NAV update for the quarter to 31 December 2025

For release 26 February 2026

Schroder Real Estate Investment Trust Limited

NAV UPDATE FOR THE QUARTER TO 31 DECEMBER 2025

1.1% QUARTERLY NAV TOTAL RETURN WITH ACTIVE MANAGEMENT REDUCING THE VOID AND SUPPORTING FUTURE EARNINGS

Schroder Real Estate Investment Trust Limited ('SREIT' or the 'Company'), the actively managed REIT focused on improving the sustainability performance of buildings to generate higher income and capital growth, announces its 31 December 2025 net asset value ('NAV'), an asset management update, and further progress selling smaller non-core assets on completion of business plans.

Delivering income to shareholders

· Annualised dividend yield of 6.4% on 25 February closing share price of 55.9p

· NAV total return for the quarter of 1.1%

· Quarterly EPRA earnings of £4.1 million, or 0.8 pps

· Current annual rent of £30.4 million

· 30% rent reversion to the portfolio's estimated rental value ('ERV') of £39.6 million

Underpinned by attractive debt profile

· Interest cost of 3.4% on drawn debt

· Weighted average maturity of 7.7 years

· Fair value of the fixed-rate loan is £17.7 million, which is not reflected in the Company's NAV

· Net loan to value 36.6% (30 September 2025: 36.7%)

Long-term portfolio investment outperformance

· Portfolio allocated to higher growth sectors, 65% industrial and retail warehouse

· Outperforming MSCI Benchmark over one, three, and five years

· Quarterly Portfolio total return of 1.3% (MSCI Benchmark: 1.4%)

Sustainability-led asset management initiatives drive 250 basis points reduction in portfolio vacancy

· Since the Company announced its interim results on 27 November 2025, 11 deals completed totalling £1.3 million across 170,000 sq ft:

o  Five lettings of vacant units totalling £577,000 of annualised rent, 1% ahead of 31 December 2025 ERV

o  Four lease renewals generating total annualised rent of £420,000, 22% ahead of the previous passing level

o  Two rent reviews with a total annualised rent of £343,000, 21% ahead of the previous passing level

· Portfolio void rate reduced to 9.7% (30 September 2025: 12.2%), including the impact of exchanged agreements for lease

· Completed two non-core disposals for £5.2 million, 7% ahead of book value as at 31 March 2025

Dividends

· Quarterly dividends paid of £4.4 million, or 0.897 pps (30 September 2025: 0.897 pps)

· Quarterly dividends 93% covered by EPRA earnings, impacted by delayed leasing activity that has progressed post quarter end

· Interim dividend of 0.897 pps for the period 1 October 2025 to 31 December 2025 to be paid in March 2026

Alastair Hughes, Chair of the Board, commented: "A key focus has been executing on the asset management programme to reduce the portfolio void and drive income, and the team has delivered a number of successes on this front, including since the quarter end. Our portfolio alignment to higher growth sectors, combined with an active asset management strategy should continue to support the delivery of attractive returns for shareholders."

NAV

A breakdown of the quarterly movement in the NAV is set out below:

Property portfolio

As at 31 December 2025, the underlying portfolio comprised 33 properties valued at £477.8 million. It generated annual rent of £30.4 million, reflecting a net initial yield of 6.0% (MSCI Benchmark: 5.0%). The portfolio's ERV is £39.6 million, reflecting a reversionary yield of 8.3% (MSCI Benchmark: 6.2%).

Including the impact of agreement for leases that have exchanged, the portfolio void rate has improved to 9.7% as at today (30 September 2025: 12.2%), calculated as a percentage of ERV. In addition:

· 0.3% of this void is currently under offer and in advanced legal negotiations.

· 2.2% is undergoing refurbishment including major sustainability works at Union Park Industrial Estate in Norwich (0.9%), Clifton Park in York (0.5%) and St Ann's House in Manchester (0.4%), all of which are expected to generate material increases in rent compared to the previous level when let.

The weighted average unexpired lease term, assuming all tenants vacate at the earliest opportunity, is 5.4 years.

The tables below summarise portfolio information as at 31 December 2025:

Sector weighting

Region weighting

Balance sheet and debt

The weighted average interest rate for total debt drawn at the quarter end was 3.4%, with an average maturity of 7.7 years, with 87% either fixed or hedged against movements in interest rates. The Company has significant headroom on all covenants. A summary of the key terms as at 31 December 2025 is in the table below:

As at 31 December 2025, the Company had cash, including cash held in joint ventures, of £9.1 million and a net loan to value ratio of 36.6%, slightly above the long-term strategic target range of 25% to 35%. The Company is taking steps to reduce the net loan to value ratio back in line with the target range, with several disposals in progress or planned.

Asset management

The Company continues to deliver on its asset management programme, with key activity since the Company announced its interim results on 27 November 2025 including:

Millshaw Park Industrial Estate, Leeds

· Agreement for lease ('AFL') exchanged on Unit 22 with Slazenger Padel Clubs, for a 15-year term without breaks at a rent of £465,363 per annum or £9.00 per sq ft. This is an increase of 86% compared to the previous passing rent. There will be five-yearly rent reviews to CPI compounded annually with a cap and collar at 3% and 1% per annum respectively. Sportsdirect.com Retail Limited guarantees the Tenant's obligations for the first 5 years of the term.

· This follows a £1.9 million refurbishment to enhance the sustainability credentials of the asset, improving the EPC to an 'A' rating from a 'C'.

· Similar size un-refurbished units are currently let at around £6.50 per sq ft, providing significant rental growth potential.

Stanley Green Trading Estate, Manchester

· A new 10-year lease has completed on Unit 6D to ABB Limited at a rent of £252,250 per annum, or £15.50 per sq ft. The tenant is a large manufacturing business who will use the property for electrification and automation engineering. The unit's 'A+' EPC rating and BREEAM New Construction Excellent accreditation were a key selling point.

· There is a rent review on the fifth anniversary to the higher of open market rental value or CPI compounded annually with a cap and collar at 4% and 2% per annum respectively.

Churchill Way West, Salisbury

· Exchanged an AFL on Unit 2 with The Gym Limited, for a 15-year term without breaks at a rent of £155,000 per annum, or £19.89 per sq ft. There will be five-yearly rent reviews to CPI compounded annually with a cap and collar at 3% and 1% per annum respectively.

· Combined with the previously reported AFL on Unit 1 with Lidl Great Britain Limited, this is a rent of £595,000, which reflects an increase of 68% compared to the previous passing rent for the two units.

· This follows a £1.5 million refurbishment to reconfigure the units and enhance the sustainability credentials of the asset, with the EPC for Unit 1 improving to an 'A+' rating from a 'D'.

City Tower, Manchester (SREIT owns a 25% interest)

· The hotel is let until 2060 at a current annual rent of £2.6 million (SREIT share £650,000 per annum) and the next seven-yearly rent review, which is linked to RPI, is on 11 March 2030.

· An assignment of the hotel tenant completed on 26 January 2026, with the lease transferring from Jupiter Hotels Limited to Venus Hotels Limited ('Venus').

· Venus is currently on site implementing a £10 million refurbishment project.

Disposals

On 21 October 2025 the company completed the sale of Pacific House in Marlow, a vacant freehold office asset, for £1.7 million, reflecting a capital value of £108 per sq ft and an 11% premium to the 31 March 2025 independent valuation.

On 28 November 2025 the company completed the sale of Haydock Industrial Estate for £4.5 million reflecting a net initial yield of 7.1% and a 5% premium to the 31 March 2025 independent valuation.

Investment Manager

On 12 February 2026, Schroders plc and Nuveen announced that they have agreed the terms of a recommended all-cash offer by Pantheon LLC[2], a wholly-owned subsidiary of Nuveen, to acquire the entire issued and to be issued share capital of Schroders.

The transaction, which is subject to shareholder and regulatory approvals, is expected to close toward the end of the year.

-ENDS-

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