Half Yearly Report

Schroder Global Real Estate Securities Limited

Interim Results Announcement

Schroder Global Real Estate Securities Limited ("the Company") hereby submits its Half Year Report and Accounts for the period ended 30 June 2015 as required by the UK Listing Authority's Disclosure and Transparency Rule 6.3.5.

The Company's Half Year Report and Accounts for the period ended 30 June 2015 are also being published in hard copy format and an electronic copy will shortly be available to download from the Company's website www.schroderglobalrealestatesecurities.com

The Company has submitted its Half Year Report and Accounts for the period ended 30 June 2015 to the National Storage Mechanism and it will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.

The financial information set out in this announcement does not constitute the Company's statutory financial statements. All figures are based on the unaudited financial statements for the period from 1 January 2015 to 30 June 2015.

The announcement is prepared on the same basis as will be set out in the interim accounts.

Financial Highlights

Interim Management Report - Chairman's Statement

The first six months of 2015 has been a continuance of the process begun in 2014 which was implemented with a view to best position the Company for future growth. During the first half of 2015, the Company has appointed a new broker and commissioned a detailed report on the Company to increase exposure to a broader investor base and we have provided further details below regarding these and other initiatives we have undertaken to build the Company.

Appointment of New Broker

Panmure Gordon & Co was appointed as the Company's Corporate Broker with effect from 28 May 2015. The appointment was made after an extensive review process and undertaken to bring a fresh approach and heightened activity levels required to grow the Company. By increasing the investor base, we believe we will be able to improve liquidity which, in turn, will make the Company increasingly attractive to a wider range of investors.

Edison Research

In an effort to provide improved clarity on the Company and its investment objective, the Company commissioned Edison Research to prepare a detailed report on the Company, management team, investment strategy and performance. Edison is an investment intelligence firm and is authorised and regulated by the Financial Conduct Authority. The first market research paper was issued on 22 June 2015 and has been circulated amongst the investor community in the UK and internationally.

Continuation Vote

The Company announced that a continuation vote will be put forward at the Annual General Meeting to be held in June 2017. If the resolution should not be passed, proposals will be made for the liquidation of the Company to enable those shareholders who wish to realise their holdings to do so. We believe that this commitment will allow the Company to grow through the promotional activities planned by the Manager and Broker.

Board Changes

At the beginning of the year, Trevor Ash retired as a director of the Company. Trevor has been a director of the Company since launch and the Board has greatly appreciated the experience and support Trevor has contributed to the development of the Company.

Christopher Legge joined the board as an independent non-executive director of the Company with effect from 1 January 2015. Christopher also took on the role of Chairman of the Audit Committee. Christopher is Guernsey resident and has over 25 years' experience in the financial services industry. We are confident that the Company will benefit from his extensive financial services' experience.

Robert Houston joined the board as an independent non-executive director of the Company with effect from 1 July 2015. Robert is a chartered surveyor and has been active in the institutional property investment management industry for over 40 years. We are confident that the Company will benefit from his extensive property experience.

Richard Saunders will retire from the board at the end of September 2015.

Performance

The Company has delivered a net asset value total return for the first 6 months of 2015 of -2.9% and a share price total return of 1.9%. The fall in the NAV should be seen in the context of generally lower prices for real estate securities and we note that the Company's NAV performance is ahead of the FTSEEPRA/NAREIT Index for the 6 months ending 30 June 2015. The increase in share price is associated with a narrowing of the company's discount.

Dividends

Following the change in strategy in October 2014, the quarterly dividend level was reduced to 0.375 pence per share (from 1.05 pence) and we anticipate that it will remain at this level for the foreseeable future.

Outlook

Although the share price continues to trade at a discount to NAV, we believe that we have now completed the necessary changes needed to give the Company the foundations to grow. We are cognisant that the future of the Company is dependent on support from existing shareholders and hence the proposed vote of continuance in 2017. We believe that this will give the Company time to demonstrate to shareholders the benefits of the changes made in the last 12 months. The sector continues to gain interest from investors looking for liquid real estate exposure and offers characteristics which provide diversification when compared to other asset classes. We believe that these factors will result in a growing following.

Annual General Meeting

The next Annual General Meeting ("AGM") will be held in Guernsey in June 2016 and shareholders will be invited to attend.

Crispian Collins

Chairman

17 August 2015

Interim Management Report - Investment Manager's Review

The melodrama of global markets continues: Greece, interest rates, elections and China policy moves rage in the press and on 24 hour newsfeeds. Dramatic scenes of politicians and irate crowds feed on the anxieties of global investors. How do you navigate waters that, we are told, are getting choppier by the day? The reality is that bad news sells; good news doesn't. Lower oil prices, low unemployment and real estate markets that have witnessed no real new supply (due to a lack of development finance) are not the stuff of headlines. As such, we remain 'measured bulls' on the sector.

The key for the management team of your Company is to remain focused on what we are good at - buying and holding mispriced real estate companies. In doing so, we can provide a portfolio of companies that has stable long-term cash flow. We obsess about the prototype real estate business: this is a Company positioned in markets where growth is evident, management is focused and balance sheets are strong. By growing rents off a solid capital structure, the businesses held in your Company will continue to provide strong total returns, despite gyrations in capital markets.

The strength in the investment philosophy behind the Company has been in evidence since the shareholder vote in October 2014. As a recap, shareholders permitted the move to a total return strategy. The implementation of this strategy is beginning to bear fruit. The reasons are clear.

Investing in global real estate provides a huge opportunity set. The benefits of liquidity, diversification and sector specialisation remain self-evident. The underlying real estate businesses in your Company are not 'rent collectors' but operating companies paying out high proportions of their free-cash flow. They have assets that are almost impossible to replicate and access to capital to fund improvements and acquisitions. The barriers to entry are dizzyingly high. Moreover, they create places that businesses want to operate out of, apartments that people want to live in and hotels people want to visit. The unequivocal truth is that as long as they continue to do this, the 'noise' of global newsfeeds will remain just that.

So how is the portfolio positioned? An explanation of this requires tackling the elephant in the room - rising interest rates. If rates are going up due to economic growth, then there is more demand for real estate space, ergo rents go up. The challenge is to capture this growth through holding businesses more exposed to the economic cycle. We see evidence of strong rent growth in storage, apartments and lodging companies in particular. We completely accept that rising rates without rent growth is a challenge to the companies we invest in, but we see little evidence of this.

In summary, we remain positive on the outlook for the second half but are not complacent. We choose not to focus on the despair emanating from news channels. We remain absolutely focused on ensuring your company invests in real estate businesses that provide robust returns on a scale only possible in public markets.

Portfolio Positioning

The management team believes strongly that the Company should own a concentrated portfolio of securities and trading should be kept to a minimum.

The reason for portfolio concentration is that the results of the companies will bear out over a long timeframe. Moreover, our portfolio screening system works hard to filter companies that are 'value traps' - optically cheap companies but with little prospect of generating sector leading returns.

For the first half of the year, a number of clear trading opportunities were acted on. The occurrence of an outside shock to markets (positive or negative), is often the trigger to move capital into or out of a company.

We continue to see risk-adjusted upside to US short duration companies. These are businesses such as Hotels, Storage and Apartments. These companies, due to the short length of occupation by customers, are more exposed to the economic cycle. We increased our holdings in Pebblebrook and Cubesmart. They reflect our view that strong management teams with solid assets in growing markets will, through a market cycle, provide outsized returns. In addition, we stick with our 'Island' philosophy where new supply is only ever finite in land-locked locations. So, New York, Hong Kong, Singapore and, in principle, Tokyo and London are all favoured for this reason.

In order to fund these acquisitions, we sold positions in two German residential owners and reduced our holding in Hong Kong Land and a Stockholm developer, Hufvudstaden. All the sales were a function of prices in excess of risk-adjusted value, meaning we identified better investments for Shareholders' capital. In two of the three instances, external factors convinced investors to pay prices for the shares that exceeded their value. In Germany, the residential stocks are closely correlated to the Bund yield: its collapse prompted over-exuberance in the share prices. In Sweden, the slashing of the Riksbank rate was the defining factor in aggressive buying of real estate stocks. Whilst Hong Kong Land conforms to our favoured view of 'Island' exposure, our reduction to this name was also based on valuation. An added filip to this decision is the recent events in the Chinese stock market. The precipitous falls there have impacted Hong Kong shares, bringing the price of this name back to more measured levels.

Conclusion

Whilst going to press, there is plenty to worry about in the global economy. We remain focused on the fundamentals and thus our area of expertise. In doing so, we can provide high quality returns to shareholders, as well as providing the cleanest possible proxy for holding real estate.

As a sign-off, the mantra of stock selection and market analysis over macro 'noise' will be a constant refrain in shareholder communications.

The second half of the year will likely provide further challenges. Currently, the issues in China are starting to knock Greece off the headlines. In our view, the de-stabilisation of such a large economy has greater ramifications for world growth than Greece. However, we do think the demand for space in the world's best markets will endure and we remain razor focused on providing that investment exposure to shareholders.

Schroder Real Estate Investment Management Limited

17 August 2015

Interim Management Report - Responsibility Statement

Principal risks and uncertainties

The principal risks and uncertainties with the Company's business fall into the following categories: investment risk; strategic risk; operational risk; accounting, legal and regulatory risk; and financial risks. A detailed explanation of the principal risks and uncertainties in each of these categories can be found on the Company's published Annual Report and Accounts for the year ended 31 December 2014. These risks and uncertainties have not materially changed during the six months ended 30 June 2015, and are not expected to change in the remaining six months of the year.

Going concern

The Directors believe, having considered the Company's investment objective, risk management policies, capital management policies and procedures, expenditure projections, and the fact that the Company's assets comprise readily realisable securities which can be sold to meet funding requirements if necessary, that the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for the foreseeable future. For these reasons, they consider that there is reasonable evidence to continue to adopt the going concern basis in preparing the financial statements.

Related party transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or the performance of the Company.

Directors' responsibility statement

The Directors confirm that, to the best of their knowledge, this condensed set of financial statements has been prepared in accordance with The Companies (Guernsey) Law, 2008 and with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union.

The Chairman's Statement and the Investment Manager's Review include a fair review of the information required by DTR 4.2.7R.

The Chairman's Statement and the Investment Manager's Review include a fair review of the information required by DTR 4.2.8R (disclosures of related parties' transactions and changes therein).

By Order of the Board

Christopher Legge

Director

17 August 2015

Investment Portfolio

Independent Review Report

To Schroder Global Real Estate Securities Limited

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2015 which comprises the Condensed Statement of Comprehensive Income, the Condensed Statement of Financial Position, the Condensed Statement of Changes in Equity, the Condensed Cash Flow Statement and related notes 1 to 8. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 3(a), the annual financial statements of the Company are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2015 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Deloitte LLP

Chartered Accountants

St Peter Port, Guernsey

17 August 2015

Condensed Statement of Comprehensive Income

The "Total" column of this statement represents the Company's Statement of Comprehensive Income, prepared in accordance with IFRS as adopted by the European Union. The "Revenue and Capital" columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.

All income is attributable to equity holders of the Company. There are no minority interests.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the period.

The notes form an integral part of these condensed financial statements.

Condensed Statement of Changes in Equity

Under The Companies (Guernsey) Law, 2008, the Company may pay dividends out of capital and revenue reserves, subject to a solvency test.

The notes form an integral part of these condensed financial statements.

Condensed Statement of Financial Position

These financial statements were approved and authorised for issue by the Board of Directors on 17 August 2015 and signed on its behalf by:

Crispian Collins Christopher Legge

Chairman Director

The notes form an integral part of these condensed financial statements.

Registered in Guernsey

Company registration number: 44714

Condensed Cash Flow Statement

The notes form an integral part of these condensed financial statements.

Notes to the Accounts

1. Principal Activity

The Company carries on business as a Guernsey closed-ended investment company.

2. Financial Statements

The Half Year Report and Accounts of the Company for the six months ended 30 June 2015 comprise the Condensed Financial Statements of the Company. These accounts and the comparatives for the half year ended 30 June 2014 have not been audited but have been subject to an independent review. Full year comparatives for the Company are also provided from the audited financial statements for the year ended 31 December 2014.

The information for the year ended 31 December 2014 is derived from the financial statements delivered to the UK Listing Authority, and does not constitute Statutory Accounts as defined by Guernsey Law. A copy of the Statutory Accounts for the year has been delivered to the shareholders. The auditor's report on these financial statements was not qualified and did not include reference to any matter to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 265(2) and 265(3) of The Companies (Guernsey) Law, 2008.

These financial statements do not include all of the information required to be included in the Annual Report and Accounts and should be read in conjunction with the Annual Report and Accounts of the Company for the year ended 31 December 2014.

3. Accounting Policies

(a) Basis of accounting

The accounts have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union and the accounting policies set out in the statutory accounts of the Company for the year ended 31 December 2014. Where presentational guidance set out in the Statement of Recommended Practice ("the SORP") for investment trusts issued by the Association of Investment Companies in November 2014 is consistent with the requirements of International Financial Reporting Standards, the accounts have been prepared on a basis compliant with the recommendations of the SORP.

The Directors consider that the carrying value of financial assets and liabilities at amortised cost in the financial statements are approximately equivalent to their fair value.

The accounts have been prepared on a going concern basis under the historical cost basis, as modified by the revaluation of investments and derivative financial instruments at fair value through profit or loss. The disclosures on going concern in the Interim Management Report - Responsibility Statement form part of these accounts.

No critical accounting judgements have been made in the process of applying the Company's accounting policies, which are consistent with the Report and Accounts for the year ended 31 December 2014.

In adopting new standards effective from 1 January 2015, there has been no material impact on the financial statements.

(b) Investments at fair value through profit or loss

Investments are valued at the bid-market prices ruling as at the close of business at the statement of financial position date, net of any accrued interest which is included in the Statement of Financial Positions as an income related item. The Directors are of the opinion that the bid-market prices are the best estimate of fair value in accordance with the requirements of IFRS 13. Movements in fair value are included in the Statement of Comprehensive Income.

All investments held are classified as Level 1 in the fair value hierarchy and there have been no transfers between categories during the period. There are no non-recurring fair value measurements.

(c) Segmental reporting

The Directors are of the opinion that the Company is engaged in a single segment of business being investment in real estate securities. The overall governance of the Company and Investment Strategy are approved and controlled by the Company.

4. Dividends

A second interim dividend of 0.375p (2014: 1.05p) per share, amounting to £183,000 (2014: £512,000) has been declared payable in respect of the six months ended 30 June 2015. This dividend will be paid on 17 September, 2015.

Under The Companies (Guernsey) Law, 2008, the Company may pay dividends out of capital and revenue reserves, subject to passing a solvency test. The solvency test considers whether the company's assets exceed its liabilities and whether it will be able to pay its debts when they fall due. The Company passed the solvency test, where required, for all dividends paid to date.

5. Taxation

The Company has been granted an exemption from Guernsey taxation, under the Income Tax (Exempt Bodies) Guernsey Ordinance 1989 for which it is charged an annual exemption fee of £1,200 (2014: £600). The tax charge comprises irrecoverable overseas tax deducted from dividends receivable.

6. Earnings Per Share

7. Share Capital

The Company's shares in issue comprised the following unclassified shares of no par value:

8. Net Asset Value Per Share

Company Summary

The Company

The Company was incorporated on 25 April 2006 and is registered in Guernsey as an Authorised Closed-Ended Investment Company. It is listed on the London Stock Exchange. The Company carries on the business of an investment company and invests in global real estate securities.

As at 30 June 2015, the Company had 53,909,322 (31 December 2014: 53,909,322) shares in issue, of which 5,123,995 (31 December 2014: 5,123,995) shares were held in Treasury.

The Company's assets are managed by Schroder Real Estate Investment Management Limited and it is administered by Northern Trust International Fund Administration Services (Guernsey) Limited.

Website and Share Price Information

The Company has a dedicated web page, which may be found at www.schroderglobalrealestatesecurities.com which contains comprehensive information, including regulatory announcements, share price information, financial reports, investment objectives and strategy, investor contracts and information on the Board.

The Investment Manager provides a monthly newsletter which is available on the Company's website.

Registrar Services

Communications with shareholders are mailed to the address held on the register. Any notifications and enquiries relating to shareholdings, including a change of address or other amendment should be directed to Computershare Investor Services (Guernsey) Limited, 3rd Floor, Natwest House, Le Truchot, St Peter Port, Guernsey GY1 1WD.

Dealing Codes

The dealing codes for the Company's shares are as follows:

ISIN: GB00B132SB63

SEDOL: B132SB6

Ticker: SGRE

Alternative Investment Fund Managers Directive - Periodic Disclosure

Preferential Treatment of Investors

The Company's investors purchase shares on the open market and therefore the Company is not in a position to influence the treatment of investors. No investor receives preferential treatment.

Liquidity Risk Management

The Company's shares are traded on the London Stock Exchange through market intermediaries. There are no special rights to redemption.

Periodic and Regular Disclosure under the Directive

(a) none of the Company's assets are subject to special arrangements arising from their illiquid nature;

(b) there are no new arrangements for managing the liquidity of the Company including, but not limited to, any material changes to the liquidity management systems and procedures employed by the Manager in place. Shareholders will be notified immediately where the issue, cancellation, sale and redemption of shares is suspended, when redemptions are suspended or where other similar special arrangements are activated;

(c) the current risk profile of the Company and the risk management systems employed by the Manager to manage those risks can be found in the Strategic Report of the Company's 2014 Annual Report and Accounts;

(d) the total amount of leverage employed by the Company may be found in the Strategic Report of the Company's 2014 Annual Report and Accounts.

The following information will be provided through a regulatory news service without undue delay and in accordance with the Directive:

(a) any changes to the maximum level of leverage which the Manager may employ on behalf of the Company; and

(b) any changes to the right of re-use of collateral of any changes to any guarantee granted under any leveraging arrangement.

AIFM Remuneration Disclosures

The information required under the AIFM Directive to be made available to investors in the Company on request in respect of remuneration paid by the AIFM to its staff, and, where relevant, carried interest paid by the Company, can be found on the website www.schrdoers.co.uk/its.