Schroder Real Estate Investment Trust

"Our focus on Winning Cities in the UK offers a competitive advantage in terms of higher levels of GDP, employment and population growth to deliver long-term sustainable income and capital growth."

Key facts as at 31 March 2020

Outperformance of IPD MSCI Benchmark Index over past 12 months


Outperformance of IPD MSCI benchmark over past 3 years


Outperformance of IPD MSCI Benchmark Index since IPO in July 2004

1.0% p.a

NAV total return for year to March 2020*


Portfolio weighted to the office and industrial sectors


Number of Properties


Portfolio value


Portfolio located in winning cities


Disposals completed since January 2019


Net Initial Yield of disposals completed since January 2019


Annual interest saving from refinancing of £129.6m term loan with Canada Life

£2.5million p.a.

Loan to Value (LTV)

*Excluding one-off refinancing costs related to the Canada Life loan in 2020 of £27.4m. NAV total return for the year to March 2020 not adjusted for refinancing costs of -9.4%.

Discrete yearly performance (%)

  12 months to Mar-2020 12 months to Mar-2019 12 months to Mar-2018 12 months to Mar-2017 12 months to Mar-2016
Share price1 -26.3 -1.7 -0.9 6.2 1.8
Net Asset Value total return2 -9.4 4.5 10.5 7.2 12.3
SREIT Real Estate Total Return3 1.9 7.2 11.8 8.5 12.6
MSCI UK Balanced Monthly and Quarterly Funds Quarterly Property Index3 0.2 4.9 10.3 4.7 11.3

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 Source: Schroders, NAV to NAV (per share) plus dividends paid.
3 Source: MSCI Quarterly Version of Balanced Monthly Index Funds (including indirect investments on a like-for-like basis).

Top 10 holdings

Sector weightings

The Company aims to own a diversified portfolio of UK real estate with good fundamental characteristics. The Company principally invests in the office, retail, and industrial commercial real estate sectors and will also consider other sectors including mixed use, residential, hotels, healthcare, and leisure.

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Office (39.6%)

The Company is overweight in offices compared with the MSCI/IPD Benchmark. The focus is on buildings with good fundamentals in those Winning Cities and regions that are attractive to a diverse occupier base. The Company has no exposure to the City of London, which is expected to be most affected by a UK departure from the European Union.

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Retail (24.6%)

18.1% of this is retail sole use and 6.5% is retail mixed use. The retail assets in the portfolio are predominantly well-managed retail warehouses and convenience retail, let at sustainable rents and which benefit from trends including ‘click and collect’. The Company does not own any shopping centres.

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Industrial (28.6%)

The Company owns a range of industrial assets, the most significant being multi-let estates including Milton Keynes and Leeds, which are positively impacted by structural trends and where there are significant asset management opportunities to capture rental growth.

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Other (7.2%)

Other sectors could include mixed use, residential, hotels, healthcare and leisure properties. The Company’s current exposure to ‘Other’ includes a car park at City Tower in Manchester, hotels at City Tower and Headingley Central and a leisure scheme in Luton.


Case studies

Figures as at 31 March 2020


City Tower, Manchester

Description: 610,000 sq ft of office, retail, leisure and hotel accommodation on a three acre island site in the heart of Manchester.

Asset strategy: To improve the office accommodation to take advantage of healthy levels of occupational demand and reposition the retail and leisure offer.

  • Joint venture:25% share
  • Sector:Mixed use

Stacey Bushes Industrial Estate, Milton Keynes

Description: 345,000 sq ft multi-let industrial estate comprising 42 units immediately adjacent to the A5 dual carriageway on the west side of Milton Keynes.

Asset strategy: To consolidate the higher rental tone and grow net income alongside developing 15,500 sq ft of new warehouse space on an adjoining site on receipt of planning.

  • Sector:Industrial

Millshaw Industrial Estate, Leeds

Description: 460,000 sq ft multi-let industrial estate comprising of 27 units strategically located two miles south of Leeds city centre and adjacent to White Rose Office Park and Shopping Centre and close to the M62 and M621 motorways.

Asset strategy: To refurbish units to drive further rental income growth and progress planning for higher value alternative uses given the prominent site frontage to the Leeds ring road.

  • Sector:Industrial

St John’s Retail Park, Bedford

Description: 130,000 sq ft retail warehouse park 1.5 miles from Bedford town centre.

Asset strategy: To improve retailer mix and to negotiate new longer leases in order to preserve the rental income and manage void risk.

  • Sector:Retail

The Tun, Edinburgh

Description: Multi-let office building in Edinburgh city centre, located close to the Royal Mile and Scottish Parliament.

Asset strategy: To capitalise on low supply in the Edinburgh office market and improve rents through new lettings, re-gears and rent reviews.

  • Sector:Office

The Promenade, Cheltenham

Description: 2,500 sq. ft multi-let office located in a prime location in Cheltenham town centre.

Asset strategy: To re-gear tenants to improve the income profile of the property and capture rental reversion.

  • Sector:Office

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.

Getting started

Investment trusts offer a flexible and effective way to gain exposure to some of the world's most dynamic markets and regions, and can be used to meet a variety of investment outcomes. For more information on how Schroder Real Estate Investment Trust shares can be bought and sold, visit our How to invest page.

Contact Schroders

Schroders is a world-class asset manager operating from 35 locations across Europe, the Americas, Asia, the Middle East and Africa.

Worldwide locations

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