Schroder Real Estate Investment Trust (SREI) Investor update summary

Portfolio and Financial Performance

• Portfolio valued at approximately £480 million as of December, with a 7.3% dividend yield and a strong dividend growth track record; dividend cover at 93% for the quarter ended 31 December 2025.

• NAV per share at £0.617 (61.7p), with a 0.3% decrease and share price at a 20% discount, offering an attractive entry point and continued outperformance against peers and the MSCI Benchmark.

• EPRA earnings increased 2% to £4.1m, with rental and related income up 2% to £8.5m; net initial yield at 6.0% and reversionary yield at 8.3%, both above the MSCI Benchmark.

• Vacancy rate reduced to 9.7%, with 18 letting transactions totaling £2.1m and lease renewals/rent reviews 22% ahead of previous rent.

• Portfolio exposure is 65% in higher growth multi-let industrial and retail warehouse sectors, with ongoing asset management initiatives driving rental uplifts and future earnings.

Debt and Balance Sheet

• Balance sheet remains robust with average debt cost of 3.4% and average maturity of 7.7 years; 75% fixed at 2.5% for over 10 years.

• Net loan-to-value is 36.6%, slightly above the target range of 25-35%.

• £129.6m long-term fixed loan and £75.0m revolving credit facility, with £54.5m drawn; Canada Life fixed rate loan of £17.7m not reflected in NAV.

• Ongoing charges ratio is 1.27%, reflecting cost control and fee alignment with shareholders.

Strategic Initiatives and M&A Activity

• Consortium made a non-binding, all-share proposal to acquire Picton, aiming for accelerated returns for shareholders.

• Any M&A must be earnings and dividend accretive, align with sector preferences, and not overpay for acquisitions; asset management and recycling, sector alignment, and continued outperformance are key criteria.

• Board maintains independence and prioritizes shareholder interests in all corporate actions, with ongoing transparency regarding M&A principles.

• Manager willing to invest in the trust to support the right acquisition opportunity.