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Half year results for the six months ended 31 March 2026
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")
24 June 2026
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2026
Proposed managed wind-down and return of capital to shareholders
Asset management initiatives and portfolio exposure to more liquid markets continue to
support earnings and valuation resilience
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 2026.
Managed wind-down proposal
• As announced separately today, the Board and Investment Manager have reviewed various options to
maximise shareholder value and have concluded that a managed wind-down strategy and return of capital
is in the best interest of shareholders, subject to investor approval. The Board plans to publish a circular
to convene a general meeting and further details will be provided in due course.
• The Board and Investment Manager are of the opinion that the Company's portfolio can be realised in the
direct property market at a value in excess of what is currently implied by the prevailing share price.
• Given the current market backdrop and heightened geopolitical risks, the managed wind-down process is
expected to take approximately two to three years to complete. This timing will allow the Investment
Manager to execute targeted asset management initiatives to position the assets for sale.
Underlying EPRA earnings and IFRS profit supporting positive NAV total return
• Underlying EPRA earnings before exceptional items of €3.6 million (31 March 2025: €3.9 million), more than
offset negative capital items (valuation and capital expenditure), resulting in an IFRS profit of €1.1 million
• Total dividends declared for the six months totalled 2.96 cps, 93% covered by EPRA earnings before
exceptional items, offering an attractive dividend yield of c. 8.6% on closing share price of 59.6 pps as at
19 June 2026.
• Net Asset Value ("NAV") of €151.3 million, or 115.1 cps, (30 September 2025 adjusted NAV: €154.2 million
or 117.3 cps), primarily driven by unrealised revaluation losses
• Positive NAV total return of 0.7% (31 March 2025: 0.3% total return)
• Net loan-to-value ("LTV") ratio of 27%, and 29% gross of cash, with an available cash balance of
approximately €5.7 million
• Tax disclosure: As previously disclosed, the French tax authorities have issued a notice of adjustment in
respect of the tax years 2021 to 2023. There has been no material change since the previous
announcement on 19 March 2026. The Group has appealed the French Tax Authority's €14.9 million notice
of adjustment (including interest and penalties) and is awaiting a response and continues to maintain that
the amount is not payable. No provision has been recognised, based on professional advice and the
Board's assessment that an outflow is not probable. Further updates will be provided as appropriate.
Asset management initiatives, continues to support earnings and valuation resilience
• Direct property portfolio independent valuation declined by €2.2 million, or 1.1%, to €192.6 million (net of
capex), with Rumilly and Stuttgart delivering strong valuation growth off the back of successful lease
extensions, offset by the negative impact of tenants vacating in Alkmaar and Cannes
• Concluded four new leases and re-gears generating €1.9 million of annual contracted rent, at a weighted
lease term of 8.4 years, including:
o 10-year annually indexed lease with State of Baden-Württemberg in Stuttgart, Germany (c. 5% of
portfolio income)
o Seven/10-year term lease extension with the sole tenant, Cereal Partners, in Rumilly, France (c.
6% of portfolio income).
o These two lease regears combined reflect an 18% increase on the previous passing and extended
the portfolio unexpired lease term by approximately one year
• Portfolio benefits from robust occupancy level of 93%, with an average portfolio lease term of c. 4.1 years
• 97% of rent due collected, reflecting the early departure of the tenant at Alkmaar
Phil Redding, Chairman, commented:
"During the period, the Board has actively explored a broad range of strategies, including a continuation of the
existing business, a corporate sale and a transition towards thematic or sector-specific investments. However,
primarily as a result of the structural shift in investor sentiment towards larger, more liquid UK equities and on-
going uncertain economic and property market backdrop, it does not expect these strategies to significantly
close the discount or support long-term growth.
"In light of this, and following discussions with major shareholders, the Board, in conjunction with the
Investment Manager, has concluded that it is in the best interest of shareholders to present formal proposals
for a managed wind-down of the Company."
Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited, added:
"Given the challenging market backdrop, and subject to shareholder approval of a managed wind-down, we
will focus on delivering an orderly realisation of value over the coming two to three years. European real estate
continues to benefit from supportive long-term structural dynamics and this timeframe provides enough
flexibility to implement targeted asset management initiatives that enhance value, reduce execution risk and
improve liquidity, helping to maximise shareholder value."
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/SERE26
Enquiries:
Jeff O'Dwyer
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Michelle Taiwo
Schroder Investment Management Limited Tel: 020 7658 6000
Richard Gotla/Oliver Parsons
FTI Consulting Tel: 020 3727 1000
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 interim report and condensed consolidated financial statements for the
period 1 October 2025 to 31 March 2026 ("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/2026/JSE/ISSE/SCDE/SEREITHY26.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
24 June 2026
JSE Sponsor
PSG Capital
Date: 24-06-2026 08:00:00
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