SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC - Half Year Results For The Six Months Ended 31 March 2024

Half Year Results For The Six Months Ended 31 March 2024

Schroder European Real Estate Investment Trust plc
(Incorporated in England and Wales)
Registration number: 09382477
JSE Share Code: SCD
LSE Ticker: SERE
ISIN number: GB00BY7R8K77
("SEREIT"/ "the Company")

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2024

Portfolio indexation, active asset management and strengthened balance sheet underpins
earnings growth and 109% covered dividend

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 2024.

Portfolio indexation underpins earnings growth and 109% covered dividend, supported by low-
cost, fixed-rate (see footnote 1 below) debt profile
• Underlying EPRA earnings increased 3% to €4.3 million on the prior six month's EPRA earnings of
   €4.2 million (31 March 2023: €3.8 million), primarily due to rental growth offsetting the impact of
   higher interest costs
• Two quarterly dividends of 1.48 euro cents per share ('cps') declared, bringing the total dividends
   relating to the period to 2.96 euro cps, 109% covered by EPRA earnings
• Net Asset Value ("NAV") of €165.3 million, or 123.6 cps, (30 September 2023: €171.4 million or
   128.2 cps), largely driven by continued outward yield movement of the underlying portfolio
• NAV total return of -1.3% based, in part, on an IFRS loss of €2.2 million (31 March 2023: -4.7%
   total return/€8.7 million IFRS loss)
• Strengthened balance sheet with completion of all near-term refinancings on attractive terms, with
   no further debt expiries until June 2026 and a low average interest cost of 3.2%
• Low Loan to Value of 24% (net of cash), and €26 million of available cash, provides significant
   flexibility

Active asset management initiatives and diversification support portfolio occupancy and
valuation resilience
• Direct property portfolio independent valuation declined 3.1% to €208.1 million (or €6.6 million net
    of capex)
• Concluded 11 new leases and re-gears totalling c. 6,340 sqm and generating €1.2 million of
    contracted rent, at a weighted lease term of eight years
• Portfolio benefits from 96% occupancy, diversified across c.50 tenants
• 100% of rent due collected
• Progressed the Company's sustainability strategy including:
        o Advanced portfolio sustainability audits by leveraging the Schroders Capital platform and
            third-party consultants to undertake a net zero carbon and Schroders real estate ESG
            Scorecard analysis, with the aim of investing in, and improving the quality of the existing
            portfolio
        o Targeting higher sustainability and social credentials
• The Company continues to review select sustainability-led capex initiatives in the portfolio, which
    should further optimise earnings growth and asset liquidity

Footnote 1: Debt is either fixed-rated or hedged by an interest rate cap.

Sir Julian Berney Bt., Chairman, commented:
"Despite macroeconomic headwinds, the resilience of the portfolio together with local sector specialist
teams, has delivered rental growth, largely offsetting the impact of higher interest rates. Management
has successfully completed the recent refinancings which, combined with significant cash reserves, has
further strengthened the balance sheet. The Company provides a compelling and differentiated
investment proposition compared to our UK-listed peers. We have the flexibility to grow earnings
through exposure to strongly performing assets in higher growth European cities, as well as executing
on value-enhancing asset management opportunities."

Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited, added:
"Progressing our sustainability programme is expected to form a key part of the strategy this year and
into next. By advancing the ongoing sustainability and net zero audits, the asset management team has
identified a variety of initiatives that can help improve operational efficiencies, whilst reducing
occupancy costs and greenhouse gas emissions. Investing in these sustainability-led initiatives will
enable us to capture rental growth, improve asset liquidity and deliver risk-adjusted returns for
shareholders."

A presentation for analysts and investors will be held at 9am BST / 10am SAST today. Registration
for which can be accessed via:

https://www.schroders.events/SERE24

If you would like to attend, please contact James Lowe at Schroders on james.lowe@schroders.com or
+44 (0)20 7658 2083.

Dividend Declaration
A further announcement will be made shortly to confirm the full timetable of the second interim dividend.

Short-Form Announcement
This short-form announcement is the responsibility of the directors of the Company. It contains only a
summary of the information in the Half Year Report and Condensed Consolidated Interim Financial
Statements for the six-month period ended 31 March 2024 ("Half Year Report") and does not contain
full    or    complete      details. The    Half       Year     Report      can  be      found      at:
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/SCDE/SEREITHY24.pdf

Copies of the Half Year Report are also available for viewing on the Company's website at
www.schroders.co.uk/sereit.

Any investment decisions by investors and/or shareholders should be based on consideration of the
Full Announcement, as a whole.

These half year results have been reviewed by the Company's auditors, Ernst & Young LLP, who
expressed an unmodified review opinion thereon. This auditor's report is included in the Half Year report
which can be found on the Company's website at www.schroders.co.uk/sereit.

The Company has a primary listing on the London Stock Exchange and a secondary listing on the JSE
Limited.

London
19 June 2024

JSE Sponsor
PSG Capital

Date: 19-06-2024 08:00:00
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