REG - Schroder Real Estate - Half-year Financial Report

Schroder Real Estate Investment TrustAnnouncement

27/11/2025 07:00

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RNS Number : 2052J  Schroder Real Estate Inv Trst Ld  27 November 2025

Schroder Real Estate Investment Trust Limited

 

('SREIT' / the 'Company' / 'Group')

 

RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025

 

 SECTOR LEADING DEBT PROFILE, EXPOSURE TO HIGHER GROWTH SECTORS AND ACTIVE
ASSET MANAGEMENT TO DRIVE ACCELERATED EARNINGS GROWTH

 

Schroder Real Estate Investment Trust Limited, the actively managed REIT
focused on improving the sustainability performance of buildings to generate
higher income and capital growth, today announces its unaudited interim
results for the six months ended 30 September 2025. The statement will also
shortly be uploaded to the National Storage Mechanism, and will be available
on the Company's website, www.srei.co.uk (http://www.srei.co.uk) , and can be
viewed as a PDF at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/2052J_1-2025-11-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2052J_1-2025-11-27.pdf)

 

Low cost, long term debt and active management underpins NAV uplift and 3.5%
NAV total return

 * Net asset value ('NAV') increased by 0.5% to £302.9 million, or 61.9 pence
per share ('pps') (31 March 2025: £301.4 million, or 61.6 pps)

 * 5% increase in dividends paid during the period totalling £8.8 million, or
1.79 pps (30 September 2024: £8.3 million, or 1.71 pps), 96% covered by EPRA
earnings with full cover expected for the full financial year

 * EPRA earnings per share 1.7p (30 September 2024: 1.7p)

 * NAV total return of 3.5% (30 September 2024: 4.0%)

 * IFRS profit of £10.3 million (30 September 2024: £11.7 million)

 * Long debt maturity profile of 7.9 years and a low average interest cost of
3.4%, with 87% either fixed or hedged against movements in interest rates

 * Loan to value, net of all cash reduced to 35.9% reflecting impact of post
period end sales (31 March 2025: 36.9%), with ongoing non-core disposal
programme to reduce to within 25-35% target range

 

Active asset management, deep operational expertise and allocation to higher
growth sectors delivers like-for-like rental growth and portfolio valuation
outperformance

 

 * Portfolio valuation increased to £481.8 million (31 March 2025: £480.0
million); like-for-like and net of capex the valuation increased by 0.7% (MSCI
Benchmark: 0.5%)

 * 64% of the portfolio value comprising multi-let industrial estates and retail
warehousing (31 March 2025: 63%), with more than 300 tenants providing a
granular and diversified occupier base

 * Attractive underlying portfolio yield profile, with a reversionary yield of
8.3% (MSCI Benchmark: 6.2%), or £12.1 million of additional rent, provides
significant potential for future earnings and dividend growth

o  Fixed income uplifts expected over the 12 months from the period end and
agreement for leases exchanged at period end, totalling £5.9 million

 * 45 new lettings, rent reviews and renewals across 434,000 sq ft completed
since 1 April 2025, generating £4.0 million of annualised rent:

o  In aggregate, letting transactions in line with 30 September 2025 ERV

o  Rent reviews 29% ahead of previous levels

o  Renewals 24% ahead of previous levels

 * Six-month total return from the underlying portfolio of 3.5% (MSCI Benchmark:
2.8%), supported by a higher income return of 2.7% (MSCI Benchmark: 2.3%)

 * Including post-period activity, sold five non-core assets for £10.5 million,
6% ahead of opening book value, with further non-core disposals in progress
and planned

 

Integrated sustainability strategy extracting green premium to generate higher
total return

 * 14% reduction in operational whole building greenhouse gas emissions intensity
in calendar year 2024, compared to the 2023 baseline

 * Improved the Company's 2025 Global Real Estate Sustainability Benchmark
('GRESB') score to 80 out of 100, placing first amongst a GRESB defined peer
group comprising six Northern European diversified listed real estate
companies

 

Alastair Hughes, Chair of the Board, commented:

 

"While the UK currently faces economic and political headwinds which continue
to weigh on investor sentiment, following yesterday's Budget and with an
expected market recovery underway, we are positive on the outlook for a sector
rerating in 2026. Real estate fundamentals remain strong: there continues to
be steady demand from an occupier perspective and new supply remains broadly
constrained, owing to a scarcity of modern good quality space, persistently
high construction costs and capacity constraints in the construction sector.
This will create opportunities for our strategy to actively reposition assets
and drive higher rental growth."

 

Nick Montgomery, Fund Manager, added:

 

"During the period, we have focused on executing a targeted programme of asset
management initiatives which will improve the sustainability performance of
assets and generate higher income and capital growth, whilst at the same time
reducing costs and continuing our non-core asset disposal programme. That
programme will continue as we seek to capture the portfolio's attractive
£12.1 million of reversion, accelerate earnings growth and maintain our fully
covered, progressive dividend policy."

 

A webcast presentation for analysts and investors will be hosted today at 9.00
am GMT. To register, please visit:

 

https://www.schroders.events/SREIHY25 (https://www.schroders.events/SREIHY25)

 

For further information:

 

 Schroder Real Estate Investment Management Limited          020 7658 6000

 Nick Montgomery / Bradley Biggins
 Schroder Investment Management Limited (Company Secretary)  020 7658 6000

 Katherine Fyfe
 FTI Consulting                                              020 3727 1000

 Richard Gotla / Oliver Parsons

 

 

 

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