Property Portfolio Valuation

Schroder Eur Real Est Inv Trust PLC

13 July 2026

 

13 July 2026

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

("SEREIT" or the "Company" and, together with its subsidiaries, the "Group")

PROPERTY PORTFOLIO VALUATION

Schroder European Real Estate Investment Trust plc, the Company investing in real estate in European growth cities, today provides a valuation update of its property portfolio as at 30 June 2026:

·             The property portfolio was independently valued at €185.1 million (31 March 2026: €192.6 million), representing a €7.5 million decrease, or -3.9%, over the quarter.

·              The decline reflects weaker investment demand, particularly for secondary offices, driven by heightened macroeconomic uncertainty, alongside inflation and interest-rate concerns. This resulted in further outward yield pressure and more conservative valuation assumptions.

·              Key movements included:

o     St Cloud, Paris (office): valuation decreased by €3.9 million (-11.0%), reflecting recent office market evidence in the vicinity. The exit yield and discount rate increased by 100 basis points. The asset's net initial yield is now 9.5% reflecting the increasingly polarised nature of office markets.

o     Hamburg (office): valuation decreased by €0.9 million (-4.5%), primarily reflecting a 50 basis point increase in the discount rate.

o     Stuttgart (office): valuation decreased by €0.8 million (-4.2%), driven principally by a 25 basis point increase in the discount rate.

o     Rumilly (industrial): valuation decreased by €0.6 million (-4.7%), by higher forecast capital expenditure to improve the asset's sustainability credentials.

o     Rennes (industrial): valuation decreased by €0.8 million (-4.2%), reflecting 25 basis points increases in both the exit yield and discount rate to better reflect weakening market conditions.

o     Prior valuations of the mixed-use data centre in Apeldoorn had already reflected KPN's expected departure at the end of 2026. Accordingly, the quarterly decrease of €0.4 million (-3.7%) is attributable solely to the shortening of the remaining lease term.

·      As announced on 24 June 2026, the Board intends to present formal proposals to shareholders for a managed wind-down of the Company. The managed wind-down process is expected to take approximately two to three years to complete. This timeframe provides flexibility to implement targeted asset management initiatives that will enhance value, reduce execution risk and improve liquidity, helping to maximise shareholder value.

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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]

 

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