Schroder Real Estate Investment Trust - SREI
Seeking to improve the sustainability performance of buildings to generate higher income and capital growthWhy 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 real estate platform in Schroders Capital. The team’s proven, proprietary, independently validated ESG scorecard 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 30 September 2024
£465.5m
Portfolio value
39
Number of properties
1.7% pa
NAV total return (annualised) for the 3 years to 30 September 2024
4.7% pa
SREI delivered outperformance of the IPD MSCI Benchmark over the 3 years to 30 September 2024
The MSCI UK Balanced Portfolios Quarterly Property Index as at 30 September 2024
Key information
Interim Results 2024
On Tuesday 26 November, Fund Managers Nick Montgomery and Bradley Biggins presented the Trust's interim results for the 6 months ended 30 September 2024.
Performance and charges
For further performance data please visit download the latest factsheet or visit the London Stock Exchange website
Ongoing charges: 1.20% (Fund only costs) for the six months ended 30 September 2024.
Ongoing charges (Fund only costs) are the Fund expenses expressed as a percentage of the average net asset value over the period.
Discrete yearly performance (%)
As at 30 September 2024
Discrete yearly performance (%) | 12 months to September-2024 | 12 months to September-2023 | 12 months to September-2022 | 12 months to September-2021 | 12 months to September-2020 |
Share Price1 | 36.0 | -4.7 | -0.3 | 61.8 | -39.5 |
SREIT NAV Total Returns2 | 4.0 | -14.8 | 18.5 | 18.3 | -12.6 |
SREIT Real Estate Total Returns3 | 5.1 | -7.8 | 15.4 | 14.3 | -1.1 |
MSCI Balanced Monthly and Quarterly Index funds3 | 2.0 | -13.0 | 9.9 | 11.2 | -2.2 |
Issued in November 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).
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. In 2023, the Company achieved its sixth consecutive EPRA Gold Award for its annual report for the year ended 31 March 2023
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 real estate companies and funds.
Source: MSCI, 2024
Source: Investment Week, 2024
In the media
Portfolio in Focus
As at 30 September 2024
Corporate Governance
Find out more about the Company's Board, view key dates and keep up with regulatory news.
The Portfolio Managers
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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. |