Schroder Real Estate Investment Trust - SREI

Seeking to harness the 'green premium' for a consistent income and capital growth

Why invest in SREI?

Schroder Real Estate Investment Trust's first-of-its-kind brown-to-green investment strategy aims to meet the growing demand for more sustainable buildings, by transforming the environmental performance of the portfolio’s assets over time.

This gives shareholders the potential to capture the rental and valuation premium that buildings with genuine green credentials can command and may provide significant opportunities for consistent income and capital growth.

Potential for consistent returns

Income potential which is sustainable both from an environmental perspective and long-term growth perspective. By improving the portfolio’s environmental performance, investors can capture the rental and valuation premium that buildings with genuine green credentials can command, underpinning the portfolio’s valuation and opportunities for growth.

Deep and proven expertise

Benefit from access to a global, highly experienced team real estate platform in Schroders Capital. The team’s proven, proprietary, independently validated methodology for reporting on environmental performance provides the transparency to allow investors to follow the portfolio’s positive progress.

Delivering tomorrow’s strategy today

Tenants, shareholders and regulators are all increasingly demanding that buildings are more sustainable and future proofed. Our first-of-its-kind brown-to-green investment strategy aims to meet this growing demand and allows us to capture an early-mover advantage before regulation compels others to follow.

Key facts

As at 31 March 2024

£459m

Portfolio value

39

Number of properties

4.0% pa

NAV total return (annualised) for the 3 years to 31 March 2024

4.7% pa

SREI delivered outperformance of the IPD MSCI Benchmark over the 3 years to 31 March 2024

The MSCI UK Balanced Portfolios Quarterly Property Index as at March 2024

Key information

Slide 1 of 6
NEW: Annual Report & Accounts 2024
Annual Results 2024: Investor Presentation
Latest Factsheet
Kepler Research Note
Key Information Document
Morningstar Report

Watch: Annual Results

On Thursday 6 June, Managers Nick Montgomery and Bradley Biggins presented the annual results of the Trust for the year ended 31 March 2024. A copy of the presentation can be downloaded above.

Performance and charges

For further performance data please visit download the latest factsheet or visit the London Stock Exchange website

Ongoing charges: 2.53% (for the 12 months ended 31 March 2024)

Ongoing charges are total expenses (fund expenses and direct property expenses) as a percentage of average net assets.

Discrete yearly performance (%)

As at 31 March 2024

Discrete yearly performance (%)

12 months to

Mar-2024

12 months to

Mar-2023

12 months to

Mar-2022

12 months to

Mar-2021

12 months to

Mar-202

Share Price1

3.8

-19.7

53.2

7.1

-26.3

SREIT NAV Total Returns2

1.1

-15.1

30.9

3.9

-9.4

SREIT Real Estate Total Returns3

3.2

-7.9

23.5

4.6

1.9

MSCI Balanced Monthly and Quarterly Index funds3

-1.3

-13.5

19.8

2.0

0.3

Issued in June 2024

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).

epra sbpr

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.

Global Real Estate Sustainability Benchmark 3 Star rating

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.

Awards logo for Investment Week Investment Company of the Year Awards 2023

Source: Investment Week, 2023

In the media

Slide 1 of 7
Kepler: Annual Results Analysis
Midas Share Tips: Property firm Schroder Real Estate Investment Trust building a green and clean empire
AJ Bell Shares Presentation - March 2024
QuotedData: Weekly Show Presentation
Citywire: Trust webinar with Gavin Lumsden
Investor Meet Company: Interim results presentation
AJ Bell: Money Retirement Show Presentation

The Portfolio Managers

Slide 1 of 2

Nick Montgomery

Head of UK Real Estate Investment

Bradley Biggins

Portfolio Manager

Independent Board of Directors

Slide 1 of 10
Annual Report and Accounts 2024
Interim Report 2023
Terms of Reference: Management Engagement Committee
Terms of Reference: Audit & Risk Committee
Terms of Reference : Nomination Committee
Alternative Investment Fund Managers Directive (AIFM) Disclosures
Full Prospectus
Supplementary Prospectus
Circular and Notice of EGM
Results of EGM

Archive

Annual Reports & Accounts

2023 / 2022 / 2021  / 2020  / 2019  / 2018  / 2017  / 2016  / 2015  / 2014  / 2013  / 2012  / 2011  / 2010  / 2009 

Interim Reports & Accounts

2023 / 2022 / 2021 / 2020 / 2019 / 2018 / 2017 / 2016 / 2015 / 2014 / 2013 / 2012 / 2011 / 2010 / 2009

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Investing in Schroder Real Estate Investment Trust

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.

Fund Risk Considerations

Schroder Real Estate Investment Trust

Credit risk

A decline in the financial health of an issuer could cause the value of its bonds, loans or other debt instruments to fall or become worthless.

Currency risk

The fund may lose value as a result of movements in foreign exchange rates.

Interest rate risk

The fund may lose value as a direct result of interest rate changes.

Liquidity risk

The fund is investing in illiquid instruments. Illiquidity increases the risks that the fund will be unable to sell its holdings in a timely manner in order to meet his financial obligations at a given point in time. It may also mean that there could be delays in investing committed capital into the asset class.

Market risk

The value of investments can go up and down and an investor may not get back the amount initially invested.

Operational risk

Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.

Performance Risk

Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.

Property development risk

The Fund may invest in property development which may be subject to risks including, risks relating to planning and other regulatory approvals, the cost and timely completion of construction, general market and letting risk, and the availability of both construction and permanent financing on favourable terms.

Real estate and property risk

Real estate investments are subject to a variety of risk conditions such as economic conditions, changes in laws (e.g. environmental and zoning) and other influences on the market.

Concentration risk

The company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the company, both up or down, which may adversely impact the performance of the company.

Gearing risk

The company may borrow money to make further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase by more than the cost of borrowing, or reduce returns if they fail to do so. In falling markets, the whole of the value in that investment could be lost, which would result in losses to the fund.