Wrap Text
Full year results for the year ended 30 September 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" / "Group")
5 December 2025
FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
Positive NAV total return underpinned by balance sheet strength and exposure to
winning sectors
Schroder European Real Estate Investment Trust plc, the Company investing in European
growth cities and regions, announces its full year results for the year ended 30 September
2025.
Robust balance sheet and indexed-linked rent reviews support earnings resilience
and positive total return
- Underlying EPRA earnings of €7.3 million before exceptional items (30 September
2024: €8.2 million), reflecting the sale of the Frankfurt investment, with the portfolio
continuing to benefit from high occupancy and strong rent collection
- Dividends declared for the year totalled 5.92 euro cps (30 September 2024: 5.92 euro
cps), 94% covered by EPRA earnings before exceptional items, offering an attractive
dividend yield of c.8.2% based on the share price of 63.2 pence sterling as at 1
December 2025
- Net Asset Value ("NAV") of €156.7 million, or 119.2 cps, (30 September 2024: €164.1
million or 122.7 cps), driven by unrealised revaluation losses
- IFRS profit of €2.2 million (30 September 2024: €0.6 million), with underlying EPRA
earnings more than offsetting negative capital items (valuation and capital
expenditure). Along with the positive impact of the share buyback programme
(2,326,700 shares acquired for £1.5 million (€1.8 million)), this resulted in a +2.0% NAV
total return
- c.€8.3 million of available cash, with a further €14.2 million ring-fenced to cover
against the French tax claim, resulting in an LTV of 29% gross of cash, and 25 net of
cash
- Tax disclosure update: as previously announced, the Group received a notice of
adjustment from the French Tax Authority amounting to c.€14.2 million, including
interest and penalties. The Group maintains its position that this amount is not
payable and has formally appealed the decision. This appeal, submitted as a claim to
the French Tax Authority, is expected to be reviewed within a six-month period. If the
claim is dismissed, the Group would escalate the matter to a formal court process,
which could take up to two years to resolve. Based on professional advice, the Board
has decided not to make a provision, as they do not believe that an outflow is probable.
The Group will continue to monitor the situation and will provide further updates as
necessary.
Asset management initiatives with the benefit of on-the-ground local teams and
allocation to higher-growth regions, continue to support valuation resilience
- Direct property portfolio independent valuation declined by 1.4%, to €194.0 million
(net of capex), with a 5% increase in the industrial portfolio valuations largely offsetting
declines in other sectors, primarily driven by shortening lease terms
- Koninklijke KPN N.V. ("KPN") has provided verbal indication that it will terminate its
lease and vacate the Apeldoorn asset at the end of December 2026. The Company
continues to work on solutions for the asset including re-letting to a replacement
tenant or obtaining planning approval for alternative uses. As previously highlighted,
KPN's anticipated departure is expected to negatively impact the Company's future
income profile. In the event the Investment Manager is unable to fully offset the loss of
income from the Apeldoorn asset, the level of future dividends or earnings cover will
likely be impacted. An update regarding the Group's strategy to maximise value from
the Apeldoorn property will be provided when appropriate.
- Concluded ten new leases and re-gears, generating €2.1 million of annual contracted
rent, at a weighted lease term of 11.0 years, further strengthening the portfolio income
profile and improving portfolio occupancy and which included:
o A long-term lease re-gear to Hornbach, the second largest tenant in the
Company's portfolio by income (10%), in Berlin, extending lease expiry to
December 2037; and
o Post period end, completed two further lettings across 900 sqm of vacant
space at the Paris office asset improving the portfolio occupancy to 97%
(30 September 2025 - 94%)
- Select outputs from third-party sustainability and Net Zero Carbon (NZC) audits
across 11 assets have been incorporated into 2025 business plans.
Sir Julian Berney Bt., Chairman, commented:
"The period has been characterised by a cautious recovery in economic sentiment
across key European markets, with inflation pressures gradually abating and the outlook
for interest rates remaining broadly stable, creating a more favourable borrowing
backdrop. There are some encouraging signs that liquidity within the European real estate
market is improving, reflecting a more balanced alignment between pricing expectations
from buyers and sellers, as well as a gradual restoration of investor confidence and
institutional allocations."
Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management
Limited, added:
"We remain focused on asset management initiatives designed to maintain occupancy,
income, and value, while also enhancing asset liquidity. Addressing Apeldoorn is an
immediate priority to help limit the potential impact on future dividends. However, the
diversified nature and resilience of our tenant base, with assets leased at sustainable
rents in strong submarkets, provide a solid foundation to navigate current market
conditions and protect value for our shareholders."
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 full accounts ('Full Accounts') and
does not contain full or complete details. The Full Accounts can be found at:
https://senspdf.jse.co.za/documents/2025/JSE/ISSE/SCDE/SEREITFY25.pdf
Any investment decisions by investors and/or shareholders should be based on
consideration of the Full Accounts, as a whole.
The Full Accounts have been audited by the Company's auditor, Ernst & Young LLP, who
expressed an unmodified audit opinion thereon. This auditor's report is available, along
with the Full Accounts, on the Company's web pages at www.schroders.co.uk/sereit.
A presentation for analysts and investors will be held at 9 a.m. GMT/11 a.m. SAST today.
Registration for which can be accessed via:
https://www.schroders.events/SEREFY.
Enquiries:
Jeff O'Dwyer 020 7658 6000
Schroder Real Estate Investment Management Limited
Natalia de Sousa 020 7658 6000
Schroder Investment Management Limited
Richard Gotla/Dido Laurimore/Oliver Parsons 020 3727 1000
FTI Consulting
The Company has a primary listing on the London Stock Exchange and a secondary listing on
the JSE Limited.
JSE Sponsor
PSG Capital
Date: 05-12-2025 09:00:00
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