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Annual Report and
Consolidated Financial Statements
For the year ended 30 September 2025
SCHRODER EUROPEAN REAL ESTATE
INVESTMENT TRUST PLC
Our Strategy
Rennes, France
1
Maximising shareholder value through
active asset management
3
Applying a research-led approach to
determine attractive sectors and locations
for commercial real estate allocations
5
Actively managing the Company and its
assets, drawing on the expertise of our
sector specialists to maximise shareholder
returns and evolve the Company’s asset
management approach that is focused on
operational excellence
2
Exposure to higher growth Winning Cities
and Regions
4
Managing the Company prudently and
efficiently by controlling costs and
maintaining a strong balance sheet
6
Managing assets as individual businesses,
ensuring the services and contract terms
meet changing tenant demands and that
assets are operated efficiently to minimise
the use of scarce resources
Investment objective
Schroder European Real Estate Investment Trust plc (the ‘Company‘/’SEREIT’) aims to provide shareholders
with a regular and attractive level of income together with the potential for income and capital growth through
investing in commercial real estate in Continental Europe.
Investment strategy
The strategy to deliver this, and progress made during the year and since year end, is set out below:
01
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
02
Overview
3 Highlights
5 Investment Case
7 Performance Summary
Strategic Report
11 Chairman’s Statement
13 Investment Manager’s
Report
23 Energy and Carbon
25 Business Overview
30 Strategic Review
– Governance
Governance Report
39 Board of Directors
41 Directors’ Report
45 Audit, Valuation and Risk
Committee Report
47 Management Engagement
Committee Report
48 Nomination and
Remuneration Committee
Report
50 Directors’ Remuneration
Report
53 Statement of Directors’
Responsibilities
55 Independent Auditor’s
Report to the members

Real Estate Investment

Financial Statements
67 Consolidated and
Company Statements of
Comprehensive Income
68 Consolidated and
Company Statements of
Financial Position
69 Consolidated and
Company Statements of
Changes in Equity
70 Consolidated and
Company Statements of
Cash Flows
71 Notes to the Financial
Statements
Other Information
(Unaudited)
95 EPRA and Headline
Performance Measures
(unaudited)
98 Alternative Performance
Measures (unaudited)
99 AIFMD Disclosures
(unaudited)
101 Streamlined Energy and
Carbon Report
105 Explanation of Special
Business
107 Notice of Annual General
Meeting
109 Explanatory Notes to the
Notice of Meeting
113 Shareholder Information
114 Glossary
115 Corporate Information
Contents
03
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Overview
EPRA earnings
1
before exceptional items
€7.3m
2024: €8.2m
Dividend cover
2
before exceptional items
94%
2024: 103%
Dividends declared per share
5.92 cps
2024: 5.92 cps
IFRS profit
€2.2m
2024: €0.6m
Net asset value (‘NAV’)
€156.7m
2024: €164.1m
NAV total return
2.0%
2024: 0.4%
Loan to value
3
(‘LTV’)
25%/29%
2024: 25% net / 33% gross of cash
Financial
Highlights
Read more | Page 7
1 EPRA earnings before exceptional items were €7.3 million and after
exceptional items €6.7 million for the twelve months to 30 September 2025.
2 Dividend cover before exceptional items was 94% and 86% after exceptional
items for the twelve months to 30 September 2025.
3 Reflects available cash of €8.3m (internally calculated). This excludes €14.2m
of cash ring-fenced for the French tax claim.
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
04
4 Net of Cash LTV considers available cash of €8.3m.
Driving resilient income and
portfolio value through
proactive leasing, tenant
engagement and sustainability
integration
– Concluded 10 new leases and
re-gears generating €2.1 million
of annual contracted rent, at a
weighted lease term of 11.0 years
– Strengthened the income profile
as evidenced by the successful
long term lease re-gear to
Hornbach, extending the lease
expiry to December 2037
– Post period-end further lettings
concluded at the Paris asset
further improving portfolio
occupancy from 94% to 97%
– Managing pending breaks and
expiries over the short term
including key leases to Nestlé
(April 2026 expiry), State of
Badenwürttemberg (July 2026
expiry) and KPN (December
2026 expiry)
– Continue to manage assets as
individual businesses, ensuring that
the services and contract terms
offered meet changing tenant
demands, and that assets are
operated efficiently to minimise
the use of scarce resources, waste
and carbon output
– Achieved the Company’s largest
annual GRESB score
improvement to date, an increase
of 4 points to 86, while
maintaining four-star status
Strategic disposals and share
buyback
– Reduced retail exposure with the
completion of the disposals of
the Frankfurt grocery asset and
the Company’s 50% stake in the
Metromar joint venture
– Further deleveraging, reducing
the outstanding debt balance to
€64.3 million (from €82.5 million
at 30 September 2024)
– The only upcoming loan expiry in
2026 is secured against the
Berlin DIY asset, with no further
debt expiries until December
2027
– Successfully completed a share
buyback programme utilising
free cash, acquiring 2,326,700
shares at a cost of £1.5 million
(€1.8 million) and at an average
price of 66p
– Maintained a strong balance
sheet with c.€8.3 million of
available cash and a further €14.2
million of cash has now been
ring-fenced to secure the French
tax claim, resulting in an adjusted
LTV of 29% gross of cash and
25% net of cash
4
Operational
Highlights
Positive NAV total return and
attractive dividend yield
– NAV total return of 2.0%, driven
by IFRS profit and accretive
share buybacks
– Underlying EPRA earnings of
€7.3 million
1
more than offset
negative capital items (valuation
and capital expenditure),
resulting in an IFRS profit of €2.2
million
– The Company provides an
attractive level of income with a
quarterly dividend of 8.2% p.a.
on the current share price of
63.2 pps (1 December 2025) and
5.0% p.a. on current NAV
05
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Overview
Past performance is not a guide to future performance and may not be repeated. The value of the investments and the income from them may go down as well as up
and investors may not get back the amount originally invested.
1 Occupancy reflects lettings signed post-period end. Occupancy rate at 30 September 2025 was 94%.
2 Reflects the annualised latest announced quarterly dividend of 1.48cps/1.23pps based on a share price of 63.2pps as at 1 December 2025 and based on an
audited Net Asset Value (‘NAV’) of 119.2cps as at 30 September 2025.
Investment Case
Maintained high portfolio
occupancy of 97%
Fully allocated to stable
western European markets
Opportunity to further improve
portfolio quality leveraging
Schroders’ market-leading
expertise
Hospitality-led approach to
asset management and tenant
relationships enhancing returns
Local investment and asset
management teams with specialist
sector and country knowledge
Why invest in Schroder European Real Estate
Investment Trust Limited (‘SEREIT’)
2000 PPI
267 PPI
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
06
Attractive dividend yield of
8.2% on current share price
and 5.0% on the current NAV
2
c.90% of the portfolio
by value located in
higher-growth regions
A track record of successfully
executing on asset management
initiatives to generate strong
shareholder returns
Strong balance sheet with
modest levels of gearing and high
cash levels
Income considered to be a
strong inflation hedge with
almost all leases subject to
indexation
1000 PPI
1579 PPI
07
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Overview
Property performance 30 September 2025 30 September 2024
Value of property assets
1,2
€194.0 €208.1m
Annualised rental income
1,2
€16.4m €16.9m
Estimated market rental value
1,2
€16.0m €16.3m
Underlying portfolio total return in the reporting period
3
5.6% 3.1%
Underlying portfolio income return in the reporting period
3
7.1% 6.9%
Financial summary 30 September 2025 30 September 2024
NAV
2
€156.7m €164.1m
NAV per ordinary share (euro)
2
119.2c 122.7c
NAV total return (euro) 2.0% 0.4%
IFRS profit after tax €2.2m €0.6m
EPRA earnings / EPRA earnings before exceptional items
3
€6.7m / €7.3m €8.2m
Dividend cover
4
94% 103%
Capital values
5
30 September 2025 30 September 2024
Share price
2
64.8 pps/ZAR 15.30 69.4 pps/ZAR 16.89
IFRS NAV per share
2
103.7 pps/ZAR 24.16 100.2 pps/ZAR 23.60
Earnings and dividends
6
30 September 2025 30 September 2024
IFRS earnings per share 1.7 cps 0.4 cps
EPRA earnings per share / EPRA earnings per share before exceptional items
3
5.1 cps / 5.6 cps 6.1 cps
Headline earnings per share
3
5.1 cps 6.1 cps
Ordinary dividends declared per share 5.9 cps 5.9 cps
Bank borrowings 30 September 2025 30 September 2024
External bank debt (excluding costs)
2
€64.3m €82.5m
Loan to value ratio based on GAV net of cash/gross of cash
2,7
25%/29% 25%/33%
Ongoing charges
8
30 September 2025 30 September 2024
Ongoing charges (including fund and property expenses) 3.58% 3.29%
Ongoing charges (including fund only expenses) 2.54% 2.59%
1 September 2024 value excludes the Seville property for which the NAV exposure was nil and which was fully disposed of in January 2025.
2 Represents period-end snapshot data whilst all other key indicators represent data over the respective reporting period.
3 These are Alternative Performance Measures (‘APMs’). EPRA and Headline earnings are reconciled to IFRS earnings on pages 97 and 98. EPRA
earnings before exceptional items were €7.3 million (5.6 cps) and after exceptional items €6.7 million (5.1 cps) for the twelve months to 30 September
2025. The exceptional items relate to the professional fees incurred from the French tax audit, prior period tax adjustments and historic service charge
adjustments. Refer to page 114 for the Group’s policy on classifying items as exceptional.
4 Dividend cover for the twelve months to 30 September 2025 was 94% based on EPRA earnings before exceptional items.
5 Pps refers to pence per share. ZAR reflects South African Rand given the Company has a secondary listing on the Johannesburg Stock Exchange.
6 Cps refers to euro cents per share.
7 Net of Cash LTV considers available cash of €8.3m as of 30 September 2025. This excludes €14.2m of cash ring-fenced for the French tax claim.
8 Ongoing charges are Alternative Performance Measures (‘APMs’) calculated in accordance with the AIC recommended methodology as a percentage
of the average NAV over a given period. For a definition of this Alternative Performance Measure refer to page 100.
Performance Summary
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
08
Rumilly, France
09
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2024
Venray I, Netherlands
Contents
11 Chairman’s Statement
13 Investment Manager’s Report
23 Energy and Carbon
25 Business Overview
30 Strategic Review – Governance
Strategic
Report
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
10
11
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Chairman’s Statement
The Company remains well
positioned, underpinned by
disciplined balance sheet and
asset management initiatives
aimed at maximising
occupancy, income, value,
and liquidity”
Sir Julian Berney Bt.
Chairman
Overview
The period has been characterised by
a cautious recovery in economic
sentiment across key European
markets, with inflationary pressures
gradually abating and the outlook for
interest rates remaining broadly
stable. This improved backdrop has
led to a more constructive
environment for both occupiers and
investors, though underlying
uncertainty persists due to ongoing
geopolitical developments and global
economic headwinds. There are
encouraging signs that liquidity within
the European real estate market is
improving, as evidenced recently by
rising transaction volumes for
commercial property across the
region. This trend reflects a more
balanced alignment between pricing
expectations from buyers and sellers,
as well as a gradual restoration of
investor confidence and institutional
allocations, in part driven by the more
favourable borrowing backdrop. The
increased activity demonstrates the
continued appeal of European
commercial real estate as an asset
class and long-term investment,
providing further support for the
Company’s strategy.
Within this context, the Board
remains acutely aware of the
persistent discount to NAV at which
the Company’s shares continue to
trade at a discount that primarily
reflects broader market factors,
including the challenges facing
smaller listed vehicles regarding
liquidity and investor preference for
scale, as well as previously reported
specific challenges with regards to
KPN’s departure and the French Tax
claim. Despite these factors, the
fundamentals underpinning the
Company’s strategy remain strong,
supported by robust property
performance, a resilient balance
sheet, and a sustained track record of
income delivery.
We recently announced the
appointment of Phil Redding as a
non-executive director becoming the
new Chairman of the Board from the
next annual general meeting. Phil will
work alongside me until his formal
appointment at the Annual General
Meeting, scheduled for 17 March
2026. He brings considerable and
highly relevant experience to the
position, having most recently served
as Chief Executive Officer of Tritax
EuroBox Plc. In light of Phil’s
appointment, the Board believes it is
both prudent and appropriate to
defer any formal decisions regarding
the Trust’s longer-term strategic
direction until the new Chairman has
had sufficient opportunity to review
the Company and engage with
shareholders. Recent feedback from
a number of investors has been
notably positive, particularly in
recognition of the way the Trust has
been managed through ongoing
market challenges. Key investors have
reaffirmed their support for the Trust,
underlining the attractiveness of its
income strength, management and
the resilience demonstrated in recent
periods.
The Investment Manager continues
to deliver results through proactive
asset management, local expertise,
and operational excellence, delivering
stable income returns. Recent
initiatives, including the disposal in
Frankfurt and the successful re-gear
with Hornbach in Berlin,
demonstrates the Manager’s ability to
drive portfolio-level performance.
Moving forward, the Investment
Manager has a robust pipeline of
asset management activities which
will further optimise occupancy,
income, value, and asset liquidity.
As this will be my final statement as
Chairman, I would like to express my
sincere thanks to my fellow Board
members, the Investment Manager,
and all stakeholders for their support
and dedication over the last 10 years.
It has been a privilege to serve the
Company during this period of both
challenge and opportunity. I remain
confident in the strength of the
Trust’s strategy and management
team, and I wish the Company every
success in the future under new
leadership.
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
12
Results
We are pleased to announce our
audited results for the financial year
ended 30 September 2025.
IFRS result: The Company delivered
an IFRS profit of €2.2 million
(compared to €0.6 million for
30 September 2024) as underlying
EPRA earnings more than offset
negative capital items (valuation and
capital expenditure). Including the
positive impact of the share buyback,
this resulted in a +2.0% NAV total
return for the twelve months.
EPRA earnings: Underlying EPRA
earnings were €7.3 million before
exceptional items, and €6.7 million
after (compared to €8.2 million for
30 September 2024), with the
decline reflecting the sale of the
Frankfurt investment, with the
portfolio continuing to benefit from
high occupancy and good rent
collection.
Dividend: The Board has maintained
the quarterly dividend of 1.48 euro
cents per share. The total dividends
declared for the current twelve
months amounted to €7.8 million,
equating to 5.92 euro cents per share
(compared to 5.92 euro cents per
share for 30 September 2024), which
offers an attractive dividend yield of
approximately 8.2% per annum based
on the share price of 63.2 pence
sterling as of 1 December 2025. This
dividend is 94% covered by EPRA
earnings, reflecting the lost income as
a result of the Frankfurt disposal
during the period, before exceptional
items.
As previously announced, the key
binary risk to long-term dividends
remains the shortening lease term
with KPN in Apeldoorn, the
Netherlands, expiring in December
2026. KPN has verbally confirmed
their intention to issue their formal
notice before 31 December 2025 to
depart on lease expiry as at
31 December 2026. The manager is
actively pursuing various initiatives to
mitigate this impact, including
sourcing a replacement tenant and/or
selling the asset to redeploy capital
elsewhere.
Portfolio value: The underlying
portfolio valuation decreased by €3.1
million (net of capex), or -1.4%, to
€194.0 million, with a 5% increase in
the industrial portfolio, which
witnessed a slight tightening of yields
and rental growth, offset by declines
in other sectors.
Emphasis on asset management:
We executed ten new leases/
re-gears generating €2.1 million of
annual income, including completing
a 12-year lease re-gear with our
second largest tenant, Hornbach, at
the Berlin DIY asset, which accounts
for 11% of the portfolio income.
Robust balance sheet: The
Company’s balance sheet continues
to be managed prudently. The
outstanding debt balance has
reduced to €64.3 million as at
30 September 2025 (compared to
€82.5 million for 30 September
2024), resulting in a prudent LTV of
29% gross of cash and 25% net. The
LTV has increased since the half year
as a result of the decision to arrange a
bank guarantee in relation to the
French tax disclosure (further
information below).
Energy and carbon: Over the period
we incorporated various insights from
on-site and third-party sustainability
and Net Zero Carbon (‘NZC’) audits,
carried out on 11 of 14 assets, directly
into our 2025 business plans. This
approach ensures that audit findings
inform tangible investment decisions
to enhance asset value and liquidity,
in line with our broader portfolio
enhancement objectives.
Concurrently, we recorded our
largest annual improvement to date in
the Global Real Estate Sustainability
Benchmark (‘GRESB’), increasing our
score by four points to 86, while
maintaining our four-star status.
Tax disclosure: Further to our
previous disclosures concerning
ongoing discussions with the French
Tax Authority, the Group has
arranged a bank guarantee post
year-end of approximately €12.2
million, excluding interest and
penalties. This reflects the French Tax
Authority’s requirement for coverage
of only the principal tax amount by
the guarantee. Should penalties and
interest accruing up to 30 September
2025 be included, the total sum
increases to €14.2 million. The Group
maintains its position that this amount
is not payable and has formally
appealed the decision. This appeal,
submitted as a claim to the French
Tax Authority, is expected to be
reviewed within a six-month period. If
the claim is dismissed, the Group
would escalate the matter to a formal
court process, which could take up to
two years to resolve. Based on
professional advice, the Board has
decided not to make a provision, as
they do not believe that an outflow is
probable. The Group will continue
monitoring the situation and will
provide further updates as necessary.
Outlook
The Company’s fundamentals remain
robust, underpinned by a disciplined
approach to balance sheet
management and execution of asset
management initiatives aimed at
maximising occupancy, income, value
and improving asset liquidity. While
the broader environment continues to
be shaped by geopolitical risks,
general macroeconomic sentiment is
expected to improve. The sector is
benefitting from long-term structural
tailwinds, such as historically low new
supply and a progressive move
towards more accommodative
monetary policy across Europe. If
these dynamics continue, there is
scope for increased confidence
among both occupiers and investors.
This, in turn, could enhance the
attractiveness and liquidity of
European real estate markets as we
move through the current cycle. In
addition, forthcoming resolutions to
both the French Tax and KPN’s
departure will provide further clarity
around the Company’s strategic
direction and future positioning.
Sir Julian Berney Bt.
Chairman
4 December 2025
13
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Investment Manager’s Report
1 Exchange rate as at 30 September 2025 of GBP:EUR 1.15
2 Based on 131,407,986 shares per 30 September 2025
3 The unrealised loss in the valuation of the real estate of the portfolio (€2.3m), net of capital expenditure (€0.8m), reconciles to the ‘net gain/(loss) from fair value
adjustment on investment property’ of (€3.0m) on page 67 of the financial statements.
4 EPRA earnings as reconciled on page 97 of the financial statements.
5 Dividends of 5.92 cps were paid during the financial period. A dividend for the quarter ended 30 September 2025, of 1.48 Euro cents per share, was approved and
will be paid in February 2026. Total dividends declared relating to the 12 months’ ended 30 September 2025 were 5.92 Euro cents per share.
Financial results
The net asset value (‘NAV’) as at 30 September 2025 stood at
€156.7 million (£136.3 million)
1
, or 119.2 euro cents per share
(103.7 pence per share), compared with €164.1 million, or 122.7
cps, as at 30 September 2024. During the period, dividends
totalling €7.9 million were paid and shares totalling €1.9 million
were bought back, which resulted in a NAV total return of 2.0%.
The table below provides an analysis of the movement in NAV
during the reporting period as well as a corresponding
reconciliation in the movement in the NAV euro cents per share.
€m cps
2
NAV as at 1 October 2024 164.1 122.7
Unrealised change in the valuations of the real
estate portfolio
3
(2.3) (1.8)
Capital expenditure
3
(0.8) (0.6)
Transaction costs
3
(0.2) (0.1)
Development profit 0.2 0.2
EPRA earnings
4
6.7 5.1
Non-cash/capital items (1.2) (0.9)
Share buy-back (1.9) 0.5
Dividends paid
5
(7.9) (5.9)
NAV as at 30 September 2025 156.7 119.2
The direct portfolio, after accounting for capital expenditure,
declined in value by €3.1 million.
Accrued transaction costs for the sale of the Frankfurt asset
(€0.2 million) and other non-cash/capital items (€1.1 million
mainly from derivative movements) also contributed to the NAV
decline.
EPRA earnings of €6.7 million more than offset the impact from
these capital items and resulted in an overall IFRS profit of €2.2
million.
Transactions
Following the successful completion of various asset
management initiatives at the Frankfurt grocery asset, including
securing longer-term leases with anchor tenants Lidl and
Fressnapf, a disposal of the asset was agreed in line with the
30 September 2024 valuation, with the sale concluding in April
2025.
In addition, the Company completed the sale of its 50% stake in
the Metromar joint venture. The disposal price was in line with
the Company’s previous recognition of its interest being nil
value, with the outstanding debt transferring to the purchaser.
Jeff O’Dwyer
Fund Manager
There is scope for increased
confidence among both
occupiers and investors, which
could enhance the attractiveness
and liquidity of European real
estate markets as we move
through the current cycle”
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
14
Real estate portfolio
As at 30 September 2025, the portfolio comprised 14
institutional grade properties valued at €194.0 million,
generating rental income of €16.4 million per annum and
reflecting a net initial yield of 7.1%. The independent
valuers’ portfolio estimated rental value (‘ERV’) is

Key asset management highlights included:
– Ten new leases/re-gears generating €2.1 million of
annual income at a weighted unexpired lease term of
11 years. This includes a 12-year lease extension of
anchor tenant, Hornbach, at the Berlin DIY asset;
– Additionally, two further lettings concluded at the
Paris asset post quarter end leasing up c.900 sqm
vacant space, thereby improving portfolio occupancy
from 94% to 97%; and
– Select outputs from third-party sustainability and Net
Zero Carbon (NZC) audits across 11 assets have been
incorporated into 2025 business plans.
The de-risking of Apeldoorn in particular continues to be
a main focus. The building is leased to the Dutch
telecommunications company KPN, generating c.€3
million of rent p.a. with expiry in December 2026. The
asset accounts for 6% of the portfolio’s total value and
19% of rent. Independent valuers have determined the
market value based on the present value of the remaining
income and land value.
KPN has verbally confirmed their
intention to issue their formal notice before 31 December
Evolution by sector
* Portfolio allocations exclude the Seville property for which the NAV exposure was nil.
2025 to depart on lease expiry as at 31 December 2026.
The manager is actively pursuing various initiatives to
mitigate this impact, including sourcing a replacement
tenant and/or selling the asset to redeploy capital
elsewhere. C
onsidering the potential implications of
KPN’s departure, alternative options and broader
portfolio activity, the Company’s ability to maintain its
current dividend is likely to be impacted.
Otherwise, the diversified nature and strength of
underlying tenants, and the assets generally being leased
off sustainable rents, is expected to sustain relatively
resilient portfolio income in the current economic
environment.
Approximately 36% of the portfolio by value is offices, all
of which are in supply-constrained locations and leased
off affordable rents. Our industrial exposure at 37% is a
mixture of distribution warehouses and light industrial
accommodation in growth cities within France and The
Netherlands. Our retail exposure at 14% comprises DIY.
Another 9% of the portfolio is allocated to the
alternatives sector, comprising a mixed-use data centre
and a car showroom, with the remaining 4% in available
cash.
0
by value (%)
Industrial/Logistics
Sep 2018 Sep 2019 Sep 2020 Sep 2021 Sep 2022* Sep 2023* Sep 2025Sep 2024*
Retail OtherCash
20
40
60
80
10
0
49%
13%
29%
9%
47%
20%
25%
8%
53%
18%
22%
7%
33%
22%
21%
16%
8%
35%
26%
10%
17%
12%
33%
29%
16%
10%
12%
36%
37%
14%
4%
9%
33%
30%
17%
11%
9%
Office
36%
37%
14%
9%
4%
39%
32%
25%
4%
1
6, 14
2
3
5
4
7
13
10
12
9
No exposure to Eastern Europe
11
8
15
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
At a glance
Portfolio Overview
The Company owns a diversified portfolio of commercial real estate






Number of properties
14
Portfolio value
1
€202.3m
Number of tenants
44
Occupancy
2
97%
Sector allocation
Sector
Office
Industrial
DIY
Other
Cash
Country
Germany
France
The Netherlands
Cash
Country allocation
1 Reflects the value of property assets of €194.0m and available cash of €8.3m (internally calculated). This excludes €14.2m of cash ring-fenced for the
French tax claim.
2 Occupancy reflects lettings signed post-period end. Occupancy rate at 30 September 2025 was 94%.
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
16
Top 14 properties by value
1 As per third party valuation reports unadjusted for IFRS lease incentive amounts.
2 Percentages reflect the value of the property asset based on the total portfolio of €202.3m, including available cash of €8.3m (internally calculated).
1
4 5
2 3
8 9
10 11 12
13 14
France, Paris
Sector Office
Value
1
(%)
2
€35.6m (18%)
No. of tenants 12
Largest tenant Outscale
France, Rennes
Sector Industrial
Value
1
(%)
2
€18.9m (9%)
No. of tenants 1
Largest tenant C-LOG
6
The Netherlands, Venray I
Sector Industrial
Value
1
(%)
2
€13.0m 6%
No. of tenants 1
Largest tenant DKL
The Netherlands, Houten
Sector Industrial
Value
1
(%)
2
€9.5m (5%)
No. of tenants 1
Largest tenant Inventum
The Netherlands, Utrecht
Sector Industrial
Value
1
(%)
2
€3.0m (2%)
No. of tenants 3
Largest tenant Straight Intern. Security
Germany, Berlin
Sector Retail (DIY)
Value
1
(%)
2
€27.4m (14%)
No. of tenants 1
Largest tenant Hornbach
Germany, Stuttgart
Sector Office
Value
1
(%)
2
€17.9m (9%)
No. of tenants 4
Largest tenant LandBW
The Netherlands, Alkmaar
Sector Industrial
Value
1
(%)
2
€19.9m (5%)
No. of tenants 1
Largest tenant Schuurman Beheer
France, Cannes
Sector Car Showroom
Value
1
(%)
2
€7.2m (4%)
No. of tenants 1
Largest tenant Stellantis
The Netherlands, Venray II
Sector Industrial
Value
1
(%)
2
€2.0m (1%)
No. of tenants 1
Largest tenant So Expo
Germany, Hamburg
Sector Office
Value
1
(%)
2
€19.8m (10%)
No. of tenants 14
Largest tenant AGT
7
The Netherlands, Apeldoorn
Sector Other
Value
1
(%)
2
€11.9m (6%)
No. of tenants 1
Largest tenant KPN
France, Rumilly
Sector Industrial
Value
1
(%)
2
€10.7m (5%)
No. of tenants 1
Largest tenant Cereal Partners (Nestlé)
France, Nantes
Sector Industrial
Value
1
(%)
2
€6.3m (3%)
No. of tenants 1
Largest tenant Hachette
17
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Investment Manager’s Report continued
The table below sets out the portfolio’s top ten tenants by contracted rent, which are from a diverse range of industry
segments, and represent 73% of the portfolio.
Top ten tenants
Rank Tenant Industry Property
Contracted rent
WAULT break
(yrs)
WAULT expiry
(yrs)€m % of total
1 KPN Telecom Apeldoorn 3.2 19% 1.3 1.3
2 Hornbach DIY Berlin 1.7 10% 12.3 12.3
3 C-log Logistics Rennes 1.3 8% 5.4 5.4
4 Outscale IT Paris 1.1 7% 3.7 6.7
5 Cereal Partners Consumer staples Rumilly
0.8 5% 0.6 0.6
6 DKL Logistics Venray 0.8 5% 3.0 3.0
7 LandBW Government Stuttgart 0.8 5% 0.8 0.8
8 Schuurman Beheer Manufacturing Alkmaar 0.8 5% 12.5 17.5
9 Inventum Manufacturing Houten 0.7 5% 4.3 4.3
10 Filassistance Insurance Paris
0.7 4% 2.3 7.3
Total top ten tenants 11.9 73% 4.5 5.4
Remaining tenants 4.5 27% 2.8 3.9
Total 16.4 100% 4.0 5.0
The largest tenant is KPN, representing 19% of the portfolio’s contracted rent. KPN are a leading telecommunications
and IT provider and market leader in the Netherlands which occupies our mixed-use Apeldoorn asset (data centre

KPN has verbally confirmed their intention to issue their formal notice before 31 December 2025 to depart
on lease expiry as at 31 December 2026.
The second largest tenant is Hornbach, a leading German-based operator of do-it-yourself (‘DIY’) stores and home
centres. It is representing 10% of the portfolio rents and is the sole occupier of our Berlin DIY asset, comprising a
four-hectare site that has the potential to benefit from alternative uses.
The remaining large tenants, with businesses across a diversified range of industries, each account for between 4-8%
of portfolio rents. These include C-log, Outscale, Cereal Partners (Nestlé), DKL, Land Baden-Württemberg,

Lease expiry chart
Break Year
Other Cereal Partners France LandBW KPN
Filassistance DKL Outscale Inventum
C-log Hornbach Baumarkt AG Schuurman Beheer
Total per year
Cummul. income at brea
k
"Portfolio "Wault"
0% 0%
2%
0
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2025 2026 2027 2028 2030 2031 2032 2033
2034
2035+
2029
% of cumulative
income at break
% of income at
break (p.a)
2%
36%
13%
0% 0%
0%
2%
6%
14%
4%
9%
15%
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
18
Portfolio performance over the 12 month period ending 30 September 2025:
Valuation performance: Over the twelve-month period, the underlying portfolio valuation decreased by €3.1 million
(net of capex), or -1.4%, to €194.0 million.
The portfolio’s industrial assets all increased in value. The Rumilly, Venray I & II, Alkmaar, Houten, Utrecht and Rennes
values (net of capex) increased by 5% on average, driven by positive investment sentiment translating into stronger
investment volumes and yield compression.
In contrast, the office portfolio value (Paris, Hamburg, Stuttgart) declined by 5%, owing to continued weaker market
sentiment. The Berlin DIY asset value reduced 2% and the mixed-use data centre in Apeldoorn value declined 13%, due
to the decreasing remaining lease term with KPN.
Total property returns: The portfolio total property return (‘TPR’) was 5.6%. With the portfolio benefitting from
strong occupancy and high rent collection, property income returns were strong at +7.1%, thereby more than offsetting
negative capital returns of -1.5% which was primarily a result of shortening lease lengths.
Strong performance was seen across the industrial portfolio, with Venray delivering a TPR of +22.3%, Utrecht +24.2%,
Rumilly +17.2%, Houten +11.5%, Nantes +12.4%, Rennes +6.9%, Alkmaar +4.8% and Venray II +4.7%.
Following the Frankfurt sale, the Berlin DIY store is now the sole retail asset in the portfolio. Since agreeing a long-term
lease re-gear with the asset’s sole tenant, the asset has recovered some value again in the most recent quarters. The
property returned 5.5% TPR over the period. The office portfolio performance was more muted, with Stuttgart
delivering a TPR of +4.6%, Paris Saint-Cloud -0.6%, and Hamburg -4.2%.
The portfolio’s mixed-use data centre in Apeldoorn delivered a total return of +9.0%, with a high income return
compensating for a capital value decline. The Cannes car showroom delivered 11.7%.
Over the longer term, the real estate portfolio has delivered ungeared property returns of 2.2% over three years and
4.0% over five years.
Stuttgart, Germany
19
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Investment Manager’s Report continued
ASSET MANAGEMENT
Asset overview
Acquired in March 2016 for €24.3 million, the asset
comprises a 16,800 sqm DIY retail scheme held under
freehold ownership and fully let to Hornbach. As at
30 September 2025, the valuation stood at €27.4m.
Located in Mariendorf, approximately 10 km south of
Berlin City Centre, the site spans four hectares in a
supply-constrained location surrounded by medium
density residential.
Asset strategy
The strategy over the period was to secure a longer-term
re-gear with the tenant in order to drive value through
improving the asset’s income security and liquidity
profile, which was successfully achieved in May 2025.
ASSET MANAGEMENT
Asset overview
Purchased in August 2018 for €8.5 million, the latest
valuation as at 30 September is €10.7 million (prior to any
lease re-gear).
The strategically located warehouse has served as the
principal distribution centre for Cereal Partners France (a
Nestlé and General Mills joint venture) for 30 years with
daily transfers of c.30 trucks between the site and
Nestlé’s Rumilly production facility c.3km away.
Asset strategy
During the period, the focus has been directed towards
securing a long-term re-gear ahead of the tenant’s lease
expiry in April 2026, with the objective of enhancing the
asset’s long-term value through targeted capital
investment.
Rationale
– New 12-year triple-net lease agreed with
Hornbach, the second largest tenant in the
Company’s portfolio with a market capitalisation
of c.€1.4 billion
– Significantly improved the portfolio’s income
security and increased the overall portfolio
unexpired lease term by 1.3 years
– Achieved an improved BREEAM In Use
certification of ‘Very Good’ (up from ‘Good’)
upon renewal, through close collaboration with
the tenant and the implementation of light quality
and flood risk assessments
– Agreed a partial green lease clause with the
tenant, increasing portfolio area coverage to 55%
from 44%
Rationale
– Advanced negotiations and principal agreement
with Cereal Partners France for a new long-term
lease. As part of the agreement, the tenant will
invest capex to upgrade the asset’s power
capacity and air extraction system within the
warehouse
– Concurrently, landlord capex investment to be
undertaken to upgrade the ESFR fire sprinkler
system, creation of a footbridge linking the car
park to the offices and of a separate passenger
car parking area thereby enhancing the safety
and comfort for building users
– Successful closing expected in Q4 2025 which
will enhance asset liquidity and value
Berlin, Germany Rumilly, France
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
20
Balance sheet
The Company used the Frankfurt
disposal proceeds to repay €6.6
million of the portfolio loan facility
with Deutsche Pfandbriefbank. In
addition, the outstanding loan facility
secured against the Seville joint
venture transferred to the purchaser.
As a result, total third-party debt
reduced to €64.3 million as at
30 September 2025 (from €82.8
million as at 30 September 2024).
Cash levels are totalling €8.3 million
of available cash as at 30 September
2025. In addition €14.2 million has
been ring-fenced to secure the
French tax claim. Gearing levels are
modest, with an LTV of 25% net of
cash and 29% gross of cash. This is
well within the Company’s net LTV
35% maximum.
Debt is spread across five loan
facilities and secured against ten
assets. The current blended all-in
interest rate is 3.8% and the average
remaining loan term is 2.3 years.
The only upcoming loan expiry is
secured against the Berlin DIY asset
which has recently undergone a
long-term lease re-gear, enhancing
its appeal.
We have commenced preliminary
discussions with lenders and are
confident in our ability to refinance
at similar LTVs, albeit current swap
rates would result in the overall cost
of debt increasing. There are no
further debt expiries until December
2027.
The individual loans are detailed in the table below. Each loan is held at the property-owning level instead of the Group
level and is secured by the individual properties noted in the table. There is no cross-collateralisation between loans.
Each loan has specific LTV and income default covenants. All loans are in compliance with their default covenants. We
detail the headroom against those covenants in the latter two columns of the table below.
Lender Property Maturity date
Outstanding
principal Interest rate
Headroom LTV
default
covenant
(% decline)
Headroom net
income default
covenant
(% decline)
VR Bank Westerwald Stuttgart & Hamburg 31/12/2027 €18.00m 3.80% No covenant No covenant
BRED Banque Populaire Paris 15/12/2027 €14.00m 3M Eur+1.9% 13% >50%
Deutsche Pfandbriefbank Berlin 30/06/2026 €9.94m 1.31% >30% >30%
ABN Amro Alkmaar, Houten, Utrecht, Venray I & II 27/09/20 28 €13.76m 5.30% >40% >30%
Landesbank SAAR Rennes 26/03/2029 €8.60m 4.3% 17% >40%
Total €64.30m
The German and Dutch loans are fixed-rate for the duration of the loan term.
The Paris loan is based on a margin above three-month Euribor. The Company benefits from an interest rate hedge,
capped at 3.25%, which is covering the remaining loan period to 15 December 2027. The fair value of the derivative
contract is c.€3,600 as at 30 September 2025.
21
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Investment Manager’s Report continued
Outlook
While significant risks and
uncertainties persist for both global
and European growth, we expect
economic sentiment to improve,
primarily due to increased clarity
surrounding tariff agreements and a
moderation of geopolitical
pressures. Nevertheless, we
recognise that an end to the Russian
conflict would provide the most
significant positive impact on
macroeconomic conditions and
business sentiment. Despite the
broader environment, occupational
markets in key cities across Europe
remain notably resilient, particularly
in select sub-markets relevant to our
operations.
Our strategy is focused on targeting
growth cities and locations,
underpinned by infrastructure
improvements, constrained supply,
diverse demand, and investments
leased at sustainable rental levels.
These factors should help to
maintain liquidity and enhance the
value of the majority of our portfolio.
We are progressing lease re-gearing
negotiations with principal tenants,
including Nestlé, the State of
Baden-Württemberg, and Stellantis.
The successful completions of these
will reduce risk across approximately
13% of the Company’s income,
thereby enhancing income quality,
asset value, and liquidity.
The Company’s outlook and
strategic direction are in the short
term shaped by the outcomes at
Apeldoorn and the ongoing French
tax matter. At Apeldoorn, our asset
management programme is
progressing, with options under
consideration including sourcing a
replacement tenant and seeking
planning approval for alternative
uses. The French tax claim currently
remains beyond our direct influence;
however, we retain the financial
strength to address the matter
should an unfavourable decision
arise.
While we welcome the opportunity
to work alongside our new future
Chairman, Mr Phil Redding,
developing a strategy focused on
maximising shareholder value, we
would also like to thank Sir Julian
Berney for the significant
contribution he has made to this
Company over the past 10 years.
During his term as Chair, Julian’s
guidance and support has played a
vital role in developing Schroder
European REIT’s long-term strategy
and we wish him all the best for the
future.
Jeff O’Dwyer
Fund Manager
4 December 2025
Hamburg, Germany
Overview Strategic Report Governance
22
Financial Statements Other Information (Unaudited)
23
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Energy and Carbon
Consideration of asset energy and carbon profiles
Achieved 2025 GRESB
4-star rating
Score of 86 (2024: score of 82)
BREEAM-In-Use certifications
4 assets
Improved BREEAM-in-Use achieved at
Berlin, Germany with ‘Very Good’
certification (previously ‘Good’)
through implementing light quality and
flood risk assessments.
Renewal being undertaken for Venray
I’s BREEAM-In-Use (previously ‘Pass’)
which expired March 2025
Number of assets with third-party
on site sustainability and net zero
carbon (‘NZC’) audits
11 out of 14 assets
Number of assets with third-party
desktop net zero carbon (‘NZC’)
audits and climate risk assessments
14 out of 14 assets
Key achievements
1. Schroders plc Climate Report 2024: https://mybrand.schroders.com/m/5310cc02630fb8fa/original/Schroders-Climate-Report-2024.pdf
TCFD Entity and Product Report – Institutional Client (Schroders.com): https://www.schroders.com/en/global/individual/corporate-transparency/
tcfd-entity-and-product-reports/
Further information on the Schroders Sustainable Investment Policy and Real Estate Sustainable Investment Policy can be found https://www.
schroderscapital.com/en/global/professional/sustainability-and-impact/policies-reports/
The Investment Manager
incorporates energy and carbon
considerations into the management
of portfolio assets. Reducing energy
consumption and enhancing
operational efficiency contribute to
the delivery of high-quality buildings,
offering potential benefits to tenants
in terms of occupational experience
and cost savings. These measures
may also support tenant retention
and attraction. Furthermore, with
energy and carbon performance
increasingly shaped by regulation
and market expectations, proactive
management in these areas helps
future-proof portfolio assets against
evolving legislative and market
requirements.
Task Force on Climate-Related
Financial Disclosures
In compliance with the requirements
set out in Chapter 2 of the
Environmental, Social and
Governance sourcebook (“ESG
Sourcebook”) of the FCA Handbook,
the Manager has published a
mandatory product-level disclosure
consistent with the Task Force on
Climate-Related Financial
Disclosures (“TCFD”). This is in
addition to the Schroder Real Estate
Investment Management (‘SREIM’)
entity-level TCFD disclosure and the
Schroders plc Climate Report 2024.
These reports provide details on the
approach to the consideration of
climate-related risks and
opportunities across Governance,
Strategy, Risk management and
Targets across Schroders Group and
Schroders Capital Real Estate. The
relevant climate-related financial
disclosures are published at TCFD
Entity and Product Reports –
Institutional Clients (schroders.com)
Streamlined Energy and
Carbon Reporting
Streamlined Energy and Carbon
Reporting disclosures, including
details of the Company’s greenhouse
gas emissions, are set out in the
Streamlined Energy and Carbon
Report on pages 103 to 106.
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
24
Overview
EPC performance
2
65%
EPC coverage
100%
Regulatory compliance
Number of assets with on-site
renewables
3 assets with

1 All intellectual property rights to this data belong exclusively to GRESB B.V. All rights reserved. GRESB B.V. has no liability to any person (including a natural
person, corporate or unincorporated body) for any losses, damages, costs, expenses or other liabilities suffered as a result of any use of or reliance on any of
the information which may be attributed to it.
2 Partial coverage due to limitation of country EPC methodology in France and Netherlands. There is no recognised EPC energy assessment methodology for
non-heated/air-conditioned areas within buildings. Industrial/logistic assets tend to be affected the most where the EPC covers only the office area.
3 ‘Green lease’ refers to a lease contract which may include provisions to share building consumption data and for the landlord and tenant to undertake
specific responsibilities and obligations to minimise carbon emissions arising from the development, operation and occupation of a property.
Portfolio green lease coverage
3
55%
By floor area
Cannes, France
Business Overview
The following pages set out the Company’s strategy for delivering
the investment objective (set out on page 1), the business model, the
risks involved, and how the Board manages and mitigates those risks.
It also details the Company’s purpose, values and culture, how it
interacts with shareholders, and its approach to sustainability.
Company summary
SEREIT invests in European growth
cities and regions. It is a UK closed-
ended real estate investment
company incorporated on 9 January
2015. Since 9 December 2015, the
Company has been listed on the
Main Market of the London Stock
Exchange (ticker: SERE). It also has a
secondary listing on the Main Board
of the Johannesburg Stock
Exchange (ticker: SCD).
Business model
The Board has appointed the
Investment Manager, Schroder Real
Estate Investment Management
Limited, to implement the
investment strategy and to manage
the Company’s assets in line with the
appropriate restrictions placed on
it by the Board, set out on page 27.
The terms of the appointment
are described more completely
in the Directors’ Report. The
Investment Manager also promotes
the Company using its sales and
marketing teams. The Board
and the Investment Manager
work together to deliver the
Company’s investment objective,
as demonstrated by the diagram
on the next page. The investment
and promotion processes set out in
the diagram are described in more
detail over the following pages.
Investment
Investment policy
The Company owns a diversified
portfolio of commercial real
estate in Continental Europe with
good property fundamentals.
The Company may invest
directly in real estate assets
(both listed and unlisted) or
through investment in special
purpose vehicles, partnerships,
trusts or other structures.
Investment strategy and objectives
Details of the Company’s investment
objective and investment strategy
may be found on page 1.
Diversification and asset allocation
The Board believes that in order to
maximise the stability of the
Company’s income and value, the
optimal strategy for the Company is
to invest in a portfolio of institutional
grade income-producing assets
diversified by location, use, asset
size, lease duration and tenant
concentration with low vacancy
rates and creditworthy tenants. The
value of any individual asset at the
date of its acquisition may not
exceed 20% of gross assets.
From time to time the Board may
also impose limits on sector, location
and tenant types, together with
other activity such as development.
25
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Investment
Manager
Board
• Responsible for
overall strategy and
oversight including
risk management
• Activities centred
on the creation of
shareholder value
Strategy
Promotion
• Set objectives,
strategy and KPIs
• Appoint Investment
Manager and other
service providers to
achieve objectives
• Oversee portfolio
management
• Oversee the use of
gearing
• Oversee discount
management
• Oversee increase in
the Company’s size
and the provision
of liquidity through
share issuance
• Marketing and sales
capability of the
Investment Manager
• Provision of liquidity
through share
issuance
• Support from the
corporate broker
with secondary
market intervention
to assist discount
management
• Investment Manager
implements the
investment strategy
by following an
investment process
• Support by strong
research and risk
environment
• Regular reporting
and interaction with
theBoard
Competitiveness
• Board is focused on
ensuring that the:
• Fees and ongoing
charges remain
competitive; and
• Vehicle remains
attractive to
investors
Investor value
Borrowings
The Company utilises gearing
with the objective of improving
shareholder returns. Borrowings are
non-recourse and secured against
individual assets or groups of assets
and, at the time of borrowing, gross
debt (net of cash) shall not exceed
35% of the Company’s gross assets.
Where borrowings are secured
against a group of assets, such
group of assets shall not exceed
25% of the Company’s gross assets
in order to ensure that investment
risk remains suitably spread.
The Board determines the
appropriate level and structure
of gearing for individual assets or
groups of assets on a deal-by-deal
basis, and gearing against individual
assets or groups of assets may
exceed 35% LTV at the time of
borrowing, provided total gearing
of the Company does not exceed
35% LTV overall. Higher gearing
will only be considered against
individual assets or groups of assets
if the Board considers the particular
characteristics of those assets would
be suitable for higher gearing.
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
26
Interest rate exposure and
currency hedging
It is the Board’s policy to minimise
interest rate risk, either by ensuring
that borrowings are on a fixed-
rate basis, or through the use of
interest rate swaps/derivatives
used solely for hedging purposes.
The Company does not currently
intend to take any currency hedging
in respect of the capital value of
its portfolio of investments, but
may choose to do so if the Board
considers it appropriate in the future.
The Board has concluded that,
based on the current cost of
currency hedging, the Company
will not hedge dividend payments
in currencies other than euro.
The Board will continue to
keep this under review.
Investment restrictions and
spread of investment risk
The Company invests and manages
its assets with the objective of
spreading risk and in accordance
with its published investment policy.
The Company ensures that the
objective of spreading risk has been
achieved by seeking to diversify
its portfolio of assets by location,
use, size, lease duration and tenant
concentration. The properties in the
Company’s portfolio described in
the Investment Manager’s Report
demonstrate how the objective of
spreading risk has been achieved.
The Company will not invest more
than 10% of its gross assets in other
listed closed-ended investment
funds, except that this restriction
shall not apply to investments in
listed closed-ended investment
funds which themselves have
stated investment policies to invest
no more than 15% of their gross
assets in other listed closed-ended
investment funds. Further, the
Company will not itself invest more
than 15% of its gross assets in other
listed closed-ended investment
funds. If the Company invests in
other companies or closed-ended
investment funds, which in turn
invest in a portfolio of investments,
the Company will ensure that
the policies and objectives of the
investee conform to the principal
objectives of the Company.
Promotion
The Company promotes its shares to
a broad range of investors, including
discretionary wealth managers,
private investors, financial advisers
and institutions, which have the
potential to be long-term supporters
of the investment strategy.
The Company seeks to achieve this
through its Investment Manager and
corporate broker, which promote the
shares of the Company through
regular contact with both current
and potential shareholders.
These activities consist of investor
lunches, one-on-one meetings,
regional roadshows and attendances
at conferences for professional
investors. In addition, the Company’s
shares are supported by the
Investment Manager’s wider
marketing of investment companies
targeted at all types of investors.
This includes maintaining close
relationships with adviser and
execution-only platforms,
advertising in the trade press,
maintaining relationships with
financial journalists and the provision
of digital information on Schroders’
website. The Board also seeks active
engagement with investors and
meetings with the Chairman are
offered to professional investors
where appropriate.
Key performance indicators
The Board measures the
development and success of the
Company’s business through
achievement of the Company’s
investment objective: to provide
shareholders with a regular and
attractive level of income together
with the potential for income and
capital growth through investing in
commercial real estate in
Continental Europe.
This is considered to be the most
significant key performance
indicator for the Company. The
Board regularly reviews its ability to
maintain the level of the dividend
and regularly considers asset
valuations and any movements.
Comment on performance against
the investment objective can be
found in the Chairman’s Statement.
The Board continues to review the
Company’s ongoing charges to
ensure that the total costs incurred
by shareholders in the running of
the Company remain competitive
when measured against peer group
funds. An analysis of the Company’s
costs, including management
fees, Directors’ fees and general
expenses, is submitted to each
Board meeting. The management
fee is reviewed at least annually.
Purpose, value and culture
The Company’s investment objective
and purpose is set out on page 1.
As the Company acts through its
service providers, its culture is
represented by the values and
behaviour of the Board and third
parties to which it delegates. The
Board aims to fulfil the Company’s
investment objective by encouraging
a culture of constructive challenge
with all key suppliers and openness
with all stakeholders. The Board is
responsible for embedding the
Company’s culture in the Company‘s
operations.
The Board recognises the
Company’s responsibilities with
respect to corporate and social
responsibility and engages with
its service providers to safeguard
the Company’s interests. As part
of this ongoing monitoring, the
Directors receive reporting from
service providers on matters such
as their anti-bribery and corruption
policies; Modern Slavery Act 2015
statements; diversity policies;
and greenhouse gas and energy
usage reporting. The Management
Engagement Committee reviews
Business Overview continued
27
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
the Company’s service providers.
Its report is on page 47.
Corporate and social
responsibility
Board composition and diversity
As at 30 September 2025, the
Board comprised two men and one
woman. The biography of each of
these Directors is set out on pages
39 and 40 of the report. Having
considered the performance and
independence of each Director,
the Board has determined that
there are no other relationships or
circumstances which are likely to
affect their judgement nor impair
their independence. Accordingly,
the Board considers each of the
Directors to be independent.
Further information regarding
the Chairman’s independence
can be found on pages 42 and
43 of the Directors’ Report.
The Board recognises that its
debates and decision-making are
greatly enriched by a wider range
of perspectives and thinking,
fostered by diversity of experience
and knowledge, social and ethnic
backgrounds, gender, and cognitive
and personal strengths. The Board
will encourage any recruitment
agencies it engages to find a diverse
range of candidates that meet the
objective criteria agreed for each
appointment. Appointments will
always be based on merit alone.
Candidates for Board vacancies are
selected based on their skills and
experience, which are matched
against the balance of skills and
experience of the overall Board
taking into account the criteria
for the role being offered.
Implementation of diversity policy
The Board has reported against the
FCA’s UK Listing Rules (UKLR
6.6.6R(9)) in relation to diversity

(i) at least 40% of individuals on the
board are women;
(ii) at least one of the senior board
positions is held by a woman; and
(iii) at least one individual on the
board is from a minority ethnic
background.
The FCA defines senior board
positions as Chairman, Chief
Executive Officer (‘CEO’), Chief
Financial Officer (‘CFO’) or Senior
Independent Director (‘SID’). As an
investment trust with no executive
officers, the Company has no CEO
or CFO. The Board has reflected the
senior position of the Chairman and
the SID in its diversity tables on the
next page.
The Board has chosen to align its
diversity reporting reference date
with the Company’s financial year
end and proposes to maintain this
alignment for future reporting
periods. As at 30 September 2025,
the Company met one of the three
criteria: at least one senior board
position was held by a woman. The
Company did not meet the targets
relating to the number of women on
the Board, or to having at least one
individual on the Board from a
minority background. The Board fully
supports all forms of diversity,
including gender and ethnic
diversity, and has adopted a diversity
and inclusion policy.
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
28
Whilst the Directors are all independent and have a diverse range of views and experiences, the Board remains
conscious that its small composition will make these targets challenging to fully implement. Recognising the benefits
of a diverse Board, it is intended that improving diversity will continue to be a key factor in discussions of succession
planning and when the Board makes its next appointment.
Table for reporting on gender
Number of
Boardmembers
Percentage of
theBoard
Number of
senior positions
on theBoard UK Listing Rules target
Men 2 66.7% 1
Women should make up at least
40% of the Board and hold at least
one of the senior positions
Women 1 33.3% 1
Other – – –
Not specified/prefer not to say – – –
Table for reporting on ethnic background
Number of
Boardmembers
Percentage of
theBoard
Number of
senior positions
on theBoard UK Listing Rules target
White British or other White

3 100% 2
At least one member of the board
should be from an ethnic minority
background excluding white ethnic
groups (as set out in categories
used by the Office for National
Statistics)
Mixed Multiple Ethnic Groups – – –
Asian/Asian British – – –
Black/African/Caribbean/Black British – – –
Other ethnic group, including Arab – – –
Not specified/prefer not to say – – –
Financial crime policy
The Company continues to be committed to carrying out its business fairly, honestly and openly operates a financial
crime policy, covering bribery and corruption, tax evasion, money laundering, terrorist financing and sanctions, as well
as seeking confirmations that the Company’s service providers’ policies are operating soundly.
Relations with shareholders
Shareholder relations are given high priority by both the Board and the Investment Manager. The Company
communicates with shareholders through its web pages, the Annual and Half Year Reports, and regular market
communications which aim to provide shareholders with a clear understanding of the Company’s activities and its
results. In addition to the engagement and meetings held during the year, the Chairmen of the Board and its
Committees attend the AGM and are available to respond to queries and concerns from shareholders.
Following the AGM held on 17 March 2025, at which three resolutions relating to the re-election of Directors were
passed with majorities of less than 80% of the votes cast, the Board, in accordance with Provision 4 of the AIC Code
of Corporate Governance, engaged with the concerned shareholders to seek to understand their reasons for voting
against the Board’s recommendation.
Business Overview continued
29
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Strategic Review – Governance
Stakeholder engagement, section 172 of the Companies Act 2006
Directors take their responsibilities under section 172 of the Companies Act seriously and are committed to engaging
with and, understanding the views of, the Company’s stakeholders and to taking those views into account in the
Board’s decision-making process.
The table below outlines this engagement and the impact on decision-making where appropriate, and cross-refers to
the decisions made by the Board during the year, detailed elsewhere in this report.
Stakeholder Stakeholder considerations, engagement and key decisions
Shareholders
Without investors, who are willing to commit capital in return for a regular and
attractive level of income together with the potential for income and capital growth
as per the Company’s investment objective and purpose, the Company would

The Company welcomes attendance and participation from shareholders at the
Annual General Meeting. This will provide an opportunity for shareholders to
engage with the Board and the Investment Manager. The annual and half-year
results presentations are available on the Company’s website, with results and key
updates announced via a regulatory news service. The Directors receive regular
updates on the shareholder register, any trading activity and feedback received
from investor meetings held by the Investment Manager and the corporate broker.
The Board is responsible for discount and premium management, and is alert to


As detailed in ‘Promotion’ on page 27 and ‘Relations with shareholders’ on page 29,
the Company engages with its shareholders. During the year, the Board engaged
with shareholders who voted against its recommendation on the resolutions
relating to the re-election of Directors proposed at the 2025 AGM, in order to
better understand their views. The Board also considered feedback by
shareholders when declaring four interim dividends in respect of the year ended
30 September 2025. The Directors considered the long-term consequences of
paying up from the Company’s distributable reserves, noted the financial position
of the Company, and determined that the payment of the four interim dividends
was in the best interests of its stakeholders.
The Investment Manager
The Board maintains a constructive and collaborative relationship with the
Investment Manager, encouraging open discussion.
The Board invites the Investment Manager to attend all Board and certain
Committee meetings and receives regular reports on the performance of the
investments and the implementation of the investment strategy, policy and
objective. The portfolio activities undertaken by the Investment Manager and the
impact of decisions affecting investment performance are set out in the Investment
Manager’s Report on pages 13 to 21.
The Management Engagement Committee reviews the performance of the
Investment Manager, its remuneration and the discharge of its contractual
obligations at least annually.
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
30
Stakeholder Stakeholder considerations, engagement and key decisions
Other service providers
As an externally-managed investment trust, the Board is reliant on service providers
who have a direct working or contractual relationship with the Company. This
includes, but is not limited to, the Depositary, corporate broker and tax advisers.
The Board maintains regular contact with its key service providers, both at the
Board and Committee meetings, and through ad hoc communication throughout
the year. The need to foster business relationships with key service providers is
central to the Directors’ decision-making as the Board of an externally-managed
investment trust. The effect of such engagement, to the extent relevant, is detailed
in the Chairman’s Statement; Investment Manager’s Report; Audit, Valuation and
Risk Committee Report; and Management Engagement Committee Report.
During the year, the Management Engagement Committee undertook reviews of
the third-party service providers and agreed that their continued appointment
remained in the best interests of the Company and its shareholders. In this respect,
the Committee periodically reviews the market rates for services received, to
ensure that the Company continues to receive high-quality service at a competitive
cost. In line with best practice and governance, Savills plc was appointed as the
new investment property valuer in June 2025, replacing Knight Frank LLP. Savills
plc conducted a shadow valuation of the Company’s portfolio during the year prior
to its effective date, to ensure a smooth handover.
During the year, Directors attended a meeting to assess the internal controls of
certain service providers including the Company’s Depositary, Langham Hall. The
Board also met with the Manager’s key functions to conduct due diligence on
operations and IT risks; and to receive up-to-date information changes in regulation
and market practice in the industry.
The Company’s lenders
Borrowing allows the Company’s shareholders to increase exposure to Winning
Cities and Regions, and maximise returns in favourable markets at a low cost. They
have a financial interest in the success of the Company. The Board is responsible
for ensuring that the Company adheres to all existing loan covenants. The Board
worked closely with its lenders during the year, particularly in relation to the Seville
asset, which was sold in February 2025. Future loan refinancings are monitored
closely and proactive discussions with third-party lenders commence well in
advance of existing loan maturity dates to reduce refinancing risk. Furthermore, the
Group’s strong cash position continues to provide viable future alternatives with
regard to capital management. The Company’s next refinancing is in June 2026.
Occupiers
The Company has a diverse range of tenants occupying space across the portfolio.
This includes businesses that operate out of our office or industrial space, and the
retailers and shoppers who work at or visit our retail properties.
Active and constant engagement with occupiers, either directly by the Investment
Manager or through property managers or agents, provides intelligence as to what
is important to them. Understanding changing needs, both at an individual
company level, as well as on a sectoral and broader economic level, is a key tenet
informing both individual asset management decisions as well as the longer-term

Local communities and the
environment
Our assets are located across Continental Europe in a range of urban environments.
The buildings and their occupiers are part of the fabric of local communities.
In light of the outsourced business model, the impact of the Company’s operations
on occupiers, local communities and the environment is through the delivery of the
Investment Manager and service providers.
Strategic Review – Governance continued
31
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Principal risks and
uncertainties
The Board is responsible for the
Company’s system of risk
management and internal control, and
for reviewing its effectiveness. The
Board has adopted a detailed matrix
of principal risks affecting the
Company’s business as an investment
trust and has established associated
policies and processes designed to
manage and, where possible, mitigate
those risks, which are monitored by
the Audit, Valuation and Risk
Committee on an ongoing basis. This
system assists the Board in
determining the nature and extent of
the risks it is willing to take in
achieving the Company’s strategic
objectives. Both the principal risks and
the monitoring system are also
subject to robust review at least
annually. The last review took place in
November 2025.
Although the Board believes that it
has a robust framework of internal
control in place, this can provide only
reasonable, and not absolute,
assurance against material financial
misstatement or loss and is designed
to manage, not eliminate, risk.
Attention is drawn to the following key
risks, which have previously been
reported on:
• There is a risk to sustaining the
current level of dividends arising from
the departure of the tenant KPN at
Apeldoorn in December 2026. KPN
has verbally confirmed their intention
to issue their formal notice before
31 December 2025 to depart on lease
expiry as at 31 December 2026. The
manager is actively pursuing various
initiatives to mitigate this impact,
including sourcing a replacement
tenant and / or selling the asset to
redeploy capital elsewhere.
• There is an ongoing dispute with
the French tax authorities and
following the financial year-end, the
Group received a payment demand
amounting to c.€14.2 million,
including interest and penalties. The
Group maintains its position that this
amount is not payable and has
formally appealed the decision.
Further detail on both risks is set out
below.
From an emerging risks and
uncertainties perspective, the Board
recognises and continues to be
mindful of the changing global
environment and the potential risks
posed by volatile markets; inflation
and corresponding interest rate
changes; geopolitical uncertainty;
structural changes; and occupier
preferences which could affect the
use and prospects of some real estate
sectors. The Board receives regular
updates on those macro risks from the
Investment Manager. Overall, the
diversification of the Company’s
portfolio, and its evolving strategy to
place greater emphasis on
sustainability-led asset improvements,
is expected to help minimise the
impact of these factors. The Board
keeps these matters under review,
particularly in connection with its
decisions to redeploy investable cash.
The Company’s property portfolio
remains resilient, as evidenced by rent
collection levels over the financial
year. Loan covenants, interest rates,
cost of debt and expiry profiles
continue to be actively managed as
part of cash flow forecasting and
liquidity management. The Company
has substantial cash available
providing a robust position to manage
the Company through current
headwinds facing European
economies.
During the year, the Board has
reviewed the principal risks to ensure
that identified risk and mitigating
actions remain appropriate.
A summary of the principal risks and
uncertainties faced by the Company,
and the actions taken by the Board to
manage and mitigate these risks and
uncertainties, are set out below:
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
32
Principal risks Mitigation of risk
Investment and strategy
An inappropriate investment strategy,
or failure to implement the strategy,
could lead to underperformance in
the property portfolio compared to
the property market generally by
incorrect sector or geographic
weightings or a loss of income
through tenant failure, both of which
could lead to a fall in the value of the
underlying portfolio.
The Board seeks to mitigate these risks by:
– Diversification of its property portfolio through its investment restrictions and guidelines
which are monitored and reported on by the Investment Manager.
– Receiving from the Investment Manager timely and accurate management information
including performance data, attribution analysis, property level business plans and financial
projections.
– Monitoring the implementation and results of the investment process with the Investment
Manager with a separate meeting devoted to strategy each year.
– Determining a borrowing policy, and ensuring the Investment Manager operates within its
borrowing restrictions and guidelines.
– Reviewing marketing and distribution activity, and considering the use of a discount control
mechanism as necessary.
– Undertaking an annual review of the ongoing suitability of the Investment Manager.
As previously announced, the key binary risk to sustaining the current level of dividends
remains the shortening lease term with KPN in Apeldoorn, the Netherlands, expiring in
December 2026. The building is leased to the Dutch telecommunications company KPN,
generating c.€3 million of rent p.a. with expiry in December 2026. The asset accounts for 6%
of the portfolio’s total value and 19% of rent. Independent valuers have determined the market
value based on the present value of the remaining income and land value. KPN has verbally
confirmed their intention to issue their formal notice before 31 December 2025 to depart on
lease expiry as at 31 December 2026. The manager is actively pursuing various initiatives to
mitigate this impact, including sourcing a replacement tenant and/or selling the asset to
redeploy capital elsewhere.
Regulatory and tax compliance
The Company has to comply with a
wide range of legislation and
regulations, covering tax, planning,
building regulations, health and
safety, Company law, accounting,
reporting and Listing Rules.
The Board has appointed the Investment Manager as its Alternative Investment Fund Manager
(“AIFM”) in accordance with the Alternative Investment Fund Managers Directive (“AIFMD”).
The Investment Manager monitors legal requirements to ensure that adequate procedures and
reminders are in place to meet the Company’s legal requirements and obligations. The
Investment Manager undertakes full legal due diligence with advisors when transacting and
managing the Company’s assets. All contracts entered into by the Company are reviewed by
the Company’s legal and other advisors.
The Board is satisfied that the Investment Manager has adequate procedures in place to ensure
continued compliance with the regulatory requirements of the Financial Conduct Authority,
the UK Listing Rules of the London Stock Exchange and any other required authority. The
Investment Manager has retained external tax advisers, who are overseen by the Schroders’
tax team, to ensure compliance with relevant local tax regulations.
With regard to tax, the Group operates in a number of jurisdictions and is subject to periodic
challenges by local tax authorities on a range of tax matters during the normal course of
business. The tax impact can be uncertain until a conclusion is reached with the relevant tax
authority. The Group addresses this uncertainty by closely monitoring tax developments,
seeking independent advice, and maintaining transparency with the authorities it deals with as
and when any enquiries are made.
As previously reported, the French tax authorities have issued a notice of adjustment in respect
of the tax years 2021 to 2023 and the Group has received a payment demand amounting to
c.€14.2 million, including interest and penalties. In accordance with the requirements of the
French tax authorities, the Group has arranged a bank guarantee of approximately €12.2
million, reflecting the requirement for coverage by guarantee of the principal tax amount only.
The Group maintains its position that this amount is not payable and has formally appealed the
decision. This appeal, submitted as a claim to the French Tax Authority, is expected to be
reviewed within a six-month period. If the claim is dismissed, the Group would escalate the
matter to a formal court process, which could take up to two years to resolve.
Having taken professional advice, the Board remains of the opinion that the Group’s position is
ultimately more likely than not to prevail, such that a net outflow is not probable, and hence no
tax provision has been recognised. Pending resolution of the matter, the Board considers it
prudent to ring-fence €14.2m (being the amount of the guarantee plus potential interest and
penalties) from its other cash reserves.
This is set out in further detail in note 10 of this Annual Report on pages 78 and 79.
Strategic Review – Governance continued
33
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report
Principal risks Mitigation of risk
Economic and property market
The performance of the Company
could be affected by economic,
currency and property market risk. In
the wider economy this could include
inflation, stagflation or deflation
(including in respect of costs such as
construction costs and operating
expenses), economic recessions,
movements in foreign exchange and
interest rates or other external
shocks. The performance of the
underlying property portfolio could
also be affected by structural or
cyclical factors impacting particular
sectors (for example, retail) or regions
of the property market and
counterparty solvency.
The Board considers economic conditions and the uncertainty around political events when
considering investment decisions. The Board mitigates property market risk through the review
of the Company’s strategy on a regular basis and discussions are held to ensure the strategy is
still appropriate or if it needs updating. Diversification of the majority of the portfolio across the
office and industrial/logistics sectors in growth cities, and a focus on functional and affordable
space, provides defensive characteristics.
The portfolio also benefits from a high percentage (approximately 100%) of inflation-linked
leases which contributes to rental growth and mitigates value declines.
The assets of the Company are almost all denominated in non-sterling currencies,
predominantly the euro. No currency hedging is planned, but the Board continues to consider
the hedging of dividend payments having regard to availability and cost.
Valuation
Property valuations are inherently
subjective and uncertain, due to the
individual nature of each property
and its liquidity, particularly under
stressed market conditions.
Valuations also include annual
reinstatement costs for insurance
purposes. Inflation and availability of
goods and services, could heighten
the risk around correct reinstatement
values and completion programs.
An external valuer provides an independent valuation of all assets at least quarterly. The Audit,
Valuation and Risk Committee includes two experienced chartered surveyors. Members of the
Audit, Valuation and Risk Committee meet with the external valuers to discuss the basis of their
valuations, and their quality control processes, on a quarterly basis.
Gearing and leverage
The Company utilises credit facilities.
These arrangements increase the
funds available for investment
through borrowing. While this has the
potential to enhance investment
returns in rising markets, in falling
markets the impact and availability of
financing could be detrimental to
performance, and may also result in
potential non-compliance with loan
covenants or refinancing risk.
Gearing, including loan covenant compliance, is monitored at quarterly Board meetings, and ad
hoc as required, and strict restrictions on borrowings are imposed both internally and by
lenders. The overall cost of debt is regularly reviewed with any new debt or refinancing
presented to the Schroders Real Estate Investment Committee and Board for approval.
Overview Strategic Report Governance Financial Statements Other Information (Unaudited)
34
Risk assessment and internal
controls
Risk assessment includes
consideration of the scope and
quality of the systems of internal
control operating within key
service providers, and ensures
regular communication of the
results of monitoring by such
providers to the Audit, Valuation
and Risk Committee, including the
incidence of significant control
failings or weaknesses that have
been identified at any time and
the extent to which they have
resulted in unforeseen outcomes
or contingencies that may have a
material impact on the Company’s
performance or condition.
No significant control failings
or weaknesses were identified
from the Audit, Valuation and
Risk Committee’s ongoing risk
assessment which has been in
place throughout the financial year
and up to the date of this report.
The Board is satisfied that it has
undertaken a detailed review of
the risks facing the Company.
A full analysis of the financial risks
facing the Company and its
subsidiaries is set out in note 23 on
pages 87 to 91.
Viability statement
The Board is required to give a
statement on the Company’s viability
which considers the Company’s
current position and principal risks
and uncertainties together with an
assessment of future prospects.
The Board conducted this review
over a five-year time horizon
commencing from the date of this
report which is selected to match
the period over which the Board
monitors and reviews its financial
performance and forecasting. The
Investment Manager prepares five-
year total return forecasts for the
Continental European commercial
real estate market. The Investment
Manager uses these forecasts
as part of analysing acquisition
opportunities as well as for its
annual asset-level business planning
process. The Board receives an
overview of the asset-level business
plans which the Investment Manager
uses to assess the performance
of the underlying portfolio and
therefore make investment decisions
such as disposals and investing
capital expenditure. The Company’s
principal borrowings are for a
weighted duration of 2.3 years and
the average unexpired lease term to
break, assuming all tenants vacate at
the earliest opportunity, is 4.0 years.
The Board’s assessment of viability
considers the principal risks and
uncertainties faced by the Company,
as detailed in the Strategic Review
on pages 32 to 34, which could
negatively impact its ability to deliver
the investment objective, strategy,
liquidity and solvency. This includes
consideration of scenario stress
testing and a cash flow model
prepared by the Investment
Manager that analyses the
sustainability of the Company’s cash
flows, dividend cover, compliance
with bank covenants, general
liquidity requirements and potential
legal and regulatory change for a
five-year period.
These metrics are subject to
a sensitivity analysis which
involves flexing a number of
the main assumptions including
macroeconomic scenarios, delivery
of specific asset management
initiatives, rental growth and
void/re-letting assumptions. The
Board also reviews assumptions
regarding capital recycling and the
Company’s ability to refinance or
extend financing facilities. Steps
which are taken to mitigate these
risks as set out in the Strategic
Review on pages 32 and 34
are also taken into account.
Based on the assessment, and having
considered in detail base and
downside scenarios modelling, the
Directors have concluded that there
is a reasonable expectation that the
Company will be able to continue in
operation and meet its liabilities as
they fall due over the five-year
period of their assessment.
Going concern
The Board believes it is appropriate
to adopt the going concern basis in
preparing the financial statements.

statement setting out the reasons
the Board considers this to be the
case is set out in note 1 on page 71.
By order of the Board
Sir Julian Berney Bt.
Chairman
4 December 2025
Strategic Review – Governance continued
35
Schroder European Real Estate Investment Trust plc
Annual Report and Consolidated Financial Statements for the year ended 30 September 2025
Strategic Report