SCHRODER REAL ESTATE INVESTMENT TRUST LIMITED - Results for the quarter ended 31 December 2025

Schroders Real Estate Investment Trust (SREIT) delivered a solid investor update highlighting resilient company performance, stable financial results, and a clear growth strategy focused on income generation and asset value enhancement. The £480 million portfolio continues to generate attractive returns, with a dividend yield of approximately 7.3% and ongoing earnings growth supported by a strong reversionary yield of 8.3%, indicating significant upside in rental income. Recent operational activity has driven positive NAV performance, with net earnings increasing 2% quarter-on-quarter, underpinned by robust leasing activity, rent reviews exceeding 20% uplifts, and active asset management initiatives. The REIT maintains a highly defensive balance sheet, with a low average debt cost of 3.4% and long-duration fixed financing, protecting margins in a higher interest rate environment. Strategic focus remains on high-performing sectors such as multi-let industrial and retail warehousing, which now comprise around two-thirds of the portfolio and benefit from strong occupier demand and constrained supply. Sustainability-led refurbishments continue to unlock rental premiums and long-term value, reinforcing income growth potential. Management also outlined a disciplined approach to M&A, with any acquisition required to be earnings and dividend accretive, while aligning with portfolio strategy. Despite macroeconomic uncertainty and inflationary pressures, SREIT expects future revenue growth to be driven primarily by rental increases rather than yield compression. Overall, the company remains well-positioned to deliver sustainable income, margin resilience, and long-term shareholder value through active portfolio management and strategic capital allocation.