 million industrial acquisition in Venray, the Netherlands, reflecting a net initial
   yield of 5.3% with a reversion to 7.6%, followed by the post-period commitment of a €8.4 million car
   showroom in Cannes, France, reflecting a net initial yield of 5.5% with a reversion to 6.4%
• Considerable cash reserves with potential investable fire power, including debt, exceeding
   €50 million
• Ongoing sustainability initiatives including installation of LED lighting, smart metering, and
   renewable energy assessments to select investments

Sir Julian Berney Bt., Chairman of the Board, commented:
“We have delivered a strong set of results and are pleased to be in a position to announce a further
special distribution to shareholders on the back of successfully executing on our asset management
programme. We remain confident in the diversified qualities of the portfolio, particularly given the
exposure to high growth locations and sub-sectors, alongside access to an unparalleled network of
highly experienced local managers.”

Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited, added:
“Whilst remaining alert to the challenging macroeconomic backdrop, the Company is well placed to
continue outperforming. The portfolio is modestly leveraged, has a high level of occupancy and is leased
off affordable rents. This income offers a strong hedge against inflation given the underlying annual
indexation clauses, while the majority of exposure is to Europe’s dominant metropolitan centres
including Berlin, Hamburg, Stuttgart and Paris. New acquisitions will provide further diversification and
help maintain the attractive dividend, as we target full cover from sustainable rental income and seek
to maximise shareholder returns.”

A presentation for analysts and investors will be held at 9.00 a.m. BST/10.00 a.m. SAST today.
Registration for which can be accessed via:

https://registration.duuzra.com/form/SEREHalfYearResults22

If you would like to attend, please contact James Lowe at Schroders on james.lowe@schroders.com or
+44 (0)20 7658 2083.

Dividend declaration
For dividend details, please see separate announcement.
Short-form announcement
This short-form announcement is the responsibility of the directors of the Company. It contains only a
summary of the information in the Half Year Report and Condensed Consolidated Interim Financial
Statements for the six-month period ended 31 March 2022 (“Half Year Report”) and does not contain
full or complete details. The Half Year Report can be found at:

https://senspdf.jse.co.za/documents/2022/JSE/ISSE/SCDE/SEREITHY22.pdf

Copies of the Half Year Report are also available for viewing on the Company’s website at
www.schroders.co.uk/sereit or may be requested in person, at the Company’s registered office or the
office of the sponsor, at no charge, during office hours.

Any investment decisions by investors and/or shareholders should be based on consideration of the
Full Announcement, as a whole.

These half year results have been reviewed by the Company’s auditors, PricewaterhouseCoopers LLP,
who expressed an unmodified review opinion thereon. This auditor’s report is included in the Half Year
report which can be found on the Company’s website at www.schroders.co.uk/sereit.

The Company has a primary listing on the London Stock Exchange and a secondary listing on the JSE
Limited.

London
21 June 2022

JSE Sponsor
PSG Capital

Date: 21-06-2022 08:00:00
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