Announcement of NAV and Quarterly Dividend

Schroder Eur Real Est Inv Trust PLC

17 September 2026

 

17 September 2026

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

("SEREIT"/ the "Company" / "Group")

ANNOUNCEMENT OF NAV AND QUARTERLY DIVIDEND

Schroder European Real Estate Investment Trust plc provides a business update and announces its quarterly dividend and unaudited net asset value ("NAV") as at 30 June 2026.

Managed wind-down strategy and return of capital to shareholders

The Board and the Investment Manager previously proposed a managed wind-down and orderly realisation of the Company's portfolio over an anticipated two-to-three-year period, with the objective of maximising shareholder value through targeted asset management initiatives ahead of disposal.

Shareholders approved the wind-down strategy on 3 September 2026, resulting in the adoption of a revised investment objective and policy to facilitate the orderly realisation of the portfolio. The revised framework replaces the Company's previous investment objective and policy, including the asset allocation limits set out in the original prospectus.

The net proceeds from asset realisations will be used to repay borrowings and return capital to shareholders.

The Board and the Investment Manager will take a proactive approach to portfolio management, carefully timing asset management initiatives and disposals to maximise value and liquidity for shareholders. The Investment Manager is in the process of preparing the first tranche of assets for a sale.

Financial highlights

-     Underlying quarterly earnings from operational activities ("EPRA earnings") of €1.5 million (quarter ended 30 June 2025: €1.5 million), and €1.6 million before exceptional items

-     Third quarterly interim dividend of 1.48 euro cents per share ("cps") declared, 80% covered by EPRA earnings before exceptional items, reflecting an annualised dividend yield of c. 8.6% on closing share price of 59.6 pence per share ("pps") as at 11 September 2026

-     Total interim dividends declared relating to the nine months of the current financial year of 4.44 euro cps, 87% covered by EPRA earnings before exceptional items

-     Unaudited NAV of €143.6 million, or 109.3 cps (31 March 2026: €151.3 million, or 115.1 cps)

-   Net loan-to-value ("LTV") ratio of 27%, and 30% gross of cash, with an available cash balance of approximately €6.4 million. The available cash balance excludes €14.9 million of cash ring-fenced for the French tax claim

-     NAV total return of -3.8% for the quarter and -3.2% for the nine months of the current financial year, primarily driven by unrealised revaluation losses

-     As previously announced, the property portfolio independent valuation decreased by €7.5 million, or -3.9%, over the quarter to €185.1 million (31 March 2026: €192.6 million). The decline reflects weaker investment demand, particularly for secondary offices, driven by heightened macroeconomic uncertainty, alongside inflation and interest-rate concerns

-    Tax disclosure: As previously disclosed, the French Tax Authorities have issued a notice of adjustment in respect of the tax years 2021 to 2023. There has been no material change since the previous announcement in the Company's Interim Report published in June 2026. The Group has appealed the French Tax Authorities' €14.9 million notice of adjustment (including interest and penalties) and is awaiting a response and continues to maintain that the amount is not payable. No provision has been recognised, based on professional advice and the Board's assessment that an outflow is not probable. The Group continues to ring-fence €14.9 million of cash for this dispute. Further updates will be provided as appropriate.

Net Asset Value

The table below provides a breakdown of the movement in NAV during the quarter ended 30 June 2026:

	€m	cps(1)
Brought forward NAV as at 1 April 2026	151.3	115.1
Unrealised movement in the valuation of the property portfolio	(7.5)	(5.7)
Capital expenditure	0.1	0.1
EPRA earnings	1.5	1.2
Non-cash items	0.1	0.1
Share buyback	0.0	0.0
Dividend paid	(1.9)	(1.5)
NAV as at 30 June 2026	143.6	109.3

Footnote (1): Based on 131,407,986 shares in issue as at 30 June 2026.

Interim dividend

The Company announces its third interim dividend of 1.48 euro cps for the year ending 30 September 2026, which is 80% covered by EPRA earnings before exceptional items. The Board currently intends to continue paying dividends during the managed wind-down to maintain the Company's investment trust status. As previously announced, and as a result of the managed wind-down, the level of dividend payments will decline as the portfolio income reduces and as capital is returned to shareholders. In setting the dividend, the Board will also be mindful of the level of EPRA earnings dividend cover.

Total dividends declared relating to the nine months of the current financial year are 4.44 euro cps, 87% covered by EPRA earnings before exceptional items.

The interim dividend payment will be made on Friday 13 November 2026 to shareholders on the register on the record date of Friday 9 October 2026. In South Africa, the last day to trade will be Tuesday 6 October 2026 and the ex-dividend date will be Wednesday 7 October 2026. In the United Kingdom ("UK"), the last day to trade will be Wednesday 7 October 2026 and the ex-dividend date will be Thursday 8 October 2026.

The interim dividend will be paid in British pound sterling ("GBP") to shareholders on the UK register and South African Rand ("Rand") to shareholders on the South African register. The exchange rate for determining the interim dividend paid in Rand will be confirmed by way of an announcement on Tuesday 29 September 2026. UK shareholders are able to make an election to receive dividends in Euro rather than GBP should that be preferred. The form for applying for such election can be obtained from the Company's UK registrars (Equiniti Limited) and any such election must be received by the Company no later than Friday 9 October 2026. The exchange rate for determining the interim dividend paid in GBP will be confirmed following the election cut-off date by way of an announcement on Monday 12 October 2026.

Shares cannot be moved between the South African register and the UK register between Tuesday 29 September 2026 and Friday 9 October 2026, both days inclusive. Shares may not be dematerialised or rematerialised in South Africa between Wednesday 7 October 2026 and Friday 9 October 2026, both days inclusive.

The Company has a total of 131,407,986 shares in issue (excluding treasury shares) on the date of this announcement. The dividend will be distributed by the Company (UK tax registration number 21696 04839) and is regarded as a foreign dividend for shareholders on the South African register. In respect of South African shareholders, dividend tax will be withheld from the amount of the dividend noted above at the rate of 20% unless the shareholder qualifies for the exemption. Further dividend tax information for South African shareholders will be included in the exchange rate announcement to be made on Tuesday 29 September 2026.

-Ends-

Enquiries: Jeff O'Dwyer Schroder Real Estate Investment Management Limited Michelle Taiwo Schroder Investment Management Limited Richard Gotla/Oliver Parsons                 FTI Consulting Tel: [phone]  Tel: [phone]  Tel: [phone]

 

END