Schroder European Real Estate Investment Trust (SERE) investor relations material

Executive summary

• An orderly wind-down and return of capital to shareholders is proposed, subject to shareholder approval, due to persistent share price discount and limited liquidity, with the process expected to take two to three years and asset sales sequenced to maximize value and liquidity.

• Portfolio has performed well since IPO, returning over GBP 80 million to shareholders, but market preference for larger, more liquid vehicles has impacted share price.

• Dividend payments are expected to continue during the wind-down to maintain investment trust status, though cover may fall as major tenants vacate and as assets are sold.

• Shares will remain listed and dividends are intended to continue during the wind-down.

• The process will prioritize preserving income, maintaining asset quality, and implementing targeted asset management initiatives to enhance value and liquidity.

Financial highlights

• Dividends of EUR 0.0296 per share paid over the six months to 31 March 2026, with a dividend cover of 93% and portfolio occupancy at 93%.

• NAV at 31 March 2026 was EUR 151.3 million (EUR 1.152/115.2 cps), with a NAV total return of 0.7% for the period.

• EPRA earnings before exceptional items were EUR 3.6 million (2.7 cps), down from EUR 3.9 million (2.9 cps) year-over-year.

• Dividend yield exceeds 8% annualized, reflecting the 40% discount to NAV.

• Property assets valued at EUR 192.6 million across 14 assets in France, Germany, and the Netherlands.

Outlook and guidance

• The wind-down is expected to take up to three years, with asset sales phased to optimize pricing and liquidity, and proceeds used to repay debt and return capital.

• Dividend payments to continue throughout the wind-down, but cover may fall as major tenants vacate.

• Shareholder circular and vote on strategy change expected by mid-August.

• Market conditions remain challenging, with heightened geopolitical risk and cautious investor sentiment.