Interim Results for the period ended 30 Sept 2023

Schroder Real Estate Inv Trst Ld
21 November 2023

Schroder Real Estate Investment Trust Limited


('SREIT' / the 'Company' / 'Group')






Schroder Real Estate Investment Trust Limited, the actively managed UK focused REIT, today announces its interim results for the six months ended 30 September 2023. These are also available on the Company's website, and are available in unedited full text on the national storage mechanism. The interim results are also available as a PDF at the following link:


Sector leading debt profile underpinning earnings and fully covered dividend


-       Net asset value ('NAV') declined marginally to £296.0 million or 60.5 pps (31 March 2023: £300.7 million, or 61.5 pps), with a rise in real estate yields offset by a high income return and estimated rental value ('ERV') growth of 2.4% (MSCI Benchmark: 1.7%)

-       Dividends paid totalling £8.2 million, or 1.67 pps (30 September 2022: £7.8 million, or 1.60 pps), 102% covered by EPRA earnings

-       NAV total return 1.1% (30 September 2022: 0.8%)

-       Long debt maturity profile of 10.2 years and a low average interest cost of 3.5%, with 91% either fixed or hedged against movements in interest rates

-       Loan to value, net of all cash, of 36.6% (31 March 2023: 36.0%)

-       Six month total return from the underlying portfolio of 1.9% compared with the MSCI Benchmark at -0.6% 


Increasing exposure to higher growth multi-let industrial sector, with asset management initiatives capturing portfolio reversion


-       Sustained, long term outperformance of the underlying portfolio with a total return of 6.7% per annum on a rolling three year basis (MSCI Benchmark Index: 2.2% per annum)

-       Like-for-like portfolio valuation declined 1.1%, net of capex, as property valuations stabilised

-       56 new lettings, rent reviews and renewals across 505,782 sq ft completed since the start of the period totalling £3.8 million in annualised rental income, and 7% ahead of the opening ERV

-       Attractive portfolio reversionary income yield of 8.1%, which compares favourably with the Benchmark at 5.9%

-       99% of rent due collected

-       Completion of Stanley Green Trading Estate 80,000 sq ft operational net zero warehouse scheme in Manchester, with approximately 60% of the £1.3 million ERV relating to the new development let or in advanced negotiations

-       Completed £4 million disposal of non-core office asset in Rugby, in line with valuation at the start of the financial year, with further disposals planned and in progress


Proposal to formally include sustainability at the centre of Company's investment proposition, building on progress to date:


-       Further improvement in the Company's Global Real Estate Sustainability Benchmark ('GRESB') score, maintaining first position amongst a group comprising six diversified REITs

-       As announced separately today, the Company has issued a circular proposing to formally include sustainability at the centre of its investment proposition, with a focus on decarbonisation strategies that improve existing buildings to achieve a Green Premium and capitalise on mispricing


Board succession:


-       Appointment of Sanjay Patel as an independent Non-executive Director with effect from 1 January 2024


Alastair Hughes, Chair of the Board, commented:


"Although the short-term outlook clearly remains uncertain, prudent steps taken by the Manager to secure low cost, long-term debt for the Company, and increase exposure to higher growth sectors, means the Company is well positioned to continue outperforming the benchmark, deliver on its investment objective and provide a progressive dividend over time.


"As announced separately today, the Company has issued a circular proposing to formally include sustainability at the centre of its investment proposition.  As sustainability considerations become even more important for investors and occupiers, we have a strong conviction that it will clearly help to differentiate the Company and drive more sustainable, risk-adjusted returns."


Nick Montgomery, Fund Manager, added:


"We continue to make good progress against our strategic objectives to deliver dividend growth by improving the quality of the underlying portfolio through a disciplined, research-led approach to transactions, capital investment, active asset management and operational excellence.


"In particular, we have increased our allocation to higher growth sectors and larger assets with strong fundamentals. Asset management initiatives have delivered rental growth ahead of the MSCI Benchmark and we have a pipeline of positive activity including regears with major tenants in return for sustainability related asset improvements."


A webcast presentation for analysts and investors will be hosted today at 9.00am GMT. In order to register, please visit:


For further information:


Schroder Real Estate Investment Management Limited

Nick Montgomery / Bradley Biggins

020 7658 6000

Schroder Investment Management Limited (Company Secretary)

Matthew Riley

020 7658 6000

FTI Consulting

Dido Laurimore / Richard Gotla / Oliver Parsons

020 3727 1000



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