SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC - Half year results for the six months ended 31 March 2025

Half year results for the six months ended 31 March 2025

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 MONTHS ENDED 31 MARCH 2025


Positive NAV total return, robust balance sheet and fully covered dividend

Schroder European Real Estate Investment Trust plc, the company investing in European growth
cities and regions, announces its half year results for the six months ended 31 March 2025.

Positive NAV total return; strategic disposals supporting robust balance sheet
• Underlying EPRA earnings of €3.9 million1 is largely offset by negative capital items (valuation
   and capital expenditure), resulting in a marginal IFRS loss of €0.1 million
• Total dividends declared for the six months totalled 2.96 cps, 100% covered by EPRA
   earnings1, offering an attractive dividend yield of c7.3% based on the closing share price of
   67.2 pps as at 20 June 2025
• Net Asset Value ("NAV") of €158.9 million, or 120.1 cps, (30 September 2024: €164.1 million
   or 122.7 cps), with a reduction in capital values particularly for European offices
• Positive NAV total return of 0.3% driven by the commencement of a share buyback
   programme, despite a marginal IFRS loss (31 March 2024: -1.3% total return)
• Post period end, completed the strategic disposal of the Frankfurt grocery asset for €11.8
   million, in line with the 30 September 2024 valuation
• Net loan-to-value ("LTV") ratio reduces to c.18%2, with an available cash balance of
   approximately €25 million and no further debt expiries until June 2026
• Tax disclosure update: As previously announced, the Group received a notice of adjustment
   from the French Tax Authority amounting to c. €14.4 million including interest and penalties.
   The Group remains in correspondence with the French Tax Authority and is seeking a formal
   review of the notice. Having taken professional advice, the Board remains of the opinion that
   an outflow is not probable; consequently, no provision has been recognised.

    1   EPRA earnings were €3.9 million before exceptional items and €3.7 million after
        exceptional items for the six months to 31 March 2025
    2   Net LTV on completion of the Frankfurt sale which occurred in April 2025

Asset management initiatives and exposure to winning sectors continue to support
earnings and valuation resilience
• Direct property portfolio independent valuation declined marginally by 1.3% to €205.6 million
   (net of capex), with a 4% increase in industrial portfolio valuations continuing to offset declines
   in other sectors, primarily driven by shortening lease terms
• Concluded six new leases and re-gears generating €0.3 million of annual contracted rent, at a
   weighted lease term of six years
• Post-period end, agreed a 12 year lease re-gear with DIY specialist Hornbach in Berlin above
   ERV, representing the second largest tenant in the Company's portfolio by income (11%)
•   Portfolio benefits from a high occupancy level of 95%, with an average portfolio lease term of
    c.4 years
•   100% of rent due collected

Sir Julian Berney Bt., Chairman, commented:
"Despite the Company's fundamentals being solid, supported by strong asset management that
has consistently enabled the provision of high stable income for shareholders, the Company's
shares are continuing to trade at a persistent discount to NAV, as equity markets continue to
disadvantage smaller listed vehicles, regardless of management quality or the suitability of
strategies.

We continue to review all potential options to address the discount and maximise shareholder
returns. Whilst considering the right strategy to maximise value for shareholders, the Investment
Manager will remain highly focused on delivering a pipeline of ongoing asset management
initiatives to optimise occupancy, income, value and liquidity."

Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited,
added:
"The focus over the past six months has been on implementing factors within our control. This
included asset management initiatives that significantly enhanced the portfolio's income security,
along with the completion of strategic disposals that allowed the Company to further reduce
gearing. In addition, the proceeds have allowed for the commencement of a value accretive share
buyback programme. Our main priority remains progressing key tenant discussions and we expect
to make formal announcements regarding further re-gearing initiatives in due course.

From a market perspective, we foresee positive developments for the European commercial real
estate sector as interest rates and inflation continue to decline. While improvements may be
gradual for the rest of 2025, we anticipate that strengthening conditions will become more
pronounced throughout 2026."

A presentation for analysts and investors will be held at 9.00am BST / 10.00am SAST today,
registration for which can be accessed via:
https://www.schroders.events/SEREHY25

Dividend Declaration
A further announcement will be made shortly to confirm the full timetable of the second interim dividend.

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 2025 ("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/2025/JSE/ISSE/SCDE/SEREITHY25.pdf

Copies of the Half Year Report are also available for viewing on the Company's website at
www.schroders.co.uk/sereit.

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, Ernst & Young 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
26 June 2025

JSE Sponsor
PSG Capital

Date: 26-06-2025 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.