Schroder Real Estate Investment Trust - SREI

Why invest in SREI?

The investment objective of Schroder Real Estate Investment Trust ('the Company') is to provide shareholders with an attractive level of income together with the potential for income and capital growth as a result of its investments in, and active management of, a diversified portfolio of UK commercial real estate.

The investment policy of the Company is to own a diversified portfolio of UK real estate underpinned by good fundamental characteristics. The Group invests principally in the industrial, office and retail sectors and will also consider other sectors including mixed-use, residential, hotels, healthcare and leisure.

The Portfolio Managers

Nick Montgomery
Head of UK Real Estate Investment
Bradley Biggins
Portfolio Manager

Independent Board of Directors

Performance and charges

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

Discrete yearly performance (%)

Discrete Yearly Performance (%)

12 months to Jun-2022

12 months to Jun-2021

12 months to Jun-2020

12 months to Jun-2019

12 months to Jun-2018

Share Price (1)

12.7

70.7

-42.8

-6.9

0.4

Net Asset Value Total Return (2)

31.2

0.0

-13.1

2.9

10.8

SREIT Real Estate Total Return (3)

23.8

11.0

-1.1

5.7

11.9

MSCI Balanced Monthly and Quarterly index funds (3)

19.6

7.1

-2.3

3.7

9.7

Issued in June 2022.

Past performance is not a guide to future performance and may not be repeated. The value of investments and the

income from them can go down as well as up and you may not get back the amount originally invested.

1 Source: Schroders, Datastream, bid to bid price with net income reinvested in GBP.

2 The 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 costs of £27.4 million.

3 Source: MSCI Balanced Monthly and Quarterly Index funds (including indirect investments on a like-for-like basis).

Top 10 Holdings

As at 31 March 2022

Key facts about SREIT’S portfolio as at 30 June 2022.

SREIT delivered outperformance of the MSCI Benchmark1 over the past quarter

1.4%

SREIT delivered outperformance of the MSCI Benchmark1 over past 12 months

3.5%

SREIT delivered outperformance of the MSCI Benchmark1 over past 3 years

2.8% p.a.

SREIT has delivered outperformance of the MSCI Benchmark1 since IPO in July 2004

1.3% p.a.

NAV total return for the quarter to 30 June 2022

5.4%

NAV total return for the year to 31 March 2022

30.9%

Number of properties

42

Portfolio value

£550million

Deals completed since 31 March 2022

22deals

Annual rent of deals completed since 31 March 2022

£3.2million

Net loan to Value (LTV)2

29%

GRESB Results 2021

3Green Stars
Source: Schroders, August 2022
1The MSCI UK Balanced Portfolios Quarterly Property Index as at 30 June 2022.
2This measures the relationship between the loan amount, net of cash, and the market value of the assets in the portfolio.

Sustainability

We believe it is our responsibility as real estate investors to identify, understand and manage environmental, social and economic impacts, positive and negative, to deliver resilient investment returns for the long term and manage exposure to impacts of financial and non-financial risks.

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 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 missiondriven 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 Global Real Estate Sustainability Benchmark (GRESB) is a missiondriven 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.

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Latest Fund Manager Update

Fund Managers Bradley Biggins and Nick Montgomery presented the Company’s annual results for the 12 month period ending 31 March 2022.

Archive

Annual Reports and Accounts

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

Half Year Report and Accounts

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

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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.

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Please remember that 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.

Marketing material

Issued by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registered Number 4191730 England.

Schroder Unit Trusts Limited is an authorised corporate director, authorised unit trust manager and an ISA plan manager, and is authorised and regulated by the Financial Conduct Authority.

On 17 September 2018 our remaining dual priced funds converted to single pricing and a list of the funds affected can be found in our Changes to Funds. To view historic dual prices from the launch date to 14 September 2018 click on Historic prices.