Schroder Real Estate Investment Trust - SREI
Seeking attractive income with capital growth potential from a portfolio of UK commercial real estateWhy invest in SREI
Dynamic portfolio allocation and active asset management
Providing the means to generate a sustainable rising income, as well as capital growth across market cycles.
Expertise
A diverse and highly experienced team of investment specialists that facilitate a deep understanding and coverage of all commercial real estate sectors across the UK.
Sustainability focus
Market Leading data-led ESG framework, with a focus on driving demonstrable improvements to the sustainability profile of portfolio assets.
Key facts
As at 30 September 2023
£466m
Portfolio value
40
Number of properties
6.1% pa
NAV total return (annualised) for the 3 years to 30 September 2023
4.5% pa
SREI delivered outperformance of the IPD MSCI Benchmark over the 3 years to 30 September 2023
The MSCI UK Balanced Portfolios Quarterly Property Index as at September 2023
Key information
Interim Results 2023
On 21 November 2023, Managers Nick Montgomery and Bradley Biggins presented the Trust's interim result for the six months ended 30 September 2023. The presentation can be downloaded above.
Our strategy, evolved
What is happening?
The Board of Schroder Real Estate Investment Trust Limited and Schroders Capital Real Estate (‘Schroders’) as Manager are recommending some amendments to the Company’s Investment Objective and Policy. The purpose of these changes is to formally place sustainability considerations at the heart of the Company’s investment strategy.
Why are we making these changes?
With the real estate industry accounting for around 40% of all global greenhouse gas emissions (World Economic Forum, 2022), it is clear that real estate asset owners have a vital role to play in tackling the causes of climate change. Schroders has both the asset management capabilities and sustainability expertise to take a sector leading position in the journey towards Net Zero Carbon.
Meanwhile, investing in existing buildings to improve their environmental performance not only helps to tackle climate change, but also allows the portfolio to potentially benefit from the “green premium”, where properties with genuine green credentials can command higher prices and rents. In turn, this should mean a higher – and more sustainable – income for shareholders, as well the potential for enhanced total returns.
Download our presentation to find out more information
What happens next?
An Extraordinary General Meeting of the Company will be held at 10:00 am on 15/12/2023.
This meeting will provide further context regarding the change and will provide shareholders with the opportunity to vote on the proposal to amend the Investment Objective and Policy of the Company.
The Board unanimously recommends shareholders vote in favour of the proposal, in the belief that it is in the best interests of shareholders.
Stanley Green Trading Estate
Our 'brown-to-green' strategy in action
Harnessing our active management capabilities and sustainability expertise to create an operationally net zero carbon warehouse scheme. The first of its kind in the North West of England.
Acquisition date
December 2020
EPC rating
A+
BREEAM rating
Excellent
Increase in valuation (at 30 September 2023)
2.3x
Performance and charges
For further performance data please visit download the latest factsheet or visit the London Stock Exchange website
Ongoing charge: 2.28% (as at 31 March 2023)
Ongoing charges are total expenses (fund expenses and direct property expenses) as a percentage of average net assets.
Discrete yearly performance (%)
As at 30 September 2023
Discrete yearly performance (%) | 12 months to Sep-2023 | 12 months to Sep-2022 | 12 months to Sep-2021 | 12 months to Sep-2020 | 12 months to Sep-2019 |
Share Price1 | -4.7 | -0.3 | 61.8 | -39.5 | -3.2 |
SREIT NAV Total Returns2 | -14.8 | 18.5 | 18.3 | -12.6 | 2.8 |
SREIT Real Estate Total Returns3 | -7.8 | 15.4 | 14.3 | -1.1 | 5.4 |
MSCI Balanced Monthly and Quarterly Index funds3 | -12.9 | 10.1 | 11.2 | -2.5 | 2.6 |
Issued in November 2023
Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
Source: 1Schroders, Datastream, bid to bid price with net income reinvested in GBP.
2The Company completed the refinancing of its £129.6 million loan with Canada Life in October 2019. This extended the average maturity from 8.5 to 16.5 years and reduced the interest rate from 4.4% to 2.5% per annum. The refinancing generated an immediate interest saving of £2.5 million per annum. The refinancing incurred a one-off cost of £27.4 million.
3MSCI Balanced Monthly and Quarterly Index funds (including indirect investments on a like-for-like basis).
The EPRA Sustainability Best Practices Recommendations (sBPR) Guidelines provide a consistent way of measuring sustainability performance in the same way that BPR for financial reporting have made the financial statements of listed real estate companies in Europe clearer and more comparable. sBPR are intended to raise the standards and consistency of sustainability reporting for listed real estate companies across Europe.
The Global Real Estate Sustainability Benchmark (GRESB) is a mission driven and industry-led organisation that provides actionable and transparent environmental, social and governance (ESG) data to financial markets. GRESB provides a consistent framework to measure the ESG performance of individual assets and portfolios based on self-reported data.
The Portfolio Managers
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Independent Board of Directors
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Investing in Schroder Real Estate Investment Trust
What are the risks?
Investments in real estate are relatively illiquid and more difficult to realise than equities or bonds.
Yields may vary and are not guaranteed.
The use of gearing is likely to lead to volatility in the Net Asset Value ("NAV") meaning that a relatively small movement either down or up in the value of the Company's total assets will result in a magnified movement in the same direction of that NAV.
There is no guarantee that the market price of shares in a UK Real Estate Investment Trust such as SREIT will fully reflect their underlying NAV.
The value of real estate is a matter of a valuer's opinion rather than fact.
This UK Real Estate Investment Trust should be considered only as part of a balanced portfolio, of which it should not form a disproportionate part.
Non-Mainstream Pooled Investments (NMPI) Status
The Company currently conducts its affairs so that its shares can be recommended by IFAs to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The Company's shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust.