Half-year Report
Summary by AI BETAClose X
24 June 2026
SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC
("SEREIT"/ the "Company" / "Group")
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2026
Proposed managed wind-down and return of capital to shareholders
Asset management initiatives and portfolio exposure to more liquid markets continue to support earnings and valuation resilience
Schroder European Real Estate Investment Trust plc, the Company investing in European growth cities and regions, announces its half year results for the six months ended 31 March 2026.
Managed wind-down proposal
· As announced separately today, the Board and Investment Manager have reviewed various options to maximise shareholder value and have concluded that a managed wind-down strategy and return of capital is in the best interest of shareholders, subject to investor approval. The Board plans to publish a circular to convene a general meeting and further details will be provided in due course
· The Board and Investment Manager are of the opinion that the Company's portfolio can be realised in the direct property market at a value in excess of what is currently implied by the prevailing share price
· Given the current market backdrop and heightened geopolitical risks, the managed wind-down process is expected to take approximately two to three years to complete. This timing will allow the Investment Manager to execute targeted asset management initiatives to position the assets for sale
Underlying EPRA earnings and IFRS profit supporting positive NAV total return
· Underlying EPRA earnings before exceptional items of €3.6 million (31 March 2025: €3.9 million), more than offset negative capital items (valuation and capital expenditure), resulting in an IFRS profit of €1.1 million
· Total dividends declared for the six months totalled 2.96 cps, 93% covered by EPRA earnings before exceptional items, offering an attractive dividend yield of c. 8.6% on closing share price of 59.6 pps as at 19 June 2026.
· Net Asset Value ("NAV") of €151.3 million, or 115.1 cps, (30 September 2025 adjusted NAV: €154.2 million or 117.3 cps), primarily driven by unrealised revaluation losses
· Positive NAV total return of 0.7% (31 March 2025: 0.3% total return)
· Net loan-to-value ("LTV") ratio of 27%, and 29% gross of cash, with an available cash balance of approximately €5.7 million
· 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 on 19 March 2026. The Group has appealed the French Tax Authority's €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. Further updates will be provided as appropriate.
Asset management initiatives, continues to support earnings and valuation resilience
· Direct property portfolio independent valuation declined by €2.2 million, or 1.1%, to €192.6 million (net of capex), with Rumilly and Stuttgart delivering strong valuation growth off the back of successful lease extensions, offset by the negative impact of tenants vacating in Alkmaar and Cannes
· Concluded four new leases and re-gears generating €1.9 million of annual contracted rent, at a weighted lease term of 8.4 years, including:
o 10-year annually indexed lease with State of Baden-Württemberg in Stuttgart, Germany (c. 5% of portfolio income)
o Seven/10-year term lease extension with the sole tenant, Cereal Partners, in Rumilly, France (c. 6% of portfolio income)
o These two lease regears combined reflect an 18% increase on the previous passing and extended the portfolio unexpired lease term by approximately one year
· Portfolio benefits from robust occupancy level of 93%, with an average portfolio lease term of c. 4.1 years
· 97% of rent due collected, reflecting the early departure of the tenant at Alkmaar
Phil Redding, Chairman, commented:
"During the period, the Board has actively explored a broad range of strategies, including a continuation of the existing business, a corporate sale and a transition towards thematic or sector-specific investments. However, primarily as a result of the structural shift in investor sentiment towards larger, more liquid UK equities and on-going uncertain economic and property market backdrop, it does not expect these strategies to significantly close the discount or support long-term growth."
"In light of this, and following discussions with major shareholders, the Board, in conjunction with the Investment Manager, has concluded that it is in the best interest of shareholders to present formal proposals for a managed wind-down of the Company."
Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited, added:
"Given the challenging market backdrop, and subject to shareholder approval of a managed wind-down, we will focus on delivering an orderly realisation of value over the coming two to three years. European real estate continues to benefit from supportive long-term structural dynamics and this timeframe provides enough flexibility to implement targeted asset management initiatives that enhance value, reduce execution risk and improve liquidity, helping to maximise shareholder value."
A presentation for analysts and investors will be held at 9.00am BST / 10.00am SAST today, registration for which can be accessed via: https://www.schroders.events/SERE26
|
Enquiries:
Jeff O'Dwyer Schroder Real Estate Investment Management Limited
Michelle Taiwo Schroder Investment Management Limited
Richard Gotla/Oliver Parsons FTI Consulting |
Tel: 020 7658 6000
Tel: 020 7658 6000
Tel: 020 7658 6000 |
Chairman's Statement
Overview
Since joining the Board in January this year and assuming the Chair role in March, I have been acutely aware of the significant discount to NAV the Company's shares have traded at over an extended time.
The equity markets continue to disadvantage smaller listed vehicles, irrespective of management quality or the suitability and effective delivery of strategies, with growing evidence that institutional investors want exposure to larger vehicles that offer enhanced liquidity, diversification and cost efficiencies. Despite offering shareholders unique access to a diversified portfolio of Continental European commercial real estate, delivering strong underlying property performance which has supported over £80 million of dividend payments since IPO, as well as maintaining a robust balance sheet, the Company's size and low levels of liquidity have adversely affected the share price performance for a prolonged period of time.
During the year, the Board has actively explored a broad range of strategies, including a continuation of the existing business, a corporate sale and a transition towards thematic or sector-specific investments. However, primarily as a result of the structural shift in investor sentiment towards larger, more liquid UK equities and on-going uncertain economic and property market backdrop, it does not expect these strategies to significantly close the discount or support long-term growth. In light of this, and following discussions with major shareholders, the Board, in conjunction with the Investment Manager, has concluded that it is in the best interest of shareholders to present formal proposals for a managed wind-down of the Company. This process will be executed in an orderly manner over time, allowing for the implementation of various asset management initiatives to maximise value to shareholders.
Amendments to the Investment Objective and Policy
The Board plans to publish a circular in due course to convene a general meeting, where it will seek shareholders' approval through an ordinary resolution to modify the Company's investment objective and investment policy necessary to undertake a managed wind-down process. Should shareholder approval be granted, the Board will endeavour to realise all of the Company's investments in an efficient manner, balancing the goal of maximising value from these investments with the timely return of capital to shareholders. Given this value-maximising approach and in the context of a challenging market backdrop, the managed wind-down process is expected to take approximately two to three years to complete.
Investment Management Arrangements
The Board has initiated talks with the Investment Manager for the provision of investment management services during the wind-down process, under revised terms aimed at better aligning the Investment Manager with the goal of maximising shareholder returns in a timely fashion. More details will be included in the Circular.
Dividend
Should shareholders vote to approve the managed wind-down, it is the Board's intention to continue paying dividends in order to maintain the Company's investment trust status. The level of dividend payments will therefore decline as the portfolio income reduces and as capital is returned to shareholders.
Results
Looking back on this six month period, Schroder European Real Estate Investment Trust has demonstrated considerable resilience amidst a challenging and fast-evolving market backdrop. The period began with improved sentiment towards European real estate, supported by expectations of an increasingly favorable interest rate environment, which helped strengthen both occupier confidence and investment activity after an extended phase of caution.
However, recent months have seen a renewed rise in global risk, with geopolitical tensions and ongoing conflicts contributing to heightened uncertainty, impacting interest rate expectations, global growth prospects and broader investment confidence. Throughout this time, we have remained focused on the factors within our control, primarily maintaining a conservative balance sheet and implementing a clear strategy to optimise occupancy, income, value and liquidity. Our proactive asset management approach, based on local expertise and operational excellence, has delivered robust results and supported stable income returns for our stakeholders.
Highlights during the period included:
Underlying EPRA earnings: Underlying EPRA earnings of €3.6 million before exceptional items (six months to March 2025: €3.9 million), driven by high occupancy, a diversified tenant base, high rent collection and the indexation benefits of the portfolio delivering predictable and consistent income.
Strong dividends: The Board has maintained the quarterly dividend of 1.48 euro cents per share for the most recent quarter. The total dividends declared for the current six months amounted to €3.9 million, equating to 2.96 euro cents per share, which offers an attractive dividend yield of approximately 8.6% per annum based on the share price of 59.6 pence sterling as of 19 June 2026. This dividend is 93% covered by EPRA earnings before exceptional items.
Robust balance sheet: The Company's balance sheet remains robust and provides sufficient flexibility to navigate the proposed sales process, while maintaining prudent financial risk management. Leverage is relatively modest at a loan-to-value ratio of 27% net of cash and covenant headroom is generally good.
While the relatively short average debt maturity of 1.8 years potentially introduces refinancing considerations, this profile facilitates the co-ordination of sales proceeds with the repayment of bank loans. Recent lender support, evidenced by the Berlin facility extension post period-end, provides the potential option for short-term loan extensions, if required.
Emphasis on asset management: During the period, we delivered a number of significant asset management initiatives, including major lease re-gears with two of the Company's largest tenants, together representing more than 10% of portfolio income. At Cereal Partners France (Rumilly), we agreed a new 10-year lease (tenant break after year seven), c. 20% above the previous passing rent. At the State of Baden-Württemberg (Stuttgart), we signed a new 10-year fixed-term lease 18% ahead of the previous passing rent. Collectively over the period, we completed four lease renewals and re-gears, generating €1.9 million of annualised rent, with a weighted average lease term of 8.4 years.
Portfolio value: The underlying portfolio valuation decreased by €2.2 million (net of capex), or -1.1%, to €192.6 million.
Individual assets showed varied performance, with Rumilly and Stuttgart delivering strong valuation growth off the back of successful lease extensions, which was offset by the negative impact of tenants vacating, particularly in Alkmaar and Cannes.
Energy and carbon: Over the period, we continued to incorporate various insights from on-site and third-party sustainability and Net Zero Carbon ('NZC') audits, carried out on 11 of 14 assets, directly into our 2026 business plans. This approach ensures that audit findings inform tangible investment decisions to enhance asset value and liquidity, in line with our broader portfolio enhancement objectives.
Concurrently, we recorded our largest annual improvement in the Global Real Estate Sustainability Benchmark ('GRESB'), increasing our score by four points to 86, while maintaining our four-star status.
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 on 19 March 2026. The Group has appealed the French Tax Authority's €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. Further updates will be provided as appropriate.
Outlook
Subject to shareholder approval of the proposed changes to the Company's investment objective and policy to facilitate a managed wind-down, the Board will focus on delivering an orderly realisation of value, balancing the securing of optimal pricing with the timely return of capital to shareholders.
Working closely with the Investment Manager, we will prioritise the maximisation of portfolio income and value through the implementation of targeted asset enhancement plans, aimed at improving marketability and enabling a measured approach to be taken in the disposal of the Company's assets.
The market backdrop remains challenging with heightened geopolitical risk causing real estate investors to adopt a cautious stance, with buyers continuing to adopt a wait-and-see approach, or taking a very selective and conservative approach to deploying capital. This is feeding through to investment volumes that remain below long-term averages and is putting downward pressure on pricing in some markets and sectors. Saying that, market conditions are increasingly polarised and vary considerably across Continental Europe. Current market evidence shows liquidity is stronger for smaller lot sizes and concentrated in key European cities and growth centres, which is where the Company's portfolio is focused.
Our focus is on timely and efficient liquidity for shareholders. The above-mentioned market outlook, together with the intention to complete value-maximising asset plans prior to sales, means we expect the wind-down process to take up to three years to complete. Further updates on the expected sequencing, milestones and capital return framework, will be provided in due course.
Phil Redding
Chairman
23 June 2026
Investment Manager's Report
Financial results
The net asset value ('NAV') as at 31 March 2026 stood at €151.3 million (£132.1 million)1, or 115.2 euro cents per share2 (101.0 pence per share), compared with €156.7 million (£136.3 million), or 119.2cps2, as at 30 September 2025.
The table below provides an analysis of the movement in NAV during the reporting period as well as a corresponding reconciliation in the movement in the NAV euro cents per share.
|
|
€m |
cps2 |
|
NAV as at 1 October 2025 |
156.7 |
119.2 |
|
Prior period adjustment |
(2.5)3 |
(1.9) |
|
Adjusted NAV as at 1 October 2025 |
154.2 |
117.3 |
|
Unrealised change in the valuations of the |
|
|
|
real estate portfolio4 |
(1.4) |
(1.1) |
|
Capital expenditure4 |
(0.8) |
(0.6) |
|
EPRA earnings5 |
3.5 |
2.7 |
|
Non-cash/capital items |
(0.3) |
(0.1) |
|
Dividends paid6 |
(3.9) |
(3.0) |
|
NAV as at 31 March 2026 |
151.3 |
115.2 |
Prior period service charge adjustments of €2.5 million, or 1.9 euro cents per share ("cps") have resulted in an adjusted starting NAV as at 1 October 2025 of €154.2 million, or 117.3 cps.
The direct portfolio valuation, after accounting for capital expenditure, declined by €2.2 million.
Other non-cash/capital items (€0.3 million) also contributed to the NAV decline.
EPRA earnings of €3.5 million offset the impact from these capital items and resulted in an overall IFRS profit of €1.1 million.
During the period, dividends totaling €3.9 million were paid, which resulted in a NAV total return of +0.7% for the six months.
1 Exchange rate as at 31 March 2026 GBP:EUR 1.145.
2 Based on 131,407,986 shares in issue as at 1 October 2025.
3 An adjustment to correct property expenses assigned to vacant spaces which had been incorrectly recorded in the period 2021 to 2024 as recoverable from tenants.
4 The unrealised loss in the valuation of the real estate of the portfolio (€1.4m), net of capital expenditure (€0.8m), reconciles to the 'net loss from fair value adjustment on investment property' of (€2.2m) on page 21 of the financial statements.
5 EPRA earnings as reconciled on page 36 of the financial statements. EPRA earnings were €3.6 million (2.7 cps) before exceptional items and €3.5 million (2.7 cps) after exceptional items for the six months to 31 March 2026.
6 Dividends of 2.96 cps were paid during the financial period.
Investment objective
Schroder European Real Estate Investment Trust plc (the 'Company'/'SEREIT') aims to provide shareholders with a regular and attractive level of income together with the potential for income and capital growth through investing in commercial real estate in Continental Europe.
The Board plans to publish a circular resolution in due course, where it will seek shareholders' approval through an ordinary resolution to modify the company's investment objective and policy necessary for a orderly wind-down process.
Investment strategy
Our focus remains on actively managing the portfolio to maximise income, value and liquidity, leveraging the expertise of our local sector specialists. The strategy to achieve this is outlined below.
1 Maximising shareholder liquidity and value through active asset management
2 Exposure to higher growth Winning Cities and Regions
3 Applying a research-led approach to determine attractive sectors and locations for commercial real estate allocations
4 Managing the Company prudently and efficiently by controlling costs and maintaining a strong balance sheet
5 Actively managing the Company and its assets, drawing on the expertise of our sector specialists to maximise shareholder returns and evolve the Company's asset management approach that is focused on operational excellence
6 Managing assets as individual businesses, ensuring the services and contract terms meet changing tenant demands and that assets are operated efficiently to minimise the use of scarce resources
Real estate portfolio
As at 31 March 2026, the investment portfolio comprised 14 institutional grade properties valued at €192.6 million.
The investment portfolio generates rental income1 of €16.1 million per annum, reflecting a net initial yield of 7.1%. The independent valuers' portfolio estimated rental value ('ERV') is €16.1 million per annum.
At the period end, the investment portfolio void rate was 7%, calculated as a percentage of estimated rental value. The weighted average lease length, calculated to the earliest break, is 4.1 years.
Key asset management highlights included:
- Concluded four new leases and re-gears generating €1.9 million of annual contracted rent, at a weighted lease term of 8.4 years.
- This included successfully concluding a new 10-year annually indexed lease with the State of Baden-Württemberg its Stuttgart property in Germany (c. 5% of portfolio income) and concluding a seven/10-year term lease extension with the sole tenant Cereal Partners at its Rumilly logistics property (c.6%). These two lease regears combined reflect an 18% increase on the previous passing and extended the portfolio unexpired lease term by approximately one year.
- Apeldoorn: as a result of KPN's confirmed departure in December 2026, we continue to explore two options; firstly sourcing a replacement tenant and secondly, and more likely, advancing planning for alternate use and the subsequent sale of the asset.
- Alkmaar: as a result of financial difficulties, Shuurman Beheer B.V. have vacated the premises early. Our priority is to secure a replacement tenant to stabilise income and improve asset value and liquidity.
- Cannes: the expected departure of Stellantis in September 2026 creates a near-term leasing opportunity, with marketing underway to secure a replacement tenant.
- The diversified nature and strength of underlying tenants, and the assets generally being leased off affordable and sustainable rents, is expected to sustain resilient portfolio income in a weaker economic climate.
Approximately 38% of the portfolio by value is offices, all leased off affordable rents.
Our industrial exposure stands at 37%, which is a mixture of distribution warehouses and light industrial accommodation, spanning growth cities within France and the Netherlands.
Our retail exposure of 14% comprises the Berlin DIY asset, while a further 8% of the portfolio is allocated to the alternatives sector, comprising a mixed-use data centre and a car showroom, with the remaining 3% held in cash.
1 Represents the annualised contracted rents as at 31 March 2026 of the direct portfolio.
At a glance
Portfolio Overview
The Company owns a diversified portfolio of commercial real estate in Continental Europe with favourable property fundamentals. The Company has targeted assets located in Winning Cities and Regions and in high-growth sectors. Winning Cities and Regions are those that are expected to generate higher and more sustainable levels of economic growth, underpinned by themes such as urbanisation, demographics, technology and infrastructure improvements.
Number of properties
14
Portfolio value1
€198.3m
Number of tenants
45
Occupancy
93%
Property portfolio
|
Property |
Sector |
Value (€m/% |
|
1 France, Paris |
Office |
€35.6m / 18% |
|
2 Germany, Berlin |
Retail/DIY |
€27.8m / 14% |
|
3 Germany, Hamburg |
Office |
€20.2m / 10% |
|
4 Germany, Stuttgart |
Office |
€19.0m / 10% |
|
5 France, Rennes |
Industrial |
€19.0m / 10% |
|
6 The Netherlands, Venray |
Industrial |
€13.0m / 7% |
|
7 France, Rumilly |
Industrial |
€12.7m / 6% |
|
8 The Netherlands, Apeldoorn |
Mixed |
€10.8m / 5% |
|
9 The Netherlands, Houten |
Industrial |
€10.0m / 5% |
|
10 The Netherlands, Alkmaar |
Industrial |
€7.1m / 4% |
|
11 France, Nantes |
Industrial |
€6.3m / 3% |
|
12 France, Cannes |
Car showroom |
€6.1m / 3% |
|
13 The Netherlands, Utrecht |
Industrial |
€3.1m / 2% |
|
14 The Netherlands, Venray II |
Industrial |
€2.0m / 1% |
1 Reflects the value of investment properties of €192.6m and available cash of €5.7 million (internally calculated).
The table below sets out the portfolio's top ten tenants by contracted rent, representing a diverse range of industries and reflecting 75% of the portfolio.
Top ten tenants
|
|
|
|
|
Contracted rent |
WAULT break |
WAULT expiry |
|
|
Rank |
Tenant |
Industry |
Property |
€m |
% of total |
(yrs) |
(yrs) |
|
1 |
KPN |
Telecom |
Apeldoorn |
3.2 |
20% |
0.8 |
0.8 |
|
2 |
Hornbach |
DIY |
Berlin |
1.7 |
10% |
11.8 |
11.8 |
|
3 |
C-log |
Logistics |
Rennes |
1.3 |
8% |
4.9 |
4.9 |
|
4 |
Outscale |
IT |
Paris |
1.3 |
8% |
3.2 |
6.3 |
|
5 |
Cereal Partners1 |
Consumer staples |
Rumilly |
1.0 |
6% |
7.0 |
10.0 |
|
6 |
DKL |
Logistics |
Venray |
0.9 |
5% |
2.5 |
2.5 |
|
7 |
LandBW2 |
Government |
Stuttgart |
0.8 |
5% |
10.3 |
10.3 |
|
8 |
Inventum |
Manufacturing |
Houten |
0.7 |
5% |
3.8 |
3.8 |
|
9 |
Filassistance |
Insurance |
Paris |
0.7 |
4% |
1.8 |
6.8 |
|
10 |
Ethypharm |
Pharmaceutical |
Paris |
0.6 |
4% |
1.2 |
3.8 |
|
Total top ten tenants |
|
|
12.1 |
75% |
4.5 |
5.5 |
|
|
Remaining tenants |
|
|
4.0 |
25% |
2.8 |
3.8 |
|
|
Total |
|
|
16.1 |
100% |
4.1 |
5.1 |
|
1 New 10-year lease agreed with Cereal Partners with 7-year break.
2 New 10-year lease agreed with Land Baden-Württemberg.
The largest tenant, KPN, represents 20% of the portfolio's contracted rent. KPN, a leading telecommunications and IT provider and market leader in the Netherlands, occupies our mixed-use Apeldoorn asset (data centre and office).
The second largest tenant is Hornbach, a leading German-based operator of do-it-yourself ('DIY') stores and home centres, which accounts for 10% of the portfolio rent. Hornbach is the sole occupier of our Berlin DIY asset, comprising a four-hectare site that has the potential to benefit from alternative uses.
The remaining larger tenants, spanning a diversified range of industries, each account for between 4-8% of the portfolio rent, including C-log, Outscale, Cereal Partners (Nestlé), DKL, Land Baden-Württemberg, Inventum, Filassistance and Ethypharm.
Portfolio performance
Valuation performance: The property portfolio was independently valued at €192.6 million (30 September 2025: €194.0 million). Net of €0.8 million capex this represents an overall valuation decline of €2.2 million, or -1.1%, over the six-month period.
Individual assets showed a very varied performance, with Rumilly and Stuttgart delivering strong valuation growth off the back of successful lease extensions, which was offset by the impact of tenant-related challenges at other assets, particularly in Alkmaar and Cannes:
- Rumilly logistics valuation increased by €2.0 million net of capex, or 19%, reflecting the completion of an income accretive 10-year lease extension (break after seven) with the asset's sole tenant.
- Stuttgart office valuation increased by €1.1 million, or 6%, primarily due to the completion of a new 10-year annually indexed lease with the asset's largest tenant, the State of Baden-Württemberg, 18% ahead of the previous passing rent.
- Alkmaar industrial valuation reduced by €3.8 million, or -35%, driven by the asset's sole tenant ceasing operations and not fulfilling its long-term lease obligations due to financial difficulties.
- Cannes car showroom valuation decreased by €1.1 million, or -15%, due to shortening lease terms and capex assumptions, following the asset's sole tenant recently issuing notice for its departure in September 2026.
- Previous valuations of the mixed-use data centre in Apeldoorn had already factored in KPN's departure at the end of 2026. Consequently, the decline of €1.0 million, or -8%, is attributable solely to the shortening lease term.
- The rest of the portfolio increased marginally by €0.6 million net of capex, reflecting a valuation increase of +0.4%.
Total property returns: During the period, the property portfolio total property return ('TPR') was 2.5%. With the portfolio benefitting from robust occupancy and high rent collection, property income returns continued to be strong at 3.7%, thereby more than offsetting negative capital returns of -1.1%.
Over the longer term, the real estate portfolio has delivered ungeared property returns of 6.1% over one year, 3.8% over three years and 4.0% over five years.
Rumilly, France
ASSET MANAGEMENT
Asset overview
Acquired in August 2018 for €8.5 million, the asset is valued at €12.7 million as at 31 March 2026, reflecting the successful execution of a new long-term lease re-gear and a 19% increase on the 30 September 2025 valuation.
The 16,700 sqm facility has served as the principal distribution centre for Cereal Partners France (a Nestlé JV) for c.30 years, supporting daily operations with Nestlé's production facility located 3 km away.
Asset strategy
Identified a strategically important industrial facility in a supply-constrained location to unlock rental value growth and asset liquidity.
Rationale
- Secured a firm 7-year triple-net lease at a rent c.20% above the previous passing rent with Cereal Partners France, the fifth-largest tenant in the portfolio, representing 6% of portfolio income.
- As part of the re-gear, c.€2m to be invested in targeted upgrades, including increased power capacity, improved air extraction, sprinkler enhancements and reconfigured car-parking.
- Investment exposure to a supply-constrained submarket supported by infrastructure improvements and long-term income from a high-quality tenant. Proximity to Nestlé's manufacturing plant and land scarcity underpin occupier demand, rental growth and liquidity.
Stuttgart, Germany
ASSET MANAGEMENT
Asset overview
Purchased in April 2016 for €14.4 million, the asset comprises approximately 5,800 sqm of office space within a supply-constrained, mixed-use area located around 2 km north-east of Stuttgart city centre.
The latest valuation as at 31 March 2026 is €19.0 million, representing a c.6% increase on the 30 September 2025 valuation, reflecting the execution of a new long-term lease re-gear with the State of Baden-Württemberg.
Asset strategy
Targeted strategy with a government-let office asset to execute a lease re-gear and capture reversionary rental growth, thereby strengthening the income profile, capital value, asset liquidity and overall financing attractiveness.
Rationale
- Entered into a new 10-year, annually indexed lease with the existing government tenant, delivering an 18% uplift to the prior contracted rent and enhancing income security; the income represents 5% of portfolio income.
- Exposure to a high-quality public-sector covenant, supporting long-term income durability and asset liquidity.
- Located in a supply-constrained sub-market with competing alternative uses, underpinning sustained occupier demand.
- Long-term re-gear with the anchor tenant has also initiated discussions with smaller tenants to consider re-gearing leases on a longer term basis.
Combined impact of both lease re-gears increases portfolio WAULT by c.1 year
Balance sheet
As at 31 March 2026, the Company's third-party debt totals €64.3 million across five facilities. The portfolio benefits from a blended all-in interest rate of 3.8% and an average remaining maturity of 1.8 years.
The relatively short weighted average term supports the Company's proposed strategy to execute an orderly disposal of assets, following shareholder approval for a managed wind-down. In this context, the Investment Manager may selectively pursue short-term extensions to existing facilities to optimise timing and minimise potential break costs.
Subsequent to the reporting date, the loan facility secured against the Berlin asset, which was due to mature in June 2026, has been extended with the lender for a further 13 months at a margin of 1.8%.
The Company maintains a prudent capital structure, with a net loan-to-value (LTV) ratio of 27% (29% gross of cash). There is a net of cash LTV cap of 35% that restricts concluding new external loans if the Company's net LTV is above 35%. An increase in leverage above 35% as a result of valuation decline is excluded from this cap.
Each loan is held at the property-owning level instead of the Group level and is secured by the individual properties noted in the table. There is no cross-collateralisation between loans. Each loan has specific LTV and income default covenants.
The individual loans are detailed in the table below, with the headroom against individual loan covenants shown in the latter two table columns.
|
Lender |
Property |
Maturity date |
Outstanding |
Interest rate4 |
Headroom |
Headroom |
|
VR Bank Westerwald |
Stuttgart / Hamburg |
31/12/2027 |
€18.00m |
3.80% |
No covenant |
No covenant |
|
BRED Banque Populaire |
Paris (Saint-Cloud)1 |
15/12/2027 |
€14.00m |
3M Eur+1.9% |
13% |
>50% |
|
ABN Amro |
The Netherlands industrials2 |
27/09/2028 |
€13.76m |
5.30% |
>30% |
>30% |
|
Deutsche Pfandbriefbank |
Berlin3 |
30/06/2026 |
€9.94m |
1.31% |
n.r. |
n.r. |
|
Landesbank SAAR |
Rennes |
26/03/2029 |
€8.60m |
4.3% |
18% |
>40% |
|
Total |
|
|
€64.30m |
|
|
|
1 Additional monies were put on security deposit to meet bank covenants post sale of the Frankfurt retail asset.
2 The ABN Amro loan is secured against five of the Netherlands industrial assets: Alkmaar, Houten, Utrecht, Venray and Venray II.
3 Post-period end, Deutsche Pfandbriefbank extended the majority of the loan for another 13 months at a margin of 1.8%.
4 The German and Dutch loans are fixed rate for the duration of the loan term. The Paris loan is based on a margin above three-month Euribor with an interest rate cap in place at 3.25% covering the remaining loan period to December 2027.
Outlook
Continental European commercial real estate has experienced a challenging recovery following the sharp repricing of the past two years. While indications at the back end of last year and into this year were that liquidity was improving and price discovery was more consistent, recent momentum has softened amid heightened geopolitical risk associated with the conflict in the Middle East. This has increased near-term uncertainty around energy prices, inflation expectations, outlook for interest rates and broader business confidence. Across France, Germany and the Netherlands, this has resulted in a more cautious approach from buyers and lenders, with a larger execution premium applied to assets where leasing, capex or due diligence complexity is harder to underwrite.
Sector performance remains bifurcated. Industrial and logistics continues to benefit from structural occupier demand, but outcomes are increasingly determined by micro-location, local supply conditions and building specification, alongside tighter scrutiny of vacancy risk and energy performance. Offices remain the most polarised with best-in-class, well-connected assets with strong environmental credentials seeing better liquidity from occupiers and investors, while secondary offices face wider discounts reflecting capex requirements, slower leasing and a thinner buyer universe. Retail is mixed; prime, convenience-led formats can continue to generate cashflow, whereas more discretionary exposure is sensitive to tenant churn and leasing risk.
With investment volumes still muted, valuation risk is increasingly driven by thinner and more selective comparable evidence. This can translate into greater reliance on judgement and a wider dispersion between appraised values and executable pricing - particularly for secondary offices where (i) the buyer pool is narrow, (ii) capex pathways are uncertain, and (iii) there is limited credible alternative use optionality.
Given the challenging market backdrop, and subject to shareholder approval of a managed wind-down, we expect realisations to be executed over two to three years. This timeframe provides flexibility to implement targeted asset management initiatives that enhance value, reduce execution risk and improve liquidity, helping to maximise shareholder value.
Jeff O'Dwyer
Fund Manager
23 June 2026
Responsibility Statement of the Directors in respect of the Interim Report
Principal risks and uncertainties
The principal risks and uncertainties relating to the Company's business fall within the following categories: investment and strategy; regulatory and tax compliance; economic and property market conditions; valuation; and gearing and leverage. A detailed description of these risks and uncertainties is set out on pages 32 to 34 of the Company's published Annual Report and Consolidated Financial Statements for the year ended 30 September 2025. The key risks are summarised below:
Sustainability of income
As previously disclosed in the 2025 Annual Report, there remains a risk to sustaining the current level of dividends arising from the departure of the tenant, KPN, from Apeldoorn in December 2026. The Manager continues to pursue mitigating actions, including (i) seeking a replacement tenant (which is currently considered a remote possibility) and (ii) progressing planning for an alternative use, with a view to a subsequent sale.
French tax
As previously announced, the French tax authorities have issued a notice of adjustment in respect of the tax years 2021 to 2023. The Group has appealed the notice of adjustment of €14.9 million (including interest and penalties) and is awaiting a response. The Group 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. Notwithstanding, the Company has ring-fenced the €14.9 million to cover any adverse judgement.
Property valuations
In the view of the Board, property valuations are inherently subjective and uncertain due to the individual nature of each property and its liquidity. An external valuer provides an independent valuation of all assets at least quarterly, and members of the Audit, Valuation and Risk Committee meet with the external valuers quarterly to discuss the basis of their valuations, and the valuers' quality control processes. With investment volumes still muted, valuation risk is increasingly influenced by thinner and more selective comparable evidence, which can lead to greater reliance on judgement and a wider divergence between appraised values and executable pricing. During the six months to March 2026, pricing has remained particularly sensitive for secondary offices, reflecting a narrow buyer universe, greater uncertainty over capex pathways and limited credible alternative use optionality.
The Board is of the opinion that the principal risks and uncertainties disclosed in the Company's published Annual Report and Consolidated Financial Statements for the year ended 30 September 2025 remain applicable for the remainder of the 2026 financial year, as they did for the six-month period ended 31 March 2026.
In light of continued macroeconomic uncertainty and a structural shift in equity markets which has disadvantaged smaller listed vehicles, and following discussions with the Company's largest shareholders, the Board has concluded that it is in the best interests of shareholders to present formal proposals for a managed wind-down of the Company (please refer to the Chairman's Statement on page 6 for further information).
The portfolio continued to generate income over the half year, supported by high occupancy, a diversified tenant base and strong rent collection. Covenants, interest rates, cost of debt and expiry profiles continue to be actively managed as part of the Company's cash flow forecasting and liquidity planning. The Company's balance sheet remains disciplined and provides sufficient flexibility to support the proposed orderly disposal phase, while maintaining prudent financial risk management.
Going concern
The Directors, as at the date of this Report, are required to consider whether they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Please refer to Note 1 of the Condensed Consolidated Interim Financial Statements.
Cash flow forecasts, based on deemed plausible downside scenarios, have led the Board to conclude that the Group will have sufficient cash reserves to continue in operation for twelve months from the date of the signing of the Condensed Consolidated Interim Financial Statements. The Group is currently able to meet its liabilities as they fall due and expects to continue to do so over the next twelve months.
The Company intends to put forward a resolution for shareholders to approve a change in investment objective and investment policy allowing the Company to undergo an orderly realisation of assets, returning capital to shareholders.
If the managed wind-down resolution is approved by shareholders, the Board will endeavour to realise all of the Company's investments in a manner that achieves a balance between maximising the net value received from those investments and making timely returns to shareholders.
These Condensed Consolidated Interim Financial Statements are being issued before the outcome of the shareholder vote is known. If the managed wind-down resolution is passed, the Group will need to prepare future financial statements on a basis other than the going concern basis of accounting. However, there can be no certainty of the outcome of the shareholder vote, and it is possible that shareholders will vote against the resolution. In that case, the Group would continue to operate in its current form and would continue to prepare its financial statements on a going concern basis.
The uncertain future outcome of the shareholder vote and the impact this has on the Group's future basis of accounting indicates that a material uncertainty exists that may cast significant doubt over the Group's ability to continue to use the going concern basis of accounting.
The Directors wish to emphasise that this material uncertainty relates solely to the outcome of the pending shareholder vote and its impact on the future basis of accounting. It does not reflect any concern regarding the solvency or liquidity of the Group. As noted above, the Group has sufficient cash reserves and is able to meet all liabilities as they fall due for a period of at least twelve months from the date of approval of the Condensed Consolidated Interim Financial Statements, under both a continuation and a managed wind-down scenario.
Related party transactions
There have been no transactions with related parties that have materially affected the financial position or the performance of the Company during the six months ended 31 March 2026. Related party transactions are disclosed in note 13 of the Condensed Consolidated Interim Financial Statements.
Statement of Directors' responsibilities
The Directors confirm that to the best of their knowledge:
- The Half Year Report and Condensed Consolidated Interim Financial Statements have been prepared in accordance with the UK adopted International Accounting Standard IAS 34 Interim Financial Reporting; and
- The Interim Management Report includes a fair review of the information required by 4.2.7R and 4.2.8R of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Phil Redding
Chairman
23 June 2026
Independent Review Report to Schroder European Real Estate Investment Trust plc
Conclusion
We have been engaged by Schroder European Real Estate Investment Trust plc (the "Company") and its subsidiaries (together the "Group") to review the Condensed Consolidated Interim Financial Statements in the Interim Report for the six months ended 31 March 2026 which comprises the Condensed Consolidated Interim Statement of Comprehensive Income, Condensed Consolidated Interim Statement of Financial Position, Condensed Consolidated Interim Statement of Changes in Equity, Condensed Consolidated Interim Statement of Cash Flows, and the related explanatory notes that have been reviewed. We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated Interim financial statements.
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated Interim financial statements in the interim report for the six months ended 31 March 2026 is not prepared, in all material respects, in accordance with UK-adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE) issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with UK adopted international accounting standards. The condensed consolidated interim financial statements included in this Half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".
Material uncertainty related to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis of Conclusion section of this report, we draw attention to note 1 in the Condensed Consolidated Interim Financial Statements, which indicates that the company intends to put forward a resolution for a managed wind-down, which is subject to the future outcome of the shareholders vote.
As stated in note 1, a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
The responsibilities of the directors with respect to going concern are described in the relevant section of this report.
Responsibilities of the directors
The directors are responsible for preparing the Half-yearly interim report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
In preparing the Half-Yearly interim Report, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern (including the material uncertainty set out in Note 1) and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the Half-Yearly interim Report, we are responsible for expressing to the Company a conclusion on the condensed consolidated Interim financial statements in the Half-yearly interim report. Our conclusion, including the Material uncertainty related to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.
Use of our report
This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.
Ernst & Young LLP
London
23 June 2026
Financial Statements
Condensed Consolidated Interim Statement of Comprehensive Income
For the period ended 31 March 2026
|
|
Notes |
Six months to |
Six months to |
Year to |
|
Rental and service charge income |
3 |
9,613 |
10,263 |
20,151 |
|
Property operating expenses |
|
(2,321) |
(3,430) |
(6,272) |
|
Net rental and related income |
|
7,292 |
6,833 |
13,879 |
|
Net loss from fair value adjustment on investment property |
4 |
(2,226) |
(2,806) |
(3,013) |
|
Loss on sale of investment property |
|
- |
- |
(27) |
|
Development revenue |
5 |
6 |
9 |
231 |
|
Development expense |
5 |
(6) |
(9) |
(18) |
|
Realised gain/(loss) on foreign exchange |
|
9 |
15 |
(10) |
|
Net change in fair value of financial instruments at fair value through profit or loss |
|
33 |
(211) |
(232) |
|
Expenses |
|
|
|
|
|
Investment management fee |
13 |
(870) |
(913) |
(1,803) |
|
Valuers' and other professional fees |
|
(420) |
(443) |
(848) |
|
Administrator's and accounting fees |
|
(228) |
(231) |
(512) |
|
Auditors' remuneration |
|
(179) |
(169) |
(344) |
|
Directors' fees |
13 |
(103) |
(117) |
(204) |
|
Other expenses |
|
(621) |
(385) |
(699) |
|
Total expenses |
|
(2,421) |
(2,258) |
(4,410) |
|
Operating profit |
|
2,687 |
1,573 |
6,400 |
|
Finance income |
|
141 |
266 |
411 |
|
Finance costs |
|
(1,301) |
(1,295) |
(2,663) |
|
Net finance costs |
|
(1,160) |
(1,029) |
(2,252) |
|
Gain before taxation |
|
1,527 |
544 |
4,148 |
|
Taxation |
6 |
(471) |
(670) |
(1,919) |
|
Gain/(loss)for the period/year |
|
1,056 |
(126) |
2,229 |
|
Total comprehensive income/ (expense) for the period/year |
|
1,056 |
(126) |
2,229 |
|
Basic and diluted earnings/ (loss) per share attributable to owners of the parent |
7 |
0.8c |
(0.1) c |
1.7c |
All items in the above statement are derived from continuing operations. The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial statements.
Condensed Consolidated Interim Statement of Financial Position
As at 31 March 2026
|
|
Notes |
Six months to |
Six months to |
Year to |
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Investment property |
4 |
190,780 |
192,574 |
192,514 |
|
Investment in joint venture |
|
- |
- |
- |
|
Non-current assets |
|
190,780 |
192,574 |
192,514 |
|
Current assets |
|
|
|
|
|
Trade and other receivables |
|
9,657 |
6,488 |
8,377 |
|
Interest rate derivative contracts |
8 |
37 |
24 |
4 |
|
Cash and cash equivalents |
9 |
27,261 |
26,881 |
28,362 |
|
Current assets |
|
36,955 |
33,393 |
36,743 |
|
Investment property held for sale |
4 |
- |
11,600 |
- |
|
Total assets |
|
227,735 |
237,567 |
229,257 |
|
Equity |
|
|
|
|
|
Share capital |
10 |
17,966 |
17,966 |
17,966 |
|
Share premium |
10 |
43,005 |
43,005 |
43,005 |
|
Treasury share reserve |
10 |
(1,815) |
(1,158) |
(1,815) |
|
Retained earnings |
|
92,165 |
96,541 |
94,999 |
|
Total equity |
|
151,321 |
156,354 |
154,155 |
|
Liabilities |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Interest-bearing loans and borrowings |
8 |
54,130 |
70,528 |
54,081 |
|
Deferred tax liability |
6 |
4,314 |
4,179 |
4,278 |
|
Non-current liabilities |
|
58,444 |
74,707 |
58,359 |
|
Current liabilities |
|
|
|
|
|
Interest-bearing loans and borrowings |
8 |
9,938 |
- |
9,938 |
|
Trade and other payables |
|
7,687 |
6,363 |
5,840 |
|
Current tax liabilities |
6 |
345 |
143 |
965 |
|
Current liabilities |
|
17,970 |
6,506 |
16,743 |
|
Total liabilities |
|
76,414 |
81,213 |
75,102 |
|
Total equity and liabilities |
11 |
227,735 |
237,567 |
229,257 |
|
Net asset value per ordinary share |
|
115.2 |
118.2 |
117.3 |
The condensed consolidated interim financial statements on pages 22 to 35 were approved at a meeting of the Board of Directors held on 23 June 2026 and signed on its behalf by:
Phil Redding
Chairman
The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial statements.
Company number: 09382477
Registered office: 1 London Wall Place, London EC2Y 5AU
Condensed Consolidated Interim Statement of Changes in Equity
For the period ended 31 March 2026
|
|
Notes |
Share |
Share |
Treasury |
Retained |
Other |
Total |
|
Balance as at 1 October 2025 |
|
17,966 |
43,005 |
(1,815) |
97,499 |
- |
156,655 |
|
Prior year error |
2 |
- |
- |
- |
(2,500) |
- |
(2,500) |
|
Balance as at 1 October 2025 restated |
|
17,966 |
43,005 |
(1,815) |
94,999 |
- |
154,155 |
|
Share buyback |
11 |
- |
- |
- |
- |
- |
- |
|
Profit for the period |
|
- |
- |
- |
1,056 |
- |
1,056 |
|
Dividends paid |
12 |
- |
- |
- |
(3,890) |
- |
(3,890) |
|
Balance as at 31 March 2026 (unaudited) restated |
|
17,966 |
43,005 |
(1,815) |
92,165 |
- |
151,321 |
|
|
Notes |
Share |
Share |
Treasury |
Retained |
Other |
Total |
|
Balance as at 1 October 2024 |
|
17,966 |
43,005 |
- |
103,126 |
- |
164,097 |
|
Prior year error |
2 |
- |
- |
- |
(2,500) |
- |
(2,500) |
|
Balance as at 1 October 2024 restated |
|
17,966 |
43,005 |
- |
100,626 |
- |
161,597 |
|
Share buyback |
11 |
- |
- |
(1,815) |
- |
- |
(1,815) |
|
Profit for the year |
|
- |
- |
- |
2,229 |
- |
2,229 |
|
Dividends paid |
12 |
- |
- |
- |
(7,856) |
- |
(7,856) |
|
Balance as at 30 September 2025 (audited) restated |
|
17,966 |
43,005 |
(1,815) |
94,999 |
- |
154,155 |
|
|
Notes |
Share |
Share |
Treasury |
Retained |
Other |
Total |
|
Balance as at 1 October 2024 |
|
17,966 |
43,005 |
- |
103,126 |
- |
164,097 |
|
Prior year error |
2 |
- |
- |
- |
(2,500) |
- |
(2,500) |
|
Balance as at 1 October 2024 restated |
|
17,966 |
43,005 |
- |
100,626 |
- |
161,597 |
|
Share buyback |
11 |
- |
- |
(1,158) |
- |
- |
(1,158) |
|
Loss for the period |
|
- |
- |
- |
(126) |
- |
(126) |
|
Dividends paid |
12 |
- |
- |
- |
(3,959) |
- |
(3,959) |
|
Balance as at 31 March 2025 (unaudited) restated |
|
17,966 |
43,005 |
(1,158) |
96,541 |
- |
156,354 |
1 These reserves form the distributable reserves of the Company and include a historic share premium reduction and may be used to fund distribution of profits to investors via dividend payments.
The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial statements.
Condensed Consolidated Interim Statement of Cash Flows
For the period ended 31 March 2026
|
|
Notes |
Six months to |
Six months to |
Year to |
|
Operating activities |
|
|
|
|
|
Profit before tax for the period/year |
|
1,527 |
544 |
4,148 |
|
Adjustments for: |
|
|
|
|
|
Net loss from fair value adjustment on investment property |
4 |
2,226 |
2,806 |
3,013 |
|
Loss on disposal of investment property |
4 |
- |
- |
27 |
|
Realised foreign exchange (gain)/loss |
|
(9) |
(15) |
10 |
|
Finance income |
|
(141) |
(266) |
(411) |
|
Finance costs |
|
1,301 |
1,295 |
2,663 |
|
Net change in fair value of financial instruments at fair value through profit or loss |
8 |
(33) |
211 |
232 |
|
Operating cash generated before changes in working capital |
|
4,871 |
4,575 |
9,682 |
|
(Increase)/decrease in trade and other receivables |
|
(1,279) |
779 |
(853) |
|
Increase/(decrease) in trade and other payables |
|
1,843 |
375 |
975 |
|
Cash generated from operations |
|
5,435 |
5,729 |
9,804 |
|
Finance costs paid |
|
(1,247) |
(1,384) |
(2,640) |
|
Finance income received |
|
141 |
266 |
411 |
|
Tax paid |
6 |
(1,055) |
(971) |
(1,299) |
|
Net cash generated from operating activities |
|
3,274 |
3,640 |
6,276 |
|
Investing activities |
|
|
|
|
|
Proceeds from sale of investment property |
|
- |
1,180 |
11,800 |
|
Investment property disposal costs |
4 |
- |
(199) |
(227) |
|
Additions to investment property |
4 |
(494) |
- |
(605) |
|
Net cash (used in)/generated from investing activities |
|
(494) |
981 |
10,968 |
|
Financing activities |
|
|
|
|
|
Repayment of loan facilities |
|
- |
- |
(6,563) |
|
Share buyback |
|
- |
(1,158) |
(1,815) |
|
Dividends paid |
12 |
(3,890) |
(3,959) |
(7,856) |
|
Net cash used in financing activities |
|
(3,890) |
(5,117) |
(16,234) |
|
Net (decrease)/increase in cash and cash equivalents for the period/year |
|
(1,110) |
(496) |
1,010 |
|
Opening cash and cash equivalents |
|
28,362 |
27,362 |
27,362 |
|
Effects of exchange rate change on cash |
|
9 |
15 |
(10) |
|
Closing cash and cash equivalents |
|
27,261 |
26,881 |
28,362 |
The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial statements.
Notes to the Financial Statements
1. Significant accounting policies
The Company is a closed-ended investment company incorporated in England and Wales. The condensed consolidated interim financial statements of the Company for the period ended 31 March 2026 comprise those of the Company and its subsidiaries (together referred to as the 'Group'). The shares of the Company are listed on the London Stock Exchange (Primary listing) and the Johannesburg Stock Exchange (Secondary listing). The registered office of the Company is 1 London Wall Place, London, EC2Y 5AU.
These condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 30 September 2025 were approved by the Board of Directors on 4 December 2025 and were delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
These condensed consolidated interim financial statements have been reviewed and not audited.
Statement of compliance
The condensed consolidated interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. They do not include all of the information required for the full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 30 September 2025. The condensed consolidated interim financial statements have been prepared on the basis of the accounting policies set out in the Group's consolidated financial statements for the year ended 30 September 2025. The consolidated financial statements for the year ended 30 September 2025 have been prepared with UK-adopted International Accounting Standards in accordance with the Companies Act 2006. The Group's annual financial statements refer to new Standards and Interpretations, none of which had a material impact on the financial statements.
Basis of preparation
The condensed consolidated interim financial statements are presented in euros rounded to the nearest thousand. They are prepared on a going concern basis, applying the historical cost convention, except for the measurement of investment property and derivative financial instruments that have been measured at fair value. The accounting policies have been consistently applied to the results, assets, liabilities and cash flow of the entities included in the condensed consolidated interim financial statements and are consistent with those of the year-end financial report.
Going concern
The Board and the Investment Manager exercise judgement in assessing whether it is appropriate to use the going concern basis of accounting in preparing the condensed consolidated interim financial statements. In making that determination for this set of financial statements, the Directors have examined significant areas of possible financial risk including:
- Cash held and the liquidity of the Group's assets;
- Forward-looking compliance with third-party debt covenants, in particular the loan to value ('LTV') covenant and interest cover ratios;
- The ability to refinance or repay loans which expire in the going concern period;
- The likelihood of any payment of contingent tax liabilities;
- Potential falls in property valuations;
- The non-collection of rent and service charges; and
- The existing, and future, anticipated cash requirements of the Group.
Furthermore, ongoing geopolitical developments, and macroeconomic variables such as projected interest rates and inflation, have also been considered regarding the Group's property investments in France, Germany and the Netherlands.
Cash flow forecasts, based on deemed plausible downside scenarios, have led the Board to conclude that the Group will have sufficient cash reserves to continue in operation for twelve months from the date of the signing of the condensed consolidated interim financial statements. The Group is currently able to meet its liabilities as they fall due, and would also be able to meet its liabilities as they fall due in the event that it enters into a managed realisation process.
Managed wind-down proposal
The Board, having assessed a variety of options for the Company, including mechanisms to address the persistent discount at which the Company's shares trade relative to its Net Asset Value, determined that a managed wind-down represents the strategy which best positions it to maximise value for shareholders. The Board intends to recommend that shareholders vote in favour of a resolution to adopt a managed wind-down strategy at a general meeting expected to be held in August 2026 (the "Managed Wind-down Resolution"). The resolution requires 50% of those voting to vote in favour in order for the resolution to pass.
The managed wind-down will not result in a liquidation of the Group in the immediate future and the Board will seek to implement the managed wind-down in a manner that maximises value for shareholders over an approximate two to three year period.
These condensed consolidated interim financial statements are being issued before the outcome of the shareholder vote is known. If the Managed Wind-down Resolution is passed, the Group will need to prepare future financial statements on a basis other than the going concern basis of accounting. However, there can be no certainty of the outcome of the shareholder vote, and it is possible that shareholders will vote against the resolution. In that case, the Group would continue to operate in its current form and would continue to prepare its financial statements on a going concern basis.
Material uncertainty related to the continued use of the going concern basis of accounting
The Directors note that the ultimate decision on the future strategy of the Group is outside the control of the Directors and will be known only after the outcome of the shareholder vote on the Managed Wind-down Resolution. If shareholders vote in favour of this, the Group will implement a new investment strategy which will lead to an orderly wind-down of its operations. In those circumstances, and to reflect the change in investment strategy, the Group would not be able to continue to use the going concern basis of accounting, even though it would be able to meet its liabilities as they fall due throughout the winddown period. As a result of this, a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. The financial statements do not contain the adjustments that would result if the Group were unable to continue as a going concern.
The uncertain future outcome of the shareholder vote and the impact this has on the Group's future basis of accounting indicates that a material uncertainty exists that may cast significant doubt over the Group's ability to continue to use the going concern basis of accounting.
The Directors wish to emphasise that this material uncertainty relates solely to the outcome of the pending shareholder vote and its impact on the future basis of accounting. It does not reflect any concern regarding the solvency or liquidity of the Group. As noted above, the Group has sufficient cash reserves and is able to meet all liabilities as they fall due for a period of at least twelve months from the date of approval of these condensed consolidated interim financial statements, under both a continuation and a managed wind-down scenario.
Notwithstanding this material uncertainty, and for the reasons set out above, the Directors have prepared these condensed consolidated interim financial statements on a going concern basis.
Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. The use of estimates and judgements is consistent with the Group's consolidated financial statements for the year ended 30 September 2025. These estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
The most significant estimates made in preparing these financial statements relate to the carrying value of investment properties, as disclosed in note 4 which are stated at fair value. The fair value of investment property is inherently subjective because the valuer makes assumptions which may not prove to be accurate. The Group uses an external professional valuer to determine the relevant amounts.
The following are key areas of judgement:
- Tax provisioning and disclosure: Management uses external tax advisers to monitor changes in tax laws in countries where the Group has operations. New tax laws that have been substantively enacted are recognised in the Group's financial statements. Where changes to tax laws give rise to a contingent liability, the Group discloses these appropriately within the notes to the financial statements (further details are disclosed in note 6).
- IFRS 9 expected credit losses: All receivables and joint venture loans are considered to be such financial assets and must therefore be assessed for an impairment using the forward-looking expected credit loss model. Where any impairment is required to be made, appropriate recognition is required in the consolidated statement of comprehensive income, together with appropriate disclosure and sensitivity analysis in the notes to the financial statements.
Segmental reporting
The Directors are of the opinion that the Group is engaged in a single segment of business, being property investment, and in one geographical area, Continental Europe. The chief operating decision-maker is considered to be the Board of Directors who are provided with consolidated IFRS information on a quarterly basis.
Financial risk factors
The main risks arising from the Group's financial instruments and investment properties are: market price risk, currency risk, credit risk, liquidity risk and interest rate risk. The Board regularly reviews and agrees policies for managing each of these risks.
Credit risk
Cash balances are maintained with major international financial institutions with strong credit ratings and the creditworthiness of the Group's tenants is monitored on an ongoing basis.
Market risk
The market values for properties are generally affected by overall conditions in local economies, such as changes in gross domestic product, employment trends, inflation and changes in interest rates. The Directors monitor the market value of investment properties by having independent valuations carried out quarterly by a firm of independent chartered surveyors. The sensitivity of the market value of the investment properties to changes in the equivalent yield is also disclosed in note 4 of the financial statements.
The Group is exposed to market price risk arising from macroeconomic and geopolitical uncertainty, including ongoing international conflicts. These developments have contributed to increased volatility in financial markets and may adversely impact property valuations and capital market conditions. The Company is closely monitoring these changes in global trade policy, however, the Group's primary exposure to the European commercial property sector means it is anticipated to have low impact to key fundamentals and valuations. The group also does not have direct exposure to other global conflicts but continues to monitor the situation closely.
The Group's rental collection has continued to remain very robust with a c.97% rent collection in the period.
Environmental, Social and Governance factors
The Group has incorporated Environmental, Social and Governance ('ESG') objectives into its core investment strategy and at every stage of the investment process. The Group continues to monitor individual assets and their conformity with sustainability requirements at every stage. The Group continues to review potential initiatives where sustainability credentials can be enhanced, ratings improved, value can be created and the liquidity of investments be improved.
2. Correction of a prior period error
A prior period error was identified in relation to the classification of recoverable and non-recoverable service charge operating expenses for vacant units.
The error has resulted in an accumulated overstatement of service charge receivables on the balance sheet and a resultant understatement of landlord expenses in the income statement over multiple reporting periods prior to 1 October 2024. The total error, amounting to €2,500,000, has been corrected directly to retained earnings at 1 October 2024.
Accordingly, the comparative statement of financial position and adjusted opening balances at 1 October 2024 have been corrected. This has resulted in a reduction in trade and other receivables and a corresponding reduction in retained earnings at 1 October 2024, 31 March 2025 and 30 September 2025.
Impact on equity (decrease in equity):
|
|
As at 30 |
Adjustment |
As at |
|
Trade and other receivables |
10,877 |
(2,500) |
8,377 |
|
Total assets |
231,757 |
(2,500) |
229,257 |
|
Retained earnings |
97,499 |
(2,500) |
94,999 |
|
Total equity and liabilities |
231,757 |
(2,500) |
229,257
|
|
|
As at 31 March |
Adjustment |
As at |
|
Trade and other receivables |
8,988 |
(2,500) |
6,488 |
|
Total assets |
240,067 |
(2,500) |
237,567 |
|
Retained earnings |
99,041 |
(2,500) |
96,541 |
|
Total equity and liabilities |
240,067 |
(2,500) |
237,567
|
|
|
As at 1 October |
Adjustment |
As at |
|
Trade and other receivables |
10,026 |
(2,500) |
7,526 |
|
Total assets |
244,146 |
(2,500) |
241,646 |
|
Retained earnings |
103,126 |
(2,500) |
100,626 |
|
Total equity and liabilities |
244,146 |
(2,500) |
241,646 |
The adjustment has no impact on the Group's profit or loss for the current financial year, earnings per share or cash flows. The adjustment is non-cash in nature.
3. Rental and service charge income
|
|
Six months to |
Six months to |
Year to |
|
Rental income |
7,796 |
8,196 |
16,007 |
|
Service charge income |
1,817 |
2,067 |
4,144 |
|
Total |
9,613 |
10,263 |
20,151 |
4. Investment property
|
|
Freehold |
|
Fair value as at 30 September 2024 (audited) |
206,522 |
|
Additions |
605 |
|
Disposals |
(11,600) |
|
Net valuation loss on investment property |
(3,013) |
|
Fair value as at 30 September 2025 (audited) |
192,514 |
|
Additions |
492 |
|
Net valuation loss on investment property |
(2,226) |
|
Fair value as at 31 March 2026 (unaudited) |
190,780 |
|
|
Freehold |
|
Fair value as at 30 September 2024 (audited) |
206,522 |
|
Additions |
199 |
|
Reclassification to held for sale |
(11,341) |
|
Net valuation loss on investment property |
(2,806) |
|
Fair value as at 31 March 2025 (unaudited) |
192,574 |
The fair value of investment properties, as determined by the valuer, totals €192,610,000 (30 September 2025: €194,040,000).
The fair value of investment properties per the condensed consolidated interim financial statements of €190,780,000 includes a tenant incentive adjustment of €1,830,000 (30 September 2025: €1,526,000).
The fair value of investment property has been determined by Savills (UK) Limited, a firm of independent chartered surveyors, who are registered independent appraisers. The valuations have been undertaken in accordance with the RICS current edition of the RICS Valuation - Global Standards, which incorporate the International Valuation Standards. References to the 'Red Book' refer to either or both of these documents, as applicable.
The properties have been valued on the basis of 'fair value' in accordance with the RICS Valuation - Professional Standards VPS4 (1.5) Fair Value and VPGA1 Valuations for inclusion in financial statements which adopt the definition of fair value used by the International Accounting Standards Board.
The valuation has been undertaken using appropriate valuation methodology and the valuer's professional judgement. The valuer's opinion of fair value was primarily derived using recent comparable market transactions on arm's length terms, where available, and appropriate valuation techniques (the 'Investment Method').
The properties have been valued individually and not as part of a portfolio.
All investment properties are categorised as Level 3 fair values as they use significant unobservable inputs. There have not been any transfers between levels during the period. Investment properties have been classed according to their real estate sector. Information on these significant unobservable inputs per class of investment property are disclosed below.
Quantitative information about fair value measurement using unobservable inputs (Level 3) as at 31 March 2026 (unaudited)
|
|
|
Industrial |
Retail |
Office |
Total |
|
Fair value (€000) |
|
73,070 |
27,800 |
91,740 |
192,610 |
|
Area ('000 sqm) |
|
89,990 |
16,800 |
58,736 |
165,526 |
|
Net passing rent € per sqm per annum |
Weighted average1 |
54.76 |
100.00 |
160.08 |
96.82 |
|
Gross ERV € per sqm per annum |
|
|
|
|
|
|
|
Weighted average1 |
64.86 |
101.24 |
146.40 |
97.68 |
|
Net initial yield2 |
Weighted average1 |
6.43 |
5.47 |
12.45 |
7.35 |
|
|
|
|
|
|
|
Quantitative information about fair value measurement using unobservable inputs (Level 3) as at 30 September 2025 (audited)
|
|
|
Industrial |
Retail |
Office |
Total |
|
Fair value (€000) |
|
74,300 |
27,400 |
92,340 |
194,040 |
|
Area ('000 sqm) |
|
89,991 |
16,800 |
58,736 |
165,527 |
|
Net passing rent € per sqm per annum |
Weighted average1 |
60.79 |
100.00 |
157.52 |
99.10 |
|
Gross ERV € per sqm per annum |
|
|
|
|
|
|
|
Weighted average1 |
63.36 |
101.24 |
146.81 |
96.81 |
|
Net initial yield2 |
|
|
|
|
|
|
|
Weighted average1 |
4.98 - 8.94 |
5.54 |
4.62 - 22.09 |
4.62 - 22.09 |
Notes:
1 Weighted by market value.
2 Yields based on rents receivable after deduction of head rents and non-recoverables.
Sensitivity of measurement to variations in the significant unobservable inputs
Given fair value measurement is an inherent judgement due to unobservable inputs, management have reviewed the ranges used in assessing the impact of changes in unobservable inputs on the fair value of the Group's property portfolio. We consider +/-10% for ERV, and +/-50bps for NIY to capture the uncertainty in these key valuation assumptions. The results of this analysis are detailed in the sensitivity table below.
The significant unobservable inputs used in the fair value measurement (categorised within Level 3 of the fair value hierarchy of the Group's property portfolio), together with the impact of significant movements in these inputs on the fair value measurement, are shown below:
|
Unobservable input |
Impact on fair value measurement of |
Impact on fair value measurement of |
|
Passing rent |
Increase |
Decrease |
|
Gross ERV |
Increase |
Decrease |
|
Net initial yield |
Decrease |
Increase |
|
Equivalent yield |
Decrease |
Increase |
There are interrelationships between the yields and rental values as they are partially determined by market rate conditions. Passing rent is not sensitised as it reflects contracted income under existing leases and is not subject to estimation uncertainty. Equivalent yield is not separately sensitised as it is interrelated with, and captured by, the movements shown in net initial yield and ERV. The sensitivity of the valuation to changes in the most significant inputs per class of investment property is shown below:
|
Estimated movement in fair value of investment properties at 31 March 2026 |
Industrial |
Retail |
Office |
Total |
|
Increase in ERV by 10% |
5,330 |
1,880 |
7,610 |
14,820 |
|
Decrease in ERV by 10% |
(5,310) |
(1,700) |
(7,910) |
(14,920) |
|
Increase in net initial yield by 0.5% |
(1,770) |
(2,400) |
(6,440) |
(10,610) |
|
Decrease in net initial yield by 0.5% |
3,730 |
2,800 |
7,660 |
14,190 |
|
Estimated movement in fair value of investment properties at 30 September 2025 |
Industrial |
Retail |
Office |
Total |
|
Increase in ERV by 10% |
5,840 |
1,700 |
7,200 |
14,740 |
|
Decrease in ERV by 10% |
(5,840) |
(1,800) |
(6,900) |
(14,540) |
|
Increase in net initial yield by 0.5% |
(5,840) |
(2,270) |
(6,510) |
(14,620) |
|
Decrease in net initial yield by 0.5% |
6,460 |
2,260 |
7,720 |
16,440 |
5. Recognition of development revenue and profit
During the year ended 30 September 2021, the Group disposed of its office asset in Boulogne-Billancourt, Paris. This involved an initial transfer of the legal title to a purchaser on 16 December 2020 for €69.8m, followed by a development phase for which the Group was able to receive a further €30.4m. The total cash proceeds to be received across the sale and development thereby totalled €100.2m.
As at 31 March 2026 a cash sum of €99.1m (30 September 2025: €98.9m) had been received by the Group from the purchaser. Of the remaining €1.1m, no further sums have been invoiced to the purchaser as at 31 March 2026.
Furthermore, during the interim period a sum of €7,600 (30 September 2025: €17,900) was invested by the Group as development expenditure, and as at the interim period end a final €0.1m (30 September 2025: €0.1m) of development expenditure remains to be invested.
When forming a judgement as to an appropriate level of development revenue to be recognised in the reporting period, the Group primarily considered the total development costs incurred; the stage of completion of the refurbishment; the milestones achieved and still to be achieved; the timing of future cash receipts from the purchaser; the overall general development risk; and the commercial discussions ongoing with the buyer.
6. Taxation
|
|
Six months to |
Six months to |
Year to |
|
Current tax charge |
433 |
480 |
1,340 |
|
Current tax adjustment in respect of prior periods |
3 |
174 |
464 |
|
Deferred tax charge |
35 |
16 |
115 |
|
Tax charge in period/year |
471 |
670 |
1,919 |
|
|
Current |
Deferred |
|
As at 1 October 2025 |
964 |
4,278 |
|
Tax charge for the period |
436 |
36 |
|
Tax paid during the period |
(1,055) |
- |
|
Balance as at 31 March 2026 (unaudited) |
345 |
4,314 |
|
|
Current |
Deferred |
|
As at 1 October 2024 |
460 |
4,163 |
|
Tax charge for the period |
654 |
16 |
|
Tax paid during the period |
(971) |
- |
|
Balance as at 31 March 2025 (unaudited) |
143 |
4,179 |
|
|
Current |
Deferred tax |
|
As at 1 October 2024 |
460 |
4,163 |
|
Tax charge for the period |
1,803 |
115 |
|
Tax paid during the period |
(1,299) |
- |
|
Balance as at 30 September 2025 (audited) |
964 |
4,278 |
SEREIT Plc has elected to be treated as a société d'investissement immobilier cotée ('SIIC') for French tax purposes. Provided that SEREIT Plc meets certain requirements, the SIIC should be exempt from French CIT on net rental income and gains arising from interests in property. Management intends that the Group will continue to comply with the SIIC regulations for the foreseeable future. The Group operates in a number of jurisdictions and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business. The tax impact can be uncertain until a conclusion is reached with the relevant tax authority. The Group addresses this uncertainty by closely monitoring tax developments, seeking independent advice and maintaining transparency with the authorities it deals with as and when any enquiries are made.
The French tax authorities commenced a tax audit in previous years, requesting information on tax filings made in relation to the Group's SIIC structure. The potential exposure was estimated as €12.2 million excluding interest and penalties (2025: €12.6 million). In September 2025, the French tax authorities demanded this amount be paid or secured by a guarantee. On 10 November 2025, the group arranged a bank guarantee in response to this demand, and €12,143,735 was transferred to a pledged account with Credit Agricole in accordance with the cash pledge agreement supporting that guarantee. As a result, this cash is restricted until future reporting periods. The Group maintains its position that the amount is not payable and has formally appealed the decision of the French tax authorities.
The French tax authorities had six months to respond to the appeal. This period expired at the end of March 2026 and no response has been received. As a result of the implicit dismissal of the appeal, the Group is seeking to escalate the matter to a formal court process. Subject to appeal, this is expected to take up to two years to resolve. Having taken professional advice, the Board remains of the opinion that the Group's position is ultimately more likely than not to prevail, such that a net outflow is not probable, and accordingly no tax provision has been recognised. We will continue to provide updates as appropriate.
However, the position will remain uncertain until a conclusion is reached.
7. Basic and diluted earnings per share
The basic and diluted earnings per share for the Group are based on the net profit/(loss) for the period of €1,056,000 six months to 31 March 2026: €(126,000); for the year ended 30 September 2025: €2,229,000 and the weighted average number of ordinary shares in issue during the period of 131,407,986 (six months to 31 March 2025: 133,343,474; for the year ended 30 September 2025: 132,082,196).
8. Interest-bearing loans and borrowings
|
|
Six months to |
Six months to |
Year to |
|
Opening balance |
64,019 |
70,471 |
70,471 |
|
Repayment of loans |
- |
- |
(6,563) |
|
Capitalisation of finance costs |
- |
- |
- |
|
Amortisation of finance costs |
49 |
57 |
111 |
|
Closing balance |
64,068 |
70,528 |
64,019 |
As at 31 March 2026 the Group held interest rate caps as follows:
- Saint-Cloud loan with BRED Banque Populaire: a cap totalling the full €14.0m of the loan, and which expires on 15 December 2027, with a strike rate of 3.25%.
9. Cash and cash equivalents
|
|
Six months to |
Six months to |
Year to |
|
Cash at bank and in hand |
13,160 |
26,881 |
26,524 |
|
Restricted cash |
14,101 |
- |
1,838 |
|
Total |
27,261 |
26,881 |
28,362 |
Restricted cash of €1,837,500 represents cash put on deposit to cure the LTV covenant in line with the Deutsche Pfandbriefbank AG bank loan agreement and following the sale of the Group's Frankfurt asset.
On 10 November 2025 €12,143,735 was transferred to a pledged account with Credit Agricole in line with the cash pledge agreement as requested by the French Tax Authority for the arrangement of the guarantee related to French tax audit.
10. Issued capital
As at 31 March 2026, the Company has 131,407,986 (30 September 2025: 131,407,986) ordinary shares in issue with a par value of 2.6 euro cents per share, of which 2,326,700 ordinary shares are held in Treasury (30 September 2025: 2,326,700). The total number of voting rights in the Company is 131,407,986 (September 2025: 131,407,986).
11. NAV per ordinary share and share buyback
The NAV per ordinary share is based on the net assets at 31 March 2026 of €151,321,000 (30 September 2025: €154,155,000; 31 March 2025: €156,354,000) and 131,407,986 ordinary shares in issue at 31 March 2026 (30 September 2025: 131,407,986; 31 March 2025: 132,262,986).
12. Dividends paid
|
Six months ended 31 March 2026 (unaudited)1 |
Number of |
Rate |
€000 |
|
Interim dividend paid on 7 November 2025 |
131,407,986 |
1.48 |
1,945 |
|
Interim dividend paid on 6 February 2026 |
131,407,986 |
1.48 |
1,945 |
|
Total interim dividends paid |
131,407,986 |
|
3,890 |
|
Six months ended 31 March 2025 (unaudited)1 |
Number of |
Rate |
€000 |
|
Interim dividend paid on 1 November 2024 |
133,734,686 |
1.48 |
1,980 |
|
Interim dividend paid on 31 January 2025 |
133,734,686 |
1.48 |
1,979 |
|
Total interim dividends paid |
133,734,686 |
2.96 |
3,959 |
1 A dividend for the quarter ended 31 December 2024 of 1.48 Euro cents per share was approved and was paid on 15 May 2025. Total dividends declared relating to the six months' ended 31 March 2025 were 2.96 Euro cents per share.
|
Year ended 30 September 2025 (audited) |
Number of |
Rate (cents) |
€000 |
|
Interim dividend paid on 17 November 2024 |
133,734,686 |
1.48 |
1,980 |
|
Interim dividend paid on 25 January 2025 |
133,734,686 |
1.48 |
1,979 |
|
Interim dividend paid on 10 May 2025 |
131,817,486 |
1.48 |
1,951 |
|
Interim dividend paid on 12 August 2025 |
131,509,386 |
1.48 |
1,946 |
|
Total interim dividends paid |
|
|
7,856 |
13. Related party transactions
Schroder Real Estate Investment Management Limited is the Group's Investment Manager.
The Investment Manager is entitled to a fee, together with reasonable expenses, incurred in the performance of its duties. The fee is payable monthly in arrears and shall be an amount equal to one-twelfth of the aggregate of 1.1% of the EPRA NAV of the Company. The Investment Management Agreement can be terminated by either party on not less than 12 months' written notice, such notice not to expire earlier than the third anniversary of admission, or on immediate notice in the event of certain breaches of its terms or the insolvency of either party. The total charge to profit and loss during the period was €870,000 (year ended 30 September 2025: €1,803,000; six months ended 31 March 2025: €913,000). At 31 March 2026, €563,000 was outstanding (year ended 30 September 2025: €579,000; six months ended 31 March 2025: €625,000).
The Directors are the only officers of the Company and there are no other key personnel. The Directors' remuneration for services to the Group for the six months ended 31 March 2026 was €91,000 (year ended 30 September 2025: €153,000; six months ended 31 March 2025: €103,000), equivalent to £86,000. The total charge for Directors' fees for the six months ended 31 March 2026 was €103,000 (year ended 30 September 2025: €204,000; six months ended 31 March 2025: €117,000), which included employer's National Insurance contributions. All of the Directors hold shares in the Company and have not purchased or sold any shares in the financial period. Details of their holdings can be found on page 52 of the September 2025 Annual Report and Consolidated Financial Statements.
14. Capital commitments
At 31 March 2026, the Group had capital commitments of €2,050,000 (30 September 2025: €nil; 31 March 2025: €605,000).
15. Contingent liabilities
There are no contingent liabilities other than those disclosed in note 6.
16. Post balance sheet events
The Group has advanced discussions with Deutsche Pfandbriefbank regarding refinancing of this facility, with commercial terms substantially agreed and documentation expected to be signed shortly.
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