Schroder Real Estate Investment Trust Limited

Annual Report & Consolidated Financial Statements

For the year ended 31 March 2025

Overview

Contents

Overview

4 Performance summary

Strategic report

6 Chair’s statement

8 Investment Manager’s report

31 Sustainability report

40 Business model

42 Our stakeholders

43 Principal risks and uncertainties

Governance report

49 Board of Directors

50 Report of the Directors

52 Corporate governance

55 Audit Committee report

57 Management Engagement Committee report

58 Nomination Committee report

59 Directors’ remuneration report

61 Statement of Directors’ responsibilities

62 Independent Auditor’s report to the members of

Schroder Real Estate Investment Trust Limited

Financial statements

70 Consolidated statement of comprehensive income

71 Consolidated statement of financial position

72 Consolidated statement of changes in equity

73 Consolidated statement of cash flows

74 Notes to the financial statements

Other information (unaudited)

92 EPRA performance measures (unaudited)

95 Alternative performance measures (unaudited)

96 AIFMD disclosures (unaudited)

97 Sustainability performance measures (environmental)

(unaudited)

128 Sustainability performance measures (social)

(unaudited)

130 Sustainability performance measures (governance)

(unaudited)

131 Streamlined energy and carbon reporting

134 Asset list

135 Report of the Depositary to the shareholders

136 Glossary

137 Resolutions at the Annual General Meeting

139 Notice of Annual General Meeting

IBC Corporate information

Overview

The Company is well positioned

with an attractive income profile

and low cost long-term debt.

Seeking to improve the sustainability

performance of buildings to generate

higher income and capital growth.

Portfolio focused on higher growth

sectors with a reversionary yield of 8.4%

(MSCI Benchmark: 6.2%).

6.8%

dividend yield 100% covered by EPRA earnings

over the financial year.

Robust balance sheet provides dividend protection:

3.5% current average interest cost of which 88% is

fixed rate or capped with 8.5 years average maturity.

Share price at a 14% discount to NAV offers an

attractive entry point given market recovery, earnings

growth potential, and evolving shareholder register.

Progressing thematic sustainability strategy –

manufacture green premium, address carbon, drive

earnings growth.

Notes

Past Performance is not a guide to future performance and may not be repeated.

The value of investments and the income from them may go down as well as up and

investors may not get back the amounts originally invested. References to these assets

are for illustrative purposes only and are not a recommendation to buy and/or sell.

Source: Schroders. Company data as at 31 March 2025. MSCI Benchmark is MSCI UK

Balanced Portfolios Quarterly Property Index.

1 Based on a share price of 53.0p as at close on the 10 June 2025 and an annualised

dividend of 3.588pps.

2 Based on EPRA earnings and dividends paid for the year ended 31 March 2025.

3 Based on a share price of 53.0p as at close on the 10 June 2025 and NAV of 61.6pps

as at 31 March 2025.

3 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Overview

Performance summary

Net asset value £m

31 March 2025 301.4

31 March 2024 287.4

Net asset value total return %

31 March 2025 11.0

31 March 2024 1.1

Value of property assets and joint venture assets

£m

31 March 2025 480.0

31 March 2024 459.3

Underlying portfolio total return %

31 March 2025 9.1

31 March 2024 3.2

Estimated open market rental value

£m

31 March 2025 40.3

31 March 2024 38.8

EPRA earnings £m

31 March 2025 17.0

31 March 2024 16.3

Dividend cover

31 March 2025 100%

31 March 2024 100%

31 March

2025

31 March

2024

Property performance

Value of Property Assets and

Joint Venture Assets

£m 480.0 459.3

Annualised rental income

£m 28.9 29.8

Estimated open market

rental value

£m 40.3 38.8

Underlying portfolio total return % 9.1 3.2

MSCI Benchmark total return

% 6.2 (1.3)

Underlying portfolio income

return

% 5.6 6.2

MSCI Benchmark income return % 4.8 4.7

Financial summary

Net Asset Value (‘NAV’) £m 301.4 287.4

NAV per Ordinary Share p 61.6 58.8

EPRA Net Tangible Assets

£m 301.3 287.1

EPRA Net Reinstatement Value

£m 333.9 318.4

EPRA Net Disposal Value

£m 319.9 305.8

IFRS profit for the year £m 31.1 3.0

EPRA earnings

£m 17.0 16.3

Dividend cover

% 100 100

Capital values

Share price p 49.9 41.9

Share price discount to NAV % (19.0) (28.7)

NAV total return

% 11.0 1.1

Earnings and dividends

EPRA earnings

(pps) 3.5 3.3

Dividends paid (pps) 3.5 3.3

Annualised dividend yield on

the 31 March share price

% 7.2 8.0

Bank borrowings

On-balance sheet borrowings

£m 181.1 176.6

Loan to Value ratio (‘LTV’),

net of all cash

% 36.9 37.1

Ongoing charges

Ongoing charges (including

fund and property expenses)

% 2.70 2.53

Ongoing charges (including

fund only expenses)

% 1.25 1.19

1 Reconciles to the valuation reports from CBRE for both the direct portfolio and the two Joint Ventures. Does not include any IFRS adjustments for lease incentives, nor the fair value

of the leasehold adjustment for The Galaxy, Luton.

2 Represents the annualised rental income of the portfolio as at 31 March 2025, including the share of rents from joint venture assets. Note the University of Law, tenant at Store

Street in Bloomsbury, is in a 10-month rent free period ending on 16 October 2025. Adding back the Company’s share of its annual rent of £2,359,885 results in annual rent of £31.2

million.

3 Represents the ERV of the portfolio as estimated by the valuers, including the share of rents for the joint venture assets.

4 Source: MSCI Quarterly Version of Balanced Monthly Index Funds including the share of rents for the joint venture assets on a like-for-like basis as at 31 March 2025.

5 This is an Alternative Performance Measure (‘APM’). EPRA calculations are included in the EPRA Performance measures section on pages 92 to 94.

6 This is an APM with further details on page 95.

7 This is an APM with further details on page 95.

8 On-balance sheet borrowings reflect the loan facilities with Canada Life and RBSI without the deduction of unamortised finance costs of £0.5m.

9 This is an APM. Details are included in the APM section on page 95.

10 This is an APM and calculated in accordance with the AIC recommended methodology. Details are included in the APM section on page 95.

11 This is an APM and calculated in accordance with the AIC methodology. Details are included in the APM section on page 95.

4 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Overview

5 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report

6 Chair’s statement

8 Investment Manager’s report

31 Sustainability report

40 Business model

42 Our stakeholders

43 Principal risks and uncertainties

Chair’s statement

We are today announcing our audited financial results for the

year ended 31 March 2025, with the highlights below:

— The portfolio allocation to higher growth sectors and

successful asset management activity underpinned a 4.8%

increase in the net asset value (‘NAV’) to £301.4 million, or

61.6 pence per share (‘pps’)

— Above average portfolio yield and activity supported a fully

covered dividend of 3.5 pps, which was 4% higher versus

the previous year, and a NAV total return of 11.0%

— Continued long-term outperformance of the underlying

portfolio with a total return of 9.1% compared with the

MSCI Benchmark (the ‘Benchmark’) of 6.2%

— Sector leading debt profile, with a long duration of 8.5

years and a low average interest cost of 3.5%

— Delivering on the strategy to enhance income and

capital growth through improved portfolio sustainability

performance, with an encouraging pipeline of further

near-term initiatives

— Active shareholder engagement led to increased demand

from retail platforms and new wealth manager investors,

driving an improved share price rating

— Board and Manager demonstrating best-in-class

governance, including a manager fee change and

succession planning

The UK economy continues its fragile recovery, with weaker

growth expectations following tariff increases and resultant

capital markets volatility. Inflation is expected to fall, despite

elevated wage growth, which has enabled the Bank of

England to reduce the base rate to 4.25%, with expectations

of further cuts during 2025, reducing investors’ cost of

capital. Whilst weaker GDP growth may dampen rental value

growth, restricted development is set to mitigate the impact

and continue driving rents higher for the best space in the

more structurally supported sectors. Although investment

and occupational market activity has understandably slowed

in response to the recent macro-economic and geopolitical

headwinds, the yield premium offered by the sector should

still nonetheless support a sustainable recovery over 2025 and

2026.

Against this backdrop, our diversified portfolio benefits from a

favourable sector allocation, with 64% of the portfolio allocated

to the higher growth industrial (51% of value) and retail

warehousing (13%) sectors. These are generally multi-let assets

providing a pipeline of value enhancing refurbishment and

repositioning initiatives, with a total of £6.7 million invested in

portfolio activity during the year. This resulted in an underlying

portfolio value of £480 million at the year end, reflecting

a capital value increase over the 12 month period of 3.4%

(Benchmark: 1.4%). This contributed to the 4.8% increase in the

NAV over the year to £301.4 million or 61.6 pps.

The favourable allocation also contributed to estimated rental

value growth of 4.2% over the year (Benchmark: 3.6%), with

the strongest growth resulting from the active management

of our retail warehouse portfolio (8.6% vs. the Benchmark

at 2.6%). This, in turn, supported an income return from the

underlying portfolio of 5.6% (Benchmark: 4.8%), resulting in a

total return from the underlying portfolio of 9.1%, compared

with the Benchmark of 6.2%. As mentioned above, market

volatility is impacting on occupier decision making, which has

slightly delayed our expected fall in the void rate, which was

12.3% at the year end, with 4.2% currently let or under offer.

The Company’s underlying portfolio remains one of the best

performing in its Benchmark peer group over all time periods,

driven by the above average income return, favourable sector

allocation and active management approach.

Portfolio activity including 76 letting transactions during the

year and since the year end, combined with tight management

of costs and our sector-leading debt profile, boosted earnings

by 5%, enabling the Company to pay dividends totalling £17.0

million, or 3.5 pps. Dividends were fully covered by earnings,

which combined with the increase in NAV, resulted in a NAV

total return of 11.0%, delivering our strongest performance

since 2022. The Company has today announced a further

quarterly dividend of 0.897 pps, in line with the previous

quarter.

Despite the recent reduction in the base rate to 4.25%, our

long-term, fixed-rate debt remains a compelling positive

differentiator amongst the immediate peer group, with 72%

of debt drawn at the year-end fixed at an average of 2.5% for

an average of 11.0 years. This fixed-rate loan has a significant

positive fair value that is not reflected in the Company’s NAV.

Combined with our tactical revolving credit facility (‘RCF’), the

average interest rate for our total drawn debt was 3.5%, with

an average term of 8.5 years, and 88% of total drawn debt

either fixed or hedged against movements in interest rates.

At the year end, the Company’s consolidated net loan to value

was 36.9%, with sales planned to bring this in line with our

target long-term guidance of 25% to 35%.

It is encouraging that the strong relative performance of

the underlying portfolio is, in many cases, being driven by

refurbishment and redevelopment initiatives to improve asset

sustainability performance, which is enabling us to extract

the ‘green premium’ and deliver on our net zero carbon

commitments.

Key initiatives for our industrial assets include delivering

operational net zero in design or ‘EPC A+’ space at Stacey

Bushes Industrial Estate in Milton Keynes and Stanley Green

Trading Estate in Manchester, which has seen us attracting

new occupiers such as BYD and Siemens, achieving rental

uplifts of up to 40%.

6 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Strategic report — Chair’s statement continued

Significant projects are also ongoing across our office

portfolio, including refurbishment programmes to deliver EPC

A rated buildings, which is driving positive letting activity. The

Company over the period saw a reduction in the portfolio level

energy and carbon intensity, and also maintained its GRESB

score, in a year when GRESB made changes to it scoring

approach. Together this progress supported the Manager

achieving the threshold required to receive the additional five

basis points of NAV fee. Further detail is included within the

Sustainability report.

Shareholders have responded positively to our strategic

evolution, and the Manager has continued its programme

of active shareholder engagement including research,

conferences, asset tours, and targeting of retail platform

investors via specialist channels such as Investor Meet

Company. This activity and our attractive, fully covered dividend

yielding 6.8% today, has driven more demand for our shares,

with new institutional and wealth manager investors, and

advisor and retail platforms now representing 30.96% of the

shareholder register as at the year end.

Although our shares continue to trade at a discount to NAV,

the above-mentioned efforts have led to an improvement in

the share price rating in absolute terms and relative to peers,

with the discount to NAV improving from 28.7% at the start of

the financial year to 14% today. The Board and Manager are

cognisant of the growth opportunities that could arise from a

further improvement in the rating, and these are given regular

consideration alongside our core strategic objectives.

The Company and its Manager are focused on demonstrating

best-in-class governance. The Board has met the UK Listing

Rules diversity targets throughout the year, and we benefit

from Schroders’ regulatory engagement relating to, for

example, the FCA’s consultation on cost disclosure, as well as

with the Treasury on attracting more domestic demand for UK

investment company shares.

The Board is very supportive of the Manager’s focus on

delivering value for our shareholders and during the year we

considered new fee structures providing greater alignment

with shareholder returns. As a result, with effect from 1

October 2025, the Manager’s fee will be amended so that 50%

is linked to market capitalisation, with the balance linked to

NAV. Based on the current fee of 0.9% and today’s share price

of 53.0 pps, this would result in an annualised fee reduction

of £0.2 million or 7.0%. The market capitalisation linked fee is

capped at the prevailing NAV, and the existing fee tiers linked

to the Company’s size remain unchanged.

The Board and Manager are also implementing succession

planning for me as Chair, and for Nick Montgomery as co-

manager. I joined the Board in April 2017 and intend to step

down in 2026.

At Schroders, Nick’s appointment as Global Head of Real

Estate means that a new co-manager will be appointed

alongside Bradley Biggins, and this hiring process is

ongoing. Nick remains highly involved with the Company

and, following the new co-manager appointment, Nick will

continue to provide oversight through his role as chair of the

Manager’s Investment Committee, which is responsible for

approving the Company’s transactional activity and strategic

recommendations to the Board. The Board expect this to be

a smooth transition, with shareholders benefiting from the

deep bench of real estate investment and asset management

specialists at Schroders.

Looking forward, and despite near-term market uncertainty,

our clear investment strategy and focus on owning assets

in more structurally supported sectors positions us to be

a beneficiary in an improving environment for commercial

real estate. The Board and Manager are highly focused on

delivering sustainable earnings growth through crystallising

the portfolio reversionary potential, completing selective

disposals to repay debt and recycle into higher yielding

investments, and careful management of expenses.

Successful implementation of this strategy should support the

progressive dividend policy over time.

I look forward to my final year working with my fellow Board

members and the Manager in delivering our strategy and

thank shareholders for their continued support.

Alastair Hughes

Chair

10 June 2025

7 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial results

Schroder Real Estate Investment Trust Limited’s (‘SREIT’, or

‘the Company’) net asset value (‘NAV’) as at 31 March 2025

was £301.4 million or 61.6 pence per share (‘pps’), compared

with £287.4 million, or 58.8 pps, as at 31 March 2024. This

reflected an increase over the financial year of 2.8 pps or

4.8%. Dividends totalling £17.0 million were paid during the

year, which resulted in a NAV total return of 11.0%. A detailed

analysis of the NAV movement is set out in the table below:

NAV movement

£m PPS

NAV as at 31 March 2024

287.4 58.8

Unrealised net increase in the

valuations of the direct real estate

portfolio and joint ventures

21.6 4.4

Capital expenditure

(6.7) (1.4)

Realised gain on disposal, net of

disposal costs

0.5 0.1

EPRA earnings

17.0 3.5

Dividends paid (17.0)

(3.5)

Interest rate derivatives

(0.2) (0.0)

Others (1.2) (0.3)

NAV as at 31 March 2025

301.4 61.6

1 The calculation of pence per share is based on shares in issue as at 31 March 2024

of 489,110,576.

2 Prior to all capital expenditure, and movement in IFRS 16 lease incentives.

3 Comprises capital expenditure of £6.1 million on the directly held portfolio and

£0.6 million invested across the two joint ventures.

4 EPRA earnings as per the reconciliation on page 92.

5 The calculation of pence per share is based on shares in issue as at 31 March 2025

of 489,110,576.

Net asset value per share (pence)

31 March 2025 61.6

31 March 2024 58.8

EPRA earnings per share (pence)

31 March 2025 3.5

31 March 2024 3.3

Dividends paid per share (pence)

31 March 2025 3.5

31 March 2024 3.3

Dividend cover

31 March 2025 100%

31 March 2024 100%

Capital growth for the underlying portfolio, including

joint ventures, was 3.4% over the financial year ended

31 March 2025.

£6.7 million of capital expenditure was invested in asset

management and redevelopment projects, including joint

ventures, that should drive capital growth and future rental

increases over the medium to longer term.

The disposal of Howard House in Bedford completed in

December 2024 for £1.475 million and reflected a 51% increase

on the 31 March 2024 independent valuation of £0.975 million.

After transaction costs of £30,000, the realised gain on

disposal was £470,000.

EPRA earnings for the financial year totalled £17.0 million,

or 3.5 pps, an increase of £700,000 or 4.3%, on the prior

financial year of £16.3 million. Active asset management led to

an increase in rent and other income compared to the prior

financial year.

There was a 4% increase in the dividend paid in the financial

year to £17.0 million from £16.4 million in the previous year.

Investment Manager’s report

Nick Montgomery

Fund Manager

8 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

UK market context

The UK economy continues its

fragile recovery, with future

trajectories of economic growth,

inflation, and interest rates,

now also dependent on tariff

negotiations between the US and

its trade partners.

There remains considerable

uncertainty relating to current

geopolitical events that have

triggered significant market

volatility. We continue to monitor

the situation and how this may

impact our investment activity.

Stagflationary risks remain for the UK economy. Whilst

inflation (CPI) declined to 2.6% for the year to March,

upcoming increases to the energy price cap, National

Insurance contributions, and minimum wage create upward

pressures. Economic growth was near zero in the second half

of calendar 2024 and whilst quarterly growth rebounded to

0.7% in Q1, this does not reflect the potential impact of tariffs.

Conditions in the manufacturing sector remain challenging,

with a sharp decline across output and new orders in March,

in contrast the services sector remains more positive. Retailers

have noted softer demand in recent months with consumer

sentiment remaining in negative territory. The household

savings rate reached 12% in Q4 2024, its highest on record

excluding the pandemic, indicating that despite lower inflation

and still reasonably robust (yet weakening) labour markets,

consumers are cautious over the outlook.

UK GDP growth forecasts have been revised down since the

start of the year with the consensus forecast for annual 2025

GDP growth at 0.8% in May versus 1.3% in December 2024.

The news of a US-UK trade deal could alleviate the potential

downside for economic growth.

In May the Bank of England implemented its fourth 25bps cut

to the base rate this cycle, bringing it to 4.25%. The market is

now expecting the base rate to end the year at 3.75%-4.0%,

lower than earlier in the year given increased uncertainty and

softening growth expectations. The five-year Sonia swap rate

has declined to 3.8% from the recent January peak of 4.6%.

This and the prospect of further interest rate cuts should be

supportive to real estate financing activities. Average UK real

estate values declined by 25% from the cycle high of June 2022

to the low of March 2024. This is a significant correction and

compares with a 44% average market decline during the 2007

to 2009 global financial crisis (GFC), and a 27% decline during

the recession of the early 1990s. It is also one of the largest

corrections globally. Since then, average valuations have slowly

recovered, increasing by 2.5% to March 2025, driven by yield

compression and modest rental growth.

In addition to rebased valuations, there is fundamental

support for continued rental growth given the lack of available

high quality ESG compliant space, and significant construction

cost inflation in the past four years, resulting in a constrained

pipeline of new development. Monetary policy could support

asset valuations, though the 10-year gilt yield remains elevated

at 4.6%.

Our proprietary market forecasts show average commercial

real estate total returns in 2025 and 2026 at 9-10% per annum,

and 8-9% per annum in 2027 and 2028, representing above

average returns. Downside risks to these forecasts have risen,

including the impact to businesses of higher costs and muted

growth. This could trigger rising delinquencies for weaker

businesses that are already exposed to wage and energy price

appreciation or lower consumer spending. Business spending

will also likely be subdued and businesses will likely defer

decision-making.

We continue to favour industrial estates and urban logistics

assets benefitting from e-commerce and urbanisation trends.

We believe that the current situation is likely to accelerate

nearshoring dynamics, even if tariffs might be short lived. This

form of supply chain re-organisation will create winners and

losers. Gateway locations and areas particularly dependent on

(US-)exports could see a short-term decline in demand.

The retail sector seems to have found a floor though the risk

to consumer confidence and margin pressure for retailers

means we continue to favour retail parks with a low exposure

to fashion that attract discount retailers, as well as convenience

formats including supermarkets. We also see potentially mis-

priced opportunities to execute upgrades and refurbishments

of well-located workspaces.

Bradley Biggins

Fund Manager

9 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Structural factors driving our strategic ambition

The built environment is responsible for 34% of energy-related

CO2 emissions according to the United Nations Environment

Programme (2025), and owners therefore have a responsibility

to take a lead on tackling contributions to climate change. As

most of today’s stock will likely still be required and in use in

2050, it is only by transforming less sustainable buildings into

modern, fit for purpose assets that the sector will reach Net

Zero Carbon, and asset obsolescence resulting from enhanced

regulations can be mitigated.

This strategic imperative, the Company’s active approach,

and Schroders’ specialist resources relating to sustainability

and positive impact investing more generally, created an

opportunity to formally place sustainability at the centre of the

Company’s investment proposition. This should enable the

Company to proactively respond to the UK’s Net Zero Carbon

objectives and enhance long term total returns by focusing

on decarbonisation strategies that adapt existing buildings

to achieve the ‘Green Premium’, which generally has two

components:

— Evolving regulations and obligations mean tenants are

demanding buildings that benefit from sustainability

attributes including being more energy efficient, having

enhanced natural resource management, promoting the

health and well-being of occupants, offer access to high-

quality green space and community facilities, as well as

being capable of withstanding extreme weather events.

As we are witnessing across the Company’s portfolio,

commercial occupiers will pay a higher rent for these

more sustainable buildings because it helps them to meet

their own sustainability targets, attract and retain staff,

and cut their energy bills.

— Investors are prepared to pay higher prices for buildings

that demonstrate some or all of these sustainability

attributes because they tend to let more quickly at higher

rents, suffer lower vacancy rates, require less capital

expenditure in the long term and are less at risk of

obsolesence due to more stringent future environmental

regulation.

Approach to capitalise on this opportunity

Effective 1 April 2024, the Company’s investment policy includes

specific sustainability key performance indicators (KPIs) linked

to the proportion of the portfolio where relevant activity is

ongoing, including asset level improvement targets based on

Schroders’ proprietary ESG Scorecard-based approach, as well

as progress delivering the Company’s ‘pathway to net zero’

commitments. Full details on the Company’s sustainability-

related objectives and Schroders Capital’s capabilities can

be found in the Company circular dated 21 November 2023,

published on the Company’s website: https://mybrand.

schroders.com/m/4f1e5329b0b2ec56/original/SREIT-Circular-

FINAL.pdf.

Strategy in action

The Company has successfully executed asset management

initiatives focused on improving the sustainability performance

of assets to generate higher income and capital growth.

This activity has been across all sectors and was a key driver

of portfolio outperformance in the financial year. Specific

examples are set out in the case studies on pages 18 to 28.

There is a significant near-term pipeline of opportunities to

implement the strategy, as we continue to capture the high

portfolio reversion.

Our strategy

10 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Progress delivering the investment strategy

The strategy is complemented by

the following imperatives, and

progress made during the year and

since year end, is set out below:

Apply a research-led approach to determine

attractive sectors and locations in which to invest in

commercial real estate

Increased allocation to higher growth sectors, with

industrial, predominately multi-let estates, and retail

warehousing now comprising 63.4% by value (2024: 61.5%)

because of capital expenditure in these assets and two

small office and retail disposals.

Increase exposure to larger, higher value, assets with

strong fundamentals and inherent opportunities for

active management and development

£6.7 million of capital expenditure invested during the year

including £1.6 million relating to the development of the

new Starbucks drive-thru developments at St John’s Retail

Park in Bedford and our retail park in Milton Keynes. Our

top 15 assets now represent 81.1% of total portfolio value

(2024: 80.5%).

Sell smaller, secondary assets with higher

sustainability performance risk

During the year we completed the sale of a small office

asset at a 51% premium to its value at the start of the year,

and post year end we sold a small retail asset at a 28%

premium, with further disposals in progress and planned.

Drive income and value growth through active

management and operational excellence.

Asset management delivered rental growth through the

year of 4.2%, ahead of the MSCI Benchmark of 3.6%, and

there are ongoing regear negotiations with major tenants in

return for sustainability related asset improvements.

Apply our integrated sustainability and ESG approach

at all stages of the investment process and asset life

cycle, targeting improvement in the sustainability

performance of assets to manufacture the green

premium for shareholders

The 2024 Global Real Estate Sustainability Benchmark

(‘GRESB’) score remained at 79 out of 100, placing SREIT

second amongst a GRESB defined peer group comprising

seven diversified REITs (2023: first of six).

15 assets now have an ESG scorecard completed by an

external consultant along with a sustainability audit or

net zero carbon audit (a further asset has an internally

completed ESG scorecard). These scores provide a

baseline against which the relevant sustainability KPI in the

investment policy can be measured and will inform future

works to improve sustainability performance with the aim of

increasing the score for each asset.

Three assets – Stanley Green Trading Estate, St Ann’s House

and Clifton Park – achieved an improved score as at the year

end relative to the baseline scores at 1 April 2024.

Control costs

Ongoing charges (including fund only expenses) of 1.25%

remain low.

Maintain a strong balance sheet with a long-term

strategic target loan to value, net of cash, within the

range of 25% to 35%

The Company has a peer group leading debt profile, with

a clear strategy to reduce the net LTV back to within the

strategic range from 36.9% at the year end.

11 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

The underlying portfolio

continues to deliver strong

relative outperformance, with

a positive total return for the

financial year of 9.1% compared

to 6.2% for the MSCI Benchmark

(the ‘Benchmark’). This relative

outperformance was partly due to

a stronger income return from the

portfolio of 5.6% compared to 4.8%

for the Benchmark.

Favourable sector weightings compared to the Benchmark

contributed positively to relative performance. In particular,

the Company’s overweight position to the retail and industrial

sectors, which comprises almost entirely retail parks and multi-

let industrial estates, was a key driver of outperformance. In

contrast, the office sector continued to face headwinds and

underperformed the overall Benchmark, albeit the Company’s

office portfolio outperformed the office segment of the

Benchmark.

Active asset management generated most of the

outperformance relative to the Benchmark. Capital

expenditure initiatives, with sustainability improvements

as a focus, to bring Lidl to Churchill Way West retail park in

Salisbury, the new Starbucks drive-thru developments at

St John’s Retail Park in Bedford and our retail park in Milton

Keynes, and leasing up the operationally net zero industrial

development at Stanley Green Trading Estate in Manchester,

meant these assets were key contributors to the portfolio

outperformance.

The tables show performance to 31 March 2025.

SREIT total return

Period to

31 March 2025

One year

(%)

Three years

(% p.a.)

Five years

(% p.a.)

Retail 14.4 3.5 4.4

Office 2.7 -3.2 0.7

Industrial 10.9 2.9 11.6

Other 3.4 2.4 5.0

All sectors 9.1 1.2 6.0

MSCI Benchmark total return

Period to

31 March 2025

One year

(%)

Three years

(% p.a.)

Five years

(% p.a.)

Retail 9.1 0.1 1.8

Office 1.5 -7.4 -3.4

Industrial 9.0 -3.5 7.6

Other 4.0 -1.0 1.3

All sectors 6.2 -3.2 2.1

Relative

Period to

31 March 2025

One year

(%)

Three years

(% p.a.)

5 years

(% p.a.)

Retail 4.8 3.5 2.6

Office 1.2 4.5 4.2

Industrial 1.7 6.7 3.7

Other -0.6 3.5 3.6

All sectors 2.8 4.6 3.9

Portfolio performance

12 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

As at 31 March 2025, the portfolio comprised 38 properties

valued at £480.0 million. This includes the share of joint

venture properties City Tower in Manchester (25% interest) and

the University of Law in Bloomsbury, London (50% interest).

The portfolio generated rental income of £28.9 million

per annum, reflecting a net initial yield of 5.6%.

Note the

University of Law, tenant at Store Street in Bloomsbury, is in a

10-month rent free period ending on 16 October 2025. Adding

back the Company’s share of its annual rent of £2,359,885

results in a net initial yield of 6.1%. This compared with the

Benchmark’s 5.1%.

The portfolio benefits from fixed contractual annualised

rental income uplifts of £4.1 million over the next 12 months.

The independent valuer’s estimated rental value (‘ERV’) of the

portfolio is £40.3 million per annum, reflecting a reversionary

income yield of 8.4%, which compares favourably with the

Benchmark at 6.2%.

The portfolio is overweight multi-let industrial estates where

we consider supply and demand dynamics to be favourable

given relatively limited development. This is evidenced by rent

reviews and lease renewals completed since the beginning of

the financial year, where rents were agreed 31% higher than

the previous level, and we expect continued rental growth

from our industrial portfolio.

In addition, there is an overweight position in retail

warehouses, where we have sustainable levels of rent and

limited exposure to fashion. This is the only part of the retail

sector which has seen a meaningful fall in vacancy since the

pandemic and is also a sector in which we expect continued

rental growth.

At the year end the portfolio void rate was 12.3%, which is

within the ten-year range of 5% to 13%. This is higher than

the Benchmark void rate of 8.7% due to asset improvement

strategies being pursued, which should drive future rental and

capital growth.

The portfolio weighted average lease length, calculated to

the earlier of lease expiry or break, is 5.3 years, reflecting

no change from the start of the financial year. This is lower

than the Benchmark of 11.5 years due to the active strategy

of the Company, whereas the Benchmark has long lease

portfolios included.

Approximately 12% of the portfolio by contracted rent is

inflation linked, typically structured as five yearly reviews to

either the Retail Price Index (‘RPI’) or the Consumer Price Index

(‘CPI’). In some cases, these inflation-linked leases can also

be reviewed to open market value, if higher, or include fixed

guaranteed increases. A further 8% of rent benefits from fixed

uplifts without an inflation link. The proportion of the portfolio

with inflation-linked leases should increase with ongoing asset

management activity.

The tables below summarise the portfolio information as at 31

March 2025. The property values and weightings represent the

year end valuations as determined by the independent valuers

as at 31 March 2025:

Portfolio information

Portfolio metric

SREIT

31 March 2025

(MSCI

Benchmark

31March

2025)

SREIT

31 March 2024

(MSCI

Benchmark

31 March

2024)

Portfolio value (£m) 480.0 459.3

Number of properties 38 39

Number of tenants 312 314

Average lot size (£m) 12.6 11.8

Net initial yield (%)

5.6

(5.1) 6.1 (5.2)

Reversionary yield (%) 8.4 (6.2) 8.4 (6.1)

Annual rent (£m) 28.9

29.8

Estimated rental value (£m) 40.3 38.8

Annual rent with inflation linked uplifts (%) 12 11

Annual rent with fixed uplifts (%) 8 14

WAULT (years to earliest of break or expiry) 5.3 (11.5) 5.3 (11.1)

Void rate (%) 12.3 (8.7) 10.9 (8.1)

1 Note the University of Law, tenant at Store Street in Bloomsbury, is in a 10-month rent free period ending on 16 October 2025. Adding back the Company’s share of its annual rent

of £2,359,885 results in annual rent of £31.2 million and a net initial yield of 6.1%.

Real estate portfolio

13 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Top 15 properties by value

4 5 6

2 3

87 9

10 11 12

13 14 15

Milton Keynes,

Stacey Bushes Industrial Estate

Sector Value

Portfolio value

Industrial £52.5m 10.9%

London, Store Street,

The University of Law Campus (50% share)

Sector Value

Portfolio value

Office//university £38.4m 8.0%

Chippenham,

Langley Park Industrial Estate

Sector Value

Portfolio value

Industrial £25.6m 5.3%

Telford,

Horton Park Industrial Estate

Sector Value

Portfolio value

Industrial £14.4m 3.0%

Edinburgh,

The Tun

Sector Value

Portfolio value

Office £11.5m 2.4%

Leeds,

Millshaw Park Industrial Estate

Sector Value

Portfolio value

Industrial £48.6m 10.1%

Bedford,

St. John’s Retail Park

Sector Value

Portfolio value

Retail warehouse £33.7m 7.0%

Norwich,

Union Park Industrial Estate

Sector Value

Portfolio value

Industrial £24.2m 5.0%

Birkenhead,

Valley Park Industrial Estate

Sector Value

Portfolio value

Industrial £13.1m 2.7%

Salisbury,

Churchill Way West

Sector Value

Portfolio value

Retail warehouse £10.8m 2.3%

Cheadle, Manchester,

Stanley Green Trading Estate

Sector Value

Portfolio value

Industrial £43.3m 9.0%

Manchester,

City Tower (25% share)

Sector Value

Portfolio value

Office/hotel/retail £28.3m 5.9%

Leeds,

Headingley Central

Sector Value

Portfolio value

Hotel/retail £21.7m 4.5%

Manchester,

St Ann’s House

Sector Value

Portfolio value

Office/retail £12.2m 2.5%

Milton Keynes,

Watling Street

Sector Value

Portfolio value

Retail warehouse £10.8m 2.3%

1 As per third party valuation reports unadjusted for IFRS lease incentive amounts. Percentages do not add to 81.1% due to rounding.

14 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Sector weighting by value as at 31March 2025

SREIT

MSCI

Benchmark

South East 10.9% 20.7%

Rest of UK 39.8% 11.9%

Industrial 50.7% 32.6%

City - 3.5%

Mid-town and West End 8.0% 7.3%

Rest of South East 3.4% 5.2%

Rest of UK 12.0% 6.2%

Offices 23.4% 22.2%

Retail warehouse 12.7% 9.8%

South East - 7.0%

Rest of UK 7.5% 2.6%

Standard retail 7.5% 9.6%

Standard retail by ancillary/single use

- Retail ancillary to main use 4.8% -

- Retail single use 2.7% -

Other 5.7% 20.3%

Shopping centres - 2.0%

Unattributed indirects - 3.5%

Capital growth for the year ended 31 March 2025

SREIT

MSCI

Benchmark

Industrial 5.2% 4.3%

Offices -2.7% -2.4%

Retail warehouse 12.6% 5.2%

Standard retail 0.8% 1.5%

Other -3.1% -1.1%

Regional weighting by value as at 31 March 2025

SREIT

MSCI

Benchmark

Central London 8.0% 17.2%

South East excluding Central London 16.6% 36.3%

Rest of South 11.4% 6.6%

Midlands and Wales 21.5% 22.6%

North 40.1% 13.1%

Scotland 2.4% 4.0%

Northern Ireland - 0.2%

Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Tenants

Rental income is diverse and comprised 312 tenants as at

31 March 2025, including the tenants of properties held by joint

ventures. The largest and top 15 tenants represent 4.98% and

31.94% of the portfolio respectively, calculated as a percentage

of annual rent, and there are only three tenants that represent

more than 3% of annual rent.

Top 15 tenants by annual rent as at 31 March 2025

Annual rent

(£ million)

% of total

annual rent

Siemens 1.44 4.98

Buckinghamshire New University 1.30 4.50

Express Bi Folding Doors Limited 0.90 3.11

Jupiter Hotels Limited 0.65 2.25

Public Sector Income 0.60 2.08

Matalan Retail Ltd 0.57 1.97

Premier Inn Hotels Ltd 0.47 1.63

IXYS UK Westcode Ltd 0.47 1.63

Trioworld UK Ltd 0.46 1.59

Lidl Great Britain Limited 0,.43 1.49

Jaguar Land Rover 0.41 1.42

Wickes Building Supplies Ltd 0.40 1.38

Balfour Beatty Group Limited 0.39 1.35

The Gym Limited 0.37 1.28

Cine-UK Limited 0.37 1.28

Total as at 31 March 2025 9.23 31.94

Rent collection

The diversification and granularity of the underlying rental

income, and a high level of occupier engagement, has

supported rent collection rates with 97.5% of the contracted

rents collected for the year ended 31 March 2025. The

breakdown between sectors is 98.1% of office rent collected,

99.3% of other rent collected, 96.9% of retail and leisure rent

collected and 97.1% of industrial rent collected.

Rent receivable totalled £2.4 million, net of VAT, at the year

end, of which £330,000 is provided against as a bad debt. This

reflects further progress collecting historical arrears during

the financial year and compares to £2.3 million and £360,000

respectively as at 31 March 2024.

1 Note the University of Law, tenant at Store Street in Bloomsbury, is in a 10-month rent free period ending on 16 October 2025. Adding back the Company’s share of its annual rent

of £2,359,885 would mean this is the Company’s largest tenant.

16 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

The Company continues to

progress disposals of smaller

assets on the completion of asset

management, proceeds will initially

be used to repay the unhedged

element of the Company’s

revolving credit facility which

incurred an interest rate of 6.1%

at the year end. This is part of the

strategy to reduce the Company’s

net loan to value to within the

long-term strategic target range

of25% to 35%.

Bedford, Howard House (Office)

On 20 December 2024, the £1,475,000 sale of Howard House,

an 11,603 sq ft multi-let office asset in Bedford, completed.

The price was 51% ahead of the 31 March 2024 independent

valuation.

Truro, 15/16 King Street (Retail)

On 12 May 2025, the £1.25 million sale of 15/16 King Street, a

Grade II listed freehold asset comprising two ground floor

retail units in Truro, completed. The price was 28% ahead of

the 31 March 2024 independent valuation of £0.975 million.

This follows the lettings of the ground floor retail units, with

the price reflecting a net initial yield of 8.0%.

Further small disposals are being progressed on completion of

asset management initiatives.

Transactions

17 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Transactions

Active asset management

Set out overleaf are examples of

ongoing active asset management

initiatives that should support

continued outperformance of the

underlying portfolio from both

a financial and sustainability

perspective.

Operational highlights since 1 April 2024

New lettings, renewals and rent reviews

870,000 sq ft

Across 870,000 sq ft

£8.0m

Totalling £8.0 million in annualised rental income

New lettings

Across 25 units

£2.5m

Totalling £2.5 million of rent

Lease renewals

38 lease renewals

£3.3m

Totalling £3.3 million of rent

14%

£395,000 or 14% ahead of the previous passing level

£225,000 or 8% ahead of 31 March 2025 ERV

Rent reviews

13 rent reviews

£2.2m

Totalling £2.2 million of rent

26%

£450,000 or 26% ahead of the previous passing level

18 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Stanley Green Trading Estate

19 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Location Cheadle, Manchester

Purpose Industrial

Valuation (£m) 43.3

Square footage 228,720

Asset overview and performance

Stanley Green Trading Estate in Cheadle, Manchester was

acquired in December 2020 for £17.3 million. At acquisition the

asset comprised 150,000 sq ft of trade counter, self-storage

and warehouse accommodation across 14 units on a nine-

acre site, together with an adjoining 3.4-acre development

site. SREIT subsequently completed a new, 11-unit, warehouse

scheme on the development site at a cost of £9.0 million. The

asset now comprises 228,720 sq ft of trade counter, self-

storage and warehouse accommodation across 25 units.

As at 31 March 2025 the valuation was £43.3 million, reflecting a

reversionary yield, assuming the new development is fully let, of

6.0%. The asset has been a strong performer since acquisition,

generating a total return of 16.7% per annum to 31 March 2025

compared to the MSCI All Industrial over the same period of

8.2% per annum. Over the 12-month period to 31 March 2025,

the asset delivered a total return of 10.6% which compared with

the MSCI All Industrial over the same period of 9.0%.

Key activity

— The speculative development of 11 warehouse and trade

units completed in May 2023. The new units achieved an

‘A+’ EPC rating and BREEAM New Construction Excellent

accreditation. The specification includes a photovoltaic

system that we expect to generate more than 250 MWh of

energy per annum, 24 electric vehicle charging points and

an 800kVA substation to support the on-site renewables in

powering the fully electric site.

— Ten units, or 81% of the 11-unit development by estimated

rental value, are now let. A 4,000 sq ft unit on the existing

estate with EPC ‘C’ was let at £14.00 per sq ft, whereas

the comparable operationally Net Zero Carbon units

with EPC ‘A+‘ have been let at around £19.50 per sq ft,

reflecting a 39% premium. In addition, the Company’s

independent valuer has applied a 5.20% yield to the

occupied operationally Net Zero Carbon units compared to

6.25% to 6.75% for the pre-existing asset. We believe these

outcomes are largely driven by the superior sustainability

credentials of the new units which serve as a proof of

concept of the enhanced strategy adopted by the Company.

— Phased refurbishment of the pre-existing 150,000

sq ft of trade counter, self-storage and warehouse

accommodation has now commenced to enhance the

aesthetic and sustainability credentials of the units. Works

on five units, or 38,500 sq ft, are currently underway at an

estimated cost of £1.1 million, of which £0.7 million had

been spent at the year-end. This work is progressing with

tenants in situ. The aim is to attract and retain high quality

tenants and increase the rental tone to more closely align

with the rents achieved on the new estate. For example,

a 10-year lease renewal has completed to Screwfix Direct

Limited who occupy one of the five units at a rent of

£108,083 per annum or £14.50 per sq ft which reflects an

increase of 54% on the current passing level and is in line

with the 31 March 2025 ERV.

Stanley Green Trading Estate

Strategy looking forward

The objective is for the final unit on the new development

to be let during 2025, targeting a rent of £15.25 per sq ft

or total rent of £248,179 per annum for the 16,274 sq ft

unit, reflecting the enhanced specification.

Increase the rental tone of the pre-existing 150,000 sq ft

estate to more closely align with the rents achieved on the

new estate by executing regears linked to refurbishments

that enhance the aesthetic and sustainability credentials of

the units.

Find out more on our website

schroders.com/schroder-real-estate-investment-trust

20 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Stacey Bushes Industrial Estate

21 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Location Milton Keynes

Purpose Industrial

Valuation (£m) 52.5

Square footage 347,926

Asset overview and performance

Stacey Bushes Industrial Estate in Milton Keynes was acquired

in two parts in 2014 for £14.3 million, with an additional six

units developed in 2020 at a cost of £2.4 million. As noted

below, a further new industrial unit, replacing an older unit, was

developed at a cost of £3.0 million. The asset now comprises

67 industrial units across 347,926 sq ft.

As at 31 March 2025, the asset was valued at £52.5 million,

reflecting a net initial yield of 4.5% and a reversionary yield of

6.6%. The asset has been a strong performer since acquisition,

generating a total return of 16.2% per annum to 31 March

2025 compared to the MSCI All Industrial over the same period

of 10.8%. Over the 12-month period to 31 March 2025, the

asset delivered a total return of 6.3% which compared with the

MSCI All Industrial over the same period of 9.0%.

Key activity

— Since the year end a new 10-year lease has completed

on the recently developed, BREEAM ‘Excellent’ and EPC

‘A+’ rated warehouse unit to Chinese electric vehicle

manufacturer BYD (UK) Co., Limited, at a rent of £255,655

per annum or £14.79 per sq ft. This rent is in line with

31 March 2025 ERV, 40% ahead of the average estate

ERV and sets a new headline for units of this size on the

estate, further demonstrating the benefits of enhanced

sustainability specification to drive rental growth. There

is an upward only rent review at the fifth anniversary

to the higher of either open market rental value or CPI

compounded annually with a cap and collar at 4% and

2% respectively, and a tenant break option at the seventh

anniversary.

— A new 10-year lease without breaks has completed on

19 Heathfield Road to My Warehouse Ltd at a rent of

£156,551 per annum or £9.50 per sq ft. This rent is in line

with 31 March 2025 ERV. There is an upward only rent

review at the fifth anniversary to the higher of either open

market rental value or CPI compounded annually with a

cap and collar at 5% and 3% respectively.

— A new 10-year lease has completed on 25 Erica Road to

Europcar Group UK Limited at a rent of £130,270 per

annum or £14.91 per sq ft. This rent is in line with 31

March 2025 ERV. There is an upward only rent review at

the fifth anniversary to open market rental value, and a

tenant break option the previous day.

Strategy looking forward

Undertake profitable, rolling refurbishments of units to

enhance their aesthetic and sustainability credentials.

At the date of this report there are five vacant units

representing an ERV of £158,000 per annum. These are

under refurbishment to be let at a higher rental tone,

benefitting from the evidence set in the transactions

described above.

Seek to acquire adjoining ownerships to increase the

size of the estate, benefit further from scale, and unlock

valuation synergies.

Find out more on our website

schroders.com/schroder-real-estate-investment-trust

Stacey Bushes Industrial Estate

22 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Millshaw Park Industrial Estate

23 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Location Leeds

Purpose Industrial

Valuation (£m) 48.6

Square footage 459,743

Asset overview and performance

Millshaw Park Industrial Estate in Leeds was acquired in July

2015 for £22.7 million. The 459,743 sq ft multi-let industrial

estate comprises 27 units and is strategically located south

of Leeds city centre close to the M62 and M621 motorways.

It covers 28.3 acres and has significant frontage to the A6110

ring road. The estate is one of the largest, single-owned

industrial estate in Leeds with a range of unit sizes from 2,000

to 60,000 sq ft and a low site cover of 37%.

As at 31 March 2025, the asset was valued at £48.6 million,

reflecting a net initial yield of 5.5% and a reversionary yield of

7.0%. The asset has been a strong performer since acquisition,

generating a total return of 12.3% per annum to 31 March

2025 compared to the MSCI All Industrial over the same period

of 9.8%. Over the 12-month period to 31 March 2025, the asset

delivered a total return of 14.0% which compared with the

MSCI All Industrial over the same period of 9.0%.

Key activity

— Rent reviews on four units covering 182,000 sq ft have

completed increasing the aggregate rent for these units

by 32% to £1.13 million per annum.

— A new five-year reversionary lease has completed on the

largest unit on the estate, Unit 10, to Alliance Healthcare

(Distribution) Limited commencing on 1 October 2025 at

a rent of £385,776 per annum or £6.75 per sq ft. This rent

is 42% ahead of the current passing level and in line with

31 March 2025 ERV. There is a tenant break option on

24 March 2028 and if this is not exercised the tenant will

benefit from a three-month rent-free period.

— The above and three other leasing transactions since the

start of the financial year have contributed to ERV growth

of 13.2% through the year. This compares favourably to

the MSCI Benchmark industrial average of 5.5%.

Strategy looking forward

The wider Leeds industrial market has maintained a low

vacancy rate which is currently 2.7%, this is significantly

below the national average of 5.1%. This lack of supply will

support continued rental growth as we execute regears

across the estate.

Implement our strategy of improving the sustainability

credentials of units to achieve enhanced rents and capital

values, which we have achieved successfully at Stanley

Green Trading Estate and Stacey Bushes Industrial Estate.

Find out more on our website

schroders.com/schroder-real-estate-investment-trust

Millshaw Park Industrial Estate

24 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

City Tower

25 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Location Manchester

Purpose Mixed-use

Valuation (£m) 28.3

Square footage 615,146

Asset overview and performance

City Tower comprises 615,146 sq ft of office, retail, leisure and

hotel accommodation located on a three-acre island site in a

core location. SREIT owns a 25% share of City Tower in a simple

co-ownership structure.

As at 31 March 2025, the Company’s 25% interest in the asset

was valued at £28.3 million, reflecting a net initial yield of 4.2%

and a reversionary yield of 10.0%. Over the 12-month period to

31 March 2025, the asset delivered a total return of 1.4% which

compared with the MSCI All Offices over the same period

of 1.5%.

Key activity (statistics below reflect 100% share)

— A new 10-year lease has exchanged on the 8,241 sq ft

14th floor to EC English Manchester Limited at a rent of

£164,520 per annum or £20.00 per sq ft. This rent is in

line with 31 March 2025 ERV. The tenant will benefit from

a landlord capital contribution of £0.1 million and seven

months of rent-free. There is a tenant break option on the

fifth anniversary, and if the option is not exercised there

is a fixed rental uplift to £197,424 per annum, or £24.00

per sq ft, and a further 11 months of rent free. Lease

completion is subject to planning which is ongoing.

— The 46,350 sq ft Podium B office space was vacated by the

previous tenant in December 2024 and we have agreed

terms with LCA Education Ltd for a 15-year lease without

breaks. They will run university education from the space

on behalf of The University of Greater Manchester. The

initial rent will be £1.18 million per annum, or £25.50 per

sq ft, which is 21% ahead of the previous passing level and

16% ahead of the 31 March 2025 ERV.

— A rent review completed with Lidl Great Britain Limited

increasing the rent by 14% to £368,880 per annum which

is 13% ahead of the 31 March 2025 ERV.

Strategy looking forward

The hotel and car park components are let on long

term leases with inflation linked uplifts, and the retail

component is fully occupied. Of the office space, the two

Podiums and 2 New York Street represent 123,000 sq ft

of 351,000 sq ft of total office space, with the remainder

in the tower. Therefore, the focus is to increase the net

operating income generated by the office tower.

The strategy to achieve that is to attract tenants by

improving amenity through adding a new business

lounge on the 16th floor following the success of the sky

lounge on the 28th floor, which will also be refurbished.

In addition, a managed workspace offering will be

implemented across two of the floors to build on the

success of the Elevate scheme and create an ecosystem

in the building whereby small businesses upgrade from a

turnkey solution to a traditional lease on a full floor.

Find out more on our website

schroders.com/schroder-real-estate-investment-trust

City Tower

26 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Headingley Central

27 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

Location Leeds

Purpose Hotel/Retail

Valuation (£m) 21.7

Square footage 104,350

Asset overview and performance

Mixed-use 104,350 sq ft prominently located town centre

scheme anchored by core convenience retail and leisure

operators including Premier Inn Hotels, Sainsbury’s and The

Gym Group. Previous asset management has resulted in a long

weighted average unexpired lease term to earliest break of

9.6 years.

As at 31 March 2025, the asset was valued at £21.7 million,

reflecting a net initial yield of 6.2% and a reversionary yield of

8.1%. Over the 12-month period to 31 March 2025, the asset

delivered a total return of 9.7% which compared with the MSCI

All Retail over the same period of 9.1%.

Key activity

— As part of our strategy to enhance the sustainability

performance of our assets to drive higher income growth,

an agreement for lease with a 20-year straight term has

exchanged with Iduna EVCI Asset Co 1 Limited (‘Be.EV’), at

a rent of £73,200 per annum. Be.EV, part of the Octopus

Energy Generation Group, will rent 11 electric vehicle

charge points at the scheme. Be.EV will pay all planning

costs and the cost of installation of the substation, cabling,

charging points and other infrastructure.

— An agreement for lease with a 25-year term has

exchanged on Unit 24 with McDonalds at a rent of

£75,000 per annum, subject to planning and including a

break clause 15 years into the term. On a per sq ft basis

this is an increase of 28% compared to the previous

passing rent. This unit is half of the former Wilkinsons

which occupied Units 22-24, and the other half (Unit 22)

is in advanced negotiations with another national grocery

retailer.

Strategy looking forward

Following the success in previous years of converting

office space at the scheme to a Premier Inn and space for

The Gym, there is an opportunity to relet the final 12,524

sq ft of former office space for alternative, complementary

use to the overall scheme.

Implement sustainability initiatives including installing

photovoltaic panels, enhancement of green space, and

water recycling to improve the sustainability performance

of the asset.

Find out more on our website

schroders.com/schroder-real-estate-investment-trust

Headingley Central

28 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

88% of total drawn debt was either

fixed or hedged against movements

in interest rates

Average drawn debt term

Years

8.5

Average interest rate for

drawn debt

% 3.5

As at 31 March 2025, the average interest rate for drawn debt

was 3.5%, with an average term of 8.5 years, and 88% of total

drawn debt was either fixed or hedged against movements in

interest rates. As at 31 March 2025, the Company had cash,

including cash held in joint ventures, of £3.9 million and a net

loan to value (‘LTV’) ratio of 36.9%, which is slightly above the

long-term strategic target range of 25% to 35%. Details of the

loans are set out below, together with cover against covenants.

Canada Life term loan

The debt refinancing with Canada Life in 2019 provides a

significant benefit in a higher interest rate environment.

This long-term loan, which represented £129.6 million of the

£181.1 million total borrowings at the year end, has an average

loan maturity of 11.0 years, with a fixed average interest rate

of 2.5%. At the year end, the incremental positive fair value

benefit of this fixed rate loan was £18.5 million, which is not

reflected in the Company’s NAV.

Lender

Loan

(£m)

Maturity

Total

interest

rate (%)

Asset

value

(£m)

Cash (£m)

LTV ratio

(%)

LTV ratio

covenant

(%)

ICR (%)

ICR

covenant

(%)

Projected

ICR (%)

Projected

ICR

covenant

(%)

Facility A 64.8 15/10/2032 2.4

Facility B 64.8 15/10/2039 2.6

Canada Life Term

Loan

129.6

Average loan

maturity of 11.0

years

2.5

275.5

0.2

47.0

510

185

484

185

— Net LTV on the secured assets against this loan is 47.0%. On this basis the properties charged to Canada Life could fall in value

by 28% prior to the 65% LTV covenant being breached;

— The interest cover ratio is 510% based on actual net rents for the quarter to 31 March 2025. A 64% fall in net income could be

sustained prior to the loan covenant of 185% being breached;

— The projected interest cover ratio is 484% based on projected net rents for the year ending 31 March 2026. A 62% fall in net

income could be sustained prior to the loan covenant of 185% being breached; and

— After utilising available cash and uncharged properties, the valuation and actual net rents could fall by 39% and 68%

respectively prior to either the LTV or interest cover ratio covenants being breached.

RBSI revolving credit facility (‘RCF’)

The balance of borrowings at the year-end totalling £51.5 million comprised a revolving credit facility (‘RCF’) from RBSI. This facility

totals £75 million and can be drawn and repaid at any time up to maturity in June 2027.

Lender

Loan/

amount

drawn (£m)

Maturity

Total

interest

rate (%)

Asset

value

(£m)

LTV ratio

(%)

LTV ratio

covenant

(%)

Projected

ICR

(%)

Projected

ICR

covenant

(%)

RBSI RCF 75.0/51.5 06/06/2027 6.0 165.0 31.2 65 255 200

— The RCF benefits from an interest rate ‘collar’ which applies to £30.5 million of the £47.0 million now drawn. The collar runs to

the end of the RCF term and allows the Company to benefit from future falls in interest rates down to a 3.25% floor, whilst at

the same time protecting the Company from rate increases above 4.25%.

— Net LTV on the secured assets against this loan is 31.2%. On this basis the properties charged to RBSI could fall in value by

52% prior to the 65% LTV covenant being breached;

— The projected interest cover ratio is 255% based on projected net rents for the year ending 31 March 2026. A 22% fall in net

income could be sustained prior to the loan covenant of 200% being breached; and

— After utilising available cash and uncharged properties, the valuation and actual net rents could fall by 64% and 40%

respectively prior to either the LTV or projected interest cover ratio covenants being breached.

Balance sheet

29 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Investment Manager’s report continued

— The RCF is a ‘Sustainability Linked Loan’, with performance

measured against KPIs, with each KPI having the potential

to either reduce the margin by 1.65 basis points, increase

it by 1.65 basis points or have no impact.

— The KPIs are set out below, for the year ended 31 March

2025 we achieved a reduction in the margin of 1.65 basis

points as we reduced landlord energy consumption

sufficiently, held the GRESB rating at 3 stars, and did not

complete any new developments or major renovations.

— Change in landlord energy consumption

(year on year)

– A reduction by 5% or more: reduce the margin

– No change or a reduction below 5%: no change

– An increase: increase the margin

— GRESB rating

– 4 stars or above: reduce the margin

– 3 stars: no change

– 2 stars or below: increase the margin

— Development or refurbishment projects that

improve EPC or BREEAM rating to a minimum of EPC

B or BREEAM Very Good

– If all new developments or major renovations of the

properties meet the requirement: reduce the margin

– If no property has been refurbished or developed: no

change

– If one or more new developments or major

renovations of the properties carried out during the

term of the facility does not meet the requirement:

increase the margin

– A major refurbishment is defined as one that covers

more than 50% of the floor area of an asset, this is in

line with the GRESB definition

1 Fixed total interest rate for the loan term.

2 Loan balance less the amounts standing to the credit of the Sales Proceed Account and Remedy Account divided by the property values as at 31 March 2025.

3 This covenant is calculated by dividing the rental income received for the quarter preceding the Interest Payment Date (‘IPD’), less void rates, void service charge and void insurance,

by the interest paid in the same quarter.

4 This covenant is calculated by dividing the forecast contracted rent for the four quarters following the year end, less forecast void rates, void service charge and void insurance, by

forecast interest paid.

5 Facility drawn as at 31 March 2025 from a total available facility of £75.0 million.

6 Total interest rate as at 31 March 2025 comprising applicable SONIA rate of 5.19% and the margin of 1.65% at a LTV below 60%. Should the LTV be above 60%, the margin increases

to 1.95%.

7 LTV ratio covenant of 65% for years one to three, from post commencement on 6 June 2022, then 60% for years four and five.

Outlook

Following a significant correction, real estate values have gradually recovered over the past year supported by looser

monetary policy and rental growth. However, uncertainty persists regarding global trade relations, ongoing conflicts,

Government finances, and their potential impact on labour markets, economic growth and inflation, and this is

reflected in low transaction volumes since the start of the year.

More positively, we expect continued rental growth as construction cost inflation has constrained new development

in a market lacking high quality ESG compliant space, with structurally supported sectors continuing to benefit from

strong occupier demand. This, combined with the potential for further interest rate cuts, should support capital value

growth.

The Company is well placed to benefit in this environment due to our exposure to higher growth sectors, low-cost

long-term debt, and significant potential to drive earnings growth from active management and a higher reversionary

income profile compared with peers.

Finally, alongside these nearer-term factors, our strategy continues to reflect the impact of longer-term structural

trends such as urbanisation, technological change, demographics and, arguably most critical for the real estate sector,

sustainability. We therefore have conviction that our strategic evolution to place sustainability at the centre of our

investment proposition should enhance our long-term total returns.

Nick Montgomery and Bradley Biggins

Schroders Capital

10 June 2025

30 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report

Sustainability report

Good progress has been made

delivering on sustainability

ambitions, with key achievements

during the financial year

summarised below:

Annual reduction in landlord operational energy

consumption and associated scope 1 and 2 greenhouse

gas (‘GHG’) emissions on a like-for-like basis

Annual reduction in landlord operational energy

consumption

Reduction in associated operational scope 1 and 2 GHG

emissions

(CY24 vs CY23)

EPRA sBPR Awards for Sustainability Reporting

Gold

Gold Award for the seventh year running

Increasing no. assets with on-site renewables

Assets with on site renewables (31 Dec 23: 6 assets)

Improve Global Real Estate Sustainability Benchmark

(‘GRESB’) rating

Maintained 3 star rating: 79 score against backdrop of

scoring changes (2024: 3 star rating and 79 score)

2nd

2nd in peer group out of 7 (2024: 1st out of 6)

Maintained ‘A’ rating in GRESB Public Disclosure

Maintain 100% MEES

compliance and improve

proportion of assets with EPC ratings B or above (floor

area)

100%

MEES compliance

(FY24: 100%)

99%

EPC coverage

(FY24: 99%)

24%

EPCs rated B or above

(FY24: 21%)

59%

EPCs rated C or above

(FY24: 60%)

Notes:

All data is reported at 31 March 2025 unless otherwise stated.

1 The EPRA Sustainability Best Practices Recommendations (sBPR) are intended to raise the standards and consistency of sustainability reporting for listed real estate

companies across Europe. As with the EPRA financial BPR Awards, each year EPRA recognises companies which have issued the best-in-class annual sustainability

performance report. Based on adherence to the EPRA sBPR in their public disclosure, companies are identified for Gold, Silver or Bronze Awards.

2 The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 establish a minimum level of energy efficiency for rented property in England

and Wales.

3 The remaining footprint without EPCs relates to assets where improvement works have been scheduled and EPCs will be procured on completion of these works.

Please note that the Company remains compliant with MEES regulations

31 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report

32 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Sustainability report continued

Strategic evolution and changes to the investment

objective and policy

At the EGM on 15 December 2023, shareholders voted to

formally include sustainability at the centre of the Company’s

investment proposition, with a sustainability improvement

and decarbonisation strategy focused on adapting existing

buildings into those that are both modern and fit for purpose,

thereby taking a proactive position in response to the UK’s Net

Zero Carbon objectives whilst optimising portfolio performance

to seek enhanced total returns for shareholders.

Progress against the new objective will be demonstrated

annually by review of performance in pursuit of the two

sustainability-related KPIs. This took place in May 2025 in

respect of the year ending 31 March 2025 and comprised a

review by the Management Engagement Committee. The

Manager also obtained independent reperformance of the

performance of two assets by EY via an ISRS 4400 (Revised)

‘Agreed Upon Procedures’ (AUP) engagement. The AUP

engagement agreed the following:

— An ESG scorecard was performed for the asset.

— The latest date the ESG scorecard was reviewed.

— The questions in the ESG scorecard for the current score

against underlying support.

— The Amber and Red flags for the current score against

underlying support.

— The current score per question were consistent with the

rating scale.

— Re-calculating the final current score assigned using the

methodology per the Schroders Capital – Direct Real

Estate ESG Scorecard.

The EY AUP report can be found on the Company’s website.

Sustainability KPI 1

ESG Scorecard (asset level)

The Company’s assets will be managed with a view to ensuring

that at any given time during the Company’s ownership, at least

75% of the portfolio assets by value are being managed with a

realistic and achievable plan to reach a score of at least 3 (out of

a possible total score of 5), as measured on the ESG scorecard.

For those 75% of the Company’s assets (by value), in each case

where leases permit prompt commencement of works to

improve their sustainability profile, the aim will be to take the

asset to an improved score of at least 3 (out of a possible total

score of 5) within five years from: (i) 1 April 2024 or, if later: (ii)

the date it was acquired by the Company.

Sustainability KPI 2

Net Zero Carbon commitments (portfolio level)

Further, the Company’s assets will also continue to be

managed in line with the Company’s existing ‘pathway to net

zero’ commitments, which in summary include seeking to

attain the following:

— Operational whole buildings emissions to be aligned to a

1.5°C global warming pathway by 2030.

— Embodied emissions for all new developments and major

renovations to be net zero by 2030.

— Operational scope 1 and 2 (landlord) emissions (as defined

in the Greenhouse Gas Protocol) to be net zero by 2030.

— Operational and embodied whole building (scope 1, 2 and

3 (landlord and tenant)) emissions to be net zero by 2040.

Performance against objectives from the start of the

financial year

Sustainability KPI 1 - ESG Scorecard

At 31 March 2025, 80% of assets by value in the portfolio are

being managed using the ESG Scorecard which measures

sustainability performance against a holistic range of pre-

defined real estate sustainability criteria. These fall within the

following four pillars:

Environmental

Social

Certification and ratings

Tenant profile

Within each of these pillars, there are sub-topics against

which each asset will be assessed. For each of these sub-

topics, the Manager assigns a rating from 1 (low – significant

improvements needed) to 5 (high – best in class or best

industry practice). Many of the sub-topics are assessed on

a quantitative basis, with some assessed on a qualitative

basis. The justification provided against each rating will also

indicate the timeline for expected improvements, and the

determination of a target score. Each sub-topic is weighted to

enable a weighted average asset level current and target score

– between 1 and 5 – to be calculated.

To date, 16 assets have been assessed and all present the

potential for their scores to be improved beyond the minimum

3 out of 5 set in the investment objective. Improvement plans

have been set in the context of each asset’s business plans.

At 31 March 2025, three assets – Stanley Green Trading Estate,

Manchester, St Ann’s House, Manchester and Clifton Park, York

– all demonstrated an improved score relative to the baseline

33 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Sustainability report continued

scores at 1 April 2024. Score improvements were achieved

through active asset management activities including heating

system and lighting upgrades, improved Energy Performance

Certificate (EPC) ratings, and the installation of on-site solar

photovoltaic (PV) panels.

The Manager believes that measuring assets against its own

proprietary scorecard in this manner will support consistent

standardised portfolio-wide monitoring and enable it to define

ambitious yet achievable asset-specific targets, ultimately

helping to demonstrate the Company’s ability to deliver the

targeted positive change over time.

Table 1: Asset-level ESG Scorecard baseline performance, performance at 31 March 2025 and potential target

score (scores out of 5) for 16 Company assets representing 80% of the property portfolio by Gross Property

Value

Asset

ESG scorecard score

at 1 April 2024*

ESG scorecard score

at 31 March 2025

Target ESG scorecard score*

Stacey Bushes Industrial Estate, Milton Keynes 2.2 2.2 4.0

Millshaw Park Industrial Estate, Leeds 2.6 2.6 4.1

Stanley Green Trading Estate, Manchester 2.4 3.0** 4.2

The University of Law, Store St, London (50%) 2.6 2.6 4.5

St John’s Retail Park, Bedford 2.7 2.7 4.2

City Tower, Manchester (25%) 2.8 2.8 4.1

Langley Park Way, Chippenham

2.8 2.8

4.2

Union Park Industrial Estate, Norwich

2.6 2.6 4.1

Headingley Central, Leeds 2.6 2.6 4.3

Horton Park Industrial Estate, Telford 2.3 2.3 3.9

St Ann’s House, Manchester 2.2 2.5 3.2

The Tun, Edinburgh 2.9 2.9 4.3

The Galaxy, Luton 2.5 2.5 4.2

Churchill Way West, Salisbury 2.4 2.4 3.6

The Promenade, Cheltenham 2.6 2.6 3.9

Clifton Park, York 2.5 2.8 3.9

Total portfolio 80% of portfolio assessed by Gross Property Value

* Where new information has been made available resulting in changes to previously communicated baseline scores or target score, the scores have been updated.

** The ESG Scorecard Score at 31 March 2025 for Stanley Green is the weighted average (by capital value) result of the two separated scorecards for Phase 1 and Phase 2.

*** Highlighted rows indicate where an asset score has improved through the year.

Sustainability KPI 2 – Net Zero Carbon commitments

The built environment is responsible for 34% of energy-

related CO2 emissions,

globally, and directly accounts for

25% of emissions in the United Kingdom.

In April 2022 the

Intergovernmental Panel on Climate Change (‘IPCC’) identified

that global carbon emissions must peak by 2025 at the very

latest to effectively limit global temperature rise to 1.5

C, in line

with the Paris Agreement.

The Board and Manager recognise

that the Company has a responsibility to embark on a journey

to Net Zero Carbon (‘NZC’)

and that an active approach to

understanding and managing climate risks and opportunities

is fundamental to delivering resilient investment returns and

supporting the transition to a low carbon society.

In 2019 the Manager signed the Better Building Partnership’s

(‘BBP’) Climate Commitment

and has a net zero ambition

aligned to the Paris Agreement which aim to limit warming to

1.5°C.

The Manager’s commitment was further underlined by the

Company which in 2022 announced its ‘Pathway to Net Zero

Carbon’ as set out on page 32.

As communicated in last year’s annual report and consolidated

financial statements for the Company, in early 2024 the

Manager undertook a comprehensive re-baselining of the

operational energy and associated greenhouse gas (GHG)

emissions of the Company. Utilising 2023 calendar year data,

decarbonisation pathways for all of the Company’s direct real

estate assets were developed using the industry adopted

1 United Nations Environment Programme (2025). Global Status Report for Buildings and Construction 2024/2025: Not just another brick in the wall - The solutions exist. Scaling them

will build on progress and cut emissions fast. Paris. https://wedocs.unep.org/20.500.11822/47214

2 United Kingdom Green Building Council (2024). Climate Change Mitigation. https://ukgbc.org/our-work/climate-change-mitigation/

3 Intergovernmental Panel on Climate Change (IPCC): Sixth Assessment Report. https://www.ipcc.ch/assessment-report/ar6/

4 ‘Net Zero Carbon’ is when the carbon emissions emitted as a result of all activities associated with the development, ownership and servicing of a building are zero or negative.

5 BPP’s Climate Commitment available here: https://www.betterbuildingspartnership.co.uk/member-climate-commitment

6 Further information on the Carbon Risk Real Estate Monitor (CRREM) is available here: https://www.crrem.eu/tool/

34 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Sustainability report continued

Carbon Risk Real Estate Monitor (CRREM)

and have been

aggregated to portfolio level to create the Company’s 2030 and

2040 whole building operational energy and GHG emissions

intensity targets presented in Table 2 below.

During the reporting year, recommended energy and carbon

interventions and emissions reduction pathways were

reviewed with the investment team through a dedicated

engagement programme led by the Manager’s Sustainability

& Impact (S&I) team. Where possible, recommended

interventions have been incorporated into asset business plans

in line with the principles of the ‘energy hierarchy’, prioritising

measures that reduce energy consumption and increase

operational efficiency of buildings before implementing

renewable technologies.

The Board and Manager completed asset management

initiatives such as the installation of a rooftop solar

photovoltaic (PV) array at St Ann’s House, Manchester. The PV

array is forecast to generate 36,170 kWh of electrical energy

in its first year, for use on-site, helping to reduce the asset’s

reliance on the national electricity grid, reducing exposure to

volatile energy costs, and reducing greenhouse gas (GHG)

emissions. As part of the letting of the 4th floor South to

SLR Consulting at The Tun, Edinburgh, CAT A fit-out works

included the installation of new LED lighting supported by

Passive Infrared (PIR) sensors, to control demand and reduce

electricity consumption, as well as a new heat pump air-

conditioning system, both helping to achieve an EPC ‘A’ rating.

At St John’s Retail Park, Bedford, car park lighting upgrades

have contributed to a reduction in electricity consumption.

The Board and Manager is committed to tracking progress

against these targets and will present it’s 2024 calendar

year data progress update as part of the 30 June 2025 NAV

update, allowing for the integration of tenant energy (Scope 3

GHG emissions) data which is a significant component of the

Company’s energy use and emissions profile. The Board and

Manager can communicate 5% reductions in both like-for-like

landlord procured operational energy consumption and GHG

emissions for landlord controlled areas, when comparing the

2024 and 2023 calendar years. Further information on landlord

procured energy is presented in the EPRA Sustainability

performance measures (environmental) (unaudited) on pages

97 to 127.

Table 2: The Company’s baseline performance and reduction requirements to 2030 for operational Energy Use

and GHG Intensity

Baseline (2023)

reflecting whole

building level

performance for

whole year at full

operation

2030 Target*

% Change required to

reach 2030 target

2040 target

% Change required to

reach 2040 target

Energy Use Intensity (kWh/m²) 161 90 -44% 64 -61%

GHG Intensity** (kgCO2e/m²) 29 14 -52% 3 -96%

* The NZC interim targets are dynamic and depend on the year-on-year assets’ performance and updates of CRREM pathways. The NZC analysis process is continual with annual

reassessment of progress against targets, with audits providing more informed inputs to support target setting, and the actual effect of interventions being captured.

** GHG intensity includes both fugitive emissions (i.e. emissions associated with refrigerant gases used across assets) and carbon emissions oc- curring from energy consumption

within the asset (covering both landlord and tenant areas).

The Company’s wider approach to sustainability

The Board and Manager believe that focusing on

sustainability, and Environmental, Social and Governance (ESG)

considerations more generally, throughout the real estate life

cycle, will deliver enhanced long-term returns for shareholders

as well as have a positive impact on the environment and the

communities where the Company is investing. A key part of

our sustainable investment strategy is delivering operational

excellence for occupiers as well as demonstrating continued

improvements in sustainability performance.

The Manager’s real estate investment strategy, which aims

to proactively take action to improve social and environment

outcomes, focuses on the pillars of ‘People, Planet and

Place’ which are referenced to three core UN Sustainable

Development Goals (‘SDG’s): (8) Decent Work and Economic

Growth; (13) Climate Action and (11) Sustainable Cities and

Communities.

35 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Sustainability report continued

This report seeks to present our approach to managing ESG

considerations and performance against our sustainability

objectives.

Case studies highlighting ESG in practice are used throughout

and detailed ESG performance data are presented with the

EPRA sBPR aligned sustainability performance measures

sections from page 97.

Active management of sustainability performance is a key

component of responsible asset and building management.

Reducing consumption, improving operational efficiency, and

delivering higher quality, more sustainable spaces, will benefit

tenants’ occupational costs and may support tenant retention

and attraction, in addition to mitigating environmental impacts

and helping to future-proof the portfolio against future

legislation.

Further information on the Manager’s Sustainable Investment

approach, and sustainable investment policy

https://mybrand.schroders.com/m/727267dc02a87fed/original/

schroder-real-estate-sustainability-policy-2024.pdf

Protecting our Planet (Environmental)

Performance against objectives from the start of the financial year

Goal FY25 outcome

Progress towards Net Zero Carbon by 2050

— Results of the new NZC baseline published in the annual report year

ended 31 March 2024 discussed with portfolio and asset management

teams for integration into business planning.

— On-site improvements have included installing solar photovoltaic panels

at St Ann’s House, as well as Heating, Ventilation, and Air-Conditioning

(HVAC) and lighting upgrades at The Tun and Clifton Park.

— Landlord performance shown in EPRA report confirms 5% reduction in

landlord procured energy consumption and 5% reduction in associated

Scope 1 and 2 GHG emissions.

— A 2024 calendar year progress update will be undertaken following

receipt of tenant utility data as part of the Company GRESB submission.

Annual reduction in landlord energy consumption and associated scope

1 and 2 greenhouse gas (GHG) emissions on a like-for-like basis

— Energy = 5% reduction

— GHG emissions = 5% reduction

— (Calendar Year 24 vs. Calendar Year 23)

Increase use of on-site renewable energy and source 100% of landlord

electricity through renewable tariffs by 2025

— Roof mounted solar photovoltaic (PV) panels installed on St Ann’s House

increasing the number of assets with solar PV to 7 (FY24: 6 assets).

— 98.2% of the Company’s landlord procured electricity was on a renewable

tariff (CY23: 97.8%).

— (Reported as at 31 December 2024).

Annual reduction in landlord procured like-for-like water consumption

2% reduction (Calendar Year 24 vs. Calendar Year 23)

Send zero landlord waste to landfill and prioritise waste recycling

— Zero waste directly to landfill.

— 55% of waste was recycled and 45% was incinerated with energy

recovery.

— (12 months to 31 December 2024)

Maintain 100% MEES

compliance and improve proportion of assets with

EPC ratings B or above (floor area)

— EPC coverage = 99%

(FY24: 99%)

— EPCs rated B and above = 24% (FY24: 21%)

— EPCs rated C and above = 59% (FY24: 60%)

Assess physical climate risk profiles for all assets and develop resilience

strategies where material risks identified

Physical climate risk profiles maintained for all assets using new (onboarded

H2 2024) third-party database.

Improve biodiversity opportunities across the portfolio

Opportunities continue to be explored through the Manager’s operational

Impact and Sustainability Action Plans and as part of development projects,

where appropriate. Reporting period activity has included wildflower

planting at Delme Place and engagement with an ecological society in York.

Note: All data is reported at 31 March 2025 unless otherwise stated. Where more accurate information has become available, previous period performance has been restated.

The Board and Manager considers the relationship between

real estate investments and the environment to be important.

By addressing risks related to the transition to a low-carbon

economy such as compliance with current and future

legislation, meeting market demands, and by embracing

practices, such as energy-efficient building design, renewable

energy integration, and climate resilience measures, we believe

there is an opportunity to enhance property value, attract

tenants, and reduce operational expenses.

In support of the Company’s commitment to Net Zero

Carbon (‘NZC’) by 2040, over the reporting year the Manager

has completed asset management initiatives such as the

installation of a rooftop solar photovoltaic (PV) array at St

36 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Sustainability report continued

Ann’s House, Manchester. The PV array is forecast to generate

36,170 kWh of electrical energy in its first year, for use on-site,

helping to reduce the asset’s reliance on the national electricity

grid, reducing exposure to volatile energy costs, and reducing

greenhouse gas (GHG) emissions.

As part of the letting of the 4th floor South to SLR Consulting

at The Tun, Edinburgh, CAT A fit-out works included the

installation of new LED lighting supported by Passive Infrared

(PIR) sensors, to control demand and reduce electricity

consumption, as well as a new heat pump air-conditioning

system, both helping to achieve an EPC ‘A’ rating. At St John’s

Retail Park, Bedford, car park lighting upgrades have

contributed to a reduction in electricity consumption.

The Board and Manager also recognise the importance of

ensuring investment activity is conducted in a way which

supports nature. The UK is one of the most nature-depleted

countries in the world, with three quarters of the UK being

found to present a high level of ecosystem degradation.

Nature degradation could cause a 12% loss to UK GDP

with potential implications on the occupational market and

real estate income. Responsible real estate companies can

help to fight back against this nature decline by adopting

investment practices which consider nature and taking real

world action. During the reporting year the Company has

planted wildflowers at Delme Place and continues to work with

stakeholders at Clifton Park to support the provision of habitat

for the nationally scarce Tansy Beetle along the adjacent

River Ouse.

7 The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 establish a minimum level of energy efficiency for rented property in England and Wales.

8 The remaining footprint without EPCs relates to assets where improvement works have been scheduled and EPCs will be procured on completion of these works. Please note that

the Company remains compliant with MEES regulations.

9 Assessing the Materiality of Nature-Related Financial Risks for the UK. Green Finance Institute, April 2024. https://hive.greenfinanceinstitute.com/gfihive/assessing-the-materiality-of-

nature-related-financial-risks-for-the-uk/#:~:text=The%20UK%20is%20one%20of,related%20financial%20risks%20originate%20overseas.

37 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Sustainability report continued

Supporting people and places (Social)

Performance against objectives from the start of the financial year

Goal FY25 outcome

Ensure the health, safety and wellbeing of building occupiers and users

— 100% of managed assets where Health and safety assessments were

completed (FY24: 100%).

— 0 (zero) reportable health and safety incidents in the Company’s managed

portfolio (FY24: 0).

Improve proportion of assets where occupier engagement activities are

implemented

100% of Company assets. (FY24: 100%).

Improve proportion of assets where community engagement activities are

implemented

23% of Company assets (FY24: 43%).

Improve availability of low carbon transport (active transport facilities; EV

charging etc.) facilities

— Active transport infrastructure in place for 23 assets (FY24: 21 assets).

— Support provision of electric vehicle charging for 18 assets (FY24: 14

assets).

Note: All data is reported at 31 March 2025 unless otherwise stated.

The recognition of the social impacts of real estate investments

has notably increased in the past decade, with stakeholders

expecting that built assets positively contribute to society.

The Board and Manager recognise that the design and

management of real estate plays a crucial role in physical and

mental well-being, influencing factors such as employment

opportunities, access to services, and social connections.

Understanding and responding to the needs of building

occupiers and local communities where possible aids us in

creating vibrant and inclusive places which ultimately helps

deliver making better, more resilient investments in the

long run.

Over the course of the reporting year, the Company has

continued its engagement efforts with both occupiers and

communities. All occupiers received a sustainability newsletter,

and an online occupier engagement portal, Locale, is used

across several sites including City Tower. Reception space

across several offices in the portfolio has been used to support

charity collection initiatives including foodbank collections,

Christmas gift collections for children from deprived families,

and book collections.

At City Tower, Manchester, the third-party Property Manager,

supported by the Manager, operate an extensive engagement

calendar including workshops with the site beekeeper where

occupiers can meet the bees, and a 45-minute mindfulness

Chinese Tea Ceremony that blends tea tasting with meditation.

In Q4 2024, a customer experience consultancy, Real Service,

was appointed to undertake a customer satisfaction survey

across the portfolio. The survey used a mix of telephone

interviews and email questionnaires to gain insights into

occupiers’ sentiment towards the buildings they occupy, and

the management service provided. In 2025, the Manager, on

behalf of the Company, will work with the third-party property

managers to address the outcomes from this survey.

38 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Sustainability report continued

Responsible Business (Governance)

Performance against objectives from the start of the financial year

Goal FY25 outcome

Improve Global Real Estate Sustainability Benchmark (‘GRESB’) rating

— Maintained 3-star status.

— Maintained score of 79 against backdrop of GRESB scoring changes.

— 2nd in Peer Group out of 7 (Previous submission: 1st out of 6).

— Maintained ‘A’ rating in GRESB Public Disclosure

Increase coverage of sustainability audits across portfolio

— ESG Scorecards completed for 80% of the portfolio by Gross Property

Value.

— 16 asset level ESG Scorecards completed (15 third-party audits;

1 internally completed) (FY24: 15 ESG Scorecards).

Improve coverage and quality of sustainability certifications (e.g. BREEAM)

across portfolio

— 2x new BREEAM In-Use assessment (1x recertification):

– Fareham, Delme Place = BREEAM In-Use Part 2 ‘Good’ (certificate

received post 31 March) – new certificate.

– 106 Oxford Road = BREEAM In-Use Part 2 ‘Good’ (certificate received

post 31 March) – recertification.

— 9 assets with sustainability certifications (FY2024: 10 assets with

sustainability certifications).

— The Company is awaiting 2x additional BREEAM In-Use certificates for

assessments submitted before 31 December 2024.

Maintain EPRA Gold Award for Sustainability Reporting Gold Award for the seventh year running.

Sustainability Linked Loan tied to RCF agreed with RBS 1 out of 3 KPIs achieved. Please refer to the section below.

Note: All data is reported at 31 March 2025 unless otherwise stated.

The Manager operates an Environmental Management System (‘EMS’) certified to ISO 14001 for the asset management of direct

real estate investments in the UK and across Europe. This provides the framework for how sustainability principles are managed

throughout its investment process and the Manager has developed a suite of proprietary tools to support the delivery at both

asset and portfolio level including an ESG Scorecard for consistent assessment of asset sustainability performance, Impact and

Sustainability Action Plans for continually improving standing investments, a Sustainable Development and Refurbishment Brief for

projects, and Property Manager Sustainability Requirements for use in contractual Property Manager Agreements.

Sustainability linked loan performance

Underlying its commitment to the sustainability performance of the Company, the Manager and Board have established a

Sustainability linked Loan (SLL) tied to its revolving credit facility (RCF). The SLL includes three key performance indicators (KPIs)

which will be used to assess the Company’s performance and determine the margin rate applied to the loan. Each KPI has the

potential to either reduce the margin by 1.65 basis points, increase it by 1.65 basis points or have no impact.

For the year ended 31 March 2025 we achieved a reduction in the margin of 1.65 basis points as we reduced landlord energy

consumption sufficiently, held the GRESB rating at 3 stars, and did not complete any new developments or major renovations.

Further details are in the table below.

KPI Previous period performance* Current period performance KPI target achieved

1. 5% reduction in like-for-like energy

consumption across landlord

procured energy supplies within

the portfolio.

6,080,922 kWh

(Calendar Year 2023)

5,797,746 kWh

(Calendar Year 2024)

Yes (-5% reduction)

2. All new developments or major

renovations of the Properties

carried out during the term of the

Facility achieve a minimum EPC

‘B’ rating, or a minimum BREEAM

rating of ‘Very Good’.

KPI achieved – Stanley Green Units

5a to 8d, and Stacey Bushes 19 Hollin

Lane both delivered to EPC ‘A+’ and

BREEAM New Construction ‘Excellent’.

There have been no new

developments or major renovations

during the FY25 reporting year.

N/A

3. 4-star or above GRESB rating. 3-star GRESB rating. 3-star GRESB rating. No (static)

* Where more accurate information has become available, previous period performance has been restated.

Note: All data is reported at 31 March 2025 unless otherwise stated.

39 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Sustainability report continued

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 publishes a

mandatory product-level disclosure consistent with the Task

Force on Climate-Related Financial Disclosures (TCFD). This is in

addition to the Schroders Real Estate Investment Management

(SREIM) entity-level TCFD disclosure and the latest Schroders

plc group climate report. 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 on the Manager’s website at https://www.

schroders.com/en/global/individual/corporate-transparency/

reporting/.

Further details of Schroders’ industry involvement

www.schroders.com/en/global/individual/about-us/what-we-do/

sustainable-investing/our-sustainable-investment-policies-

disclosures-voting-reports/industry-involvement/

Further details of compliance with UN PRI

www.schroders.com/en-gb/uk/institutional/what-we-do/sustainable-

investing/our-sustainable-investment-policies-disclosures-

voting-reports/disclosures-and-statements/the-un-principles-for-

responsible-investment/

Industry engagement

The Manager supports, and collaborates with, several

industry groups, organisations and initiatives including the

United Nations Global Compact, United Nations Principles of

Responsible Investment (UN PRI) and Net Zero Asset Managers

Initiative (of which it is a founding member). Further details

of Schroders’ industry involvement is available here and

compliance with UN PRI is available here.

The Manager is an active member of a number of real estate

industry bodies including the European Public Real Estate

Association (EPRA), Investors in Non-Listed Real Estate

Vehicles (INREV), Association of Real Estate Funds (AREF)

British Council for Offices (BCO), British Property Federation

(BPF) and the Urban Land Institute (ULI). The Manager also

regularly participates in the Better Buildings Partnership’s (BBP)

programme of initiatives and working groups including net

zero, climate resilience, investor engagement, and European

investment working group, as well as the Institutional Investors’

Group on Climate Change Real Estate Net Zero working

groups, and The World Business Council for Sustainable

Development workshops.

The Manager is a member of the Global Real Estate

Sustainability Benchmark (GRESB) of which the Company has

participated in the annual real estate survey for the past nine

years.

Slavery and Human Trafficking Statement

The Company is not required to produce a statement on

slavery and human trafficking pursuant to the Modern Slavery

Act 2015 as it does not satisfy all the relevant triggers under

that Act that required such a statement.

Schroders Capital is part of Schroders plc and whose statement

on Slavery and Human Trafficking has been published in

accordance with the Modern Slavery Act 2015.

Further details of Schroders’ Slavery and Human Trafficking

Statement

www.schroders.com/en/sustainability/corporate-responsibility/

slavery-and-human-trafficking-statement/.

40 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report

Business model

Company’s business

Schroder Real Estate Investment Trust Limited is a real estate

investment company with a listing on the Official List of the

Financial Conduct Authority and whose shares are traded on

the London Stock Exchange (ticker: SREI).

The Company is a Real Estate Investment Trust (‘REIT’) and

benefits from the various tax advantages offered by the

UK REIT regime. The Company continues to be declared

as an authorised closed-ended investment scheme by the

Guernsey Financial Services Commission under section 8 of

the Protection of Investors (Bailiwick of Guernsey) Law 2020,

as amended and the Authorised Closed-Ended Investment

Schemes Rules and Guidance, 2021.

The Board

The Board of Directors is responsible for the overall

stewardship of the Company, including investment and

dividend policies, corporate strategy, gearing, corporate

governance and risk management.

The Company has no executive Directors or employees.

Operations

The Board has delegated investment management and

accounting services to the Investment Manager with the aim

of delivering the Company’s investment objective and strategy.

Details of the Investment Manager’s investment approach,

along with other factors that have affected performance during

the year, are set out in the Investment Manager’s Report.

Performance

The Board uses principal financial Key Performance Indicators

(‘KPIs’) to monitor and assess the performance of the Company.

These are the NAV total return, the performance of the

Company’s underlying property portfolio relative to its MSCI

Benchmark Index and the share price. Performance against

these KPIs can be found on page 4 under ‘Performance

Summary’.

Investment objective

The investment objective of the Company is to provide

shareholders with an attractive level of income and the

potential for income and capital growth from owning and

actively managing a diversified portfolio of UK commercial

real estate, while achieving meaningful and measurable

improvements in the sustainability profile of the majority of

the portfolio’s assets (considered against a range of objective

environmental, social and governance metric).

Investment policy

The investment policy of the Company is to own a diversified

portfolio of UK commercial real estate assets which are

underpinned by good fundamental characteristics, and whose

sustainability profiles can be improved while they are owned by

the Company. The Company may invest across the full range of

commercial real estate sectors.

Diversification and asset allocation

In order to spread investment risk, the Company will seek to

invest in a portfolio that is diversified by location, sector, asset

size, tenant exposure and lease expiry, and will focus on assets

where making sustainability improvements will enhance total

return.

The value of any individual asset at the date of its acquisition

may not exceed 15% of gross assets and the proportion of

rental income deriving from a single tenant may not exceed

10%.

More specifically in relation to sustainability-related activity:

— The Company will focus on sustainability improvement in

the selection and active management of real estate assets.

Real estate assets will be selected and actively managed

with a view to achieving a meaningful improvement in their

sustainability profile, as measured against the Investment

Manager’s scorecard of environmental, social, and

governance (‘ESG’) metrics.

— Across the portfolio, the Company will focus on

opportunities to improve the sustainability performance

of buildings which may include improving their fabric,

phasing out fossil fuel-based heating systems, improving

operational energy efficiency, and installing means of

on-site renewable energy generation such as photovoltaic

panels.

— In addition to these energy and carbon efficiency-related

opportunities, wider ESG considerations will also be taken

into account when looking for ways to achieve meaningful

improvement in the sustainability profile of real estate

assets, and when demonstrating that such improvement

is being achieved, including exposure to physical climate

risks, access to green space and community facilities,

building certifications, and tenant profile.

— The ESG scorecard used by the Company will therefore

use objective metrics to capture the performance of assets

(and the improvements in performance during ownership

by the Company) in respect of a broad range of ESG

factors.

41 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Business model continued

Sustainability KPIs

— The Company’s assets will be managed with a view to

ensuring that at any given time during the Company’s

ownership, at least 75% of the portfolio assets by value

are being managed with a realistic and achievable plan to

reach a score of at least 3 (out of a possible total score of

5), as measured on the ESG scorecard.

— For those 75% of the Company’s assets (by value), in each

case where leases permit prompt commencement of

works to improve their sustainability profile, the aim will

be to take the asset to an improved score of at least 3 (out

of a possible total score of 5) within five years from: (i) 1

April 2024, or, if later: (ii) the date it was acquired by the

Company.

— Further, the Company’s assets will also continue to be

managed in line with the Company’s existing ‘pathway to

net zero’ commitments, which in summary include seeking

to attain the following:

– Operational whole buildings emissions to be aligned

to a 1.5°C global warming pathway by 2030.

– Embodied emissions for all new developments and

major renovations to be net zero by 2030.

– Operational scope 1 and 2 (landlord) emissions (as

defined in the Greenhouse Gas Protocol) to be net

zero by 2030.

– Operational and embodied whole building (scope 1, 2,

and 3 (landlord and tenant)) emissions to be net zero

by 2040.

Borrowings

The Company’s Articles limit borrowings to 65% of the Group’s

gross assets, calculated as at the time of borrowing.

The Board has established a gearing guideline for the

Investment Manager, which seeks to limit Group on-balance-

sheet debt, net of cash, of between 25% and 35% of Group

portfolio value while recognising that this gearing may be

exceeded in the short term from time to time. For these

purposes, “Group” refers to the Company along with its

subsidiaries at any given time. The term “Group portfolio

value” signifies the fair market value of the Group’s property

portfolio as appraised by the Company’s independent Valuer.

It’s important to note that this valuation excludes the worth of

other on-balance-sheet assets owned by the Group.

The Board actively monitors this guideline and possesses

the authority to instruct the Investment Manager to adjust

the management of the Group’s assets. The objective

here is to ensure that borrowings are maintained within

a defined acceptable range. However, this directive takes

into consideration the best interests of the shareholders.

As a result, immediate action to correct deviations from

this guideline may not be mandatory if such actions could

negatively impact shareholder interests.

Hedging

It is the Board’s policy to minimise interest rate risk, to the

extent commercially appropriate, 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.

Investment restrictions

As the Company is a closed-ended investment fund for the

purposes of the UK Listing Rules, the Group will adhere to

the UK Listing Rules applicable to closed-ended investment

funds. The Company and, where relevant, its subsidiaries will

observe the following restrictions applicable to closed-ended

investment funds in compliance with the current UK Listing

Rules:

— Neither the Company nor any subsidiary will conduct a

trading activity which is significant in the context of the

Group as a whole.

— The Group will not invest in other listed investment

companies.

— Where amendments are made to the UK Listing Rules, the

restrictions applying to the Company will be amended so

as to reflect the new UK Listing Rules.

In addition, the Board will ensure compliance with the UK REIT

regime requirements.

Investment strategy

The Company’s strategy is focused on delivering sustainable

dividend growth by improving the quality of its underlying

portfolio through a disciplined, research-led approach to

transactions and active asset management, focused on

delivering sustainability improvements and operational

excellence. This activity is complemented by maintaining a

robust balance sheet and efficient management of costs.

The Company aims to own a diversified portfolio of properties

delivering an above average income return and benefitting

from structural changes driving income and capital growth

such as urbanisation, innovation in technology and changing

demographics. These properties may benefit from favourable

supply and demand characteristics and by improving their

environmental performance, the Company can capture the

rental and valuation premium that buildings with genuine

green credentials can command, sometimes called the ‘Green

Premium’.

42 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Our stakeholders

Strategic report

Section 172 statement

Although the Company is registered in Guernsey, in

accordance with the guidance set out in the UK Corporate

Governance Code and the AIC Code of Corporate Governance

a Section 172 statement is required. Section 172 of the UK

Companies Act 2006 requires a director of a company to act

in the way he or she considers, in good faith, would be most

likely to promote the success of the company for the benefit

of its members as a whole. In doing this, section 172 requires

a director to have regard, among other matters, to: the likely

consequences of any decision in the long term; the interests

of the company’s employees; the need to foster the company’s

business relationships with suppliers, customers and others;

the impact of the company’s operations on the community and

the environment; the desirability of the company maintaining

a reputation for high standards of business conduct; and the

need to act fairly with members of the company. The Directors

give careful consideration to the factors set out above in

discharging their duties under section 172.

The Board is focused on ensuring that the Company delivers

on its strategic objectives, while taking into account the

impact on its stakeholders as a whole. It is our firm belief that

prioritising positive stakeholder relationships is central to

delivering long-term, sustainable returns. The Board is focused

on ensuring that it understands its stakeholders’ needs.

Shareholders

The Board is committed to maintaining high standards

of corporate governance in order to protect shareholder

interests. The Investment Manager undertakes an active

investor relations schedule in London and the regions

throughout the year, which includes one-on-one and group

meetings with shareholders as well as regular presentations

to the sell-side analyst community. Shareholder feedback is

encouraged either through the Corporate Broker or directly to

the Investment Manager or Board.

Occupiers

The Company has a diverse range of tenants occupying space

across the portfolio. This includes a wide range of businesses

who operate out of our office or industrial space and the

retailers and shoppers who work at or visit our retail and

leisure properties. Active and constant engagement with these

groups, either directly through site visits or through property

managers or agents, is required to gather 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 our

individual asset management investment decisions as well as

the longer-term strategic direction of the Company.

Communities

Our assets are located across the UK in a range of urban

environments. The buildings and their occupiers are part of

the fabric of local communities. The Company works hard to

ensure that it is engaging with local communities, councils and

individuals and that our asset strategies are sensitive to the

unique heritage of each location.

Environment

The built environment is responsible for 34% of energy-related

CO2 emissions, which places great responsibility on those

companies that are direct or indirect contributors, to act in

a way which would seek to reduce carbon emissions. The

Board is sensitive to the Company’s role and is committed to

continually improving and protecting the environment by using

resources such as energy, water and materials in a sustainable

manner for the prevention of greenhouse gas emissions and

climate change mitigation. ESG considerations are integrated

into the Company’s investment processes and each individual

asset benefits from specific ESG-related objectives. The Board

reviews its approach to managing ESG considerations and

believes that this is integral in delivering better long-term

returns for our investors and for safeguarding the future of the

environment that we live and work in.

Service providers

As an externally-managed REIT, the Board is reliant on a range

of service providers who have a direct working or contractual

relationship or share a mutual interest with the Company.

This includes, but is not limited to, Schroders as Investment

Manager and Company Secretary, Property Managers, the

Administrator, Depositary, Auditor, Tax advisors, Solicitors,

Property Valuers and Banks. The Board has delegated to the

Management Engagement Committee to regularly review

these relationships.

Lenders

Borrowing allows the Company’s shareholders to increase

exposure to assets consistent with the strategy and generate

enhanced returns at a low cost. These lenders have a financial

interest in the success of the Company.

Decision-making

The Board makes decisions on, among other things, the

principal matters set out under the paragraph headed ‘The

Board’ on page 40.

43 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Principal risks and uncertainties

Strategic report

The Board has carried out a robust assessment of the principal

risks and emerging risks facing the Company including those

that would threaten its business model, future performance,

solvency or liquidity.

The Board is responsible for the Company’s system of risk

management and internal control and for reviewing its

effectiveness. The Board has carried out a robust assessment

of the principal risks and emerging risks facing the Company

including those that would threaten its business model, future

performance, solvency or liquidity. A framework of internal

controls has been designed and established to monitor and

manage those risks. This internal control framework provides a

system to enable the Directors to mitigate these risks as far as

possible, which assists in determining the nature and extent of

the significant risks the Board is willing to take in achieving its

strategic objectives.

Emerging risks are monitored as part of this assessment. The

Board notes that it has a robust framework of internal controls

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.

The Board notes that the post-mitigation likelihood for

economic and property market risks has increased due to

heightened political uncertainty since the last review.

A summary of the principal risks and uncertainties faced by

the Company, and actions taken by the Board to manage and

mitigate these risks and uncertainties, are set out below:

Sustainability

Key risks

Sustainability considerations are not fully considered or

understood in the acquisition and asset-planning processes

leading to future issues (negative effect on price, valuation

or ability to sell assets, future costs to remediate to meet the

requirements of initiatives such as Net Zero Carbon/Climate

Risk/BREEAM/EPC profile/GRESB).

Mitigation of risk

The Manager’s Investment Committee has a continued focus

on sustainability to help ensure appropriate consideration is

given before approving fund strategy and asset business plans

on an annual basis, transactions and major capital expenditure.

Impact and sustainability action plans identify asset

improvement requirements in the context of the investment

strategy.

The Board regularly reviews the objectives and progress of

the sustainability programme on at least an annual basis.

EY, the Company’s auditor, independently reperformed the

performance of two assets via an ISRS 4400 (Revised) ‘Agreed

Upon Procedures’ (AUP) engagement with a final report issued

in June 2025. The full report can be found on the Company’s

website.

The Investment Manager to the Company works alongside

third-party Property Managers, and commercial real estate ESG

data intelligence platform providers, Deepki, to provide, collate

and report key sustainability data which is then reported to the

Board and investors. Furthermore, the Board is provided with

an assurance letter on an annual basis from S&P Global with

regard to the sustainability content in this annual report.

Investment and strategy

Key risks

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.

Mitigation of risk

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 the Investment

Manager operates within borrowing restrictions and

guidelines.

44 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Principal risks and uncertainties continued

Economic and property market

Key risks

The NAV and share price performance of the Company could

be affected by economic and property market risk. In the wider

economy this could include inflation, stagflation or deflation,

economic recessions, movements in interest rates, political/

policy changes, the wars in Ukraine and the Middle East, or

other economic or external geopolitical shocks such as a wider

conflagration or pandemic. The performance of the underlying

property portfolio could also be affected by structural or cyclical

factors impacting particular sectors or regions of the property

market. These factors may affect the Company’s NAV, share

price, capital expenditure and operating costs.

Mitigation of risk

The Board considers economic conditions and the uncertainty

around (geo)political events when making investment

decisions. The Board mitigates property market risk through

the review of the Group’s strategy on a regular basis and

discussions are held to ensure the strategy is still appropriate

or if it needs updating. The Board and Investment Manager

reviews the progress of implementing the strategy on a regular

basis and provides the market with clear communications.

Valuation/liquidity

Key risks

Property valuations are inherently subjective and uncertain.

This uncertainty is heightened by market uncertainty due to

the war in Ukraine, structural changes driven by Covid-19 and

macroeconomic factors such as high inflation and increasing

interest rates.

Subjectivity in the valuation process could give rise to

significant bias or errors in the valuation of the Company’s

investment property portfolio.

Mitigation of risk

An external reputable valuer provides an independent

quarterly valuation of all the property assets, including those

held in joint ventures, which are reviewed at the quarterly

Board meetings.

The valuation process is reviewed by the Audit Committee

every year and members of the Audit Committee directly meet

with the valuers on at least an annual basis.

The Company’s external valuer is provided with copies of

all transactions and lease events by the Company’s lawyers,

and quarterly updates by Asset Managers, to ensure that

information used to value the portfolio is complete, accurate

and up-to-date.

The Company follows RICS best practice regarding valuer

rotation.

Gearing/leverage

Key risks

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 could be

detrimental to performance, and also results in interest rate

risk from higher interest rate costs and potential compliance

with loan covenants.

Mitigation of risk

Gearing and compliance with covenants is monitored at each

Board meeting against restrictions set internally and by lenders

and is regularly announced to the market.

Service provider

Key risks

The Company has no employees and has delegated certain

functions to a number of service providers. Failure of controls

and poor performance of any service provider could lead to

disruption, reputational damage, or loss.

Mismatch between the Company’s service needs and the

external service providers may expose the Company to a range

of operational failures.

Mitigation of risk

Service providers are subject to regular reviews by both the

Investment Manager and the Management Engagement

Committee against clearly documented contractual

arrangements detailing service expectations, including

confirmation of business continuity and cyber security

arrangements.

Detailed reviews of service providers’ terms of engagement as

well as performance at Management Engagement Committee

meetings

Use of large international organisations as the Company’s

depositary, auditor, broker, tax advisor etc.

45 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Principal risks and uncertainties continued

Regulatory compliance

Key risks

The Company has to comply with a wide range of legislation

and regulations, covering planning, health and safety, Company

law, accounting, reporting, tax and UK Listing Rules.

Mitigation of risk

The Investment Manager has robust processes in place to

ensure that accurate accounting records are maintained and

that evidence to support the financial statements is available to

the Board and the auditors. The Investment Manager operates

established property accounting systems and has procedures

in place to ensure that the quarterly NAV and gross asset value

are calculated accurately. The property accounting function

is outsourced to a reputable external service provider by the

Investment Manager and the Investment Manager exercises

robust oversight over the performance of this function.

The Board has appointed the Investment Manager as AIFM in

accordance with the Alternative Investment Fund Managers

Directive (‘AIFMD’).

The quarterly and annual NAV has numerous levels of reviews

including by the Board. Additional support is produced by the

fund accountants to ensure financial data is complete and

accurate.

An internal controls review is performed by Ernst & Young

in accordance with ISAE 3402 annually to provide assurance

on Schroders’ service organisations’ control procedures and

an external audit is completed to provide an opinion on the

financial statements which have been reviewed by the Board

of Directors.

The Company Secretary monitors legal and other regulatory

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 advisers when

transacting and managing the Company’s assets. All contracts

entered into by the Company are reviewed by the Company’s

legal and other advisers.

Processes are in place to ensure that the Company complies

with the conditions applicable to property investment

companies set out in the UK Listing Rules.

The Board is satisfied that the Investment Manager and local

Administrator have adequate procedures in place to ensure

continued compliance with the regulatory requirements of

the Financial Conduct Authority (‘FCA’), the Guernsey Financial

Services Commission and the UK REIT regulations to maintain

the Company’s REIT status for tax purposes.

46 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Principal risks and uncertainties continued

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

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 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 18 on pages 85 to 88.

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

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 with Canada Life are for

a weighted duration of 11.0 years and the average unexpired

lease term, assuming all tenants vacate at the earliest

opportunity, is 5.3 years. The Company’s revolving credit facility

with RBSI expires in June 2027.

The Board’s assessment of viability considers the principal

risks and uncertainties faced by the Company, as detailed in

the Strategic report on pages 43 to 45, 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 changes 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/reletting

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 report on pages 43 to 45 are also taken into account.

Based on the assessment, 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 Directors have examined significant areas of possible

financial risk including liquidity (with a view to both cash held

and undrawn debt facilities); the rates of both rent and service

charge collections from tenants; have considered potential falls

in property valuations; have reviewed cash flow forecasts; have

analysed forward-looking compliance with third party debt

covenants and in particular the Loan to Value covenant and

interest cover ratios; and have considered the Group’s ongoing

compliance with the REIT regime.

Overall, after utilising available cash, excluding the cash

undrawn against the RBSI facility and uncharged properties

and units in Joint Ventures, and based on the reporting period

to 31 March 2025, property valuations would have to fall by

28% before the relevant Canada Life Loan to Value covenants

were breached, and actual net rental income would need to fall

by 64% before the interest cover covenants were breached.

Furthermore, the properties charged to RBSI could fall in

value by 52%, prior to the 65% LTV covenant being breached,

and based on projected net rents for the quarter to 31 March

2025, a 22% fall in net income could be sustained prior to the

RBSI projected interest loan cover covenant of 200% being

breached.

These stress testing scenarios of 28%/52% declines in property

valuations and 64%/22% declines in net income are deemed to

be extremely unlikely.

Should these scenarios occur, management have various

actions available which include, but are not limited to, adding

additional assets or excess cash into the security pool and

selling assets to reduce LTV.

As at the financial year end, the undrawn capacity of the £75.0

million RBSI facility was £23.5 million. This facility is an efficient

and flexible source of funding due to its ability to be repaid and

redrawn as often as required and matures in June 2027.

47 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Strategic report — Principal risks and uncertainties continued

Regarding the Canada Life loan of £129.6 million, fifty per

cent matures in 2032 and fifty per cent matures in 2039

respectively.

The Board and Investment Manager also continue to

closely monitor the ongoing changing macroeconomic and

geopolitical environments on the Group.

The Board and Investment Manager have considered the

impact of sustainability risk as a principal risk as set out on

page 43. In line with IFRS, investment properties are valued

at fair value based on open market valuations as described in

Note 10. The assessment of the open market valuation includes

consideration of environmental matters and the condition

of each property. The investment properties continue to be

monitored by the Investment Manager and key considerations

include EPC ratings and their impact on the properties’ forecast

compliance with the Minimum Energy Efficiency Standards

regulation. Having assessed the impact of climate change on

the Group, the directors concluded that it is not expected to

have a significant impact on the Group’s going concern or

viability assessment.

The Directors have not identified any matters which would cast

significant doubt on the Group’s ability to continue as a going

concern for the period to 30 June 2026 and have satisfied

themselves that the Group has adequate resources to continue

in operational existence for the period to 30 June 2026.

After due consideration, the Board believes it is appropriate

to adopt the going concern basis in preparing the financial

statements.

By order of the Board

Alastair Hughes

Chair

10 June 2025

Governance report

48 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

49 BoardofDirectors

50 ReportoftheDirectors

52 Corporategovernance

55 AuditCommitteereport

57 ManagementEngagementCommitteereport

58 NominationCommitteereport

59 Directors’Remunerationreport

61 StatementofDirectors’responsibilities

62 IndependentAuditor’sreporttothemembersof

SchroderRealEstateInvestmentTrustLimited

Governance report

49 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Board of Directors

Governance report

Alastair Hughes Priscilla Davies Alexandra Innes Sanjay Patel

Status:

Independentnon-executive

ChairandchairoftheNomination

Committee

Status:

SeniorIndependentDirector

Status:

ChairoftheManagement

EngagementCommittee

Status:

ChairoftheAuditCommittee

Alastairhasover30yearsof

experienceinrealestatemarketsand

currentlyholdsdirectorshipswith

BritishLandPLC,TritaxBigBox,and

QuadRealPropertyGroup.Hewas

previouslytheManagingDirector

ofJonesLangLaSalle(JLL)intheUK

beforebecomingtheCEOforEurope,

MiddleEastandAfrica,andthen

latterlybecomingtheCEOforAsia

Pacific.AlastairisaCharteredSurveyor

andsatontheGlobalExecutiveBoard

ofJLL.

Priscillahasover25yearsoffinancial

servicesexperienceacrossarangeof

sectorsincludingassetmanagement

andalternativeinvestments

coveringrealestate,privateequity,

infrastructure,andrenewables.She

iscurrentlyanon-executivedirector

andchairatUBSAssetManagement

UKLtd,non-executivedirectorand

chairofAuditandRiskCommitteeat

CubicoSustainableInvestments,and

non-executivedirectoratBankofNew

YorkMellon(International)Limited.

Priscillapreviouslyheldvarioussenior

positionsatJanusHenderson,most

latterlyasManagingDirectorofthe

PrivateEquitybusinessandwasa

non-executivedirectoratEmbark

GroupLimitedanditsregulated

subsidiaries.SheisalsoaChartered

Accountantandamemberofthe

CharteredAccountantsAustraliaand

NewZealand.

Alexandra’sexecutivecareer

spannedinvestmentbanking,global

capitalmarkets,andinvestment

management,mostlatterlyas

ManagingDirector,Barclaysplc,and

priortothatasDirectorofGlobal

CapitalMarketsatBankofAmerica

MerrillLynch.

Alexandraisanon-executive

committeememberattheBankof

England,anon-executivedirector

atW1MWealthManagement,STS

GlobalIncomeandGrowthTrust

plc,andFacilitiesbyADFplcanda

memberoftheFinanceCommittee

attheUniversityofCambridge.Prior

boardrolesincludeKnightFrankLLP,

DowlaisGroupplc,andAllEngland

LawnTennisClub(Championships).

AlexandraholdsanM.A.Hons

EconomicsfromCambridgeUniversity,

andisaFellowofChapterZero.She

isaGreenandSustainableFinance

Professional,CharteredBanking

Institute(CCBIGSFP),aChartered

memberoftheCISI(MCSI),andholds

theCFAInstituteCertificateinESG

investing.

SanjayisaCharteredAccountantand

wasChiefFinancialOfficerandaBoard

memberofCadoganGroupLimited,

alargeprivaterealestateinvestment

company,untilDecember2024.Prior

tothisrole,SanjayservedasGroup

FinanceDirectorontheBoardofStrutt

&ParkerLLP.Sanjayisalsoadirector

ofSirRichardSuttonLimitedwherehe

isChairoftheAuditCommittee,anda

memberoftheFinanceCommitteeat

theUniversityofCambridge.

Date of appointment:

26April2017

Date of appointment:

7June2022

Date of appointment:

16November2022

Date of appointment:

1January2024

Current remuneration:

£60,000 per annum

Current remuneration:

£44,000 per annum

Current remuneration:

£44,000 per annum

Current remuneration:

£46,500 per annum

Material interests in any contract

which is significant to the Company’s

business:

Material interests in any contract

which is significant to the Company’s

business:

Material interests in any contract

which is significant to the Company’s

business:

Material interests in any contract

which is significant to the Company’s

business:

Key skills and contributions tothe

Board:

Alastairhasextensiveexperiencein

realestatemanagement,strategic

leadership,andgovernancefrom

hispreviousseniorexecutiveroles.

Hisexperienceasachartered

surveyorassistswithscrutinyof

assetpurchasesandoversightofthe

Company’sindependentvaluer.

Key skills and contributions tothe

Board:

Priscillabringsextensiveexperience

asaseniorexecutiveworkingfor

assetmanagementbusinesses.She

alsohasrelevantandrecentfinancial

experience.

Key skills and contributions tothe

Board:

Alexandrabringsknowledgeofthe

economy,finance,capitalmarkets

andinvestorstotheboard,alongside

sustainabilityexpertise.

Key skills and contributions tothe

Board:

Sanjaybringssubstantialexperience

infinance,accounting,andreal

estate,whichenabledhimtooversee

andscrutinisetheManager’s

fundaccountingfunctionandthe

performanceoftheCompany’s

Auditor.Sanjayalsohasrecentand

relevantfinancialexpertisetoserveas

chairoftheAuditCommittee.

NoDirectorhasanyentitlementtopensionsandtheCompanyhasnotawardedanyshareoptionsorlong-termperformanceincentivestoanyofthem.Noelementof

Directors’remunerationisperformancerelated.TherewerenopaymentstoDirectorsforlossofoffice.

NoDirectorhasaservicecontractwiththeCompany.However,eachoftheDirectorshasaletterofappointmentwiththeCompany.TheDirectors’lettersofappointment,

whichsetoutthetermsoftheirappointments,areavailableforinspectionattheCompany’sregisteredofficeaddressduringnormalbusinesshoursandwillbeavailable

forinspectionattheAGM.

50 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Report of the Directors

Governance report

The Directors of the Company

and its subsidiaries, together the

‘Group’, present the annual report

and audited consolidated financial

statements of the Group for the year

ended 31 March 2025 (the ‘Annual

Report and Consolidated Financial

Statements’).

Results and dividends

Theresultsfortheyearunderreviewaresetoutinthe

attachedfinancialstatements.

DuringtheyeartheCompanyhasdeclaredandorpaidthe

followinginterimdividendstoitsshareholdersinaccordance

withthesolvencytest(containedintheCompaniesLaw):

Dividend for

quarterended

Date Paid Rate

31March2024 28June2024 0.853pencepershare

30June2024 30August2024 0.853pencepershare

30September2024 20December2024 0.879pencepershare

31December2024 28March2025 0.897pencepershare

TheDirectorsrecommendadividendfortheyearended

31March2025of0.897pencepersharetobepaidon30June

2025.Thedividendof0.897ppswillbewhollydesignatedasan

interimpropertyincomedistribution(‘PID’).

Alldividendspaidduringtheyearwereallocatedandpaidas

fullPropertyIncomeDistributions(PIDs).

Share capital

Asat31March2025theCompanyhad565,664,749(2024:

565,664,749)ordinarysharesinissueofwhich76,554,173

ordinaryshares(representing13.2%oftheCompany’stotal

issuedsharecapital)wereheldintreasury(2024:76,554,173).

ThetotalnumberofvotingrightsoftheCompanywas

489,110,576attheyearend(2024:489,110,576)andthisfigure

maybeusedbyshareholdersasthedenominatorforthe

calculationsbywhichtheywilldetermineiftheywererequired

tonotifytheirinterestin,orachangeintheirinterestof,the

Company,undertheDisclosureGuidanceandTransparency

Rulesasattheyearend.

Key services providers

TheBoardhasadoptedanoutsourcedbusinessmodelandhas

appointedthefollowingkeyserviceproviders:

Investment Manager

SchroderRealEstateInvestmentManagementLimitedisthe

InvestmentManageroftheCompany.TheBoardreviews

theInvestmentManager’sperformanceatitsquarterly

Boardmeetings.Inaddition,theBoardconducteditsannual

strategicreviewwiththeInvestmentManagerinFebruary

2025toconsidertheCompany’sinvestmentstrategyin

moredepth.Subsequently,theDirectorsformallydiscussed

theperformanceandongoingsuitabilityoftheInvestment

ManageratanannualmeetingoftheManagement

EngagementCommittee.

Onthebasisofthisreview,theBoardremainssatisfiedthatthe

InvestmentManagerhastheappropriatecapabilitiesrequired

tosupporttheCompanyandbelievesthatthecontinuing

appointmentoftheInvestmentManagerunderthetermsof

theInvestmentManagementAgreement,thedetailsoftheare

setoutbelow,isintheinterestofshareholders.

TheInvestmentManagerreceivedafeeof0.9%ofthe

Company’sNAVuptobutnotincluding£500million;0.8%on

theCompany’sNAVbetween£500millionuptoandincluding

£1billion;and0.7%ontheCompany’sNAVover£1billion.

Thefeeispayablemonthlyinarrears.Whilstthereisno

performancefee,witheffectfromthefinancialyearended

31March2025,thereisapotentialincrease/decreaseof

managementfeespayabletotheInvestmentManagerequalto

fivebasispointsofNetAssetValueperannumdependenton

both(i)deliveringthesustainabilityKPItargetsintherevised

investmentpolicytotheBoard’ssatisfaction,and(ii)thedelivery

ofanincomereturnaheadoftheMSCIBenchmark,because

thenewstrategyisdesignedtodelivermoresustainable

long-termincome.

Followingtheyearend,itwasagreedwiththeManagerthat

thefeepayableundertheInvestmentManagementAgreement

willbeamendedsuchthat,effectivefrom1October2025,the

managementfeeswillbe50%linkedtomarketcapitalisation

cappedattheprevailingNAV,withthebalancelinkedtoNAV,

andtheexistingtierslinkedtotheCompany’ssizeremaining

unchanged.

TheCompanyhasappointedtheInvestmentManagerasits

AIFMundertheAIFMDirective.Thereisnoadditionalfeepaid

totheInvestmentManagerforthisservice.

Administration

SchroderInvestmentManagementLimited,anaffiliateofthe

AIFM,isCompanySecretarytotheCompanyforwhichitis

paidafeeof£50,000perannum.LanghamHall(Guernsey)

LimitedwasappointedastheCompanySecretarytothe

Group’ssubsidiaries,andasDesignatedManager,forafeeof

£67,000perannumandLanghamHallUKDepositaryLLPisthe

Company’sdepositaryforafeeof£56,000perannum.

51 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Report of the Directors continued

Anti-bribery policy

TheCompanycontinuestobecommittedtocarryingoutits

businessfairly,honestlyandopenly.Appropriatepoliciesare

consideredtobeinplacetoensurecompliancewiththeUK

BriberyAct2010.

Directors

TheDirectorsoftheCompany,togetherwiththeirbeneficial

interestsintheCompany’sordinarysharecapitalasatthedate

ofthisreport,aregivenbelow:

Director

Number of

ordinaryshares

Percentage (%)

AlastairHughes 190,579 Lessthan0.1

SanjayPatel 142,657 Lessthan0.1

PriscillaDavies Nil Nil

AlexandraInnes Nil Nil

Substantial shareholdings

TheCompanyhasreceivednotificationsinaccordancewith

theFinancialConductAuthority’s(‘FCA’)DisclosureGuidance

andTransparencyRule5.1.2Rofthebelowinterestsin5%or

moreofthevotingrightsattachingtotheCompany’sissued

sharecapitalasat31March2025.TheCompanyisreliant

oninvestorstocomplywiththeseregulations,andcertain

investorsmaybeexemptedfromprovidingthese.Assuch,this

shouldnotbereliedonasanexhaustivelistofshareholders

holdingabove5%oftheCompany’svotingrights.

Notifier

Number of

ordinaryshares

Percentage (%)

Schrodersplc 67,842,383 13.8

RathbonesInvestment

ManagementLtd 58,548,550 12.0

PremierFundManagers

Limited 41,680,575 8.0

EmbarkInvestment

Services(UK) 34,207,624 7.0

On8May2025,RathbonesInvestmentManagementLtd

notifiedtheCompanythatitsholdinghaddecreasedto10.97%

ofvotingrightsheld.

Independent Auditor

ResolutionstoreappointErnst&YoungLLP(‘EY’orthe

‘Auditor’),andtogivetheDirectorsauthoritytodetermine

theAuditor’sremunerationforthecomingyear,willbeput

toshareholdersattheAnnualGeneralMeeting(‘AGM’)ofthe

Company.

TheAuditCommittee’sevaluationoftheAuditorisdescribedin

theAuditCommitteeReportonpage55.

Disclosure of information to the Auditor

TheDirectorswhoheldofficeatthedateofapprovalofthis

Directors’Reportconfirmthat,asfarastheyareeachaware,

thereisnorelevantauditinformationofwhichtheCompany’s

AuditorisunawareandeachDirectorhastakenallthesteps

thattheyoughttohavetakenasaDirectortomakethemselves

awareofanyrelevantauditinformationandtoestablishthat

theCompany’sAuditorareawareofthatinformation.

Status for taxation

TheDirectoroftheRevenueServiceinGuernseyhasgranted

theCompanyexemptionfromGuernseyincometaxunderthe

IncomeTax(ExemptBodies)(Guernsey)Ordinance,1989and

theincomeoftheCompanymaybedistributedoraccumulated

withoutdeductionofGuernseyIncomeTax.Exemptionunder

theabove-mentionedOrdinanceentailsthepaymentbythe

Companyofanannualfeeof£1,600.

TheGroupcontinuestopaynocorporationorincometax

becauseithastaxexemptstatusintheUKasaUKREIT.

TheGrouphasbeenaUKREITsince2015andtheGroup’s

propertyincomeandgainsareexemptfromUKcorporate

taxesprovidedanumberofconditionsinrelationtothe

Group’sactivitiesaremetincluding,butnotlimitedto,

distributingatleast90%oftheGroup’sUKtaxexemptprofit

aspropertyincomedistributions(‘PID’’s).Asfarasthedirectors

areaware,theGroupremainsinfullcompliancewiththeREIT

requirements.

Shareholderswhoareinanydoubtconcerningthetaxation

implicationsofaREITshouldconsulttheirowntaxadvisors.

Key information document

AKeyInformationDocument(‘KID’)fortheCompanyis

publishedonatleastanannualbasis,inaccordancewiththe

PackagedRetailandInsurance-BasedInvestmentProducts

Regulation(‘PRIIPs’),andmadeavailableontheCompany’s

website.Thecalculationoffiguresandperformancescenarios

containedintheKIDareprescribedbyPRIIPSandhaveneither

beensetnorendorsedbytheBoard.Infact,theBoardisofthe

opinionthatPRIIPShasbeeninconsistentlyappliedbymarket

participantsandhencecreatesconfusionamongstinvestors.

AIFMD remuneration disclosures for Schroder Real

Estate Investment Management Limited (‘SREIM’) for

the year to 31 December 2024

Quantitativeremunerationdisclosurestobemadeinthis

AnnualReportinaccordancewithFCAHandbookruleFUND

3.3.5arepublishedonthefollowingwebsite:https://www.

schroders.com/en/global/individual/corporate-transparency/

disclosures/

52 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report

Corporate governance

The Directors are committed to

maintaining high standards of

corporate governance. Insofar

as the Directors believe it to be

appropriate and relevant to the

Company, it is their intention that

the Company should comply with

best practice standards for the

business carried on by the Company

TheGuernseyFinancialServicesCommission(‘GFSC’)states

intheFinanceSectorCodeofCorporateGovernance(the

‘Code’)thatcompanieswhichreportagainsttheUKCorporate

GovernanceCodeortheAssociationofInvestmentCompanies

CodeofCorporateGovernancearedeemedtomeettheCode,

andneedtakenofurtheraction.

TheBoardhasconsideredtheprinciplesandrecommendations

oftheAssociationofInvestmentCompaniesCodeofCorporate

GovernancepublishedinFebruary2019(‘AICCode‘),which

appliestoaccountingperiodsbeginningonorafter1January

2019.TheAICCodeaddressesalltheprinciplessetoutin

theUKCorporateGovernanceCode,aswellassettingout

additionalprinciplesandrecommendationsonissuesthatare

ofspecificrelevance.AcopyoftheAICCodecanbefoundat

www.theaic.co.uk.

ItistheBoard’sintentiontocontinuetocomplywiththe

AICCodeandwewillcontinuetoreporttheCompany’s

compliancewiththeprinciplesandrecommendationsofthe

AICCode,whichhasbeenendorsedbytheFinancialReporting

Council(‘FRC’).

Statement of compliance

TheCompanyhascompliedwiththerecommendationsof

theAICCodeandtherelevantprovisionsoftheUKCorporate

GovernanceCode,exceptassetoutbelow.

TheUKCorporateGovernanceCodeincludesprovisions

relatingto:

― Theroleofthechiefexecutive;

― Executivedirectors’remuneration;

― Internalauditfunction;and

― theChair’smembershipoftheAuditandRiskCommittee.

TheBoardconsidersthattheseprovisionsarenotrelevant

totheCompany,beinganexternallymanagedinvestment

company.Inparticular,alloftheCompany’sday-to-day

managementandadministrativefunctionsareoutsourced

tothirdparties.Asaresult,theCompanyhasnoexecutive

Directors,employeesorinternaloperations.Theprovisionin

relationtotheinternalauditfunctionisreferredtointheAudit

Committeereport.

Inlinewithcommonpracticeforinvestmentcompanies,and

consideringthecompositionoftheAuditCommitteeinterms

ofitscombinationofskills,experience,andknowledge,itis

consideredappropriatefortheChairtobeamemberofthe

AuditCommittee.

Role of the Board

TheBoardhasdeterminedthatitsroleistoconsiderand

determinethefollowingprincipalmatterswhichitconsiders

areofstrategicimportancetotheCompany:

― TheoverallobjectivesoftheCompany,asdescribedunder

theparagraphaboveheaded‘InvestmentPolicyand

Strategy’andthestrategyforfulfillingthoseobjectives

withinanappropriateriskframework,inlightofmarket

conditionsprevailingfromtimetotime;

― ThecapitalstructureoftheCompany,including

considerationofanappropriatepolicyfortheuseof

borrowingsbothfortheCompanyandinanyjoint

venturesinwhichtheCompanymayinvestfromtimeto

time;

― TheappointmentoftheInvestmentManager,

Administratorandotherappropriatelyskilledservice

providersandtomonitortheireffectivenessthrough

regularreportsandmeetings;and

― ThekeyelementsoftheCompany’sperformanceincluding

NAVgrowthandthepaymentofdividends.

Board decisions

TheBoardmakesdecisionson,amongotherthings,the

principalmatterssetoutundertheparagraphaboveheaded

‘RoleoftheBoard’.Issuesassociatedwithimplementingthe

Company’sstrategyaregenerallyconsideredbytheBoard

tobenon-strategicinnatureandaredelegatedeithertothe

InvestmentManagerortheAdministrator,unlesstheBoard

considerstherewillbeimplementationmatterssignificant

enoughtobeofstrategicimportancetotheCompany

andshouldbereservedtotheBoard.Generallytheseare

definedas:

― Largepropertydecisionsaffecting10%ormoreofthe

Company’sassets;

― Largepropertydecisionsaffecting5%ormoreofthe

Company’srentalincome;and

― DecisionsaffectingtheCompany’sfinancialborrowings.

Board evaluation

Withinthefinancialyearended31March2025,theBoard

carriedoutaninternalevaluationoftheBoardandits

Chair,whichinvolvedquestionnairesbeingcompletedby

non-executiveDirectors.ItwasconcludedthattheBoard

53 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Corporate governance continued

performswellandhastherelevantknowledgeandexperience

asawhole.

Non-executive Directors, rotation of Directors and

Directors’ tenure

TheUKCorporateGovernanceCoderecommendsthat

Directorsshouldbeappointedforaspecifiedperiod.TheBoard

hasresolvedinthisinstancethatDirectors’appointmentsneed

notcomplywiththisrequirementasallDirectorsarenon-

executiveandtheirrespectiveappointmentscanbeterminated

atanytimewithoutpenalty.TheBoardhasapprovedapolicy

thatallDirectorswillstandforre-electionannuallyanditisthe

intentionthatnoDirectorwillserveformorethannineyears.

TheappointmentandreplacementofDirectorsisgovernedby

theCompany’sArticles,theCompaniesLaw,relatedlegislations

andtheUKListingRules.TheArticlesmayonlybeamendedby

aspecialresolutionoftheshareholders.Whenavacancyarises

theBoardselectsthebestcandidatetakingintoaccountthe

skillsandexperiencerequired,whiletakingintoconsideration

boarddiversityaspartofagoodcorporategovernanceculture.

Board composition and diversity

TheBoardcurrentlyconsistsoffournon-executiveDirectors.

ThebiographyofeachoftheseDirectorsissetoutonpage49

ofthereport.TheBoardconsiderseachoftheDirectorstobe

independent.Asat31March2025,50%oftheindividualson

theBoardofDirectorswerewomen,atleastoneindividualon

theBoardofDirectorswasfromaminorityethnicbackground,

andatleastoneoftheseniorpositionsontheBoardof

Directorswasheldbyawoman.TheCompanyhastherefore

metalloftherelevanttargetsinrelationtoBoarddiversityas

setoutintheUKListingRules.

TheCompanybelievesinthebenefitsofdiversityandplaces

importanceonbroaddiversityoftheBoardaspartofits

successionplanning.TheCompany’sdiversityandinclusion

policy,outlinedbelow,wasappliedthroughouttherecruitment

processforthetworecentBoardappointments.

ThebelowtablessetoutthegenderandethnicdiversitycompositionoftheBoardasat31March2025andatthedateofthisreport.

Number of

Boardmembers

Percentage

oftheBoard (%)

Number of senior positions

onthe Board

WhiteBritishorotherWhite(includingminority-whitegroups) 3 75% 2

Mixed/MultipleEthnicGroups - - -

Asian/AsianBritish 1 25% 0

Black/African/Caribbean/BlackBritish - - -

Otherethnicgroup,includingArab - - -

Notspecified/prefernottosay - - -

Number of

Boardmembers

Percentage

oftheBoard (%)

Number of senior positions

onthe Board

Men 2 50 1

Women 2 50 1

Notspecified/prefernottosay - - -

GiventhattheCompanyisaREITwithnoexecutiveBoard

members,thecolumnsandreferencesregardingexecutive

managementhavenotbeenincluded.Theapproachto

collectingthisdatawasconsistentforthepurposesof

reportingundertheUKListingRules,andwasconsistent

acrossallindividualsinrelationtowhomdataisbeing

reported,wherebyallDirectorsconfirmedthattheabove

disclosureswerecorrect.

TheBoardhasadoptedadiversityandinclusionpolicy,which

appliestoboththeBoardanditscommittees.Appointments

andsuccessionplanswillalwaysbebasedonmeritand

objectivecriteriaand,withinthiscontext,theBoardseeks

topromotediversity(includingofgender,social,ethnic,

professionalandeducationalbackgrounds,sexualorientation,

cognitiveandpersonalstrengths),inclusionandequal

opportunity.TheBoardwillencourageanyindependent

recruitmentagenciesitengagestofindarangeofcandidates

thatmeettheobjectivecriteriaagreedforeachappointment.

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.

TheindependenceofeachDirectorisconsideredona

continuingbasis.TheBoardhasdeterminedthatallthe

DirectorsareindependentoftheInvestmentManager.The

Boardissatisfiedthatitisofsufficientsizewithanappropriate

balanceofskillsandexperience,independenceandknowledge

ofboththeCompanyandthewiderinvestmentcompany

sector,toenableittodischargeitsrespectivedutiesand

responsibilitieseffectivelyandthatnoindividualorgroupof

individualsis,orhasbeen,inapositiontodominatedecision

making.AccordinglytheBoardapprovesthenominationfor

re-electionofeachoftheDirectorsattheforthcomingAnnual

GeneralMeeting.TheBoardalsoconsidersthediversityand

inclusionpoliciesofitskeyserviceproviders.

54 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Corporate governance continued

Board committees

TheBoardhasdelegatedcertainofitsresponsibilities

toitsAudit,Nomination,andManagementEngagement

committees.Eachofthesecommitteeshasformalterms

ofreferenceestablishedbytheBoardwhichareavailable

ontheCompany’swebsite.TheBoardbelievesthatits

committeeshaveanappropriatecompositionandblend

ofbackgrounds,skillsandexperiencetodischargetheir

dutieseffectively.Detailsoftheworkofthesecommittees

areavailableintheirrespectivereports.AsalltheDirectors

arenon-executive,theBoardhasresolvedthatitisnot

necessarytohaveaRemunerationCommittee.

Board meetings and attendance

TheBoardmeetsatleastfourtimeseachyear.Additional

meetingsarealsoarrangedasrequiredandregular

contactbetweenDirectors,theInvestmentManagerand

theAdministratorismaintainedthroughouttheyear.

RepresentativesoftheInvestmentManagerandCompany

SecretaryattendeachBoardmeetingandotheradvisorsalso

attendwhenrequestedtodosobytheBoard.

AttendancerecordsforthefourquarterlyBoardmeetingsandcommitteemeetingsduringtheyearunderreviewaresetoutinthe

tablebelow.

Director

Board

Audit Committee

Management Engagement

Committee

Nomination

Committee

AlastairHughes 4/4 2/2 1/1 1/1

PriscillaDavies 4/4 2/2 1/1 1/1

AlexandraInnes 4/4 2/2 1/1 1/1

SanjayPatel 4/4 2/2 1/1 1/1

Numberofmeetingsduringtheyear 4 2 1 1

Information flows

AllDirectorsreceive,inatimelymanner,relevantmanagement,

regulatoryandfinancialinformationandareprovided,ona

regularbasis,withkeyinformationontheCompany’spolicies,

regulatoryrequirementsandinternalcontrols.TheBoard

receivesandconsidersreportsregularlyfromtheInvestment

Managerandotherkeyadvisorsandadhocreportsand

informationaresuppliedtotheBoardasrequired.

Data protection and security

TheBoardhasrevieweditssystemsandcontrolsinlightof

theimplementationoftheGeneralDataProtectionRegulation

(EURegulation2016/679)andtheDataProtection(Bailiwickof

Guernsey)Law,2017(the‘GDPR’)in2018toensurethatthe

CompanyiscompliantwiththerequirementsoftheGDPR.

AspartofthatprocesstheBoardtookstepstoupdateits

contractsandpoliciesaccordinglyandiscomfortablethat

itmeetsitsobligationsasacontrollerofpersonaldata.The

BoardalsorequiresitsInvestmentManagertohavearobust

informationsecurityanddataprotectionenvironmentinplace.

ThisisreviewedwiththeInvestmentManagerattheannual

Manager‘svisitday.AllBoardcommunicationofaconfidential

natureismanagedviaasecureapplication.TheCompany’s

privacynoticeisavailableonitswebpages.

Directors’ and officers’ liability insurance

Duringtheyear,theCompanyhasmaintainedinsurancecover

foritsDirectorsunderaliabilityinsurancepolicy.

Relations with shareholders

TheBoardbelievesthatthemaintenanceofgoodrelations

withbothinstitutionalandretailshareholdersisimportant

forthelong-termprospectsoftheCompany.TheBoard

receivesfeedbackontheviewsofshareholdersfromits

corporatebroker,theInvestmentManagerandfromtheChair.

ThroughthisprocesstheBoardseekstomonitortheviews

ofshareholdersandtoensureaneffectivecommunication

programme.

TheBoardbelievesthattheAnnualGeneralMeeting,due

tobeheldat12.00pmon16September2025,providesan

appropriateforumforinvestorstocommunicatewiththe

Boardandencouragesinvestorstoattend.TheNoticeofthe

nextAnnualGeneralMeetingcanbefoundonpage139ofthis

document.

Disclosures required under UK Listing Rule 6.6.4

UKListingRule6.6.4requirestheCompanytoincludecertain

informationinasingleidentifiablesectionofthisannualreport

oracross-referencetableindicatingwheretheinformation

requiredinLR6.6.1issetout.TheBoardconfirmsthatthere

arenodisclosurestobemadeinthisregard.

55 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Audit Committee report

Governance report

Composition

TheAuditCommitteeischairedbySanjayPatel,withPriscilla

Davies,AlastairHughes,andAlexandraInnesasmembers.The

BoardconsidersthatSanjayPatel’sprofessionalexperience

makeshimsuitablyqualifiedtochairtheAuditCommittee,and

hiscontinuingprofessionalcommitmentsprovidehimwith

recentrelevantfinancialexperience.TheAuditCommittee’s

termsofreferenceareavailableontheCompany’swebpages.

Responsibilities

TheAuditCommitteeensuresthattheCompanymaintains

thehigheststandardsofintegrityinfinancialreportingand

internalcontrol.Thisincludesresponsibilityforreviewing

thehalf-yearandannualfinancialstatementsaheadoftheir

submissionstotheBoard.Inaddition,theAuditCommitteeis

specificallychargedunderitstermsofreferencetoadvisethe

Board,interalia,onthetermsandscopeoftheappointment

oftheAuditor,includingtheirremuneration,independence,

objectivityandreviewingwiththeAuditortheresultsand

effectivenessoftheaudit.

Work of the Audit Committee

TheAuditCommitteemeetsnolessthantwiceayear.

MeetingsarealsoattendedbytheInvestmentManagerand

theAuditorasappropriate.Duringtheyearunderreview,the

AuditCommitteemetontwooccasionstoconsider:

― Thecontentsoftheinterimandannualfinancial

statementsandtoconsiderwhether,takenasawhole,

theywerefair,balancedandunderstandableandprovided

theinformationnecessaryforshareholderstoassessthe

Company’sperformance,businessmodelandstrategy;

― TheeffectivenessoftheCompany’ssystemofinternal

control;

― ThemanagementrepresentationletterstotheAuditor;

― TheexternalAuditor’stermsofengagement,auditplan,

andyearendreport;

― Theindependence,effectivenessandobjectivityofthe

externalAuditor;

― TheindependenceoftheCompany’sValuers;and

― TheriskassessmentoftheCompany.

Duringtheyearunderreview,theAuditCommittee’sworkalso

includedareviewofthereportingmethodologydeveloped

bytheInvestmentManageronprogressingthebrown-to-

greenstrategy.EY,theCompany’sAuditor,independently

reperformedtheperformanceoftwoassetsviaanISRS4400

(Revised)‘AgreedUponProcedures’(AUP)engagementwitha

finalreportissuedinJune2025.Thefullreportcanbefound

ontheCompany’swebsite.

AsnotedintheCorporateGovernancereport,anevaluation

ofthecommitteeswascompletedbytheDirectorsinMarch

2025,whichconcludedthattheAuditCommitteecontinuedto

functioneffectivelyandtodischargethemattersforwhichitis

responsibleunderitstermsofreference.

Recommendations made to, and approved by, the

Board:

― Thatthereportandaccountsbeapproved;

― Thattheannualreportandthehalfyearreportbe

preparedonagoingconcernbasisinaccordancewith

theexplanationssetoutinthegoingconcernandviability

statements;and

― Thatresolutionsinrelationtothere-appointmentofthe

AuditorbeproposedattheAGM.

Internal control

TheUKCorporateGovernanceCode,andtheAICCode,

requiretheBoardtoconduct,atleastannually,areviewofthe

effectivenessoftheCompany’ssystemofinternalcontrols,and

toreporttoshareholdersaccordingly.TheCompany’ssystem

ofinternalcontrolsissubstantiallyreliantontheinternal

controls,andinternalauditprocesses,ofboththeInvestment

ManagerandthekeyserviceproviderstotheCompany.All

aspectsofthewiderinternalcontrols’frameworkarereviewed

atleastannually.Basedonthesereviews,theCommittee

notedthattheCompany’sriskmanagementandinternal

controlframework,anditsmaterialcontrolshadoperated

effectivelyasatthebalancesheetdate.

TosupportthisreviewtheCommitteemetwithkey

stakeholders,includingthein-houseRiskteamofthe

InvestmentManager,aswellastheDepositary,andreviewed

externallypreparedcontrols’reportsofkeyserviceproviders

totheCompanyincludingthoseoftheInvestmentManager,

Depositary,GuernseyAdministratorandPropertyManager.

ThefinancialproceduresofboththeInvestmentManager,

andthethird-partyaccountancyandadministrativeservice

provider,werealsoreviewed.

TheAuditCommittee,onbehalfoftheBoard,alsoreviews

adetailed‘RiskMatrix’identifyingsignificantstrategic,

investment-related,operationalandserviceprovider-related

risks.

Basedonthesedetailedreviews,theCommitteenotedthatthe

Company’sriskmanagementandinternalcontrolframework

hadoperatedeffectivelyasatthebalancesheetdate.No

significantissueswereidentifiedfromtheinternalcontrols’

review.

AlthoughtheBoardbelievesthatithasarobustframework

ofinternalcontrolsinplace,thiscanprovideonlyreasonable,

andnotabsolute,assuranceagainstmaterialfinancial

misstatementorlossandisdesignedtomanage,andnot

eliminate,risk.

56 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Audit Committee report continued

Significant matters considered by the Audit

Committee in relation to the financial statements

Property valuation

Matter Action

Propertyvaluationiscentraltothe

businessandisasignificantarea

ofjudgementwhichisinherently

subjective,althoughthevaluations

areperformedbyanindependent

firmofvaluers,CBRE.

Errorsinvaluationcouldhavea

materialimpactontheCompany’s

netassetvalue.

TheAuditCommitteereviewed

theoutcomesofthevaluation

processthroughouttheyear

anddiscussedthedetailofeach

quarterlyvaluationwiththe

InvestmentManagerattheBoard

meetings.

TheAuditCommitteemetwith

CBREtodiscusstheprocess,

assumptions,independence

andcommunicationwiththe

InvestmentManager.The

Committeewassatisfiedthat

thefirmhadtakenaconsidered

approach.

Market volatility

Matter Action

TheperformanceoftheCompany

couldbeaffectedbyeconomicand

propertymarketrisk.Inthewider

economythiscouldincludeinflation,

stagflationordeflation,economic

recessions,movementsininterest

rates,thewarinUkraine,orother

externalshocks.Theperformance

oftheunderlyingpropertyportfolio

couldalsobeaffectedbystructural

orcyclicalfactorsimpacting

particularsectorsorregionsofthe

propertymarket.

AsdisclosedintheGoingConcern

andViabilityStatementsonpages

46to47,theAuditCommittee

hasconsideredvariousstress

testsandsensitivitiestothe

normalcashflowforecasts,andis

confidentthattheCompanywill

beabletocontinueinoperation

andmeetitsliabilitiesastheyfall

dueoverthefiveyearperiodofits

assessment,TheAuditCommittee

considersthattheCompanyisa

goingconcern.

Internal audit

TheAuditCommitteeconsideredtheneedforaninternalaudit

functionandconcludedthatthisfunctionisnotrequired,as

theCompanyhasnodirectemployees,anditoutsourcesall

day-to-daymanagementandadministrativefunctions.The

InvestmentManagerhasitsowninternalauditors.Inthe

absenceofaninternalauditfunction,assurancewasachieved

byareviewbytheCommitteeoftheInvestmentManager’s

groupISAE3402/AAF01/06InternalControlsReport.This

reportcoveredtheactivitiesoftheInvestmentManager,

SchroderRealEstateInvestmentManagementLimited.

Additionally,theAuditCommitteereviewedtheinternal

controlsofkeyserviceprovidersatameetingheldinMay

2025,whichincludedtheInvestmentManager,theDepositary,

andCBREGlobalInvestmentAdministration(UK)Limited,to

whomtheInvestmentManageroutsourcedresponsibility

fortheCompany’saccountingrecordsandproductionof

managementaccountsandfinancialstatements.

External Auditor’ remuneration,

independenceandeffectiveness

Annually,theAuditCommitteeconsiderstheremunerationand

independenceoftheexternalAuditor.TheAuditCommittee

recommendstheremunerationoftheexternalAuditortothe

Boardandkeepsunderreviewtheratioofaudittonon-audit

feestoensurethattheindependenceandobjectivityofthe

externalAuditoraresafeguarded.

Effectiveness of the independent audit process

TheAuditCommitteeevaluatedtheeffectivenessofEY

priortomakingarecommendationonitsreappointment

attheforthcomingAnnualGeneralMeeting.Aspartofthe

evaluation,theAuditCommitteeconsideredfeedbackfrom

theInvestmentManagerontheauditprocessandyear

endreportfromtheAuditor,whichdetailstheAuditor’s

compliancewithregulatoryrequirements,onsafeguards

thathavebeenestablishedandtheirowninternalquality

controlprocedures.TheAuditCommitteehaddiscussions

withtheauditpartneronauditplanning,accountingpolicies

andauditfindings,andmettheauditpartnerbothwith

andwithoutrepresentativesoftheInvestmentManager

present.ThechairoftheAuditCommitteealsohadinformal

discussionswiththeauditpartnerduringthecourseofthe

year.TheAuditCommitteeissatisfiedwiththeeffectiveness

oftheAuditor.

Non-audit services

Inordertohelpsafeguardtheindependenceandobjectivity

oftheAuditor,theAuditCommitteemaintainsapolicyon

theengagementoftheexternalAuditortoprovidenon-

auditservices.TheAuditCommittee’spolicyfortheuseof

theexternalAuditorfornon-auditservicesrecognisesthat

therearecertaincircumstanceswhere,duetoEY’sexpertise

andknowledgeoftheCompany,itwilloftenbeinthebest

positiontoperformnon-auditservices.Underthepolicy,the

useoftheexternalAuditorfornon-auditservicesissubjectto

pre-clearancebytheAuditCommittee.Clearancewillnotbe

grantedifitisbelieveditwouldimpairtheexternalAuditor’s

independenceorwhereprovisionofsuchservicesbythe

Company’sAuditorisprohibited.Priortoundertakingany

non-auditservice,EYalsocompletesitsownindependence

confirmationprocesseswhichareapprovedbytheaudit

partner.

Duringtheyear,£20,000waspaidtoEYforanon-auditservice

whichwasinrelationtotheAgreedUponProcedures(‘AUP’)

exercise.

Sanjay Patel

Chair of the Audit Committee

10June2025

57 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Management Engagement Committee report

Governance report

TheManagementEngagementCommitteeischairedby

AlexandraInneswithPriscillaDavies,AlastairHughes,and

SanjayPatelasmembers.TheManagementEngagement

Committee’stermsofreferenceareavailableontheCompany’s

webpages.

The Management Engagement Committee is

responsible for:

1 ThemonitoringandoversightoftheInvestmentManager’s

performanceandfees,andconfirmingtheInvestment

Manager’songoingsuitability;and

2 ReviewingandassessingtheCompany’sotherservice

providers,includingreviewingtheirfees.

Recommendations made to, and approved by, the

Board:

― ThattheongoingappointmentoftheInvestmentManager

onthetermsoftheInvestmentManagementAgreement

wasinthebestinterestsofshareholdersasawhole;and

― ThattheInvestmentManagementAgreementbe

amendedsuchthat,effectivefrom1October2025,

themanagementfeeswillbe50%linkedtomarket

capitalisationcappedattheprevailingNAV,withthe

balancelinkedtoNAV,andtheexistingtierslinkedtothe

Company’ssizeremainingunchanged;and

― ThattheCompany’sserviceproviders’performance

remainedsatisfactory.

Oversight of the Investment Manager

Approach

TheManagementEngagementCommittee:

— ReviewstheInvestmentManager’sperformance(includinginrelation

tosustainabilityKPIs)andsuitability;

— ConsidersthereportingithasreceivedfromtheInvestment

Managerthroughouttheyear,andthereportingfromthe

InvestmentManagertoshareholders;

— Assessesmanagementfeesonanabsoluteandrelativebasis,

receivinginputfromtheCompany’scorporatebroker,includingpeer

groupandindustryfigures,aswellasthestructureofthefees;

— ReviewstheappropriatenessoftheInvestmentManager’scontract,

includingtermssuchasnoticeperiod;and

— AssesseswhethertheCompanyreceivesappropriateadministrative,

accounting,companysecretarialandmarketingsupportfromthe

InvestmentManager.

Application during the year

TheManagementEngagementCommitteeundertookadetailedreview

oftheInvestmentManager’sperformanceandagreedthatithasthe

appropriatecapabilitiesrequiredtoallowtheCompanytomeetits

investmentobjective.TheManagementEngagementCommitteealso

reviewedthetermsoftheInvestmentManagementAgreementand

recommendedtoamendtheagreementsuchthat,effectivefrom1

October2025,themanagementfeeswillbe50%linkedtomarket

capitalisationcappedattheprevailingNAV,withthebalancelinked

toNAV,andtheexistingtierslinkedtotheCompany’ssizeremaining

unchanged.TheManagementEngagementCommitteereviewedthe

otherservicesprovidedbytheInvestmentManagerandagreedthey

weresatisfactory.

Oversight of other service providers

Approach

TheManagementEngagementCommitteereviewstheperformanceand

competitivenessoftheCompany’sserviceprovidersonatleastanannual

basisincludingthePropertyManagers,theDepositary,theAdministrator,

theTaxAdvisor,theCorporateBroker,theValuer,theSolicitorsandthe

Registrar.

TheManagementEngagementCommitteereceivesfeedbackfromthe

AuditCommitteeonitsreviewoftheAuditor.

Application during the year

Theannualreviewofserviceproviderswassatisfactory.TheManagement

EngagementCommitteenotedthattheAuditCommitteehadundertaken

adetailedevaluationoftheInvestmentManager,Depositary,and

GuernseyAdministrator’sinternalcontrols.

Alexandra Innes

Chair of the Management Engagement Committee

10June2025

58 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Nomination Committee report

Governance report

TheNominationCommitteeischairedbyAlastairHughes,with

PriscillaDavies,AlexandraInnes,andSanjayPatelasmembers.

TheNominationCommittee’stermsofreferenceareavailable

ontheCompany’swebpages.

The Nomination Committee is responsible for:

1 Therecruitment,selectionandinductionofDirectors;

2 Theirassessmentduringtheirtenure;and

3 TheBoard’ssuccession.

Recommendations made to, and approved by, the

Board:

― ThatallDirectorscontinuetodemonstratecommitment

totheirroles,provideavaluablecontributiontothe

deliberationsoftheBoard,andremainfreefromconflicts

withtheCompanyanditsDirectors,soshouldallbe

recommendedforre-electionbyshareholdersattheAGM.

Approach

Selection and induction

— TheNominationCommitteepreparesajobspecificationforeach

role,andanindependentrecruitmentfirmisappointed.Forthe

Chairandthechairsofcommittees,theCommitteeconsiders

currentBoardmemberstoo.

— Jobspecificationoutlinestheknowledge,professionalskills,

personalqualitiesandexperiencerequirements.

— PotentialcandidatesassessedagainsttheCompany’sdiversity

policy.

— TheNominationCommitteediscussesthelonglist,invitesanumber

ofcandidatesforinterviewandmakesarecommendationtothe

Board.

Board evaluation

— TheNominationCommitteeassesseachDirectorannually.

— EvaluationfocusesonwhethereachDirectorcontinuesto

demonstratecommitmenttotheirroleandprovidesavaluable

contributiontotheBoardduringtheyear,takingintoaccounttime

commitment,independence,conflictsandtrainingneeds.

— Followingtheevaluation,theNominationCommitteeprovidesa

recommendationtoshareholderswithrespecttotheannualre-

electionofDirectorsattheAGM.

— AllDirectorsretireattheAGMandtheirre-electionissubjectto

shareholderapproval.

Succession

— TheBoard’ssuccessionpolicyisthatDirectors’tenurewillbeforno

longerthannineyears,exceptinexceptionalcircumstances,and

thateachdirectorwillbesubjecttoannualre-electionattheAGM.

— TheNominationCommitteereviewstheBoard’scurrentand

futureneedsatleastannually.Shouldanyneedbeidentifiedthe

NominationCommitteewillinitiatetheselectionprocess.

— TheNominationCommitteewilloverseethehandoverprocessfor

retiringDirectors.

— TheNominationCommitteereviewstheinductionandtrainingof

newDirectors.

Application

Selection and induction

— Nonewappointmentsweremadeduringtheyear.

Board evaluation

— TheannualBoardevaluationwasundertakeninMarch2025.

— TheNominationCommitteereviewedeachDirector’stime

commitmentandindependencebyreviewingacompletelistof

appointments,includingprobononot-for-profitroles,toensure

thateachDirectorremainedfreefromconflictandhadsufficient

timeavailabletodischargeeachoftheirdutieseffectively.All

Directorswereconsideredtobeindependentincharacterand

judgement.

— TheNominationCommitteeconsideredeachDirector’s

contributions,andnotedthatinadditiontoextensiveexperience

asprofessionalsandnon-executiveDirectors,eachDirectorhad

valuableskillsandexperience,asdetailedintheirbiographieson

page49.

— Basedonitsassessment,theNominationCommitteeprovided

individualrecommendationsforeachDirector’sre-election.

Succession

— Duringtheyear,theNominationCommitteeconsideredtheneed

fororderlysuccessionplanningandasuitableplanwasagreed.

— FollowingareviewattheNominationCommitteemeetingpostyear

end,theBoardandManagerareimplementingsuccessionplanning

forAlastairHughesasChairoftheCompany.

Alastair Hughes

Chair of the Nomination Committee

10June2025

59 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Directors’ remuneration report

Governance report

Introduction

Thebelowremunerationreportissubjecttoanannualadvisory

vote.Anordinaryresolutiontoapprovethisreportwillbeput

toshareholdersattheforthcomingAGM.

AttheAGMheldon16September2024,99.81%ofthevotes

cast(includingvotescastattheChair’sdiscretion)inrespect

ofapprovaloftheremunerationreportfortheyearended31

March2024wereinfavour,while0.19%wereagainst.129,427

voteswerewithheld.

Thebelowremunerationpolicyisinforceandissubjectto

anadvisoryvoteeverythreeyears.AttheAGMheldon16

September2024,theremunerationpolicywasapprovedby

shareholders,with99.80%ofvotesfor,0.20%ofvotesagainst,

and129,427voteswithheld.

TheBoardbelieves,inlinewiththeUKListingRules,that

section5oftheUKCorporateGovernanceCoderelating

toremunerationdoesnotapplytotheCompany,exceptas

outlinedabove,astheCompanyhasnoexecutiveDirectors.

Directors’ remuneration policy

TheCompany’sArticlescurrentlylimittheaggregatefees

payabletotheBoardofDirectorstoatotalof£250,000per

annum.Subjecttothisoveralllimit,itistheBoard’spolicyto

determinethelevelofDirectors’feeshavingregardtothefees

payabletonon-executiveDirectorsintheindustrygenerally,

theimpactofinflation,therolethatindividualDirectorsfulfil

inrespectofBoardandCommitteeresponsibilities,andtime

committedtotheCompany’saffairs.Generally,theBoard

seekstoincreasefeesinlinewiththerateofinflation,withthe

levelofDirectors’remunerationreviewedannuallytoensure

competitivenesswithinthepeergroupandattractivenessto

potentialcandidatesforDirectorappointments.

Forthefinancialyearended31March2025,Directorsreceivea

basefeeof£37,000perannum,andtheChairreceives£58,500

perannum.ThechairoftheAuditCommittee,thechairof

theManagementEngagementCommitteeandtheSenior

IndependentDirectoreachreceiveanadditionalfeeof£5,500

respectively.

NoDirectorpastorpresenthasanyentitlementtopensions

andtheCompanyhasnotawardedanyshareoptionsorlong-

termperformanceincentivestoanyofthem.Noelementof

Directors’remunerationisperformancerelated.

TheBoarddidnotseektheviewsofshareholdersinsetting

thisremunerationpolicy.Anycommentsonthepolicyreceived

fromshareholderswouldbeconsideredonacase-by-case

basis.

Directors’feesarereviewedperiodicallyandtakeintoaccount

researchfromthirdpartiesonthefeelevelsofDirectorsof

peergroupcompanies,aswellasindustrynormsandfactors

affectingthetimecommitmentexpectedoftheDirectors.

NewDirectorsaresubjecttotheprovisionssetoutinthis

remunerationpolicy.

NoDirectorhasaservicecontractwiththeCompany.However,

eachoftheDirectorshasaletterofappointmentwiththe

Company.TheDirectors’lettersofappointment,whichsetout

thetermsoftheirappointment,areavailableforinspection

attheCompany’sregisteredofficeaddressduringnormal

businesshoursandwillbeavailableforinspectionattheAGM.

AllDirectorsareappointedforaninitialtermcoveringthe

periodfromthedateoftheirappointmentuntilthefirstAGM

thereafter,atwhichtheyarerequiredtostandforre-electionin

accordancewiththeArticles.Whenrecommendingwhetheran

individualDirectorshouldseekre-election,theBoardwilltake

intoaccounttheprovisionsoftheUKCorporateGovernance

Code,includingthemeritsofrefreshingtheBoardandits

Committees.

TheBoardhasapprovedapolicythatallDirectorswillstandfor

re-electionannually.

Directors’ remuneration report

ThisReportsetsouthowtheDirectors’remunerationpolicy

wasimplementedduringtheyearended31March2025.

Fees paid to Directors

ThefollowingamountswerepaidbytheCompanyforservices

asnon-executiveDirectors:

Director 31 March 2025 (£) 31 March 2024 (£)

AlastairHughes(Chair) 58,500 55,000

PriscillaDavies

42,500 40,000

AlexandraInnes

42,500 40,000

SanjayPatel

41,125 8,750

StephenBligh(retired

on30June2024)

10,625 40,000

Total 195,250 183,750

1 SeniorIndependentDirector

2 ChairoftheManagementEngagementCommittee

3 AppointmentasaDirectoreffectiveon1January2024andsucceededStephen

BlighaschairoftheAuditCommitteeon30June2024

4 DirectorandchairoftheAuditCommitteeuntil30June2024

TheBoardcarriedoutareviewofDirectors’annualfees

followingtheyearend,consideringthefeespayabletonon-

executivedirectorsintheindustryandthepeergroup,the

rateofinflation,andthecommitmentrequiredofDirectors

oftheCompanytoadequatelydischargetheirrolesand

responsibilities.

60 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Directors’ remuneration report continued

Thisreviewsupportedanincreaseofthefeepayabletothe

chairoftheAuditCommittee,reflectingthemoreonerous

responsibilitiesofthechairoftheAuditCommittee,and

anadditionalfeepayabletothechairoftheNomination

Committeeeffective19May2025.

TheBoardagreedtoanincreaseofthebasefeepayabletoa

Director,andanincreaseoftheadditionalfeepayabletoeach

committeechair,of3.5%roundeduptothenearest£100.

Followingthisreview,Directorsreceiveabasefeeof

£38,300,withtheChairreceiving£60,000.TheManagement

EngagementCommitteechairreceivesanadditionalfeeof

£5,700(anincreasefrom£5,500),withthechairoftheAudit

Committeereceivinganadditionalfeeof£8,200(anincrease

from£5,500).TheSeniorIndependentDirectorreceives

anadditionalfeeof£5,700(anincreasefrom£5,500).The

feespayabletoDirectorseffectivefrom1April2025areset

outbelow:

Director From 1 April 2025 (£)

AlastairHughes(Chair) 60,000

PriscillaDavies

44,000

AlexandraInnes

44,000

SanjayPatel

46,500

Total 199,442

1 SeniorIndependentDirector

2 ChairoftheManagementEngagementCommittee

3 ChairoftheAuditCommittee

Performance

TheperformanceoftheCompanyisdescribedunder

‘PerformanceSummary’onpage4ofthisdocument.

Alastair Hughes

Chair

10June2025

61 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Statement of Directors’ responsibilities

Governance report

TheDirectorsareresponsibleforpreparingtheAnnualReport

andConsolidatedFinancialStatementsinaccordancewith

applicablelawandregulations.

TheCompaniesLawrequirestheDirectorstopreparethe

AnnualReportandConsolidatedFinancialStatementsfor

eachfinancialyear.UndertheCompaniesLawtheDirectors

haveelectedtopreparetheAnnualReportandConsolidated

FinancialStatementsinaccordancewithInternationalFinancial

ReportingStandardsandapplicablelaw.

TheAnnualReportandConsolidatedFinancialStatementsare

requiredbylawtogiveatrueandfairviewofthestateofaffairs

oftheGroupandoftheprofitorlossoftheGroupforthe

relevantperiod.

InpreparingtheAnnualReportandConsolidatedFinancial

Statements,theDirectorsarerequiredto:

― Selectsuitableaccountingpoliciesandthenapplythem

consistently;

― Makejudgementsandestimatesthatarereasonableand

prudent;

― Statewhetherapplicableaccountingstandardshavebeen

followed,subjecttoanymaterialdeparturesdisclosedand

explainedinthefinancialstatements;

― AssesstheCompany’sabilitytocontinueasagoing

concern,disclosingasapplicablemattersrelatingtogoing

concern;and

― Usethegoingconcernbasisofpreparationunlessthey

intendtoeitherliquidatetheCompanyorceaseoperations

orhavenorealisticalternativetodoso.

TheDirectorsareresponsibleforkeepingproperaccounting

recordswhichdisclosewithreasonableaccuracyatanytime

thefinancialpositionoftheGroupandenablethemtoensure

thattheAnnualReportandConsolidatedFinancialStatements

complywiththeCompaniesLaw.Theyalsohavegeneral

responsibilityfortakingsuchstepsasarereasonablyopento

themtosafeguardtheassetsoftheCompanyandtoprevent

anddetectfraud,errorandnon-compliancewithlawand

regulations.

AspartofthepreparationoftheAnnualReportand

ConsolidatedFinancialStatements,theDirectorshavereceived

reportsandinformationfromtheCompany’sAdministratorand

InvestmentManager.TheDirectorshaveconsidered,reviewed

andcommentedupontheAnnualReportandConsolidated

FinancialStatementsthroughoutthedraftingprocessinorder

tosatisfythemselvesinrespectofthecontent.

TheDirectorsareresponsibleforthemaintenanceandintegrity

ofthecorporateandfinancialinformationincludedonthe

Company’swebsiteandforthepreparationanddissemination

oftheAnnualReportandConsolidatedFinancialStatements.

LegislationinGuernseygoverningthepreparationand

disseminationoftheConsolidatedFinancialStatementsmay

differfromlegislationinotherjurisdictions.

Responsibility Statement of the Directors in respect of

the Annual Report

Weconfirmtothebestofourknowledge:

― TheConsolidatedFinancialStatements,preparedin

accordancewithInternationalFinancialReporting

Standards,giveatrueandfairviewoftheassets,

liabilities,financialpositionandprofitoftheGroupand

theundertakingsincludedintheconsolidationtakenasa

wholeandcomplywiththeCompaniesLaw;and

― TheStrategicReportonpages5to47andGovernance

Reportonpages48to58includeafairreviewofthe

developmentandperformanceofthebusinessandthe

positionoftheGroupandtheundertakingsincluded

intheconsolidationtakenasawhole,togetherwitha

descriptionoftheprincipalrisksanduncertaintiesit

faces.TheDirectorsconsiderthattheAnnualReportand

ConsolidatedFinancialStatements,takenasawhole,

arefair,balancedandunderstandableandprovidesthe

informationnecessaryforshareholderstoassessthe

Company’spositionandperformance,businessmodel

andstrategy.

Alastair Hughes

Chair

10June2025

62 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report

Independent Auditor’s report to the members of

Schroder Real Estate Investment Trust Limited

Opinion

Wehaveauditedtheconsolidatedfinancialstatements(the

‘FinancialStatements’)ofSchroderRealEstateInvestment

TrustLimited(the“Company”)anditssubsidiaries(togetherthe

“Group”)fortheyearended31March2025whichcomprise

theConsolidatedStatementofComprehensiveIncome,the

ConsolidatedStatementofFinancialPosition,theConsolidated

StatementofChangesinEquity,theConsolidatedStatement

ofCashFlowsandtherelatednotes1to24,including

materialaccountingpolicyinformation.Thefinancialreporting

frameworkthathasbeenappliedintheirpreparationis

applicablelawandInternationalFinancialReportingStandards.

Inouropinion,thefinancialstatements:

― giveatrueandfairviewofthestateoftheGroup’saffairs

asat31March2025andofitsprofitfortheyearthen

ended;

― havebeenproperlypreparedinaccordancewith

InternationalFinancialReportingStandards;and

― havebeenproperlypreparedinaccordancewiththe

requirementsofTheCompanies(Guernsey)Law,2008.

Basis for opinion

WeconductedourauditinaccordancewithInternational

StandardsonAuditing(UK)(ISAs(UK))andapplicablelaw.Our

responsibilitiesunderthosestandardsarefurtherdescribed

intheAuditor’sresponsibilitiesfortheauditofthefinancial

statementssectionofourreport.Webelievethattheaudit

evidencewehaveobtainedissufficientandappropriateto

provideabasisforouropinion.

Independence

WeareindependentoftheGroupinaccordancewiththe

ethicalrequirementsthatarerelevanttoourauditofthe

financialstatements,includingtheUKFRC’sEthicalStandard

asappliedtolistedpublicinterestentities,andwehavefulfilled

ourotherethicalresponsibilitiesinaccordancewiththese

requirements.

Thenon-auditservicesprohibitedbytheFRC’sEthicalStandard

werenotprovidedtotheGroupandweremainindependent

oftheGroupinconductingtheaudit.

Conclusions relating to going concern

Inauditingthefinancialstatements,wehaveconcludedthat

thedirectors’useofthegoingconcernbasisofaccountingin

thepreparationofthefinancialstatementsisappropriate.Our

evaluationofthedirectors’assessmentoftheGroup’sability

tocontinuetoadoptthegoingconcernbasisofaccounting

included:

― consideredeventsbeyondtheperiodofassessment

andwhethersucheventsshouldbeconsideredby

managementintheirgoingconcernassessment,in

theeventthatsucheventsmayimpacttheconclusions

reached;

― obtainedanunderstandingoftheDirector’sgoing

concernassessmentprocessincludingengagingwith

theInvestmentManagertounderstandtheprocessthey

followedinsupportingthegoingconcernassessment;

― helddiscussionswiththeAuditandRiskCommitteeand

theInvestmentManagertodeterminewhether,intheir

opinion,thereisanymaterialuncertaintyregardingthe

Group’sabilitytopayliabilitiesandcommitmentsasthey

falldueandchallengethisassessmentthroughouraudit

proceduresinrelationtotheliquidityassessment;

― assessedthedisclosuresintheAnnualReportand

consolidatedfinancialstatementsrelatingtogoing

concernandviabilitytoensuretheyarefair,balancedand

understandableandincompliancewithIAS1;

― reviewedthecashflowforecastswhichsupportthe

Directors’assessmentofgoingconcernandchallenge

thesensitivitiesandassumptionsusedintheforecasts

andevaluatetheimpactoftheseforecastsontheGroup’s

abilitytocontinuetomeetfinancialcovenantsand

financialcommitmentsastheyfalldue;

― challengedthestresstestingperformedandvalidated

thestaticdataassumptionsusedbymanagementto

supportingdocumentation;and

― recalculatedthedebtcovenantsonexternalloansto

validatecompliancewithinthegoingconcernperiod.

Basedontheworkwehaveperformed,wehavenotidentified

anymaterialuncertaintiesrelatingtoeventsorconditionsthat,

individuallyorcollectively,maycastsignificantdoubtonthe

Group’sabilitytocontinueasagoingconcernforaperiodto

30June2026.

InrelationtotheGroup’sreportingonhowtheyhaveapplied

theUKCorporateGovernanceCode,wehavenothingmaterial

toaddordrawattentiontoinrelationtothedirectors’

statementinthefinancialstatementsaboutwhetherthe

directorsconsidereditappropriatetoadoptthegoingconcern

basisofaccounting.

Ourresponsibilitiesandtheresponsibilitiesofthedirectors

withrespecttogoingconcernaredescribedintherelevant

sectionsofthisreport.However,becausenotallfuture

eventsorconditionscanbepredicted,thisstatementisnot

aguaranteeastotheGroup’sabilitytocontinueasagoing

concern.

Overview of our audit approach

Keyauditmatters

– Riskofincorrectvaluationofdirectlyand

indirectlyheldinvestmentpropertyportfolio

– Riskofrevenuerecognition,includingthetiming

ofrevenuerecognition,thetreatmentofrents

andleaseincentives

Materiality

– Overallgroupmaterialityof£3.01mwhich

represents1%ofequity.

63 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Independent Auditor’s report continued

An overview of the scope of our audit

Tailoring the scope

Ourassessmentofauditrisk,ourevaluationofmaterialityand

ourallocationofperformancematerialitydetermineouraudit

scopefortheGroup.Thisenablesustoformanopinionon

thefinancialstatements.Wetakeintoaccountsize,riskprofile,

theorganisationofthegroupandeffectivenessofcontrols,

changesinthebusinessenvironmentandthepotentialimpact

ofclimatechangewhenassessingthelevelofworktobe

performed.Allauditworkwasperformeddirectlybytheaudit

engagementteamwhichincludesourrealestatevaluation

specialists.

Changes from the prior year

Therehavebeennosignificantchangesinscopefromthe

prioryearaudit.

Climate change

Therehasbeenincreasinginterestfromstakeholdersas

tohowclimatechangewillimpacttheGroup.TheGroup

hasdeterminedthatthemostsignificantfutureimpacts

fromclimatechangeontheiroperationsareexplainedon

page47intheprincipalrisksanduncertainties.Theyhave

alsoexplainedtheirclimatecommitmentsonpage35.Allof

thesedisclosuresformpartofthe“Otherinformation,”rather

thantheauditedfinancialstatements.Ourprocedureson

theseunauditeddisclosuresthereforeconsistedsolelyof

consideringwhethertheyaremateriallyinconsistentwiththe

financialstatementsorourknowledgeobtainedinthecourse

oftheauditorotherwiseappeartobemateriallymisstated,in

linewithourresponsibilitieson“Otherinformation”.

Inplanningandperformingourauditweassessedthe

potentialimpactsofclimatechangeontheGroup’sbusiness

andanyconsequentialmaterialimpactonitsfinancial

statements.

TheGrouphasexplainedinnotes1and10howtheyhave

reflectedtheimpactofclimatechangeintheirfinancial

statements.

Ourauditeffortinconsideringtheimpactofclimatechangeon

thefinancialstatementswasfocusedontheadequacyofthe

disclosuresintheFinancialStatementsandtheconclusionthat

therewasnofurtherimpactofclimatechangetobetakeninto

accountastheinvestmentpropertiesarevaluedatfairvalue

basedonopenmarketvaluationsasdescribedinNote10.

Theopenmarketvaluationassessmentincludesconsideration

ofenvironmentalmattersandtheconditionofeachproperty

withdetailonthefairvalueofpropertiesprovidedwithinthe

notestothefinancialstatements.Aspartofthisevaluation,we

performedourownriskassessmenttodeterminetherisksof

materialmisstatementinthefinancialstatementsfromclimate

changewhichneededtobeconsideredinouraudit.

WealsochallengedtheDirectors’considerationsofclimate

changerisksintheirassessmentofgoingconcernandviability

andassociateddisclosures.Whereconsiderationsofclimate

changewererelevanttoourassessmentofgoingconcern,

thesearedescribedabove.

Basedonourwork,whilstwehavenotidentifiedtheimpact

ofclimatechangeonthefinancialstatementstobea

standalonekeyauditmatter,wehaveconsideredtheimpact

onthefollowingkeyauditmatters:riskofincorrectvaluation

ofdirectlyandindirectlyheldinvestmentpropertyportfolio.

Detailsoftheimpact,ourproceduresandfindingsareincluded

inourexplanationofkeyauditmattersbelow.

Key audit matters

Keyauditmattersarethosemattersthat,inourprofessional

judgement,wereofmostsignificanceinourauditofthe

financialstatementsofthecurrentperiodandincludethe

mostsignificantassessedrisksofmaterialmisstatement

(whetherornotduetofraud)thatweidentified.Thesematters

includedthosewhichhadthegreatesteffecton:theoverall

auditstrategy,theallocationofresourcesintheaudit;and

directingtheeffortsoftheengagementteam.Thesematters

wereaddressedinthecontextofourauditofthefinancial

statementsasawhole,andinouropinionthereon,andwedo

notprovideaseparateopiniononthesematters.

64 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

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Risk

Our response to the risk

Key observations

communicated to the

Audit and Risk Committee

Risk of incorrect valuation of directly

and indirectly held investment

property portfolio (Fraud risk)

TheGroup’sinvestmentpropertyportfolio

consistsofUKpropertieshelddirectly,

withacarryingvalueof£404.8m(2024:

£384.6m)andthroughinvestmentinjoint

ventures,withabalanceof£65.7m(2024:

£67.4m).

Investmentproperties

TheGroup’saccountingpolicyisforthe

fairvalueoftheinvestmentproperties

tobedeterminedbyindependentreal

estatevaluationexpertsusingrecognised

valuationtechniques.Thefairvaluesare

basedonrecentrealestatetransactions

withsimilarcharacteristicsandlocations

tothoseoftheGroup’sassets.The

Group’saccountingpolicyisforthe

valuationofinvestmentpropertiestobe

reducedbythetotaloftheunamortised

leaseincentivebalancesincludedwithin

tradeandotherreceivables.

Thereisariskofincorrectvaluationofthe

propertyportfoliowhichcouldresultin

theConsolidatedStatementofFinancial

PositionandtheConsolidatedStatement

ofComprehensiveIncomebeing

materiallymisstated.

We have performed the following procedures:

— obtainedanunderstandingoftheprocessandcontrolssurroundingproperty

valuationbyperformingourwalkthroughproceduresandevaluatingthe

implementationanddesigneffectivenessofcontrols;

— assessedtheindependenceandcompetenceoftheGroup’sindependent

valuersasrequiredbyauditingstandards;

— readthevaluationreportsprovidedbytheGroup’sindependentvaluersto

agreetheappropriatenessandsuitabilityofthereportedvaluesandthe

changesinvaluefromthepreviousaccountingperiod;

— performedenquiriesoftheGroup’sindependentvaluerstoobtainan

understandingoftheirvaluationprocessandthemethodsandassumptions

usedintheiranalysis,includingdiscussingthelevelofmarketactivityto

supportthevaluationandtheextenttowhichtheirvaluationhasconsidered

theimpactofclimatechange;

— performedasitevisitofCityTower,Manchestertounderstandthecondition

oftheasset,occupancyandfutureplansfortheproperty;

— engagedourEYpropertyvaluationspecialiststoperformareviewofa

sampleofpropertyvaluations(79%ofthetotalvalue,16properties(2024:

58%ofthetotalvalue,16properties)toassesswhetherthereportedvalue

fallswithinarangeofreasonableoutcomes,whichincluded:

– validatingtheassumptionsusedbytheindependentvaluersand

assessmentofthevaluationmethodologiesadopted;

– challengingthekeyinputsandassumptionsrelatingtoequivalentyield

andrentalrateswithreferencetopublishedmarketdataandcomparable

transactionevidencethroughmarketactivity;and

– assessingtheappropriatenessofmarketrelatedinputsand

reasonablenessofvaluationmethods,bycomparingagainstourown

marketdataandunderstandingofthepropertymarket.

— performedanalyticalreviewproceduresacrosstheportfolioofinvestments,

focusingoncorrelationswithmarketdataandanysignificantmovements;

— onasamplebasis,agreedkeyinputstothevaluation,suchaspassingrent

andlengthofleaseandplannedlevelsofcapitalexpendituretosupporting

documentationsuchasleaseagreementsandcontracts;

— verifiedthatthefairvaluesderivedbytheGroup’sindependentvaluersfor

theentireportfoliowerecorrectlyincludedintheconsolidatedfinancial

statements;and

— assessedtheadequacyoftheadditionaldisclosuresofestimatesand

valuationassumptionsdisclosedinthenotesweremadeinaccordancewith

IFRS13–FairValueMeasurement.

Basedonthework

performed,wehadno

matterstoreporttotheAudit

andRiskCommittee.

65 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Independent Auditor’s report continued

Risk

Our response to the risk

Key observations

communicated to the

Audit and Risk Committee

Risk of revenue recognition, including

the timing of revenue recognition,

the treatment of rents and lease

incentives

Revenueisearnedintheformofrental

incomefromtheinvestmentproperties

andisrecognisedonanaccrualbasis.

Duringtheyear,theGrouprecognised

£27.2mofrentalincome(2024:£25.6m),

rentreceivableof£4.7m(2024:£3.2m)

andleaseincentivesof£8.9m(2024:

£8.9m)

Thereisariskofoverstatementof

revenueinordertomeetcurrentorfuture

targetsormarketexpectations.Therisk

isfocussedonrevenuebeingoverstated

throughfictitiousleases,manipulation

ofjournalentriesthroughtop-side

adjustmentsandincorrectcut-off.

We have performed the following procedures:

— obtainedanunderstandingoftheprocessandcontrolsforeachrevenue

streambyperformingourwalkthroughproceduresandevaluatingthe

implementationanddesigneffectivenessofcontrols;

— performedsubstantiveanalyticalreviewproceduresoverrentalrevenue

foreachproperty.Weformedanexpectationoftherentalincomeforeach

property,andcomparedthisexpectationtotheactualrevenuerecognised

duringtheyear;

— agreedasampleofrentalratestotenancyagreementsandrecalculated

rentalrevenueearnedbythepropertyfortheyear;

— recalculatedasampleofleaseincentivesbasedonthetermswithinthelease

agreementtoassesstheappropriatenessoftheamountrecorded;including,

onasamplebasis,verifyingleasemodificationsthroughagreementofthe

updatedtermstoamendedandrestatedleaseagreementsandperforming

anindependentassessmentastowhethertheyhavebeenappropriately

treatedinaccordancewithIFRS16—Leases(‘IFRS16’);

— reviewedthereportpreparedbySchroderRealEstateInvestment

ManagementLimited(the“AssetManager”)assessingtherecoverability

oftheoverduerentreceivables,andchallengedthejudgmentsinvolved

includingexpectedcreditlossontherentreceivablebalanceasawhole.For

asampleoftenants,wehaveinspectedthecashreceiptsubsequenttothe

year-enddate;and

— testedasampleofrentalrevenuejournalstoidentifyunauthorisedor

inappropriatejournalstoaddresstheriskofmanagementoverride.We

enquiredastothenatureofeachtransactionsampledandreviewed

corroboratingevidencetoconcludeonwhetherthejournalswerereasonable

andinlinewithourexpectations.Weselectedjournalsbyapplyingcriteria

andthresholdsbasedonourprofessionaljudgment.

Basedonthework

performed,wehadno

matterstoreporttothe

AuditandRiskCommittee.

66 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Independent Auditor’s report continued

Our application of materiality

Weapplytheconceptofmaterialityinplanningand

performingtheaudit,inevaluatingtheeffectofidentified

misstatementsontheauditandinformingourauditopinion.

Materiality

The magnitude of an omission or misstatement that, individually

or in the aggregate, could reasonably be expected to influence

the economic decisions of the users of the financial statements.

Materiality provides a basis for determining the nature and extent

of our audit procedures.

WedeterminedmaterialityfortheGrouptobe£3.01million

(2024:£2.87million),whichis1%(2024:1%)ofequity.We

believethatequityprovidesuswithamaterialityalignedtothe

keymeasurementoftheGroup’sperformance.

Duringthecourseofouraudit,wereassessedinitialmateriality

andadjustedourauditproceduresaccordingly.

Performance materiality

The application of materiality at the individual account or balance

level. It is set at an amount to reduce to an appropriately low level

the probability that the aggregate of uncorrected and undetected

misstatements exceeds materiality.

Onthebasisofourriskassessments,togetherwithour

assessmentoftheGroup’soverallcontrolenvironment,

ourjudgementwasthatperformancematerialitywas75%

(2024:75%)ofourplanningmateriality,namely£2.26m

(2024:£2.16m).Wehavesetperformancematerialityatthis

percentageduetothisbeingarecurringauditwithalow

incidenceofhistoricalerrors.

Reporting threshold

An amount below which identified misstatements are considered

as being clearly trivial.

WeagreedwiththeAuditandRiskCommitteethatwewould

reporttothemalluncorrectedauditdifferencesinexcess

of£0.15m(2024:£0.14m),whichissetat5%ofplanning

materiality,aswellasdifferencesbelowthatthresholdthat,in

ourview,warrantedreportingonqualitativegrounds.

Weevaluateanyuncorrectedmisstatementsagainstboththe

quantitativemeasuresofmaterialitydiscussedaboveandin

lightofotherrelevantqualitativeconsiderationsinformingour

opinion.

Other information

Theotherinformationcomprisestheinformationincluded

intheannualreportsetoutonpages2to61andpages91

to140otherthanthefinancialstatementsandourauditor’s

reportthereon.Thedirectorsareresponsiblefortheother

informationcontainedwithintheannualreport.

Ouropiniononthefinancialstatementsdoesnotcoverthe

otherinformationand,excepttotheextentotherwiseexplicitly

statedinthisreport,wedonotexpressanyformofassurance

conclusionthereon.

Ourresponsibilityistoreadtheotherinformationand,in

doingso,considerwhethertheotherinformationismaterially

inconsistentwiththefinancialstatementsorourknowledge

obtainedinthecourseoftheauditorotherwiseappears

tobemateriallymisstated.Ifweidentifysuchmaterial

inconsistenciesorapparentmaterialmisstatements,weare

requiredtodeterminewhetherthisgivesrisetoamaterial

misstatementinthefinancialstatementsthemselves.If,based

ontheworkwehaveperformed,weconcludethatthereis

amaterialmisstatementoftheotherinformation,weare

requiredtoreportthatfact.

Wehavenothingtoreportinthisregard.

Matters on which we are required to report by

exception

Wehavenothingtoreportinrespectofthefollowingmatters

inrelationtowhichtheCompanies(Guernsey)Law2008

requiresustoreporttoyouif,inouropinion:

― properaccountingrecordshavenotbeenkeptbythe

company,orproperreturnsadequateforouraudithave

notbeenreceivedfrombranchesnotvisitedbyus;or

― thefinancialstatementsarenotinagreementwiththe

company’saccountingrecordsandreturns;or

― wehavenotreceivedalltheinformationandexplanations

werequireforouraudit.

Corporate Governance Statement

Wehavereviewedthedirectors’statementinrelationtogoing

concern,longer-termviabilityandthatpartoftheCorporate

GovernanceStatementrelatingtotheGroup’scompliancewith

theprovisionsoftheUKCorporateGovernanceCodespecified

forourreviewbytheListingRules.

Basedontheworkundertakenaspartofouraudit,we

haveconcludedthateachofthefollowingelementsofthe

CorporateGovernanceStatementismateriallyconsistentwith

thefinancialstatementsorourknowledgeobtainedduringthe

audit:

― Directors’statementwithregardstotheappropriateness

ofadoptingthegoingconcernbasisofaccountingand

anymaterialuncertaintiesidentifiedsetoutonpages46

to47;

― Directors’explanationastoitsassessmentofthe

company’sprospects,theperiodthisassessmentcovers

andwhytheperiodisappropriatesetoutonpages46to

47;

― Director’sstatementonwhetherithasareasonable

expectationthattheGroupwillbeabletocontinuein

67 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Independent Auditor’s report continued

operationandmeetsitsliabilitiessetoutonpages46to

47;

― Directors’statementonfair,balancedandunderstandable

setoutonpage61;

― Board’sconfirmationthatithascarriedoutarobust

assessmentoftheemergingandprincipalriskssetouton

page43;

― Thesectionoftheannualreportthatdescribesthereview

ofeffectivenessofriskmanagementandinternalcontrol

systemssetoutonpage55;and;

― ThesectiondescribingtheworkoftheAuditandRisk

Committeesetoutonpages55to56.

Responsibilities of directors

AsexplainedmorefullyintheStatementofDirectors’

Responsibilitiessetoutonpage61,thedirectorsare

responsibleforthepreparationofthefinancialstatementsand

forbeingsatisfiedthattheygiveatrueandfairview,andfor

suchinternalcontrolasthedirectorsdetermineisnecessary

toenablethepreparationoffinancialstatementsthatarefree

frommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,thedirectorsare

responsibleforassessingtheGroup’sabilitytocontinueas

agoingconcern,disclosing,asapplicable,mattersrelated

togoingconcernandusingthegoingconcernbasisof

accountingunlessthedirectorseitherintendtoliquidatethe

Grouportoceaseoperations,orhavenorealisticalternative

buttodoso.

Auditor’s responsibilities for the audit of the financial

statements

Ourobjectivesaretoobtainreasonableassuranceabout

whetherthefinancialstatementsasawholearefreefrom

materialmisstatement,whetherduetofraudorerror,

andtoissueanauditor’sreportthatincludesouropinion.

Reasonableassuranceisahighlevelofassurance,butis

notaguaranteethatanauditconductedinaccordancewith

ISAs(UK)willalwaysdetectamaterialmisstatementwhenit

exists.Misstatementscanarisefromfraudorerrorandare

consideredmaterialif,individuallyorintheaggregate,they

couldreasonablybeexpectedtoinfluencetheeconomic

decisionsofuserstakenonthebasisofthesefinancial

statements.

Explanation as to what extent the audit was

considered capable of detecting irregularities,

including fraud

Irregularities,includingfraud,areinstancesofnon-

compliancewithlawsandregulations.Wedesignprocedures

inlinewithourresponsibilities,outlinedabove,todetect

irregularities,includingfraud.Theriskofnotdetectinga

materialmisstatementduetofraudishigherthantheriskof

notdetectingoneresultingfromerror,asfraudmayinvolve

deliberateconcealmentby,forexample,forgeryorintentional

misrepresentations,orthroughcollusion.Theextentto

whichourproceduresarecapableofdetectingirregularities,

includingfraudisdetailedbelow.

However,theprimaryresponsibilityfortheprevention

anddetectionoffraudrestswithboththosechargedwith

governanceofthecompanyandmanagement.

― Weobtainedanunderstandingofthelegalandregulatory

frameworksthatareapplicabletotheGroupand

determinedthatthemostsignificantaretheCompanies

(Guernsey)Law,2008,theUKCorporateGovernance

Code,The2019AICCodeofCorporateGovernance,REIT

requirementssetoutinpart12oftheCorporationTax

Act(CTA)2010(‘REITrules’)andtheListingRulesoftheUK

ListingAuthority;

― WeunderstoodhowtheGroupiscomplyingwiththose

frameworksbymakingenquiriesoftheInvestment

Manager,theAdministratorandtheBoardregarding:

– theirknowledgeofanynon-complianceorpotential

non-compliancewithlawsandregulationsthatcould

affectthefinancialstatements;

– theGroup’smethodsofenforcingandmonitoring

non-compliancewithsuchpolicies

– theInvestmentManager’sprocessforidentifyingand

respondingtofraudrisks,includingprogramsand

controlstheGrouphasestablishedtoaddressrisks

identifiedbytheGroup,orthatotherwiseprevent,

deteranddetectfraud;and

– howtheGroupmonitorsthoseprogramsand

controls.

― WeassessedthesusceptibilityoftheGroup’sfinancial

statementstomaterialmisstatement,includinghowfraud

mightoccurby:

– obtaininganunderstandingofentity-levelcontrols

andconsideringtheinfluenceofthecontrol

environment;

– obtainingtheGroup’sassessmentoffraudrisks

includinganunderstandingofthenature,extentand

frequencyofsuchassessmentdocumentedinthe

Group’sRiskMatrix;

– makinginquirieswiththosechargedwithgovernance,

theInvestmentManager,theCompanySecretary

andAdministratorastohowtheyexerciseoversight

ofidentifyingandrespondingtofraudrisksandthe

controlsestablishedtomitigatespecificallythoserisks

theentityhasidentified,orthatotherwisehelpto

prevent,deteranddetectfraud;

– makinginquiriesoftheInvestmentManagerandthe

Boardregardinghowtheyidentifyrelatedparties

includingcircumstancesrelatedtotheexistenceofa

relatedpartywithdominantinfluence;and

– makinginquiriesoftheInvestmentManager,the

CompanySecretary,AdministratorandtheBoard

regardingtheirknowledgeofanyactualorsuspected

68 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Governance report — Independent Auditor’s report continued

fraudorallegationsoffraudulentfinancialreporting

affectingtheGroup.

― Basedonthisunderstandingwedesignedouraudit

procedurestoidentifynon-compliancewithsuchlawsand

regulations.Ourproceduresinvolved:

– Throughdiscussion,gaininganunderstandingofhow

theBoard,theCompanySecretaryandAdministrator

andtheInvestmentManageridentifyinstancesof

non-compliancebytheGroupwithrelevantlawsand

regulations;

– Inspectingtherelevantpolicies,processesand

procedurestofurtherourunderstanding;

– ReviewingBoardminutesandinternalcompliance

reporting;

– Inspectedmanagement’sspecialist’sassessmentof

theGroup’scompliancewiththeREITrules.Wehave

testedthroughrecalculatingandcorroborating,to

supportinginformation,theGroup’scompliancewith

eachoftheREITrules,includingtheproportionof

dividenddistributedintheformofpropertyincome

distributions;

– Inspectingcorrespondencewithregulators;and

– Obtainingrelevantwrittenrepresentationsfromthe

Board.

― Weobtaineddatafromthegeneralledgerandperformed

journalentrytesting.

Afurtherdescriptionofourresponsibilitiesfortheaudit

ofthefinancialstatementsislocatedontheFinancial

ReportingCouncil’swebsiteathttps://www.frc.org.uk/

auditorsresponsibilities.Thisdescriptionformspartofour

auditor’sreport.

Other matters we are required to address

― FollowingtherecommendationfromtheAuditandRisk

committeewewereappointedbythecompanyon5

November2019toauditthefinancialstatementsforthe

yearending31March2020andsubsequentfinancial

periods.

― Theperiodoftotaluninterruptedengagementincluding

previousrenewalsandreappointmentsis6years,

coveringtheyearsending31March2020to31March

2025.

― Theauditopinionisconsistentwiththeadditionalreport

totheAuditandRiskcommittee.

Use of our report

Thisreportismadesolelytothecompany’smembers,as

abody,inaccordancewithSection262oftheCompanies

(Guernsey)Law,2008.Ourauditworkhasbeenundertakenso

thatwemightstatetothecompany’smembersthosematters

wearerequiredtostatetotheminanauditor’sreportandfor

nootherpurpose.Tothefullestextentpermittedbylaw,wedo

notacceptorassumeresponsibilitytoanyoneotherthanthe

companyandthecompany’smembersasabody,forouraudit

work,forthisreport,orfortheopinionswehaveformed.

Daniel Saunders

forandonbehalfofErnst&YoungLLP

Guernsey,ChannelIslands

10June2025

69 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements

70 Consolidatedstatementofcomprehensiveincome

71 Consolidatedstatementoffinancialposition

72 Consolidatedstatementofchangesinequity

73 Consolidatedstatementofcashflows

74 Notestothefinancialstatements

Financial statements

70 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements

Consolidated statement of comprehensive income

for the year ended 31 March 2025

		31/03/2025	31/03/2024
	Notes	£000	£000
Rental income		27 ,192	25,638
Otherincome	3	484	1,504
Propertyoperatingexpenses	4	(2,657)	(2,154)
Net rental and related income		25,019	24,988
Profit on the disposal of investment property	10	469	199
Net unrealised valuation gain/(loss) on investment property	10	16,232	(8,044)
Gain on disposal of financial instruments	20	-	189
Net change in fair value of financial instrument at fair value	20	(153)	(547)
Expenses
Investmentmanagementfee	2	(2,458)	(2,350)
Valuers’andotherprofessionalfees		(2,215)	(2,347)
Administrators’fees	2	(6 8)	(64)
Auditor’s remuneration	5	(209 )	(197)
Directors’fees	6	(186)	(184)
Otherexpenses	6	(229)	(276)
Total expenses		(5,365 )	(5,418)
Operating profit		36,202	11,367
Finance costs		(6,234)	(6,349)
Net finance costs		(6,234)	(6,349)
Shareofprofit(excludingvaluationmovement)injointventures	11	3,579	3,057
Shareofvaluationlossinjointventures	11	(2,489)	(5,058)
Share of profit/(loss) in joint ventures		1,090	(2,001)
Profit before taxation		31,058	3,017
Taxation	7	–	–
Profit and total comprehensive income for the year attributable to the equity holders of the parent		31,058	3,017
Basic and diluted earnings per share	8	6.3p	0.6p

Allitemsintheabovestatementarederivedfromcontinuingoperations.Theaccompanyingnotes1to24formanintegralpartof

thefinancialstatements.

71 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements

		31/03/2025	31/03/2024
	Notes	£000	£000
Investmentproperty	10	404, 798	384,606
Investmentinjointventures	11	65,722	67,366
Interestratederivativecontracts	20	66	219
Non-current assets		470 ,586	452,191
Tradeandotherreceivables	12	21,463	19,837
Cashandcashequivalents	13	3,720	6,005
Current assets		25, 183	25,842
Investmentpropertyheldforsale	10	1, 100	-
Total assets		496,869	478,033
Issuedcapitalandreserves	14	338,478	324,451
Treasurysharereserve	14	(37 , 101)	(37,101)
Equity		301,377	287,350
Interest-bearingloansandborrowings	15	180,611	175,866
Leaseliability	10	1,508	1,562
Non-current liabilities		182, 119	177,428
Tradeandotherpayables	16	13,373	13,255
Current liabilities		13,373	13,255
Total liabilities		195,492	190,683
Total equity and liabilities		496,869	478,033
Netassetvalueperordinaryshare	17	61.6p	58.8p

The financial statements on pages 70 to 90 were approved at a meeting of the Board of Directors held on 10 June 2025 and signed

on its behalf by:

Alastair Hughes

Chair and Director

Sanjay Patel

Director

Theaccompanyingnotes1to24formanintegralpartofthefinancialstatements.

GuernseyCompanyRegNo:CMP41959

Consolidated statement of financial position

as at 31 March 2025

72 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements

		Share	Revenue		Treasury share
		premium	reserve	Issued capital	reserve	Total
	Notes	£000	£000	and reserves	£000	£000
Balance as at31March 2023		219, 090	118, 700	337 , 790	(37 , 101)	300, 689
Profitfortheyear		–	3,017	3, 017	–	3,017
Dividendspaid	9	–	(16,356)	(16,356)	–	(16,356)
Balance as at31March 2024		219, 090	105,361	324,451	(37 , 101)	287 ,350
Profitfortheyear		–	31,058	31,058	–	31,058
Dividendspaid	9	–	(17,031)	(17 ,031)	–	(17,031 )
Balance as at31March 2025		219,090	119,388	338,478	(37 ,101)	301,377

Theaccompanyingnotes1to24formanintegralpartofthefinancialstatements.

Consolidated statement of changes in equity

for the year ended 31 March 2025

73 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements

		31/03/2025	31/03/2024
	Notes	£000	£000
Operating activities
Profitfortheyear		31,058	3,017
Adjustmentsfor:
Profitonthedisposalofinvestmentproperty		(469)	(199)
Netvaluation(gain)/lossoninvestmentproperty		(16,232)	8,044
Profitondisposaloffinancialinstruments	20	-	(189)
Netchangeinfairvalueoffinancialinstrumentatfairvalue	20	153	547
Shareof(gain)/lossonjointventures		(1, 090)	2,001
Netfinancecost		6,234	6,349
Operating cash generated before changes in working capital		19,654	19,570
(Increase)/decreaseintradeandotherreceivables		(1, 138)	2,022
Increase/(decrease)intradeandotherpayables		63	2,283
Cash generated from operations		18,579	23,875
Investing activities
Proceedsfromthesaleofinvestmentproperty		1,439	3,763
Additionstoinvestmentproperty	10	(6, 089)	(8,290)
Additionstojointventures	11	(845)	(237)
Netincomedistributedfromjointventures		3,569	2,761
Cash flows used in investing activities		(1,926)	(2,003)
Financing activities
Repaymentofdebt	15	-	(2,300)
Additionstodebt	15	4,500	1,000
Disposaloffinancialinstrument	20	-	189
Purchaseoffinancialinstrument	20	-	(766)
Finance costs paid		(6,407)	(6,053)
Dividendspaid	9	(17 ,031)	(16,356)
Cash flows used in financing activities		(18,938)	(24,286)
Net decrease in cash and cash equivalents for the year		(2,285)	(2,414)
Opening cash and cash equivalents		6,005	8,419
Closing cash and cash equivalents	13	3,720	6,005

Theaccompanyingnotes1to24formanintegralpartofthefinancialstatements.

Consolidated statement of cash flows

for the year ended 31 March 2025

74 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements

1 Material accounting policy information

Schroder Real Estate Investment Trust Limited (the ‘Company’)

is a closed-ended investment company registered in Guernsey.

The consolidated financial statements of the Company for the

year ended 31 March 2025 comprise the Company and its

subsidiaries (together referred to as the ‘Group’).

New standard and interpretations

The Company is satisfied that there are no standards that are

published, and not yet effective, that will have a material effect

on the accounts.

Statement of compliance

The financial statements have been prepared in accordance

with International Financial Reporting Standards (‘IFRS’) issued

by the International Accounting Standards Board (the ‘IASB’),

and interpretations issued by the International Financial

Reporting Interpretations Committee.

The financial statements give a true and fair view and are

in compliance with The Companies (Guernsey) Law, 2008,

applicable legal and regulatory requirements and the Listing

Rules of the UK Listing Authority.

Basis of preparation

The financial statements are presented in pound sterling, which

is the Company’s functional currency, rounded to the nearest

thousand. They are prepared on the historical cost basis except

that investment properties and derivative financial instruments

are stated at their fair value.

The accounting policies have been consistently applied to the

results, assets, liabilities and cash flows of the entities included

in the consolidated financial statements and are consistent with

those of the previous year.

Going concern

The Directors have examined significant areas of possible

financial risk including liquidity (with a view to both cash held

and undrawn debt facilities); the rates of both rent and service

charge collections from tenants; have considered potential falls

in property valuations; have reviewed cash flow forecasts; have

analysed forward-looking compliance with third-party debt

covenants and in particular the Loan to Value covenant and

interest cover ratios; and have considered the Group’s ongoing

tax compliance with the REIT regime.

Overall, after utilising available cash, excluding the cash

undrawn against the RBSI facility and uncharged properties

and units in Joint Ventures, and based on the reporting

period to 31 March 2025, property valuations would have

to fall by 28% before the relevant Canada Life Loan to Value

covenants were breached, and actual net rental income would

need to fall by 64% before the interest cover covenants were

breached. The Directors are of the opinion that neither of the

aforementioned loan covenants are likely to be breached.

Furthermore, the properties charged to RBSI could fall in value

by 52%, prior to the 65% LTV covenant being breached, and

based on projected net rents for the quarter to March 2025,

a 22% fall in net income could be sustained prior to the

RBS projected interest loan cover covenant of 200% being

breached.

These stress testing scenarios of 28%/52% declines in property

valuations and 64%/22% declines in net income are deemed to

be extremely unlikely.

Should these scenarios occur, management have various

actions avaliable which include, but are not limited to, adding

additional assets or excess cash into the security pool and

selling assets to reduce LTV.

As at the financial year end, the undrawn capacity of the £75.0

million RBSI facility was £23.5 million. This facility is an efficient

and flexible source of funding due to its ability to be repaid and

redrawn as often as required and matures in June 2027.

Regarding the Canada Life loan of £129.6 million, fifty per

cent matures in 2032 and fifty per cent matures in 2039

respectively.

The Board and Investment Manager also continue to closely

monitor ongoing changing macroeconomic and geopolitical

environments on the Group.

The Board and Investment Manager have considered the

impact of sustainability risk as a principal risk as set out on

page 43. In line with IFRS, investment properties are valued

at fair value based on open market valuations as described in

Note 10. The assessment of the open market valuation includes

consideration of environmental matters and the condition

of each property. The investment properties continue to be

monitored by the Investment Manager and key considerations

include EPC ratings and their impact on the properties’

forecast compliance with minimum energy efficiency standard

regulation. Having assessed the impact of climate change on

the Group, the Directors concluded that it is not expected to

have a significant impact on the Group’s going concern or

viability assessment as described on page 46.

The Directors have not identified any matters which would cast

significant doubt on the Group’s ability to continue as a going

concern for the period to 30 June 2026 and have satisfied

themselves that the Group has adequate resources to continue

in operational existence for this period to 30 June 2026.

After due consideration, the Board believes that it is

appropriate to adopt the going concern basis in preparing the

financial statements.

Use of estimates and judgements

The preparation of financial statements in conformity with IFRS

requires management to make judgements, estimates and

assumptions that affect the application of policies and

Notes to the financial statements

75 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

1 Material accounting policy information

(continued)

Use of estimates and judgements

the reported amounts of assets and liabilities, income and

expenses. These estimates, and associated assumptions, are

based on historical experience and various other factors that

are believed to be reasonable under the circumstances, the

results of which form the basis of making judgements about

the carrying values of assets and liabilities that are not readily

apparent from other sources.

Actual results may differ from these estimates. The estimates

and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period

in which the estimates are revised and in any future periods

affected.

Under its lease agreements with tenants, the Company

is required to provide or procure the provision of certain

services (such as cleaning, maintenance of common areas

and landscaping) for its investment property. The Company

engages a property manager who is responsible for

instructing, overseeing and invoicing these services to tenants

and the Company does not exercise control over these services

prior to them being provided to tenants. As such, the Company

considers itself to be an agent in these arrangements and

recognises the income and expense on a net basis within

property operating expenses.

Further estimates made in preparing these financial statements

relate to the carrying value of investment properties, including

those within joint ventures, which are stated at fair value. The

Group uses external professional valuers to determine the

relevant amounts. Judgements made by management in the

application of IFRS that have a significant effect on the financial

statements and estimates with a significant risk of material

adjustment in the next year are disclosed in note 18.

Another estimate is the amount of expected credit losses

as per IFRS 9 from rent demanded during the period which

has not yet been collected. On initial recognition the Group

calculates the expected credit loss for debtors based on the

lifetime expected credit losses under the IFRS 9 simplified

approach. Management considers aged debtors’ analyses,

the strength of tenant covenants, macroeconomic factors

and any rental deposits held. Management has considered

rental debtors on a quarterly basis and made provisions and

write offs where it has been deemed that these amounts are

potentially irrecoverable.

Basis of consolidation

Subsidiaries

The consolidated financial statements comprise the financial

statements of the Company and all of its subsidiaries drawn

up to 31 March each year. Subsidiaries are those entities

controlled by the Company. Control exists where the investor

has the following;

― power over the investee;

― exposure, or rights, to variable returns from its

involvement with the investee; and

― the ability to use its power over the entity to affect the

amount of the investor’s returns.

The financial statements of subsidiaries are included in

the consolidated financial statements from the date that

control commences until the date that control ceases. Where

properties are acquired by the Group through corporate

acquisitions, but the acquisition does not meet the definition of

a business combination, the acquisition has been treated as an

asset acquisition.

Joint ventures

Joint ventures are those entities over whose activities the

Group has joint control, established by contractual agreement.

The consolidated financial statements include the Group’s

share of profit or loss of jointly controlled entities on an equity

accounted basis. When the Group’s share of losses exceeds its

interest in an entity, the Group’s carrying amount is reduced

to nil and recognition of further losses is discontinued except

to the extent that the Group has incurred legal or constructive

obligations or is making payments on behalf of an entity.

Transactions eliminated on consolidation

Intra-group balances, and any gains and losses arising

from intra-group transactions, are eliminated in preparing

the consolidated financial statements. Gains arising from

transactions with joint ventures are eliminated to the extent

of the Group’s interest in the entity. Losses are eliminated in

the same way as gains but only to the extent that there is no

evidence of impairment.

Investment property

Investment property is land and buildings held to earn rental

income together with the potential for capital growth.

Acquisitions and disposals are recognised on the unconditional

exchange of contracts. Acquisitions are initially recognised at

cost, being the fair value of the consideration given, including

transaction costs associated with the investment property.

After initial recognition, investment properties are measured

at fair value, with unrealised gains and losses recognised

in the Statement of Comprehensive Income. Realised gains

and losses on the disposal of properties are recognised in

the Statement of Comprehensive Income in relation to their

sale price, sale costs and the carrying value brought forward

from the prior financial year. Fair value is based on the

market valuations of the properties as provided by a firm of

independent chartered surveyors at the reporting date. Market

valuations are carried out on a quarterly basis.

76 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

1 Material accounting policy information

(continued)

Investment property (continued)

As disclosed in note 19, the Group leases out all owned

properties on operating leases. A property held under

an operating lease is classified and accounted for as an

investment property where the Group holds it to earn rentals,

capital appreciation, or both. Any such property leased under

an operating lease is classified as an investment property and

carried at fair value.

Leases

For any material leases for which the Group is a lessee, the

leasehold interest is measured at fair value and included in

investment properties with the corresponding liability being

shown as a non-current liability. The fair value is calculated as

the present value of the future lease payments.

Financial instruments

Derivative financial instruments

This comprises the interest rate collar which is recognised at a

fair value assessed by an independent third party.

Non-derivative financial instruments

Financial assets

Non-derivative financial instruments comprise trade and

other receivables and cash and cash equivalents. These are

recognised initially at fair value plus any directly attributable

transaction costs. Subsequent to initial recognition they are

measured at amortised cost using the effective interest rate

method less any impairment losses.

Cash and cash equivalents

Cash at bank, and short-term deposits that are held to

maturity, are carried at cost. Cash and cash equivalents are

defined as cash in hand, demand deposits and short-term,

highly liquid investments readily convertible to known amounts

of cash and subject to insignificant risk of changes in value. For

the purposes of the Consolidated Statement of Cash Flows,

cash and cash equivalents consist of cash in hand and short-

term deposits at banks with an initial term of no more than

three months.

Financial liabilities

Non-derivative financial liabilities comprise loans and

borrowings and trade and other payables.

Loans and borrowings

Borrowings are recognised initially at fair value of the

consideration received, less attributable transaction costs.

Subsequent to initial recognition, interest-bearing borrowings

are stated at amortised cost with any difference between cost

and redemption value being recognised in the Statement of

Comprehensive Income over the period of the borrowings on

an effective interest basis.

Trade and other payables

Trade and other payables are stated at amortised cost.

Share capital

Ordinary shares, including treasury shares, are classified as

equity.

Dividends

Dividends are recognised in the period in which they are paid.

A final dividend will be paid following the period end.

Rental income

Rental income from investment properties is recognised on

a straight-line basis over the term of ongoing leases and is

shown gross of any UK income tax. Lease incentives are spread

evenly over the lease term.

Surrender premiums and dilapidations are recognised in line

with individual lease agreements when cash inflows are certain.

Impairment

Financial assets

Financial assets at amortised cost are subject to impairment.

The Group’s significant financial assets that are subject to

IFRS 9’s expected credit loss model are trade receivables

from the leasing of investment properties. The credit risk

associated with unpaid rent has increased in recent years due

to macroeconomic factors and the Company has undertaken

a detailed analysis over the recoverability of expected rents.

Deferred income has been closely monitored and any rents

deemed irrecoverable discussed by management.

Non-financial assets

The carrying amounts of the Group’s non-financial assets,

being the investment in joint ventures, are reviewed at each

reporting date to determine whether there is any indication

of impairment. If any such indication exists, then the asset’s

recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is

the greater of its value in use and its fair value less costs to sell.

In assessing value in use, the estimated future cash flows are

discounted to their present value using a pre-tax discount rate

that reflects current market assessments of the time value of

money and the risks specific to that asset.

For the purpose of impairment testing, assets are grouped

together into the smallest group of assets that generates cash

inflows from continuing use that are largely independent of

the cash inflows of other assets or groups of assets (the ‘cash-

generating unit’).

An impairment loss is recognised if the carrying amount of

an asset or its cash-generating unit exceeds its estimated

recoverable amount. Impairment losses are recognised in the

statement of comprehensive income.

Provisions

A provision is recognised in the Consolidated Statement of

Financial Position when the Group has a legal or constructive

obligation as a result of a past event and it is probable that

an outflow of economic benefits will be required to settle the

obligation.

77 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

1 Material accounting policy information

(continued)

Finance costs

Finance costs comprise interest expenses on borrowings that

are recognised in the Statement of Comprehensive Income.

Attributable transaction costs incurred in establishing the

Group’s credit facilities are deducted from the fair value

of borrowings on initial recognition and are amortised

over the lifetime of the facilities through the Statement of

Comprehensive Income. Finance costs are accounted for on an

effective interest basis.

Expenses

All expenses are accounted for on an accruals basis and

the Company does not capitalise overheads and operating

expenses. The costs recharged to occupiers of the

properties are presented net of the service charge income as

management consider that the property agent acts as principal

in this respect.

Taxation

SREIT elected to be treated as a UK real estate investment trust

(‘REIT’). The UK REIT rules exempt the profits of SREIT and its

subsidiaries’ (the ‘Group’) UK property rental business from

corporation tax. Gains on UK properties are also exempt from

tax, provided they are not held for trading or sold in the three

years after completion of development. The Group is otherwise

subject to corporation tax.

As a REIT, SREIT is required to pay Property Income

Distributions equal to at least 90% of the Group’s exempted

net income. To retain UK REIT status there are a number of

conditions to be met in respect of the principal company of

the Group, the Group’s qualifying activity and its balance of

business. The Group continues to meet these conditions.

Segmental reporting

The Directors are of the opinion that the Group is engaged in

a single segment of business, being property investment, and

in one geographical area, the United Kingdom. There is no

one tenant that represents more than 10% of group revenues.

SREIM acts as advisor to the Board, who then may make

management decisions following their recommendations. As

such the Board of Directors are considered to be the chief

operating decision maker. A set of consolidated IFRS financial

information is provided to the Board on a quarterly basis.

2 Material agreements

SREIM is the Investment Manager to the Company. The

Investment Manager is entitled to a fee, together with

reasonable expenses incurred in the performance of its duties.

The current fee is payable monthly in arrears at one twelfth of

the aggregate of 0.9% of the NAV of the Company (where NAV

is less than £500 million).

The Investment Management Agreement can be terminated

by either party on not less than twelve months written notice

or on immediate notice in the event of certain breaches of its

terms or the insolvency of either party.

The tiered fee structure is as follows:

Tiered fee structure

	Management fee
	percentage per annum
NAV	of NAV
<£500 million	0.9%
£500 million - £1 billion	0.8%
£1 billion+	0.7%

The fee covers all of the appointed services of the Investment

Manager and there are standard provisions for the

reimbursement of expenses. Additional fees can be agreed for

out-of-scope services on an ad hoc basis.

With effect from the financial year ending 31 March 2025, the

Company shall pay to the Investment Manager an additional

management fee equal to 0.05 per cent of Net Asset Value per

annum if:

a the Manager has delivered the sustainability-related key

performance indicators contained within the Investment

Policy, as may be amended from time to time, to the

satisfaction of the Board (acting reasonably); and

b the 12-month income return from the underlying Property

Portfolio, to be calculated by MSCI, is ahead of the MSCI

Benchmark.

In respect of the above additional management fee, a total of

£151,000 has been accrued for the year to 31 March 2025.

The total charge to the Consolidated Statement of

Comprehensive Income during the year was £2,458,000

(2024: £2,350,000). At the year end £149,000 (2024: £500,000)

was outstanding.

Langham Hall (Guernsey) Limited and Langham Hall

UK Depositary LLP provide Administration, Designated

Manager and Depositary services to the Group respectively.

Administration fees during the year were £122,000 (2024:

£116,000).

Schroder Investment Management Limited provides company

secretarial services to the Company with an annual fee equal to

£50,000 (net of VAT). Company secretarial fees for the period

1 April 2024 to 31 March 2025 were £50,000 (2024: £50,000)

net of VAT.

78 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

3 Other income

		31/03/2025	31/03/2024
	Notes:	£000	£000
Dilapidations, surrender premiums and all other miscellaneous income		484	1,504
		484	1,504

4 Property operating expenses

		31/03/2025	31/03/2024
	Notes:	£000	£000
Agents’ fees		329	147
Repairs and maintenance		78	67
Advertising		68	38
Rates		648	290
Service charge, insurance and utilities on vacant units		1,434	1,492
Ground rent		68	113
Bad debt write offs, provisions and write backs		32	7
		2,657	2,154

5 Auditor’s remuneration

Fees payable to the Ernst and Young LLP for the audit of the Group and subsidiary annual accounts: £209,000 (2024: £197,000).

Fees payable to the Ernst and Young LLP for a non-audit service: £20,000 (2024: Nil).

6 Other expenses

		31/03/2025	31/03/2024
	Notes:	£000	£000
Professional fees		159	204
Other expenses		70	72
		229	276

Directors’ fees

Directors are the only officers of the Company and there are no other key personnel. The Directors’ annual remuneration for

services to the Group was £186,000 (2024: £183,750), as set out in the Directors’ Remuneration Report on pages 59 and 60.

7 Taxation

		31/03/2025	31/03/2024
	Notes:	£000	£000
Tax expense in the year		–	–
Reconciliation of effective tax rate
Profit before tax		31,058	3,017
Effect of:
Tax using the UK corporation tax rate of 25% (2024:25%)		7,764	754
Revaluation (gain)/loss on investment property non-(taxable)/deductible		(4,058)	2,011
Revaluation loss on financial instrument non-deductible		38	137
Share of capital loss of associates and joint ventures non-deductible		622	1,265
Profit on the disposal of investment property non-taxable		(117)	(50)
Profit on disposal of financial instrument non-taxable		-	(47)
UK REIT exemption		(4,249 )	(4,070)
Current tax expense in the year		–	–

79 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

7 Taxation (continued)

SREIT elected to be treated as a UK real estate investment trust

(‘REIT’). The UK REIT rules exempt the profits of SREIT and its

subsidiaries’ (the ‘Group’) UK property rental business from

corporation tax. Gains on UK properties are also exempt from

tax, provided they are not held for trading or sold in the three

years after completion of development. The Group is otherwise

subject to corporation tax.

As a REIT, SREIT is required to pay Property Income

Distributions equal to at least 90% of the Group’s exempted

net income. To retain UK REIT status there are a number of

conditions to be met in respect of the principal company of

the Group, the Group’s qualifying activity and its balance of

business. The Group continues to meet these conditions.

8 Basic and diluted earnings per share

The basic and diluted earnings per share for the Group are

based on the profit for the year of £31,058,000 (2024: profit

of £3,017,000) and the weighted average number of ordinary

shares in issue during the year of 489,110,576 shares

(2024: 489,110,576).

9 Dividends paid

		Rate	31/03/2025
In respect of:	Ordinary shares	(pence)	£000
Q/e 31 March 2024 (dividendpaid28June2024)	489.11 million	0.853	4,172
Q/e 30 June 2024 (dividendpaid25August2024)	489.11 million	0.853	4,172
Q/e 30 Sept 2024 (dividendpaid20December2024)	489.11 million	0.879	4,299
Q/e 31 Dec 2024 (dividendpaid28March2025)	489.11 million	0.897	4,388
		3.482	17,031

		Rate	31/03/2024
In respect of:	Ordinary shares	(pence)	£000
Q/e 31 March 2023 (dividendpaid30June2023)	489.11 million	0.836	4,089
Q/e 30 June 2023 (dividendpaid25August2023)	489.11 million	0.836	4,089
Q/e 30 Sept 2023 (dividendpaid22December2023)	489.11 million	0.836	4,089
Q/e 31 Dec 2023 (dividendpaid28March2024)	489.11 million	0.836	4,089
		3.344	16,356

A dividend for the quarter ended 31 March 2025 of 0.897 pence per share was approved and will be paid on the 30 June 2025.

80 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

10 Investment property

	Leasehold	Freehold	Total
	£000	£000	£000
Carrying value as at 31 March 2023	35,413	352,617	388,030
Additions	720	7,570	8,290
Disposal of assets held at fair value	–	(3,763)	(3,763)
Gain on the sale of assets	–	199	199
Fair value leasehold movement	(106)	–	(106)
Net unrealised valuation loss on investment property	(2,949)	(5,095)	(8,044)
Carrying value as at 31 March 2024	33,078	351,528	384,606
Additions	136	5,953	6,089
Reclassification of property from leasehold to freehold 1	(8,792)	8,792	–
Reclassification to held for sale	–	(1,100)	(1,100)
Disposal of assets held at fair value	–	(1,444)	(1,444)
Gain on the sale of assets	-	469	469
Fair value leasehold movement	(54)	–	(54)
Net unrealised valuation gain on investment property	1,600	14,632	16,232
Carrying value as at 31 March 2025	25,968	378,830	404,798

The balance above includes

	Leasehold	Freehold	Total
	£000	£000	£000
Investment property	31,516	351,528	383,044
Fair value leasehold adjustment	1,562	–	1,562
Carrying value as at 31 March 2024	33,078	351,528	384,606
Investment property	24,460	379,930	404,390
Reclassification to held for sale	-	(1,100)	(1,100)
Fair value leasehold adjustment	1,508	–	1,508
Carrying value as at 31 March 2025	25,968	378,830	404,798

1 A reclassification was made in the year to correct for properties previously disclosed as leasehold in error. The prior year comparative figures have not been restated as

the reclassification was not deemed qualitatively material.

	31/03/2025	31/03/2024
	£000	£000
Fair value as estimated by the external valuer	413,310	391,475
Less: properties reclassified as held for sale	(1,100)	–
Add: lease liabilities recognised separately	1,508	1,562
Less: lease incentive balance included in trade and other receivables	(8,920)	(8,431)
Carrying value for financial reporting purposes	404,798	384,606

The fair value of investment property has been determined

by CBRE, a firm of independent chartered surveyors, who are

registered independent appraisers (note 18). The valuation has

been undertaken in accordance with the current RICS Valuation

– Global Standards, which incorporates the International

Valuation Standards, issued by the Royal Institution of

Chartered Surveyors (the ‘Red Book’).

The properties have been valued on the basis of “Fair Value” in

accordance with the RICS Valuation – Professional Standards

VPS4(7.1) Fair Value and VPGA1 Valuations for Inclusion in

Financial Statements which adopt the definition of Fair Value

used by the International Accounting Standards Board.

The valuation has been undertaken using appropriate valuation

methodology and the Valuer’s professional judgement. The

Valuer’s opinion of Fair Value was primarily derived using

recent comparable market transactions on arm’s length terms,

where available, and appropriate valuation techniques (The

Investment Method).

The properties have been valued individually and not as part of

a portfolio.

81 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

10 Investment property (continued)

The investment property at Truro has been transferred to

investment properties held for sale and is held within current

assets at the carrying value of £1.1 million. The sale completed

on 12 May 2025 at an agreed sale price of £1.2 million.

As highlighted within the Group’s investment strategy

on page 10, developments and refurbishments form a

key element of the Group’s commitment to sustainability.

During the year the Group has spent £6.1 million on capital

expenditure. This sum included both capital works which, in

some cases, enhanced the environmental performance of the

assets amongst other key strategies.

The primary focus has been on optimising earnings across the

existing portfolio through an extensive asset management and

targeted capital expenditure programme, targeting growth

areas and sustainability improvements.

All investment properties are categorised as Level 3 fair values

as they use significant unobservable inputs. There have not

been any transfers between Levels during the year. Investment

properties have been classed according to their real estate

sector. Information on these significant unobservable inputs

per class of investment property is disclosed below:

Quantitative information about fair value measurement using unobservable inputs (Level 3) as at 31 March 2025

			Retail
			(incl. retail
31 March 2025		Industrial 1	warehouse)	Office	Other	Total
Fair value (£’000)		243,310	92,625	58,900	18,475	413,310
Area (‘000sqft)		2,372	421	343	198	3,334
Net passing rent psf per annum	Range	£2.36 – £19.46	£4.27 – £86.11	£8.47 – £32.93	£1.05 – £21.66	£1.05 – £86.11
	Weighted average	£5.71	£13.40	£17.29	£7.91	£7.81
Gross ERV psf per annum	Range	£2.50 – £19.50	£4.00 – £86.11	£8.47 – £34.00	£2.00 – £21.50	£2.00 – £86.11
	Weighted average	£7.68	£17.60	£22.52	£8.48	£11.43
Net initial yield 1	Range	1.91% – 8.60%	0.00% – 12.08%	0.00% – 15.25%	6.55% – 9.69%	0.00% – 15.25%
	Weighted average	5.26%	5.49%	7.95%	7.75%	5.77%
Equivalent yield	Range	5.77% – 9.39%	5.56% – 12.23%	8.16% – 12.05%	6.81% – 10.13%	5.56% – 12.23%
	Weighted average	6.61%	6.99%	10.04%	8.38%	7.33%

1 Yields based on rents receivable after deduction of head rents but gross of non-recoverables.

Quantitative information about fair value measurement using unobservable inputs (Level 3) as at 31 March 2024

			Retail
			(incl. retail
31 March 2024		Industrial 1	warehouse)	Office	Other	Total
Fair value (£’000)		229,750	83,775	59,225	18,725	391,475
Area (‘000sqft)		2,400	446	358	198	3,402
Net passing rent per square foot per annum	Range	£2.36 – £19.46	£2.99 – £76.75	£6.99 – £32.93	£1.05 – £26.70	£1.05 – £76.75
	Weighted average	£5.22	£13.86	£15.37	£7.95	£7.58
Gross ERV per square foot per annum	Range	£2.50 – £19.25	£4.00 – £80.50	£8.47 – £34.00	£2.00 – £25.00	£2.00 – £80.50
	Weighted average	£7.25	£15.66	£20.58	£8.51	£9.83
Net initial yield 1	Range	0.00% – 8.18%	0.00% – 11.87%	0.00% – 13.19%	6.55% – 9.45%	0.00% – 13.19%
	Weighted average	4.99%	6.73%	7.71%	7.68%	5.93%
Equivalentyield	Range	5.98% – 9.35%	6.43% – 12.24%	8.03% – 14.00%	6.80% – 9.94%	5.95% – 14.00%
	Weighted average	6.93%	7.73%	10.19%	8.78%	7.75%

1 Yields based on rents receivable after deduction of head rents but gross of non-recoverables.

82 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

10 Investment property (continued)

Sensitivity of measurement to variations in the significant unobservable inputs

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of the

Group’s property portfolio, together with the impact of significant movements in these inputs on the fair value measurement, are

shown below:

	Impact on fair value measurement of	Impact on fair value measurement of
Unobservable input	significant increase in input	significant decrease in input
Passing rent	Increase	Decrease
Gross ERV	Increase	Decrease
Net initial yield	Decrease	Increase
Equivalent yield	Decrease	Increase

There are interrelationships between the yields and rental values as they are partially determined by market rate conditions.

The sensitivity of the valuation to changes in the most significant inputs per class of investment property are shown below:

Estimated movement in fair value of investment properties at 31 March 2025

	Industrial	Retail	Office	Other	All sectors
	£000	£000	£000	£000	£000
Increase in ERV by 5%	10,476	3,421	2,659	403	16,959
Decrease in ERV by 5%	(10,432 )	(3,291)	(2,661)	(403)	(16,787)
Increase in net initial yield by 0.25%	(9,503)	(3,490)	(1,665)	(548)	(15,206)
Decrease in net initial yield by 0.25%	10,278	3,772	1,957	585	16,592

Estimated movement in fair value of investment properties at 31 March 2024

	Industrial	Retail	Office	Other	All sectors
	£000	£000	£000	£000	£000
Increase in ERV by 5%	10,122	2,788	2,726	183	15,819
Decrease in ERV by 5%	(10,101)	(2,603)	(2,720)	(189)	(15,613)
Increase in net initial yield by 0.25%	(8,886)	(2,950)	(1,828)	(604)	(14,268)
Decrease in net initial yield by 0.25%	9,773	3,209	2,367	645	15,994

11 Investment in joint ventures

	£000
Closing balance as at 31 March 2023	72,187
Purchase of further units in City Tower Unit Trust	187
Purchase of further units in Store Unit Trust	50
Share of operating profit of joint venture	3,057
Distributions received from joint venture	(3,057)
Valuation loss on joint venture	(5,058)
Closing balance as at 31 March 2024	67,366
Purchase of further units in City Tower Unit Trust	388
Purchase of further units in Store Unit Trust	457
Share of operating profit of joint venture	3,579
Distributions received from joint venture	(3,579)
Valuation loss on joint venture	(2,489)
Closing balance as at 31 March 2025	65,722

83 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

11 Investment in joint ventures (continued)

Summarised joint venture financial information not adjusted for the Group’s share for the year ended 31 March 2025

		Store Street Unit
	City Tower Unit Trust	Trust	Total
	31/03/2025	31/03/2025	31/03/2025
	£000	£000	£000
Non-current assets - Investment property	113,100	76,750	189,850
Current assets	660	1,065	1,725
Total liabilities 1	(2,775)	(1,864)	(4,639)
Revenues for the year	10,425	4,233	14,658
Total profit (excludingvaluationmovement)	6,788	3,762	10,550
Net asset value attributable to the Group	27,746	37,976	65,722
Share of profit (excluding valuation movement)iniointventures	1,697	1,882	3,579

Summarised joint venture financial information not adjusted for the Group’s share for the year ended 31 March 2024

		Store Street Unit
	City Tower Unit Trust	Trust	Total
	31/03/2024	31/03/2024	31/03/2024
	£000	£000	£000
Non-current assets - Investment property	117,600	76,750	194,350
Current assets	1,069	404	1,473
Total liabilities 1	(2,524)	(494)	(3,018)
Revenues for the year	10,182	3,870	14,052
Total profit (excludingvaluationmovement)	5,814	3,206	9,020
Net asset value attributable to the Group	29,036	38,330	67,366
Share of profit (excluding valuation movement)iniointventures	1,454	1,603	3,057

1 Liabilities are non-recourse to the Group.

The Company owns 25% of City Tower Unit Trust and 50% of Store Unit Trust. The remaining units in the City Tower and Store Unit

Trusts are owned by other Schroders’ funds.

The fair value of investment property owned by the two Joint Ventures has been determined by CBRE, who are registered

independent appraisers. The two valuations were undertaken on the same basis as that described under Note 10: Investment

Property.

12 Trade and other receivables

	31/03/2025	31/03/2024
	£000	£000
Rent receivable	4,727	3,172
Sundry debtors and prepayments	7,816	8,234
Lease incentives	8,920	8,431
	21,463	19,837

As at 31 March 2025, total bad debt provisions of £0.3 million (2024: £0.4 million) had been recognised against rent receivable.

13 Cash and cash equivalents

As at 31 March 2025 the Group held £3.7 million (2024: £6.0 million) in cash.

84 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

14 Issued capital and reserves

Share capital

The share capital of the Company is represented by an

unlimited number of ordinary shares of no par value.

As at the date of this Report, the Company has

565,664,749 ordinary shares in issue (2024: 565,664,749)

of which 76,554,173 Ordinary shares are held in treasury

(2024: 76,554,173). The total number of voting rights of the

Company was 489,110,576 (2024: 489,110,576) as at the

financial year end.

Treasury share reserve

76,554,173 (2024: 76,554,173) ordinary shares, which represent

13.5% (2024: 13.5%) of the Company’s total issued share

capital, were held in treasury as at the financial year end.

Revenue reserve

This reserve represents an accumulated amount of the Group’s

prior earnings net of dividends.

15 Interest-bearing loans and borrowings

This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings. For more

information about the Group’s exposure to interest rate risk, see note 18.

	31/03/2025	31/03/2024
	£000	£000
Non-current liabilities
Loan facilities	181,085	176,585
Unamortised arrangement fees	( 4 7 4 )	(719)
	180,611	175,866

The Group has in place a £129.6 million loan facility with

Canada Life. This has been in place since 16 April 2013 and has

been refinanced several times, most recently in October 2019.

The loan is split into two equal tranches of £64.8 million as

follows:

― Facility A matures in October 2032 and attracts an interest

rate of 2.36%; and

― Facility B matures in October 2039 and attracts an interest

rate of 2.62%.

As at the April 2025 Interest Payment Date, the Canada

Life interest cover ratio was 510% (2024: 497%) against a

covenant of 185%; the forecast interest cover ratio was 484%

(2024: 482%) against a covenant of 185%; and the Loan to

Value ratio was 47.0% (2024: 49.4%) against a covenant of 65%.

The Canada Life facility has a first charge of security over all

the property assets in the ring-fenced security pool which at

31 March 2025 contained properties valued at £275.54 million

(2024: £262.24 million). Various restraints apply during the

term of the loan although the facility has been designed to

provide significant operational flexibility.

The Group also has a revolving credit facility with RBSI most

recently refinanced in June 2022, with a five-year term which

runs to June 2027, and the maximum amount able to be

drawn is £75.0m. The facility carries an interest rate of a

1.65% margin, plus three-month SONIA rate, with a 0.64%

non-utilisation fee. As at 31 March 2025, a sum of £51.5m was

drawn down (31 March 2024: £47.0m).

In June 2023 the Group also completed on the acquisition of an

interest rate collar from RBSI, which has a floor of 3.25% and

a cap of 4.25%; which will expire on 6 June 2027; and which is

attributable to £30.5 million of the loan drawn sum of the RBSI

revolving credit facility. Further details are disclosed in note 20.

As at the April 2025 Interest Payment Date, the RBSI projected

interest cover ratio was 255% (2024: 231%) against a covenant

of 200% and the Loan to Value ratio was 31.2% (2024: 29.8%)

against a covenant of 65%.

The RBSI facility has a first charge security over certain property

assets which at 31 March 2025 contained properties valued at

£165.0 million (2024: £157.6 million).

85 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

15 Interest-bearing loans and borrowings (continued)

A reconciliation of financing movements for the year is presented below split into cash and non-cash items:

	31/03/2025
	£000
Loan balance brought forward	175,866
Drawdown on RBSI RCF (cash)	4,500
Repayment of RBSI RCF (cash)	–
Non-cash amortisation of arrangement fees	245
Loan balance carried forward	180,611

	31/03/2024
	£000
Loan balance brought forward	176,933
Drawdown on RBSI RCF (cash)	1,000
Repayment of RBSI RCF (cash)	(2,300)
Non-cash amortisation of arrangement fees	233
Loan balance carried forward	175,866

16 Trade and other payables

	31/03/2025	31/03/2024
	£000	£000
Deferred income	5,814	4,952
Rental deposits	2,551	2,442
Interest payable	1,358	1,328
Other trade payables and accruals	3,650	4,533
	13,373	13,255

17 NAV per Ordinary Share

The number of ordinary shares in issue was 489,110,576 as at 31 March 2025 (2024: 489,110,576). The NAV per Ordinary Share is

based on the net assets of £301,377,000 (2024: £287,350,000) and 489,110,576 (2024: 489,110,576) ordinary shares in issue as at

the reporting date.

18 Financial instruments, properties and

associated risks

Financial risk factors

The Group holds cash and liquid resources as well as having

debtors and creditors that arise directly from its operations.

The Group uses interest rate derivative contracts, the details

of which are in note 20, when required to limit exposure to

interest rate risks, but does not have any other derivative

instruments.

The main risks arising from the Group’s financial instruments

and properties are market price risk, credit risk, liquidity risk

and interest rate risk. The Group has no exposure to foreign

currency exchange risk. The Board regularly reviews and

agrees policies for managing each of these risks and these are

summarised below:

Market price risk

Rental income, and the market value for properties, are

generally affected by overall conditions in the economy, such

as changes in gross domestic product, employment trends,

inflation and changes in interest rates. Changes in gross

domestic product may also impact employment levels, which

in turn may impact the demand for premises. Furthermore,

movements in interest rates may also affect the cost of

financing for real estate companies. Both rental income and

property values may also be affected by other factors specific

to the real estate market such as competition from other

property owners; the perceptions of prospective tenants

of the attractiveness, convenience and safety of properties;

the inability to collect rents because of bankruptcy or the

insolvency of tenants; the periodic need to renovate, repair

and re-lease space and the costs thereof; and the costs of

maintenance and insurance, and increased operating costs.

86 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

18 Financial instruments, properties and associated

risks (continued)

Market price risk (continued)

In April 2025, the United States of America (USA) initiated

sweeping tariff arrangements against their global trading

partners. This has heightened macroeconomic uncertainty,

with potential for escalating trade policy responses from USA

trade counterpart countries, and significant impact to global

trade. As at the date of approval of the financial statements,

the Manager is closely monitoring these changes in global

trade policy, however, the Group’s primary exposure to the UK

commercial property sector means it is anticipated to have low

impact to key fundamentals and valuations.

The Directors monitor the market value of investment

properties by having independent valuations carried out

quarterly by a firm of independent chartered surveyors.

Note 10 sets out the sensitivity analysis on the market price

risk. Concentration risk, based on industry and geography, is

set out in the tables on page 15. Included in market price risk is

interest rate risk which is discussed further below.

Credit risk

Credit risk is the risk that an issuer or counterparty will be

unable or unwilling to meet a commitment that it has entered

into with the Group. In the event of default by an occupational

tenant, the Group will suffer a rental income shortfall and

incur additional costs, including legal expenses, in maintaining,

insuring and re-letting the property.

The Investment Manager reviews reports prepared by Dun &

Bradstreet, or other sources, to assess the credit quality of

the Group’s tenants and aims to ensure there is no excessive

concentration of risk and that the impact of any default by a

tenant is minimised.

In respect of credit risk arising from other financial assets,

which comprise cash and cash equivalents, exposure to credit

risk arises from default of the counterparty with a maximum

exposure equal to the carrying amounts of these instruments.

In order to mitigate such risks, cash is maintained with major

international financial institutions with high quality credit

ratings. During the year, and at the reporting date, the Group

maintained a relationship with branches and subsidiaries of

HSBC. HSBC has a credit rating of A- (provided by Standard

and Poor).

The maximum exposure to credit risk for rent receivables at the reporting date by type of sector was:

	31/03/2025	31/03/2024
	Carrying	Carrying
	amount £000	amount £000
Office	375	279
Industrial	3,193	2,190
Retail, leisure and other	925	779
	4,493 1	3,248

1 Rental receivable of £4.7m per note 12 excluding bad debt provisions of £0.3m and other tenant receivables of £0.5m. 2024: Rental receivable of £3.2m per note 12

excluding bad debt provisions of £0.4m and other tenant receivables of £0.4m.

Rent receivables which are past their due date were:

	31/03/2025	31/03/2024
	Carrying	Carrying
	amount £000	amount £000
0-30 days	2,893	1,916
31-60 days	59	143
61-90 days	90	122
91 days plus	1,451	1,067
	4,493 1	3,248

1 Rental receivable of £4.7m per note 12 excluding bad debt provisions of £0.3m and other tenant receivables of £0.5m. 2024: Rental receivable of £3.2m per note 12

excluding bad debt provisions of £0.4m and other tenant receivables of £0.4m.

Management has considered rental debtors on a quarterly

basis and made provisions where it has been deemed that

these amounts may be unrecoverable. As at 31 March 2025

total provisions of £0.33 million (2024: £0.36 million) were

recognised and rental debtors are shown net of this provision

in the Consolidated Statement of Financial Position.

On initial recognition the Group calculates the expected credit

loss for debtors based on the lifetime expected credit losses

under the IFRS 9 simplified approach. Management considers

aged debtors’ analyses, the strength of tenant covenants,

macroeconomic factors and any rental deposits held.

87 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

18 Financial instruments, properties and associated

risks (continued)

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulties

in meeting obligations associated with its financial obligations.

The Group’s investments comprise UK commercial property.

Property and property-related assets are inherently difficult

to value due to the individual nature of each property. As a

result, valuations are subject to substantial uncertainty. There

is no assurance that the estimates resulting from the valuation

process will reflect the actual sale price even where such sales

occur shortly after the valuation date. Investments in property

are relatively illiquid. However, the Group has tried to mitigate

this risk by investing in properties that it considers to be of

good quality.

In certain circumstances, the terms of the Group’s debt

facilities entitle the lender to require early repayment and in

such circumstances the Group’s ability to maintain dividend

levels and the net asset value could be adversely affected. The

Investment Manager prepares cash flows on a rolling basis to

ensure the Group can meet future liabilities as and when they

fall due.

The following table indicates the maturity analysis of the financial liabilities

	Carrying	Expected	6 months	6 months –	2 – 5	More than
	amount	cash flows	or less	2 years	years	5 years
As at 31 March 2025	£000	£000	£000	£000	£000	£000
Financial liabilities
Interest-bearing loans and borrowings and
interest 2	180,611	224,024	3,198	3,198	65,143	152,485
Leasehold liability	1,508	11,369	51	51	306	10,961
Trade and other payables	7,178	7,178	4,627	–	–	2,551
Total financial liabilities	189,297	242,571	7,876	3,249	65,449	165,997

	Carrying	Expected	6 months	6 months –	2 – 5	More than
	amount	cash flows	or less	2 years	years	5 years
As at 31 March 2024	£000	£000	£000	£000	£000	£000
Financial liabilities
Interest-bearing loans and borrowings and
interest 1	175,866	226,102	3,226	9,679	60,713	152,484
Leasehold liability	1,562	11,533	51	154	307	11,021
Trade and other payables	7,729	7,729	5,594	–	–	2,135
Total financial liabilities	185,157	245,364	8,871	9,833	61,020	165,640

1 The maturity analysis of financial liabilities are based on undiscounted contractual cashflows.

2 Assumes that the £51.5 million RBS revolving credit facility is repaid in 2027.

Interest rate risk

Exposure to market risk for changes in interest rates relates

primarily to the Group’s long-term debt obligations and to

interest earned on cash balances. As interest on the Group’s

long-term debt obligations is payable on a fixed-rate basis, the

Group is not exposed to near-term interest rate risk in relation

to its Canada Life loan facility. As at 31 March 2025 the fair

value of the Group’s £129.6 million loan with Canada Life was

£111.1 million (2024: £111.1 million).

The RBSI revolving credit facility is a low-margin and flexible

source of funding with a margin of 1.65%, plus 3-month SONIA

rate and it is considered by management that the carrying

value of the loan is equal to its fair value (sum of £51.5m

(2024: £47.0 million) drawn as at the year end). In order to

assist with mitigating interest rate risk on the RBSI facility, in

June 2023 the Group acquired an interest rate collar from RBSI,

which has a floor of 3.25% and a cap of 4.25%; which will expire

on 6 June 2027; and which is attributable to £30.5 million of the

loan drawn sum.

A 1% increase or decrease in short-term interest rates would

increase or decrease the bank interest annual income, and

equity by £37,000 based on the cash balance as at 31 March

2025.

The Canada Life loan is fixed-rate, as above, and thus a 1%

increase or decrease in interest rates would not impact the

loan interest payable by the Fund.

The RBS revolving credit facility had a drawn balance of

£51.5 million as at the year end and an interest rate collar in

place for £30.5 million of the drawn sum. A 1% increase in

interest rates would thereby increase the finance costs payable

by £210,000 (assuming that the loan principal drawn remained

the same).

88 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

18 Financial instruments, properties and associated

risks (continued)

Fair values

The fair values of financial assets and liabilities are not

materially different from their carrying values, unless

disclosed below, in the financial statements.

The fair value hierarchy levels are as follows:

― Level 1 – quoted prices (unadjusted) in active markets for

identical assets and liabilities;

― Level 2 – inputs other than quoted prices included within

level 1 that are observable for the asset or liability, either

directly (i.e. as prices) or indirectly (i.e. derived from prices);

and

― Level 3 – inputs for the assets or liability that are not based

on observable market data (unobservable inputs).

There have been no transfers between Levels 1, 2 and 3 during

the year (2024: none).

The following summarises the main methods and assumptions

used in estimating the fair values of financial instruments and

investment property:

Investment property – level 3

Fair value is based on valuations provided by an independent

firm of chartered surveyors and registered appraisers. These

values were determined after having taken into consideration

recent market transactions for similar properties in similar

locations to the investment properties held by the Group.

The fair value hierarchy of investment property is level 3. See

Note 10 for further details.

Interest-bearing loans and borrowings – level 2

Fair values are based on the present value of future cash

flows discounted at a market rate of interest. Issue costs are

amortised over the period of the borrowings. As at 31 March

2025, the fair value of the Group’s £129.6 million loan with

Canada Life was £111.1 million (2024: £111.1 million).

Financial Instruments - Level 2

The Group’s interest rate collar is recognised at its fair value

via valuations provided by an independent firm, Chatham

Financial. Fair values of derivatives are based on current

market conditions such as the current SONIA rate compared

to the terms of the derivative agreements.

Capital management

The Board’s policy is to maintain a strong capital base to

maintain investor, creditor and market confidence and to

sustain future development of the business.

The objective is to ensure that it will continue as a going

concern and to maximise the return to its equity shareholders

through an appropriate level of gearing. The Company’s

capital management process ensures it meets its financial

covenants in its borrowing arrangements. Breaches in

meeting the financial covenants could permit the lenders

to immediately accelerate the repayment of loans and

borrowings. The Company monitors as part of its quarterly

board meetings that it will adhere to specific leverage, interest

cover and rental cover ratios. There have been no breaches

in the financial covenants of any loans and borrowings during

the financial year.

The Company’s debt and capital structure comprises the following

	31/03/2025	31/03/2024
	£000	£000
Debt
Fixed-rate loan facility	129,585	129,585
Floating rate loan facility 1	51,500	47,000
	181,085	176,585
Equity
Called-up share capital	181,989	181,989
Reserves	119,388	105,361
	301,377	287,350
Total debt and equity	482,462	463,935

There were no changes in the Group’s approach to capital management during the year.

1 This amount refers to the amount drawn. The total facility as at 31 March 2025 was £75.0 million (2024: £75.0 million)

89 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

19 Operating leases

The Group leases out its investment property under operating leases. At 31 March 2025 the future minimum lease receipts under

non-cancellable leases are as follows:

	31/03/2025	31/03/2024
	£000	£000
Less than one year	25,356	23,400
Between one and five years	72,621	68,798
More than five years	59,156	54,918
	157,134	147,116

The total above comprises the total contracted rent receivable as at 31 March 2025.

The Group has entered into leases on its property portfolio. The commercial property leases typically have lease terms between

5 and 15 years and include clauses to enable periodic upward revision of the rental charge according to prevailing market

conditions. Some leases contain options to break before the end of the lease term.

20 Interest rate derivative contracts

In June 2023 the Group disposed of its interest cap, which had

been due to expire in July 2023, and which was attributable to

£30.5 million of the drawn loan sum of the RBSI revolving credit

facility, for a sum of £0.19 million. This had previously been

carried at a nil fair value and thus there was a gain on disposal

of £0.19 million recognised in the financial year.

In June 2023 the Group completed on the acquisition of an

interest rate collar from RBSI, which has a floor of 3.25% and

a cap of 4.25%; which will expire on 6 June 2027; and which

is attributable to £30.5 million of the drawn loan sum of the

RBSI revolving credit facility. The cost to acquire this financial

instrument was £0.77 million, including fees, and as at the

31 March 2025 it had a deemed fair value of £0.07 million

(2024: £0.2 million) with an unrealised loss of £0.15 million

(2024: £0.57 million) being recognised in the financial year.

21 List of subsidiary and joint venture undertakings

The companies listed below are those which were part of the Group as at 31 March 2025:

		Country of	Principal	Ultimate
Undertaking	Category	incorporation	Activities	ownership
SREIT No.2 Limited	Subsidiary	Guernsey	Property ownership with external finance	100%
SREIT Holding (No.2)Limited	Subsidiary	Guernsey	Holding Company	100%
SREIT Holding Company Limited	Subsidiary	Guernsey	Holding Company with external finance	100%
SREIT Property Limited	Subsidiary	Guernsey	Property ownership	100%
SREIT (Portergate)Limited	Subsidiary	Guernsey	Property ownership	100%
SREIT (Uxbridge)Limited	Subsidiary	Guernsey	Property ownership	100%
SREIT (CityTower)Limited	Subsidiary	Guernsey	Joint ownership of an underlying property unit trust	100%
SREIT (Store)Limited	Subsidiary	Guernsey	Joint ownership of an underlying property unit trust	100%
SREIT (Bedford)Limited	Subsidiary	Guernsey	Property ownership	100%
City Tower Unit Trust	Joint Venture	Jersey	Property ownership	25%
Store Unit Trust	Joint Venture	Jersey	Property ownership	50%

The registered addresses for all wholly-owned entities are

the same as that of the parent company and can be found on

page 141.

The registered address for both Joint Venture entities is 47

Esplanade, St Helier, Jersey, JE1 0BD, Channel Islands.

22 Related party transactions

Material agreements and transactions with the Investment

Manager are disclosed in note 2. Transactions with regard to

joint ventures are disclosed in note 11. Transactions with the

directors are shown in the directors’ remuneration report.

90 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Financial statements — Notes to the financial statements continued

23 Capital commitments

As at 31 March 2025 the Group had capital commitments of £8.3 million (2024: £8.4 million).

24 Post balance sheet events

On 12 May 2025, the Group sold its Truro asset for a sales price of £1.2 million.

Other information (unaudited)

91 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

92 EPRAperformancemeasures(unaudited)

95 Alternativeperformancemeasures(unaudited)

96 AIFMDdisclosures(unaudited)

97 Sustainabilityperformancemeasures(environmental)

(unaudited)

128 Sustainabilityperformancemeasures(social)(unaudited)

130 Sustainabilityperformancemeasures(governance)

(unaudited)

131 Streamlinedenergyandcarbonreporting

134 Assetlist

135 ReportoftheDepositarytotheshareholders

136 Glossary

137 ResolutionsattheAnnualGeneralMeeting

139 NoticeofAnnualGeneralMeeting

141 Corporateinformation

Other information (unaudited)

92 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited)

EPRA performance measures (unaudited)

AsrecommendedbytheEuropeanPublicRealEstate

Association,EPRAperformancemeasuresaredisclosedinthe

sectionbelow.

EPRA performance measures:summary table

31/03/2025 31/03/2024

EPRAearnings £17,034,000 £16,278,000

EPRAearningspershare 3.5pps 3.3pps

EPRANetReinstatement

Value

£333,948,000 £318,360,000

EPRANetReinstatement

Valuepershare 68.3p 65.1p

EPRANetTangibleAssets £301,311,000 £287,131,000

EPRANetTangibleAssets

pershare 61.6p 58.7p

EPRANetDisposalValue £319,860,000 £305,808,000

EPRANetDisposalValue

pershare 65.4p 62.5p

EPRANetInitialYield 5.1% 5.6%

EPRA“topped-up”Net

InitialYield 6.0% 6.1%

EPRAvacancyrate 12.4% 10.9%

EPRAcostratios–including

directvacancycosts 28.6% 29.6%

EPRAcostratios–excluding

directvacancycosts 22.0% 23.7%

EPRALTV 36.9% 37.1%

a EPRA earnings and earnings per share

Earningsexcludingallcapitalcomponentsnotrelevanttothe

underlyingnetincomeperformanceoftheCompany,such

astheunrealisedfairvaluegainsorlossesoninvestment

propertiesandanygainsorlossesfromthesalesofproperties.

31/03/2025

£000

31/03/2024

£000

ProfitperIFRSincomestatement 31,058 3,017

Adjustments to calculate EPRA

Earnings:

Profitonthedisposalofinvestment

property (469) (199)

Netunrealisedvaluation(gain)/losson

investmentproperty (16,232) 8,044

Netchangeinthefairvalueoffinancial

instruments 153 547

Gainonthedisposaloffinancial

instruments - (189)

Shareofvaluationloss

inassociatesandjointventures 2,489 5,058

Adjustmentsrelatedtonon-operating

andexceptionalitems 35 –

EPRA earnings 17,034 16,278

Weightedaveragenumberofordinary

shares 489,110,576 489,110,576

IFRS earnings pershare (pence) 6.3 0.6

EPRA earnings pershare (pence) 3.5 3.3

b EPRA Net Reinstatement Value

IFRSequityattributabletoshareholdersadjustedtorepresent

thevaluerequiredtorebuildtheentityandassumesthatno

sellingofassetstakesplace.

31/03/2025

£000

31/03/2024

£000

IFRSequityattributableto

shareholders 301,377 287,350

Adjustmentinrespectofrealestate

transfertaxesandcosts 32,637 31,229

Adjustmentinrespectofthefairvalue

offinancialinstruments (66) (219)

EPRA net reinstatement value 333,948 318,360

Sharesinissueattheendoftheperiod 489,110,576 489,110,576

EPRA NRV pershare (pence

pershare)

68.3p 65.1p

93 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — EPRA performance measures (unaudited) continued

c EPRA Net Tangible Assets per share

IFRSequityattributabletoshareholdersadjustedtorepresent

thevaluerequiredtorebuildtheentityandassumesthatno

sellingofassetstakesplace.

31/03/2025

£000

31/03/2024

£000

IFRSequityattributableto

shareholders 301,377 287,350

Fairvalueoffinancialinstruments (66) (219)

EPRANetTangibleAssets 301,311 287,131

Sharesinissueattheendoftheyear 489,110,576 489,110,576

IFRS NAV pershare (pence) 61.6p 58.8p

EPRA net tangible assets pershare

(pence)

61.6p 58.7p

d EPRA Net Disposal Value per share

TheIFRSequityattributabletoshareholdersadjustedtoreflect

theNAVunderanorderlysaleofbusiness,whereanydeferred

tax,financialinstrumentsandcertainotheradjustmentsare

calculatedtothefullextentoftheirliability.

31/03/2025

£000

31/03/2024

£000

IFRSequityattributableto

shareholders 301,377 287,350

Adjustments to calculate EPRA Net

Disposal Value:

Thefairvalueoffixed-interestratedebt 18,483 18,458

EPRA net disposal value 319,860 305,808

Sharesinissueattheendoftheyear 489,110,576 489,110,576

EPRA net disposal value pershare

(pence)

65.4p 62.5p

e EPRA Net Initial Yield

Annualisedrentalincomebasedonthecashrentspassingat

theBalanceSheetdate(butadjustedassetoutbelow),less

non-recoverablepropertyoperatingexpenses,dividedbythe

grossmarketvalueoftheproperty.

TheEPRA“toppedup”NIYistheEPRANIYinrespectofthe

expirationofrentfreeperiods.

31/03/2025

£000

31/03/2024

£000

Investmentproperty–wholly-owned 413,310 391,475

Investmentproperty–

shareofjointventuresandfunds 66,650 67,775

Complete property portfolio 479,960 459,250

Allowanceforestimatedpurchasers’

costs 32,637 31,229

Gross up completed property

portfolio valuation

512,597 490,479

Annualisedcashpassingrentalincome 28,845 29,796

Propertyoutgoings (2,657) (2,154)

Annualised net rents 26,188 27,642

Notionalrentexpirationofrent-free

periods

4,321 2,462

Topped-up net annualised rent 30,509 30,104

EPRA NIY 5.1% 5.6%

EPRA “topped-up” NIY 6.0% 6.1%

1. Theperiodoverwhichrentfreeperiodsexpireisoneyearfor2025

(2024:1year).

94 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — EPRA performance measures (unaudited) continued

f EPRA cost ratios

Administrativeandoperatingcosts(includingandexcluding

costsofdirectvacancy)dividedbygrossrentalincome.

31/03/2025

£000

31/03/2024

£000

Administrative/operatingexpenseline

perIFRSincomestatement 8,022 7,572

ShareofJointVentureexpenses 1,145 1,423

Less:Groundrentcosts ( 6 8 ) (113)

Costs (including direct vacancy

costs)

9,099 8,882

Directvacancycosts (2,081) (1,782)

Costs (excluding direct vacancy

costs)

7,018 7,100

Grossrentalincomelessgroundrent

costs–perIFRS 27,124 25,525

AddshareofJointVentures(Gross

RentalIncomelessgroundrentcosts) 4,723 4,480

Gross rental income 31,847 30,005

EPRAcostratio(includingdirect

vacancycosts) 28.6% 29.6%

EPRAcostratio(excludingdirect

vacancycosts) 22.0% 23.7%

Therewerenodirectlyattributableoverheadandoperating

costscapitalisedduringtheyear(2024:nil).TheCompanydoes

nothaveapolicytocapitalisesuchexpenses(aspernote1).

g EPRA vacancy rate

Estimatedmarketrentalvalue(ERV)ofvacantspacedividedby

theERVofthewholeportfolio.

31/03/2025

£000

31/03/2024

£000

Estimatedrentalvalueofvacantspace 4,958 4,242

Estimatedrentalvalueofthewhole

portfolio 40,134 38,770

EPRA vacancy rate 12.4% 10.9%

Therewerenosignificantordistortingfactorsintheabove.

ExcludesERVrelatingtoassetsheldforsaleatthebalance

sheetdate.

h EPRA LTV

ThegearingoftheshareholderequitywithintheCompany.

31/03/2025

£000

31/03/2024

£000

BorrowingsfromFinancialInstitutions 181,085 176,585

Cashandcashequivalents (3,720) (6,005)

Cashandcashequivalents–shareof

jointventures (134) (229)

Net debt 177,231 170,351

Investmentpropertiesatfairvalue–

directportfolio 413,310 391,475

Investmentpropertiesatfairvalue–

shareofjointventures 66,650 67,775

Total property value 479,960 459,250

LTV 36.9% 37.1%

i EPRA capital expenditure

InaccordancewithEPRA’scorerecommendations,theGroup’s

capitalexpenditureinvestedintheyearcanbebrokendownas

follows:

Group

(excluding

Joint Ventures)

£m

Joint Ventures

(proportionate

share) £m

Total Group

£m

Acquisitions

(including

transactioncosts) – – –

Developmentsand

accretiveworks 6.1 0.6 6.7

Investment

properties

 Tenantincentives – – –

 Othermaterial

non–allocated

typesof

expenditure – – –

Total capital

expenditure

6.1 0.6 6.7

Aspernote10,theFundmadenonewacquisitions,and

thusalsoincurrednoadditionaltransactioncosts,duringthe

financialyear.

Thecapitalexpenditureinvestedintheyearamountedto

£6.1milliononthedirectlyheldportfolio(alsoaspernote10).

Thethreelargestcapitalexpenditureinvestmentsmadeinthe

financialyearwereasfollows:a)£0.5millionatStanleyGreen

TradingEstate,Cheadleb)£0.3millionatStAnns,Manchester,

andc)£0.2millionatTheTun,Edinburgh.

The£0.6millioninvestedacrossjointventuresrelatedsolelyto

theGroup’s25%shareofunderlyingcapitalexpenditureworks

undertakenatCityTower.

95 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Alternative Performance Measures (unaudited)

Other information (unaudited)

TheCompanyusesthefollowingAlternativeperformance

measures(‘APMs’)initsAnnualReportandConsolidated

FinancialStatements.TheBoardbelievesthateachoftheAPMs

providesadditionalusefulinformationtotheshareholdersin

ordertoassesstheCompany’sperformance.

Dividend CoverTheratioofEPRAEarnings(page92)to

dividendspaid(note9)intheperiod.

Dividend YieldThedividendspaid,expressedasapercentage

relativetotheCompany’sshareprice.

EPRA EarningsEarningsexcludingallcapitalcomponents

notrelevanttotheunderlyingnetincomeperformanceofthe

Company,suchastheunrealisedfairvaluegainsorlosseson

investmentpropertiesandanygainsorlossesfromthesalesof

properties.Seepage92forareconciliationofthisfigure.

EPRA Net Tangible AssetsTheIFRSequityattributableto

shareholdersadjustedtoreflectaCompany’stangibleassets

andassumesthatnosellingofassetstakesplace.

EPRA Net Disposal ValueTheIFRSequityattributableto

shareholdersadjustedtoreflecttheNAVunderanorderlysale

ofbusiness,whereanydeferredtax,financialinstrumentsand

certainotheradjustmentsarecalculatedtothefullextentof

theirliability.

EPRA Net Reinstatement ValueTheIFRSequityattributable

toshareholdersadjustedtorepresentthevaluerequired

torebuildtheentityandassumesthatnosellingofassets

takesplace.

Gross LTVThevalueoftheexternalloansunadjustedfor

unamortisedarrangementcosts(note15)expressedasa

percentageofthemarketvalueofpropertyinvestments

asattheBalanceSheetdate.Themarketvalueofproperty

investmentsincludesjointventureinvestmentsandareasper

externalvaluationsandhavenotbeenadjustedforIFRSlease

incentivedebtorsnorthefairvalueoftheheadleaseatLuton.

LTV net of cashThevalueoftheexternalloansunadjusted

forunamortisedarrangementcosts(note15)lesscashheld

(note13)expressedasapercentageofthemarketvalueof

thepropertyinvestmentsasattheBalanceSheetdate.The

marketvalueofpropertyinvestmentsincludesjointventure

investmentsandareasperexternalvaluationsandhavenot

beenadjustedforIFRSleaseincentivedebtorsorthefairvalue

oftheheadleaseatLuton.

Ongoing charges (including Fund expenses)Alloperating

costsexpectedtoberegularlyincurredandthatarepayable

bytheCompanyexpressedasapercentageoftheaverage

quarterlyNAVsoftheCompanyforthefinancialperiod.No

capitalcosts,includingcapitalexpenditureoracquisition/

disposalfees,areincludedascosts.

Ongoing charges (including Fund and property expenses)

Alloperatingcostsexpectedtoberegularlyincurredandthat

arepayablebytheCompanyexpressedasapercentageof

theaveragequarterlyNAVsoftheCompanyforthefinancial

period.Anycapitalcosts,includingcapitalexpenditureand

acquisition/disposalfees,areexcludedascosts,aswellas

interestcostsandanyothercostsconsideredtobenon-

recurring.Inthecurrentperiodthematerialnon-recurring

costsincludenon-cashbaddebtexpensesof£32,000.

Share price discount/premiumThesharepriceofan

InvestmentTrustisderivedfrombuyersandsellerstrading

theirsharesonthestockmarket.Thispriceisnotidenticalto

theNAVpershareoftheunderlyingassetslessliabilitiesofthe

Company.IfthesharepriceislowerthantheNAVpershare,

thesharesaretradingatadiscount.Sharestradingabove

theNAVpersharearesaidtobeatapremium.Thediscount/

premiumiscalculatedasthevariancebetweentheshareprice

asattheBalanceSheetdateandtheNAVpershare(page71)

expressedasapercentage.

NAV total returnThereturntoshareholderscalculatedona

persharebasisbyaddingdividendspaid(note9)intheperiod

onatime-weightedbasistotheincreaseordecreaseinthe

NAVpershare(page85).

96 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

AIFMD disclosures (unaudited)

Other information (unaudited)

Thesedisclosuresformpartofthenon-auditedsectionof

thisAnnualReportandConsolidatedFinancialStatements

andshouldbereadinconjunctionwiththeSchrodersplc

RemunerationReportonpages62to83ofthe2024Annual

Report&Accounts(availableontheGroup’swebsite–

www.schroders.com/ir)whichprovidesmoreinformation

ontheactivitiesofourRemunerationCommitteeandour

remunerationprinciplesandpolicies.

TheAIFMaterialRiskTakers(‘AIFMRTs’)ofSREIMare

individualswhoseroleswithintheSchrodersGroupcan

materiallyaffecttheriskofSREIMoranyAIFfundthat

itmanages.Theserolesareidentifiedinlinewiththe

requirementsoftheAIFMDirectiveandguidanceissued

bytheEuropeanSecuritiesandMarketsAuthority.

TheRemunerationCommitteeofSchrodersplchasestablished

aremunerationpolicytoensuretherequirementsofthe

AIFMDirectivearemetforallAIFMRTs.TheRemuneration

CommitteeandtheBoardofSchrodersplcreview

remunerationstrategyatleastannually.ThedirectorsofSREIM

areresponsiblefortheadoptionoftheremunerationpolicy

andperiodicallyreviewingitsimplementationinrelationto

SREIM.During2024theRemunerationPolicywasreviewed

toensurecompliancewiththeUCITS/AIFMDremuneration

requirementsandnosignificantchangesweremade.

Theimplementationoftheremunerationpolicyis,atleast

annually,subjecttoindependentinternalreviewforcompliance

withthepoliciesandproceduresforremunerationadopted

bytheBoardofSREIMandtheRemunerationCommittee.The

mostrecentreviewfoundnofundamentalissuesbutresulted

inminorrecommendationsrelatingtopolicydocumentation.

Ourratioofoperatingcompensationcoststonetoperating

incomeguidesthetotalspendonremunerationeachyear.

ThisisrecommendedbytheRemunerationCommitteetothe

BoardofSchrodersplc.Thisapproachalignsremuneration

withSchrodersfinancialperformance.Indeterminingthe

remunerationspendeachyear,theunderlyingstrengthand

sustainabilityofthebusinessistakenintoaccount,alongwith

reportsonrisk&compliance,legalandinternalauditmatters

fromtheheadsofthoseareas.

Theremunerationdatathatfollowsreflectsamountspaidin

respectofperformanceduring2024.

— ThetotalamountofremunerationpaidbySREIMtoits

staffisnilasSREIMhasnoemployees.Employeesof

SREIMorotherSchrodersGroupentitieswhoserveas

DirectorsofSREIMreceivenoadditionalfeesinrespectof

theirroleontheBoardofSREIM.

— ThefollowingdisclosuresrelatetoAIFMRTsofSREIM.

ThoseAIFMRTswereemployedbyandprovidedservices

tootherSchrodersgroupcompaniesandclients.Inthe

interestsoftransparency,theaggregateremuneration

figuresthatfollowreflectthefullremunerationforeach

SREIMAIFMRT.Theaggregatetotalremunerationpaid

tothe72AIFMRTsofSREIMinrespectofthefinancial

yearended31December2024is£50.16million,ofwhich

£41.76millionwaspaidtoseniormanagement,£5.62

millionwaspaidtoMRTsdeemedtobetakingriskon

behalfofSREIMortheAIFfundsthatitmanagesand£2.78

millionwaspaidtocontrolfunctionMRTs.

Foradditionalqualitativeinformationonremunerationpolicies

andpracticesseewww.schroders.com/rem-disclosures

Leverage disclosure

InaccordancewithAIFMDtheCompanyisrequiredtomake

availabletoinvestorsinformationinrelationtoleverage.

UnderAIFMD,leverageisanymethodbywhichtheexposure

oftheCompanyisincreasedthroughtheborrowingofcash

orsecurities,leverageembeddedinderivativepositionsor

byanothermeans.Itisexpressedasaratiobetweenthe

totalexposureoftheCompanyanditsnetassetvalueand

iscalculatedinaccordancewiththe“Grossmethod”and

the“Commitmentmethod”asdescribedintheAIFMD.The

GrossmethodrepresentstheaggregateofalltheCompany’s

exposuresotherthancashbalancesheldinthebasecurrency,

whiletheCommitmentmethod,whichiscalculatedonasimilar

basis,mayalsotakeintoaccountcashandcashequivalents,

nettingandhedgingarrangements,asapplicable.

TheInvestmentManagerhassettheexpectedmaximum

leveragepercentagesfortheCompanyandcalculatedthe

actualleveragesasat31December2024asshownbelow:(the

Companycalculatesandexternallyreportsitsleverageone

quarterinarrears):

Maximum limit

set

Actual as at

31.12.2024

Grossleverage 195 163

Commitmentleverage 220 165

Therehavebeennochangestothemaximumlevelsof

leverageemployedbytheCompanyduringthefinancialyear

noranybreachesofthemaximumlevelsduringthefinancial

reportingperiod.

97 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Sustainability performance measures (environmental)

(unaudited)

Other information (unaudited)

TheCompanyreportssustainabilityinformationinaccordance

withEPRABestPracticeRecommendationsonSustainability

Reporting(sBPR)2024,4thEditionforthe12months

1stJanuary2024–31stDecember2024,presentedwith

comparisonagainst2023.AspermittedbytheEPRA

SustainabilityReportingGuidelines,environmentaldatahas

beendevelopedandpresentedinlinewiththeGlobalReal

EstateSustainabilityBenchmark(GRESB).

Thereportingboundaryhasbeenscopedtowherethe

Companyhasoperationalcontrolbeingmanagedproperties

wheretheCompanyisresponsibleforthepaymentofutility

invoicesand/orthearrangementofwastedisposalcontracts.

‘Operationalcontrol’hasbeenselectedasthereporting

boundary(asopposedto‘financialcontrol’or‘equityshare’)as

thisreflectstheportionoftheportfoliowheretheCompany

caninfluenceoperationalproceduresand,ultimately,

sustainabilityperformance.Theoperationalcontrolapproachis

themostcommonlyappliedwithintheindustry.

At31December2024,39assetswereheldbytheCompany,

duringthereportingyear,followingthesaleofBedford,

HowardHouseinDecember2024.Intotal,22assetswere

withintheoperationalcontrolreportingboundaryofthe

Companyduringthe2024calendaryear(i.e.‘managed’),which

includesHowardHouse.Inthe2023calendaryear,therewere

23suchmanagedassetswithintheportfolioincludingLeeds,

CoverdaleHousewhichwassoldinDecember2023.

Wheredatacoverageislessthan100%,asupporting

explanationisprovidedwithinthedatanotesimmediately

belowtherelevanttable.Energyandwaterconsumption

dataisreportedaccordingtoautomaticmeterreads,manual

meterreadsorinvoiceestimates.Whererequired,missing

consumptiondatahasbeenestimatedbyproratingdatafrom

otherperiodsusingrecognisedtechniques.Theproportionof

datathatisestimatedispresentedinthedatatables.Historic

consumptiondatahasbeenrestatedwheremorecomplete

and/oraccuraterecordshavebecomeavailable.

TheCompanydoesnotholdanymanagedassetsthat

consumeenergyfromdistrictheatingorcoolingsources.

Therefore,theEPRAsBPRDH&C-AbsandDH&C-LfL

indicatorsarenotapplicableandnotpresentedinthis

report.Furthermore,theCompanydoesnothaveanydirect

employees;itisservedbytheemployeesoftheInvestment

Manager(SchroderRealEstateInvestmentManagement

Limited).

Accordingly,theEPRAOverarchingRecommendationfor

companiestoreportontheenvironmentalimpactoftheirown

officesisnotrelevant/materialandnotpresentedinthisreport.

ThisreporthasbeenpreparedbytheInvestmentManagerto

theCompany.Thesustainabilityperformancemeasureshave

beenassuredinaccordancewithAA1000toprovideaType

2ModerateAssuranceunqualifiedauditofthesustainability

contentwithintheSREITannualreportfortheyearended

31March2025.ThefullAssuranceStatementisavailableon

request.

98 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Total energy consumption (Elec-Abs; Fuels-Abs, Energy-Int)

ThetablebelowsetsouttotallandlordobtainedenergyconsumptionfromtheCompany’smanagedportfoliobysector.

AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

AbsoluteEnergy AbsoluteElectricity AbsoluteFuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

TotalPortfolio Landlord-Actual kWh 6,586,971 6,006,730 -9% 5,132,341 4,711,505 -8% 1,454,630 1,295,225 -11%

Landlord-

Estimated

kWh 906 5,013 453% 497 5,013 909% 409 - -100%

Landlord-Total kWh 6,587,877 6,011,743 -9% 5,132,838 4,716,518 -8% 1,455,039 1,295,225 -11%

Landlord-Total

Estimated

% 0.01% 0.08% 506.04% 0.01% 0.11% 997.78% 0.03% 0.00% -100.00%

Coverage

(landlord-

procured

consumption)

% 98.47% 98.47% 0% 98.47% 98.47% 0% 98.47% 98.47% 0%

Generated

off-siteand

purchasedby

landlord

kWh 5,018,904 4,631,307 -8% 5,018,904 4,631,307 -8% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 76.18% 77.04% 1.12% 97.78% 98.19% 0.42% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

28.71 26.20 -9% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Office:

Corporate:Low-

RiseOffice

Landlord-Actual kWh 1,066,430 898,565 -16% 561,034 515,604 -8% 505,396 382,961 -24%

Landlord-

Estimated

kWh 673 6,999 941% 263 6,999 2560% 409 - -100%

Landlord-Total kWh 1,067,103 905,564 -15% 561,297 522,603 -7% 505,805 382,961 -24%

Landlord-Total

Estimated

% 0.06% 0.77% 1126.13% 0.05% 1.34% 2756.79% 0.08% 0.00% -100.00%

Coverage

(landlord-

procured

consumption)

% 83.27% 83.27% 0% 83.27% 83.27% 0% 83.27% 83.27% 0%

Generated

off-siteand

purchasedby

landlord

kWh 555,105 464,549 -16% 555,105 464,549 -16% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 52.02% 51.30% -1.38% 98.90% 88.89% -10.12% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

25.95 21.72 -16% - - - - - -

99 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

AbsoluteEnergy AbsoluteElectricity AbsoluteFuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

District

Heating&

Cooling-Abs

Retail:High

Street

Landlord-Actual kWh 12,441 11,367 -9% 12,441 11,367 -9% - - -

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 12,441 11,367 -9% 12,441 11,367 -9% - - -

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% - - -

Generated

off-siteand

purchasedby

landlord

kWh 12,441 11,367 -9% 12,441 11,367 -9% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

64.01 58.49 -9% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

District

Heating&

Cooling-Abs

Industrial:

Refrigerated

Warehouse

Landlord-Actual kWh 1,691 7,607 350% 1,691 7,607 350% - - -

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 1,691 7,607 350% 1,691 7,607 350% - - -

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% - - -

Generated

off-siteand

purchasedby

landlord

kWh 1,687 6,416 280% 1,687 6,416 280% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 99.76% 84.35% -15.44% 99.76% 84.35% -15.44% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

0.09 0.35 280% - - - - - -

100 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

AbsoluteEnergy AbsoluteElectricity AbsoluteFuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

District

Heating&

Cooling-Abs

Mixeduse:

Other

Landlord-Actual kWh 1,943,287 1,770,655 -9% 1,943,287 1,770,655 -9% - - -

Landlord-

Estimated

kWh 83 77 -6% 83 77 -6% - - -

Landlord-Total kWh 1,943,370 1,770,733 -9% 1,943,370 1,770,733 -9% - - -

Landlord-Total

Estimated

% 0.00% 0.00% 2.87% 0.00% 0.00% 2.87% - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% - - -

Generated

off-siteand

purchasedby

landlord

kWh 1,943,114 1,770,512 -9% 1,943,114 1,770,512 -9% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 99.99% 99.99% 0.00% 99.99% 99.99% 0.00% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

96.65 88.06 -9% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

District

Heating&

Cooling-Abs

Industrial:

Manufacturing

Landlord-Actual kWh 1,442,378 1,466,040 2% 1,006,809 1,052,187 5% 435,570 413,853 -5%

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 1,442,378 1,466,040 2% 1,006,809 1,052,187 5% 435,570 413,853 -5%

Landlord-Total

Estimated

% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100% 0.00% 100.00% 100.00% 0%

Generated

off-siteand

purchasedby

landlord

kWh 1,006,809 1,052,187 5% 1,006,809 1,052,187 5% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 69.80% 71.77% 2.82% 100.00% 100.00% 0.00% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

26.04 27.22 5% - - - - - -

101 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

AbsoluteEnergy AbsoluteElectricity AbsoluteFuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Lodging,

Leisure&

Recreation:

Other

Landlord-Actual kWh 208,528 233,649 12% 208,528 233,649 12% - - -

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 208,528 233,649 12% 208,528 233,649 12% - - -

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% - - -

Generated

off-siteand

purchasedby

landlord

kWh 208,528 233,649 12% 208,528 233,649 12% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

Landlord-

Intensity

kWh/m2

/year

60.23 67.49 12% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

District

Heating&

Cooling-Abs

Office:

Corporate:Mid-

RiseOffice

Landlord-Actual kWh 678,958 640,232 -6% 281,994 259,791 -8% 396,963 380,442 -4%

Landlord-

Estimated

kWh 151 - -100% 151 - -100% - -

Landlord-Total kWh 679,109 640,232 -6% 282,145 259,791 -8% 396,963 380,442 -4%

Landlord-Total

Estimated

% 0.02% 0.00% -100.00% 0.05% 0.00% -100.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0%

Generated

off-siteand

purchasedby

landlord

kWh 277,276 259,791 -6% 277,276 259,791 -6% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 40.83% 40.58% -0.62% 98.27% 100.00% 1.76% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

52.30 49.01 -6% - - - - - -

102 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

AbsoluteEnergy AbsoluteElectricity AbsoluteFuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

District

Heating&

Cooling-Abs

Industrial:Non-

refrigerated

Warehouse

Landlord-Actual kWh 617,722 466,322 -25% 613,449 466,252 -24% 4,273 70 -98%

Landlord-

Estimated

kWh - -2,063 - -2,063 - -

Landlord-Total kWh 617,722 464,259 -25% 613,449 464,189 -24% 4,273 70 -98%

Landlord-Total

Estimated

% 0.00% -0.44% 0.00% -0.44% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0%

Generated

off-siteand

purchasedby

landlord

kWh 512,732 438,443 -14% 512,732 438,443 -14% - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - -

Generated

off-siteand

purchasedby

landlord

% 83.00% 94.44% 13.78% 83.58% 94.45% 13.01% 0.00% 0.00%

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Energy-Int

Landlord-

Intensity

kWh/m2

/year

5.02 4.29 -14% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

District

Heating&

Cooling-Abs

Mixeduse:

Office/Retail

Landlord-Actual kWh 592,043 496,376 -16% 479,615 378,478 -21% 112,428 117,898 5%

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 592,043 496,376 -16% 479,615 378,478 -21% 112,428 117,898 5%

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0%

Generated

off-siteand

purchasedby

landlord

kWh 479,615 378,478 -21% 479,615 378,478 -21% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 81.01% 76.25% -5.88% 100.00% 100.00% 0.00% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

57.20 45.13 -21% - - - - - -

103 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

AbsoluteEnergy AbsoluteElectricity AbsoluteFuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

District

Heating&

Cooling-Abs

Retail:Retail

Centers:

Warehouse

Landlord-Actual kWh 23,492 15,915 -32% 23,492 15,915 -32% - - -

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 23,492 15,915 -32% 23,492 15,915 -32% - - -

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% 0.00% 0.00% -

Generated

off-siteand

purchasedby

landlord

kWh 21,596 15,915 -26% 21,596 15,915 -26% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 91.93% 100.00% 8.78% 91.93% 100.00% 8.78% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

1.88 1.39 -26% - - - - - -

104 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

— Consumption-Consumptiondatarelatestothemanaged

portfolioonlyfor:

— Industrial:RefrigeratedWarehouse,Industrial:

Manufacturing,Retail:RetailCenters:Warehouse,Mixed

Use:Other,Retail:HighStreet,MixedUse:Other,Lodging,

Leisure&Recreation;wholebuilding,whereprocuredby

thelandlord.

– Office:Corporate:Low-RiseOffice,Office:Corporate:

Mid-RiseOffice,Industrial:Non-refrigerated

Warehouse,MixedUse:Office/Retail;wholebuilding,

commonparts&tenantspaces,whereprocuredby

thelandlord.

– Energyprocureddirectlybytenantsisnotreported.

– Percentageofdataestimatedprorataacross2023

and2024:0.01%and0.08%respectively.

— Renewableelectricity(%)iscalculatedaccordingtothe

attributesofenergysupplycontractsasat31December

2024andonlyreflectsrenewableelectricityprocured

undera100%‘greentariff‘(i.e.wheregenerationisfrom

a100%renewablesource).Therenewablespercentage

ofstandard(non-‘greentariff’)energysuppliesarenot

currentlyknownandthereforehasnotbeenincluded

withinthisnumber.

— Intensity:Numerators/denominatorsarealignedatthe

sectorlevelasfollows:

– Lodging,Leisure,&Recreation:Other,Retail:High

Street&MixedUse:OtherCommonareasenergy

consumption(kWh)dividedbycommonpartsarea

(CPAm2);

– Allothersectors–Commonareasandsharedservice

orwholebuildingenergyconsumption(kWh)divided

bygrossinternalarea(GIAm2)

— Allenergywasprocuredfromathird-partysupplier.No

‘self-generated’renewableenergywasconsumedduring

thereportingperiodandthereforeisnotpresentedhere.

— Coverage(landlord-procuredconsumption)relatestothe

proportionofassetsforwhichlandlordobtaineddatahas

beenreported:

– Anassetinthe‘Office:Corporate:Low-RiseOffice’

sectorhasbeenremovedduetodataqualityissues

whichareunderinvestigationwiththesupplier.

— Whereappropriate(forrelevantassets),consumption

dataandassetNLA/GIAhasbeenadjustedtoreflectthe

Company’sshareofownership.

105 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Total energy consumption (Elec-LfL; Fuels-LfL; Energy-Int)

ThetablebelowsetsouttotallandlordobtainedenergyconsumptionfromtheCompany’smanagedlike-for-like(L4L)portfolio

bysector:

L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

L4L-Energy L4L-Electricity L4L-Fuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

TotalPortfolio Landlord-Actual kWh 6,080,015 5,797,357 -5% 4,887,888 4,577,681 -6% 1,192,127 1,219,677 2%

Landlord-

Estimated

kWh 906 388 -57% 497 388 -22% 409 - -100%

Landlord-Total kWh 6,080,922 5,797,746 -5% 4,888,385 4,578,069 -6% 1,192,537 1,219,677 2%

Landlord-Total

Estimated

% 0.01% 0.01% -55.05% 0.01% 0.01% -16.53% 0.03% 0.00% -100.00%

Coverage

(landlord-

procured

consumption)

% 98.44% 98.44% 0% 98.44% 98.44% 0% 98.44% 98.44% 0%

Generated

off-siteand

purchasedby

landlord

kWh 4,774,451 4,492,858 -6% 4,774,451 4,492,858 -6% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 78.52% 77.49% -1.30% 97.67% 98.14% 0.48% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

27.10 25.84 -5% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Office:

Corporate:

Low-Rise

Office

Landlord-Actual kWh 559,474 689,193 23% 316,582 381,780 21% 242,893 307,413 27%

Landlord-

Estimated

kWh 673 2,374 253% 263 2,374 802% 409 - -100%

Landlord-Total kWh 560,147 691,567 23% 316,845 384,154 21% 243,302 307,413 26%

Landlord-Total

Estimated

% 0.12% 0.34% 185.89% 0.08% 0.62% 644.18% 0.17% 0.00% -100.00%

Coverage

(landlord-

procured

consumption)

% 78.76% 78.76% 0% 78.76% 78.76% 0% 78.76% 78.76% 0%

Generated

off-siteand

purchasedby

landlord

kWh 310,653 326,100 5% 310,653 326,100 5% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 55.46% 47.15% -14.98% 98.05% 84.89% -13.42% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

19.09 20.04 5% - - - - - -

106 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

L4L-Energy L4L-Electricity L4L-Fuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Retail:High

Street

Landlord-Actual kWh 12,441 11,367 -9% 12,441 11,367 -9% - - -

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 12,441 11,367 -9% 12,441 11,367 -9% - - -

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% - - -

Generated

off-siteand

purchasedby

landlord

kWh 12,441 11,367 -9% 12,441 11,367 -9% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

64.01 58.49 -9% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Industrial:

Refrigerated

Warehouse

Landlord-Actual kWh 1,691 7,607 350% 1,691 7,607 350% - - -

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 1,691 7,607 350% 1,691 7,607 350% - - -

Landlord-Total

Estimated

% 0.00% 0.00% 0.00% 0.00% - - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% 18,392 18,392 0%

Generated

off-siteand

purchasedby

landlord

kWh 1,687 6,416 280% 1,687 6,416 280% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - 0.00% 0.00% 0.00%

Generated

off-siteand

purchasedby

landlord

% 99.76% 84.35% -15.44% 99.76% 84.35% -15.44% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

0.09 0.35 280% - - - - - -

107 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

L4L-Energy L4L-Electricity L4L-Fuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Mixeduse:

Other

Landlord-Actual kWh 1,943,287 1,770,655 -9% 1,943,287 1,770,655 -9% - - -

Landlord-

Estimated

kWh 83 77 -6% 83 77 -6% - - -

Landlord-Total kWh 1,943,370 1,770,733 -9% 1,943,370 1,770,733 -9% - - -

Landlord-Total

Estimated

% 0.00% 0.00% 2.87% 0.00% 0.00% 2.87% - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% - - -

Generated

off-siteand

purchasedby

landlord

kWh 1,943,114 1,770,512 -9% 1,943,114 1,770,512 -9% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 99.99% 99.99% 0.00% 99.99% 99.99% 0.00% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

96.65 88.06 -9% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Industrial:

Manufacturing

Landlord-Actual kWh 1,442,378 1,466,040 2% 1,006,809 1,052,187 5% 435,570 413,853 -5%

Landlord-

Estimated

kWh - - - - - - - -

Landlord-Total kWh 1,442,378 1,466,040 2% 1,006,809 1,052,187 5% 435,570 413,853 -5%

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0%

Generated

off-siteand

purchasedby

landlord

kWh 1,006,809 1,052,187 5% 1,006,809 1,052,187 5% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 69.80% 71.77% 2.82% 100.00% 100.00% 0.00% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

26.04 27.22 5% - - - - - -

108 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

L4L-Energy L4L-Electricity L4L-Fuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Lodging,

Leisure&

Recreation:

Other

Landlord-Actual kWh 208,528 233,649 12% 208,528 233,649 12% - - -

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 208,528 233,649 12% 208,528 233,649 12% - - -

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% - - -

Generated

off-siteand

purchasedby

landlord

kWh 208,528 233,649 12% 208,528 233,649 12% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

60.23 67.49 12% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Office:

Corporate:

Mid-Rise

Office

Landlord-Actual kWh 678,958 640,232 -6% 281,994 259,791 -8% 396,963 380,442 -4%

Landlord-

Estimated

kWh 151 - -100% 151 - -100% - - -

Landlord-Total kWh 679,109 640,232 -6% 282,145 259,791 -8% 396,963 380,442 -4%

Landlord-Total

Estimated

% 0.02% 0.00% -100.00% 0.05% 0.00% -100.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0%

Generated

off-siteand

purchasedby

landlord

kWh 277,276 259,791 -6% 277,276 259,791 -6% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 40.83% 40.58% -0.62% 98.27% 100.00% 1.76% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

52.30 49.01 -6% - - - - - -

109 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

L4L-Energy L4L-Electricity L4L-Fuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Industrial:

Non-

refrigerated

Warehouse

Landlord-Actual kWh 617,722 466,322 -25% 613,449 466,252 -24% 4,273 70 -98%

Landlord-

Estimated

kWh - -2,063 - - -2,063 - - - -

Landlord-Total kWh 617,722 464,259 -25% 613,449 464,189 -24% 4,273 70 -98%

Landlord-Total

Estimated

% 0.00% -0.44% - 0.00% -0.44% - 0.00% 0.00% -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0%

Generated

off-siteand

purchasedby

landlord

kWh 512,732 438,443 -14% 512,732 438,443 -14% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 83.00% 94.44% 13.78% 83.58% 94.45% 13.01% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

5.02 4.29 -14% - - - - - -

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Mixeduse:

Office/Retail

Landlord-Actual kWh 592,043 496,376 -16% 479,615 378,478 -21% 112,428 117,898 5%

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 592,043 496,376 -16% 479,615 378,478 -21% 112,428 117,898 5%

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0%

Generated

off-siteand

purchasedby

landlord

kWh 479,615 378,478 -21% 479,615 378,478 -21% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 81.01% 76.25% -5.88% 100.00% 100.00% 0.00% 0.00% 0.00% -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

57.20 45.13 -21% - - - - - -

110 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels

L4L-Energy L4L-Electricity L4L-Fuel

EPRACode Sector EPRACategory

Unitsof

Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change

Energy-Abs,

Electricity-Abs,

Fuels-Abs,

DistrictHeating

&Cooling-Abs

Retail:Retail

Centers:

Warehouse

Landlord-Actual kWh 23,492 15,915 -32% 23,492 15,915 -32% - - -

Landlord-

Estimated

kWh - - - - - - - - -

Landlord-Total kWh 23,492 15,915 -32% 23,492 15,915 -32% - - -

Landlord-Total

Estimated

% 0.00% 0.00% - 0.00% 0.00% - - - -

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 0% 100.00% 100.00% 0% - - -

Generated

off-siteand

purchasedby

landlord

kWh 21,596 15,915 -26% 21,596 15,915 -26% - - -

Generated

on-siteand

purchasedby

landlord

kWh - - - - - - - - -

Generated

off-siteand

purchasedby

landlord

% 91.93% 100.00% 8.78% 91.93% 100.00% 8.78% - - -

Generated

on-siteand

purchasedby

landlord

% 0.00% 0.00% - 0.00% 0.00% - - - -

Energy-Int

Landlord-

Intensity

kWh/m2

/year

1.88 1.39 -26% - - - - - -

111 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

— Like-for-likeexcludesassetsthatwerepurchased,sold,

undermajorrefurbishmentorsubjecttoasignificant

changeinthescopeofreporteddataduringthetwo

yearsreported.

— Consumptiondatarelatestothemanagedportfolioonly

for:

– Industrial:RefrigeratedWarehouse,Industrial:

Manufacturing,Retail:RetailCenters:Warehouse,

MixedUse:Other,Retail:HighStreet,MixedUse:

Other,Lodging,Leisure&Recreation;wholebuilding,

whereprocuredbythelandlord.

– Office:Corporate:Low-RiseOffice,Office:Corporate:

Mid-RiseOffice,Industrial:Non-refrigerated

Warehouse,MixedUse:Office/Retail;wholebuilding,

commonparts&tenantspaces,whereprocuredby

thelandlord.

– Energyprocureddirectlybytenantsisnotreported.

— Percentageofdataestimatedpro-rataacross2023and

2024:0.01%and0.01%respectively.

— Renewableelectricity(%)iscalculatedaccordingtothe

attributesofenergysupplycontractsasat31December

2024andonlyreflectsrenewableelectricityprocured

undera100%‘greentariff‘(i.e.wheregenerationisfrom

a100%renewablesource).Therenewablespercentage

ofstandard(non-‘greentariff’)energysuppliesarenot

currentlyknownandthereforehasnotbeenincluded

withinthisnumber.

– Lodging,LeisureandRecreation:Other,Retail:High

Street&MixedUse:Other–Commonareasenergy

consumption(kWh)dividedbycommonpartsarea

(CPAm2)

– Allothersectors–Commonareasandsharedservice

orwholebuildingenergyconsumption(kWh)divided

bygrossinternalarea(GIAm2)

— Allenergywasprocuredfromathird-partysupplier.No

‘self-generated’renewableenergywasconsumedduring

thereportingperiodandthereforeisnotpresentedhere.

— Coverage(landlord-procuredconsumption)relatestothe

proportionofassetsforwhichlandlordobtaineddatahas

beenreported.

– Anassetinthe‘Office:Corporate:Low-RiseOffice’

sectorhasbeenremovedduetodataqualityissues

whichareunderinvestigationwiththesupplier.

— Whereappropriate(forrelevantassets),consumption

dataandassetNLA/GIAhasbeenadjustedtoreflectthe

Company’sshareofownership.

— VarianceCommentary:

– The350%increaseinlike-for-likeenergyconsumption

fortheIndustrial:RefrigeratedWarehousesector

isinfluencedbyanincreaseinvoidunitsin2024

wherebythelandlordtakesbackresponsibilityfor

utilities.

– The25%reductioninlike-for-likeenergyconsumption

fortheIndustrial:Non-refrigeratedWarehousesector

isinfluencedbyoccupancychangesacrossStanley

GreenTradingEstate.

– The32%reductioninlike-for-likeenergyconsumption

fortheRetail:RetailCenters:Warehousesectoris

influencedbycarparklightingupgradesatStJohn’s

RetailPark.

112 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Greenhouse gas emissions (GHG-Dir-Abs; GHG-Indir-Abs; GHG-Int)

ThetablebelowsetsouttheCompany’smanagedportfoliogreenhousegasemissionsbysector.

GHG

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

GHG-Dir-Abs,

GHG-Dir-L4L

TotalPortfolio Scope1-Actual tCO2e 266.1 236.9 218.1 223.1 2%

Scope1-Estimated tCO2e 0.1 - 0.1 - -100%

Scope2-Actual tCO2e 1062.8 975.5 1012.2 947.8 -6%

Scope2-Estimated tCO2e 0.1 1.0 0.1 0.1 -22%

Scope1&2-Total tCO2e 1329.0 1213.5 1230.4 1171.0 -5%

Scope1&2-Estimated % 0.01% 0.09% 0.01% 0.01% -0.01%

Coverage(landlord-procured

consumption) % 98.47% 98.47% 98.44% 98.44% -%

GHG-Int

Scope1&2-Intensity kgCO2e/m2

/year 5.8 5.3 5.5 5.2 -5%

GHG-Dir-Abs,

GHG-Dir-L4L

Office:

Corporate:Low-

RiseOffice

Scope1-Actual tCO2e 92.5 70.0 44.4 56.2 27%

Scope1-Estimated tCO2e 0.1 - 0.1 - -100%

Scope2-Actual tCO2e 116.2 106.8 65.6 79.0 21%

Scope2-Estimated tCO2e 0.1 1.4 0.1 0.5 802%

Scope1&2-Total tCO2e 208.8 178.2 110.1 135.8 23%

Scope1&2-Estimated % 0.06% 0.81% 0.12% 0.36% 0.24%

Coverage(landlord-procured

consumption) % 83.27% 83.27% 78.76% 78.76% 0%

GHG-Int

Scope1&2-Intensity kgCO2e/m2

/year 9.8 8.3 6.8 8.3 23%

GHG-Dir-Abs,

GHG-Dir-L4L

Retail:High

Street

Scope1-Actual tCO2e - - - - -

Scope1-Estimated tCO2e - - - - -

Scope2-Actual tCO2e 2.6 2.4 2.6 2.4 -9%

Scope2-Estimated tCO2e - - - - -

Scope1&2-Total tCO2e 2.6 2.4 2.6 2.4 -9%

Scope1&2-Estimated % -% -% -% -% -%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% -%

GHG-Int

Scope1&2-Intensity kgCO2e/m2

/year 13.3 12.1 13.3 12.1 -9%

GHG-Dir-Abs,

GHG-Dir-L4L

Industrial:

Refrigerated

Warehouse

Scope1-Actual tCO2e 0.0 0.0 0.0 0.0 -

Scope1-Estimated tCO2e 0.0 0.0 0.0 0.0 -

Scope2-Actual tCO2e 0.4 1.6 0.4 1.6 350%

Scope2-Estimated tCO2e 0.0 0.0 0.0 0.0 -

Scope1&2-Total tCO2e 0.4 1.6 0.4 1.6 350%

Scope1&2-Estimated % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% -%

GHG-Int

Scope1&2-Intensity kgCO2e/m2

/year - 0.1 - 0.1 350%

GHG-Dir-Abs,

GHG-Dir-L4L

Mixeduse:

Other

Scope1-Actual tCO2e - - - - -

Scope1-Estimated tCO2e - - - - -

Scope2-Actual tCO2e 402.4 366.6 402.4 366.6 -9%

Scope2-Estimated tCO2e - - - - -6%

Scope1&2-Total tCO2e 402.4 366.6 402.4 366.6 -9%

Scope1&2-Estimated % -% -% -% -% -%

Coverage(landlord-procured

consumption) % 1000% 100.00% 100.00% 100.00% -%

113 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

GHG

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

GHG-Int Scope1&2-Intensity kgCO2e/m2

/year 20.0 18.2 20.0 18.2 -9%

GHG-Dir-Abs,

GHG-Dir-L4L

Industrial:

Manufacturing

Scope1-Actual tCO2e 79.7 75.7 79.7 75.7 -5%

Scope1-Estimated tCO2e - - - - -

Scope2-Actual tCO2e 208.5 217.9 208.5 217.9 4%

Scope2-Estimated tCO2e - - - - -

Scope1&2-Total tCO2e 288.2 293.5 288.2 293.5 2%

Scope1&2-Estimated % -% -% -% -% -%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0%

GHG-Int

Scope1&2-Intensity kgCO2e/m2

/year 7.5 7.6 7.5 7.6 2%

GHG-Dir-Abs,

GHG-Dir-L4L

Lodging,Leisure

&Recreation:

Other

Scope1-Actual tCO2e - - - - -

Scope1-Estimated tCO2e - - - - -

Scope2-Actual tCO2e 43.2 48.4 43.2 48.4 12%

Scope2-Estimated tCO2e - - - - -

Scope1&2-Total tCO2e 43.2 48.4 43.2 48.4 12%

Scope1&2-Estimated % -% -% -% -% 0.00%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0%

GHG-Int

Scope1&2-Intensity kgCO2e/m2

/year 12.5 14.0 12.5 14.0 12%

GHG-Dir-Abs,

GHG-Dir-L4L

Office:

Corporate:Mid-

RiseOffice

Scope1-Actual tCO2e 72.6 69.6 72.6 69.6 -4%

Scope1-Estimated tCO2e - - - - -

Scope2-Actual tCO2e 58.4 53.8 58.4 53.8 -8%

Scope2-Estimated tCO2e - - - - -100%

Scope1&2-Total tCO2e 131.0 123.4 131.0 123.4 -6%

Scope1&2-Estimated % 0.02% -% 0.02% -% -0.02%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0%

GHG-Int

Scope1&2-Intensity kgCO2e/m2

/year 24.7 23.3 24.7 23.3 -6%

GHG-Dir-Abs,

GHG-Dir-L4L

Industrial:

Non-refrigerated

Warehouse

Scope1-Actual tCO2e 0.8 - 0.8 - -98%

Scope1-Estimated tCO2e - - - - -

Scope2-Actual tCO2e 127.0 96.5 127.0 96.5 -24%

Scope2-Estimated tCO2e - -0.4 - -0.4 -

Scope1&2-Total tCO2e 127.8 96.1 127.8 96.1 -25%

Scope1&2-Estimated % 0.00% -0.44% -% -0.44% -0.44%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% -%

114 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

GHG

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

GHG-Int

Scope1&2-Intensity

kgCO2e/m2

/year 1.3 0.9 1.3 0.9 -25%

GHG-Dir-Abs,

GHG-Dir-L4L

Mixeduse:

Office/Retail

Scope1-Actual tCO2e 20.6 21.6 20.6 21.6 5%

Scope1-Estimated tCO2e - - - - -

Scope2-Actual tCO2e 99.3 78.4 99.3 78.4 -21%

Scope2-Estimated tCO2e - - - - -

Scope1&2-Total tCO2e 119.9 99.9 119.9 99.9 -17%

Scope1&2-Estimated % -% -% -% -% -%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% -%

GHG-Int

Scope1&2-Intensity

kgCO2e/m2

/year 14.3 11.9 14.3 11.9 -17%

GHG-Dir-Abs,

GHG-Dir-L4L

Retail:Retail

Centers:

Warehouse

Scope1-Actual tCO2e - - - - -

Scope1-Estimated tCO2e - - - - -

Scope2-Actual tCO2e 4.9 3.3 4.9 3.3 -32%

Scope2-Estimated tCO2e - - - - -

Scope1&2-Total tCO2e 4.9 3.3 4.9 3.3 -32%

Scope1&2-Estimated % -% -% -% -% -%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% -%

GHG-Int

Scope1&2-Intensity

kgCO2e/m2

/year 0.4 0.3 0.4 0.3 -32%

115 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

— Like-for-likeexcludesassetsthatwerepurchased,sold,

undermajorrefurbishmentorsubjecttoasignificant

changeinthescopeofreporteddataduringthetwo

yearsreported.

— TheCompany’sgreenhousegas(GHG)inventoryhasbeen

developedasfollows:

– Scope1GHGemissionsrelatetotheuseofonsite

naturalgas;and

– Scope2GHGemissionsrelatetotheuseofelectricity.

— UKGovernmentconversionfactorsforgreenhousegas

(GHG)reportingadoptedasfollows:

– NaturalGas(fuels)(Scope1):2023=0.182900kWh/

kgCO2e;2024=0.182900kWh/kgCO2e

– Gridsuppliedelectricity(Scope2):2023=0.207074

kWh/kgCO2e;2024=0.207050kWh/kgCO2e

— GHGemissionsfromelectricity(Scope2)arereported

accordingtothe‘location-based’approach.

— GHGemissionsarepresentedastonnesofcarbondioxide

equivalent(tCO2e)andGHGintensityispresentedas

kilogramsofcarbondioxideequivalent(kgCO2e),where

availablegreenhousegasemissionsconversionfactors

allow.

— Fuels/electricityGHGemissionsfactorshavebeentaken

fromtheUKgovernment’sGreenhouseGasReporting

FactorsforCompanyReporting(2023and2024).

— Emissiondatarelatestothemanagedportfolioonlyfor:

— Industrial:RefrigeratedWarehouse,Industrial:

Manufacturing,Retail:RetailCenters:Warehouse,Mixed

Use:Other,Retail:HighStreet,MixedUse:Other,Lodging,

Leisure&Recreation;wholebuilding,whereprocuredby

thelandlord.

— Office:Corporate:Low-RiseOffice,Office:Corporate:Mid-

RiseOffice,Industrial:Non-refrigeratedWarehouse,Mixed

Use:Office/Retail;wholebuilding,commonparts&tenant

spaces,whereprocuredbythelandlord.

— Emissionsassociatedwithenergyprocureddirectlyby

tenantsisnotreported.

— Percentageofdataestimatedpro-rataacross2023and

2024:0.01%and0.09%forelectricityandgas,respectively.

— Intensity:Numerators/denominatorsarealignedatthe

sectorlevelasfollows:

— Lodging,Leisure,&Recreation:Other,Retail:HighStreet

&Retail:MIxedUse:Other–Commonareasenergy

consumption(kWh)dividedbycommonpartsarea(CPA

m2);

— Allothersectors–Commonareasandsharedserviceor

wholebuildingenergyconsumption(kWh)dividedbygross

internalarea(GIAm2)

— Coverage(landlord-procuredconsumption)relatestothe

proportionofassetsforwhichlandlord-obtaineddatahas

beenreported.

— Anassetinthe‘Office:Corporate:Low-RiseOffice’sector

hasbeenremovedduetodataqualityissueswhichare

underinvestigationwiththesupplier.

— Whereappropriate(forrelevantassets),consumption

dataandassetNLA/GIAhasbeenadjustedtoreflectthe

Company’sshareofownership.

— VarianceCommentary:

– GiventheinsignificantdifferencesinUKGreenhouse

Gas(GHG)emissionsfactorsforbothelectricityand

naturalgasbetween2023and2024,GHGemissions

presentedinthisreportcanbereadinconjunction

withthelike-for-likeenergyconsumptionvariance

commentarypresentedabove.

116 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Water (Water-Abs; Water-LfL; Water-Int)

ThetablebelowsetsoutwaterconsumptionfromtheCompany’smanagedportfoliobysector.

Water

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

Water-Abs,Water-

L4L

Totallandlord-obtainedwater-

Actual m3 18,563 17,472 17,671 17,076 -3%

Totallandlord-obtainedwater-

Estimated m3 7 211 7 200 2908%

Totallandlord-obtainedwater

-Total m3 18,570 17,683 17,677 17,276 -2%

Totallandlord-obtainedwater-

Estimated % 0.04% 1.19% 0.04% 1.16% 1.12%

Coverage(landlord-procured

consumption) % 84.15% 84.15% 83.65% 83.65% 0%

Water-Int

TotalPortfolio TotalWaterIntensity(Landlord) m3/m2/year 0.08 0.08 0.08 0.08 -2%

Water-Abs,Water-

L4L

Office:Corporate:

Low-RiseOffice

Totallandlord-obtainedwater-

Actual m3 5,881 5,512 4,988 5,116 3%

Totallandlord-obtainedwater-

Estimated m3 2 25 2 14 764%

Totallandlord-obtainedwater

-Total m3 5,882 5,537 4,990 5,130 3%

Totallandlord-obtainedwater-

Estimated % 0.03% 0.46% 0.03% 0.28% 0.25%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0%

Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.27 0.26 0.31 0.32 3%

Water-Abs,Water-

L4L

Retail:HighStreet Totallandlord-obtainedwater-

Actual m3 2,960 3,142 2,960 3,142 6%

Totallandlord-obtainedwater-

Estimated m3 - 24 - 24 -

Totallandlord-obtainedwater

-Total m3 2,960 3,166 2,960 3,166 7%

Totallandlord-obtainedwater-

Estimated % 0.00% 0.75% 0.00% 0.75% 0.75%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0.00%

Water-Int TotalWaterIntensity(Landlord) m3/m2/year 15.23 16.29 15.23 16.29 7%

Water-Abs,Water-

L4L

Industrial:

Refrigerated

Warehouse

Totallandlord-obtainedwater-

Actual m3 - - - - -

Totallandlord-obtainedwater-

Estimated m3 - - - - -

Totallandlord-obtainedwater

-Total m3 - - - - -

Totallandlord-obtainedwater-

Estimated % - - - - -

Coverage(landlord-procured

consumption) % - - - - -

Water-Int TotalWaterIntensity(Landlord) m3/m2/year - - - - -

117 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Water

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

Water-Abs,Water-

L4L

Mixeduse:Other

Totallandlord-obtainedwater-

Actual m3 3,029 3,629 3,029 3,629 20%

Totallandlord-obtainedwater-

Estimated m3 5 3 5 3 -50%

Totallandlord-obtainedwater

-Total m3 3,034 3,632 3,034 3,632 20%

Totallandlord-obtainedwater-

Estimated % 0.16% 0.07% 0.16% 0.07% -0.10%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0.00%

Water-Int

TotalWaterIntensity(Landlord) m3/m2/year 0.15 0.18 0.15 0.18 20%

Water-Abs,Water-

L4L

Industrial:

Manufacturing

Totallandlord-obtainedwater-

Actual m3 - - - - -

Totallandlord-obtainedwater-

Estimated m3 - - - - -

Totallandlord-obtainedwater

-Total m3 - - - - -

Totallandlord-obtainedwater-

Estimated % - - - - -

Coverage(landlord-procured

consumption) % 0.00% 0.00% 0.00% 0.00% 0.00%

Water-Int

TotalWaterIntensity(Landlord) m3/m2/year - - - - -

Water-Abs,Water-

L4L

Lodging,Leisure

&Recreation:

Other

Totallandlord-obtainedwater-

Actual m3 143 80 143 80 -44%

Totallandlord-obtainedwater-

Estimated m3 - - - - -

Totallandlord-obtainedwater

-Total m3 143 80 143 80 -44%

Totallandlord-obtainedwater-

Estimated % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0%

Water-Int

TotalWaterIntensity(Landlord) m3/m2/year 0.04 0.02 0.04 0.02 -44%

Water-Abs,Water-

L4L

Office:Corporate:

Mid-RiseOffice

Totallandlord-obtainedwater-

Actual m3/m2/year - - - - -

Totallandlord-obtainedwater-

Estimated m3 - - - - -

Totallandlord-obtainedwater

-Total m3 - - - - -

Totallandlord-obtainedwater-

Estimated m3 - - - - -

Coverage(landlord-procured

consumption) % 0.00% 0.00% 0.00% 0.00% 0%

Water-Int

TotalWaterIntensity(Landlord) m3/m2/year - - - - -

Water-Abs,Water-

L4L

Industrial:

Non-refrigerated

Warehouse

Totallandlord-obtainedwater-

Actual m3 452 152 452 152 -66%

Totallandlord-obtainedwater-

Estimated m3 - 159 - 159

Totallandlord-obtainedwater

-Total m3 452 311 452 311 -31%

Totallandlord-obtainedwater-

Estimated % 0.00% 51.24% 0.00% 51.24% 51.24%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0%

Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.00 0.00 0.00 0.00 -31%

118 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Water

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

Water-Abs,Water-

L4L

Mixeduse:Office/

Retail

Totallandlord-obtainedwater-

Actual m3 5,797 4,629 5,797 4,629 -20%

Totallandlord-obtainedwater-

Estimated m3 - - - -

Totallandlord-obtainedwater

-Total m3 5,797 4,629 5,797 4,629 -20%

Totallandlord-obtainedwater-

Estimated % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0.00%

Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.69 0.55 0.69 0.55 -20%

Water-Abs,Water-

L4L

Retail:Retail

Centers:

Warehouse

Totallandlord-obtainedwater-

Actual m3 301 328 301 328 9%

Totallandlord-obtainedwater-

Estimated m3 - - - -

Totallandlord-obtainedwater

-Total m3 301 328 301 328 9%

Totallandlord-obtainedwater-

Estimated % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage(landlord-procured

consumption) % 100.00% 100.00% 100.00% 100.00% 0.00%

Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.03 0.03 0.03 0.03 9%

119 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

— Like-for-likeexcludesassetsthatwerepurchased,sold,

undermajorrefurbishmentorsubjecttoasignificant

changeinthescopeofreporteddataduringthetwo

yearsreported.

— Like-for-likeexcludesassetsthatwerepurchased,sold,

undermajorrefurbishmentorsubjecttoasignificant

changeinthescopeofreporteddataduringthetwoyears

reported.

— Consumptiondatarelatestothemanagedportfolio

onlyfor:

– Industrial:RefrigeratedWarehouse,Industrial:

Manufacturing,Retail:RetailCenters:Warehouse,

MixedUse:Other,Retail:HighStreet,MixedUse:

Other,Lodging,Leisure&Recreation;wholebuilding,

whereprocuredbythelandlord.

– Office:Corporate:Low-RiseOffice,Office:Corporate:

Mid-RiseOffice,Industrial:Non-refrigerated

Warehouse,MixedUse:Office/Retail;wholebuilding,

commonparts&tenantspaces,whereprocuredby

thelandlord.

– Waterprocureddirectlybytenantsisnotreported.

— Allwaterwasprocuredfromamunicipalsupply.Asfaras

weareaware,nosurface,ground,rainwaterorwastewater

fromanotherorganisationwasconsumedduringthe

reportingperiodandthereforeisnotpresentedhere.

— Percentageofdataabsoluteestimatedpro-rataacross

both2023and2024:0.4%and1.18%.

— Intensity:Numerators/denominatorsarealignedas

follows:

– Lodging,LeisureandRecreation:Other,Retail:High

Street&MixedUse:Other–Commonareasenergy

consumption(kWh)dividedbycommonpartsarea

(CPAm2);

– Allothersectors–Commonareasandsharedservice

orwholebuildingenergyconsumption(kWh)divided

bygrossinternalarea(GIAm2).

— Coverage(landlord-procuredconsumption)relatestothe

proportionofassetsforwhichlandlord-obtaineddatahas

beenreported.

– Anassetinthe‘Office:Corporate:Mid-RiseOffice’

sectorhasbeenremovedduetodataqualityissues

whichareunderinvestigationwiththesupplierand

propertymanager.

— Whereappropriate(forrelevantassets),consumption

dataandassetNLA/GIAhasbeenadjustedtoreflectthe

Company’sshareofownership.

— Variancecommentary:

– The20%increaseinlike-for-likewaterconsumption

fortheMixedUse:Othersectorisinfluencedby

fit-outactivityandincreasedstudentoccupancyon

educationalfloors.

– The20%reductioninlike-for-likewaterconsumption

fortheMixedUse:Office/Retailsectorisinfluenced

byoccupancychangesaswellastheresolutionofa

waterleak.

– The31%reductioninlike-for-likewaterconsumption

fortheIndustrial:Non-refrigeratedWarehousesector

isinfluencedbyoccupancychanges.

– The44%reductioninlike-for-likewaterconsumption

fortheLodging,Leisure&Recreation:Othersector

isinfluencedbythesiteteamhavingreducedjet

washing.

120 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Waste (Waste-Abs; Waste-LfL)

ThetablebelowsetsoutwastefromtheCompany’smanagedPortfoliobydisposalrouteandsector.

Waste

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

Waste-Abs,

Waste-L4L

TotalPortfolio Landfill Tonnes - - - - -

Incineration Tonnes - - - - -

Recycling Tonnes 552 427 544 424 -22%

Reuse Tonnes

- - - - -

EnergyRecovery Tonnes 142 350 126 347 175%

Other Tonnes

- - - - -

Total Tonnes 694 777 670 771 15%

Landfill % 0.00% 0.00% 0.00% 0.00% 0.00%

Incineration % 0.00% 0.00% 0.00% 0.00% 0.00%

Recycling % 79.58% 54.98% 81.20% 55.02% -26.17%

Reuse % 0.00% 0.00% 0.00% 0.00% 0.00%

EnergyRecovery % 20.42% 45.02% 18.80% 44.98% 26.17%

Other % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

-% 100.00% 100.00% 100.00% 100.00% -%

Waste-Abs,

Waste-L4L

Office:Corporate:

Low-RiseOffice

Landfill Tonnes - - - - -

Incineration Tonnes - - - - -

Recycling Tonnes 29 24 20 21 7%

Reuse Tonnes

- - - - -

EnergyRecovery Tonnes 43 31 28 28 -%

Other Tonnes

- - - - -

Total Tonnes 72 55 47 49 3%

Landfill % 0.00% 0.00% 0.00% 0.00% 0.00%

Incineration % 0.00% 0.00% 0.00% 0.00% 0.00%

Recycling % 39.64% 44.08% 41.62% 43.26% 1.63%

Reuse % 0.00% 0.00% 0.00% 0.00% 0.00%

EnergyRecovery % 60.36% 55.92% 58.38% 56.74% -1.63%

Other % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 100.00% 100.00% -%

121 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Waste

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

Waste-Abs,

Waste-L4L

Retail:HighStreet Landfill Tonnes - - - - -

Incineration Tonnes - - - - -

Recycling Tonnes 25 45 25 45 83%

Reuse Tonnes

- - - - -

EnergyRecovery Tonnes 20 20 20 20 1%

Other Tonnes

- - - - -

Total Tonnes 45 66 45 66 46%

Landfill % 0.00% 0.00% 0.00% 0.00% 0.00%

Incineration % 0.00% 0.00% 0.00% 0.00% 0.00%

Recycling % 54.99% 68.91% 54.99% 68.91% 13.92%

Reuse % 0.00% 0.00% 0.00% 0.00% 0.00%

EnergyRecovery % 45.01% 31.09% 45.01% 31.09% -13.92%

Other % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 100.00% 100.00% -%

Waste-Abs,

Waste-L4L

Industrial:

Refrigerated

Warehouse

Landfill Tonnes - - - - -

Incineration Tonnes - - - - -

Recycling Tonnes - - - - -

Reuse Tonnes - - - - -

EnergyRecovery Tonnes - - - - -

Other Tonnes - - - - -

Total Tonnes - - - - -

Landfill % - - - - -

Incineration % - - - - -

Recycling % - - - - -

Reuse % - - - - -

EnergyRecovery % - - - - -

Other % - - - - -

Coverage

(landlord-

procured

consumption)

% - - - - -

122 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Waste

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

Waste-Abs,

Waste-L4L

Mixeduse:Other Landfill Tonnes - - - - -

Incineration Tonnes - - - - -

Recycling Tonnes 46 46 46 46 1%

Reuse Tonnes

- - - - -

EnergyRecovery Tonnes 48 38 48 38 -22%

Other Tonnes

- - - - -

Total Tonnes 94 84 94 84 -11%

Landfill % 0.00% 0.00% 0.00% 0.00% 0.00%

Incineration % 0.00% 0.00% 0.00% 0.00% 0.00%

Recycling % 48.81% 55.14% 48.81% 55.14% 6.33%

Reuse % 0.00% 0.00% 0.00% 0.00% 0.00%

EnergyRecovery % 51.19% 44.86% 51.19% 44.86% -6.33%

Other % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 100.00% 100.00% 0%

Waste-Abs,

Waste-L4L

Industrial:

Manufacturing

Landfill Tonnes - - - - -

Incineration Tonnes - - - - -

Recycling Tonnes - - - - -

Reuse Tonnes - - - - -

EnergyRecovery Tonnes - - - - -

Other Tonnes - - - - -

Total Tonnes - - - - -

Landfill % - - - - -

Incineration % - - - - -

Recycling % - - - - -

Reuse % - - - - -

EnergyRecovery % - - - - -

Other % - - - - -

Coverage

(landlord-

procured

consumption)

% - - - - -

123 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Waste

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

Waste-Abs,

Waste-L4L

Lodging,Leisure

&Recreation:

Other

Landfill Tonnes

- - - - -

Incineration Tonnes - - - - -

Recycling Tonnes 425 277 425 277 -35%

Reuse Tonnes

- - - - -

EnergyRecovery Tonnes 1 220 1 220 19056%

Other Tonnes

- - - - -

Total Tonnes 426 498 426 498 17%

Landfill % 0.00% 0.00% 0.00% 0.00% 0.00%

Incineration % 0.00% 0.00% 0.00% 0.00% 0.00%

Recycling % 99.73% 55.74% 99.73% 55.74% -43.99%

Reuse % 0.00% 0.00% 0.00% 0.00% 0.00%

EnergyRecovery % 0.27% 44.26% 0.27% 44.26% 43.99%

Other % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 100.00% 100.00% -%

Waste-Abs,

Waste-L4L

Office:Corporate:

Mid-RiseOffice

Landfill Tonnes - - - - -

Incineration Tonnes - - - - -

Recycling Tonnes 14 15 14 15 5%

Reuse Tonnes

- - - - -

EnergyRecovery Tonnes 4 4 4 4 -5%

Other Tonnes

- - - - -

Total Tonnes 18 19 18 19 3%

Landfill % 0.00% 0.00% 0.00% 0.00% 0.00%

Incineration % 0.00% 0.00% 0.00% 0.00% 0.00%

Recycling % 76.32% 78.21% 76.32% 78.21% 1.88%

Reuse % 0.00% 0.00% 0.00% 0.00% 0.00%

EnergyRecovery % 23.68% 21.79% 23.68% 21.79% -1.88%

Other % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 100.00% 100.00% -%

124 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Waste

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

Waste-Abs,

Waste-L4L

Industrial:

Non-refrigerated

Warehouse

Landfill Tonnes - - - - -

Incineration Tonnes - - - - -

Recycling Tonnes - - - - -

Reuse Tonnes - - - - -

EnergyRecovery Tonnes - - - - -

Other Tonnes - - - - -

Total Tonnes - - - - -

Landfill % - - - - -

Incineration % - - - - -

Recycling % - - - - -

Reuse % - - - - -

EnergyRecovery % - - - - -

Other % - - - - -

Coverage

(landlord-

procured

consumption)

% - - - - -

Waste-Abs,

Waste-L4L

Mixeduse:Office/

Retail

Landfill Tonnes

- - - - -

Incineration Tonnes - - - - -

Recycling Tonnes 15 19 15 19 29%

Reuse Tonnes

- - - - -

EnergyRecovery Tonnes 22 32 22 32 45%

Other Tonnes

- - - - -

Total Tonnes 37 51 37 51 39%

Landfill % 0.00% 0.00% 0.00% 0.00% 0.00%

Incineration % 0.00% 0.00% 0.00% 0.00% 0.00%

Recycling % 40.82% 38.11% 40.82% 38.11% -2.70%

Reuse % 0.00% 0.00% 0.00% 0.00% 0.00%

EnergyRecovery % 59.18% 61.89% 59.18% 61.89% 2.70%

Other %

0.00% 0.00% 0.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 100.00% 100.00% -%

125 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Waste

EPRACode Sector EPRACategory UnitsofMeasure

Absolute L4L

2023 2024 2023 2024 %Change

Waste-Abs,

Waste-L4L

Retail:Retail

Centers:

Warehouse

Landfill Tonnes

- - - - -

Incineration Tonnes - - - - -

Recycling Tonnes - - - - -

Reuse Tonnes - - - - -

EnergyRecovery Tonnes 3 5 3 5 79%

Other Tonnes

- - - - -

Total Tonnes 3 5 3 5 79%

Landfill % 0.00% 0.00% 0.00% 0.00% 0.00%

Incineration % 0.00% 0.00% 0.00% 0.00% 0.00%

Recycling % 0.00% 0.00% 0.00% 0.00% 0.00%

Reuse % 0.00% 0.00% 0.00% 0.00% 0.00%

EnergyRecovery % 100.00% 100.00% 100.00% 100.00% 0.00%

Other % 0.00% 0.00% 0.00% 0.00% 0.00%

Coverage

(landlord-

procured

consumption)

% 100.00% 100.00% 100.00% 100.00% -%

126 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

— Whilstzerowasteissentdirectlytolandfill,aresidual

componentofthe‘recycled’and‘incinerationwithenergy

recovery’wastestreamsmayendupinlandfill;

— Like-for-likeexcludesassetsthatwerepurchased,sold,

undermajorrefurbishmentorsubjecttoasignificant

changeinthescopeofreporteddataduringthetwoyears

reported;

— Wastedatarelatestothemanagedportfolioonly;

— Wastemanagementprocureddirectlybytenantsisnot

reported;

— Reporteddatarelatestonon-hazardouswasteonly,robust

tonnagedataonthesmallquantitiesofhazardouswaste

producedisnotavailable;

— Coverage(landlord-procuredconsumption)relatestothe

proportionofassetsforwhichlandlordobtaineddatahas

beenreported;

— Whereappropriate(forrelevantassets),consumption

dataandassetNLA/GIAhasbeenadjustedtoreflectthe

Company’sshareofownership;and

— VarianceCommentary:

– The46%increaseintotalwastegenerationforthe

Retail:HighStreetsectorisinfluencedbyincreased

cardboardcollectionsonbehalfofoccupiers.

– The39%increaseintotalwastegenerationforthe

MixedUse:Office/Retailsectorisinfluencedbyfit-

outandrefurbishmentactivitiesatStAnn’sHouse,

Manchester.

– The79%increaseintotalwastegenerationforthe

Retail:RetailCenters:Warehouseisinfluencedbythe

developmentofthenewStarbucksunitatStJohn’s

RetailPark.

Sustainability certification:Green building certificates

(Cert-Tot)

ThetablebelowsetsouttheproportionoftheCompany’stotal

portfoliowithaGreenBuildingCertificatebyfloorarea:

Rating

Portfolio by

floor area (%)

BREEAM/NewConstruction|Excellent 2.74%

BREEAM/New Construction Coverage 2.7%

BREEAM/RefurbishmentandFit-out|VeryGood 0.31%

BREEAM/Refurbishment and Fit-out Coverage 0.3%

BREEAMInUse|VeryGood 2.14%

BREEAMInUse|Good 2.57%

BREEAMInUse|Pass 0.15%

BREEAM/In Use Coverage 4.9%

WiredScore|Platinum 2.49%

WiredScore|Certified 0.89%

WiredScore/Coverage 3.4%

Total Portfolio Coverage (excluding duplicates) 8.9%

— GreenbuildingcertificaterecordsfortheCompanyare

providedasat31March2025byportfolionetlettablefloor

area(NLA);

— Dataprovidedincludesmanagedandnon-managed

assets(i.e.thewholeportfolio);

— Whereappropriate(forrelevantassets),assetGIA

hasbeenadjustedtoreflecttheCompany’sshareof

ownership;

— Toavoiddoublecounting,theTotalPortfolioCoverage

excludesthefloorareafortheBREEAM/Refurbishment

andFit-outcertificateandtheBREEAMInUseatCityTower

astheseareasarealreadycoveredbytheWiredScore

certificate;

127 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (environmental) continued

Sustainability certification:Energy Performance

Certificates (Cert-Tot)

ThetablebelowsetsouttheproportionoftheCompany’stotal

portfoliowithanEnergyPerformanceCertificatebyfloorarea.

EPC Rating

% floor area

(ownership

adjusted)

A+ 2.74%

A 3.34%

B 18.38%

C 34.67%

D 26.50%

E 12.81%

F 0.00%

G 0.00%

N/A 0.43%

NoEPC 1.13%

Coverage 100%

— EnergyPerformanceCertificate(EPC)recordsforthe

Companyareprovidedfortheportfolioasat31March

2025byportfolioNetLettableArea(NLA);

— OneEPC,forUnit33MiltonKeynesStaceyBushes,was

receivedafterthe31March2025(25April2025).However,

theassessmentwasundertakenonthe31October2024.

— Dataprovidedincludesthewholeportfolioi.e.managed

andnon-managedassets;

— Whereappropriate(forrelevantassets)assetNLA

hasbeenadjustedtoreflecttheCompany’sshareof

ownership;and

— Whererequired,EPCsareknownfor99%oftheportfolio

byNLA.TheremainingNLAwithoutEPCsrelatestoassets

whereimprovementworkshavebeenscheduledandEPCs

willbeprocuredoncompletionoftheseworks.Please

notethattheCompanyremainscompliantwithMEES

regulations.Ingeneralterms,sincetheintroductionofthe

EPCRegulationsin2008,EPCsarerequiredfortheletting

ofunitsorbuildingsorthesaleofbuildings.Inaddition,

theUKMinimumEnergyEfficiencyStandardsregulations

(‘MEES’)cameintoforceforcommercialbuildingson1

April2018andrequireaminimumEPCratingof‘E’fornew

lettings;therulesapplytoallleasesfrom1April2023.The

EPCsfortheportfolioaremanagedtoensurecompliance

withtheMEESregulations.

128 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Sustainability performance measures (social)

(unaudited)

Other information (unaudited)

TheEPRASustainabilityBestPracticesRecommendations

GuidelinesFourthedition(EPRAGuidelines)includeSocialand

Governancereportingmeasurestobedisclosedfortheentity

i.e.theCompany.TheCompanyisanexternallymanaged

realestateinvestmenttrustandhasnodirectemployees.A

numberoftheseSocialPerformancemeasuresrelatetoentity

employeesandthereforethesemeasuresarenotrelevantfor

reportingattheentitylevel.

TheInvestmentManagertotheCompany,SchroderReal

EstateInvestmentManagementLimited,ispartofSchroders

plcwhichhasresponsibilityfortheemployeesthatsupport

theCompany.TheCompanyaimstocomplywiththeEPRA

GuidelinesandthereforehasincludedSocialandGovernance

PerformanceMeasuredisclosuresinthisreport.However,

thesearepresentedasappropriatefortheactivitiesand

responsibilitiesoftheSchroderRealEstateInvestmentTrust

Limited(the‘Company’),SchrodersplcortheInvestment

Manager,SchroderRealEstateInvestmentManagement

Limited.

Schroders(plc)AnnualReportandAccountsforthe12months

to31December2024supportstheperformancemeasures

inrelationtotheInvestmentManagerassetoutbelow.

Schrodersplc’sprinciplesinrelationtopeopleincluding

diversity,genderpaygap,values,employeesatisfactionsurvey,

wellbeingandretentioncanbefoundat:

• SchrodersAnnualReportandAccounts2024;and

• 2024SchrodersInclusionReport

Employee gender diversity (Diversity-Emp)

Asat31March2025theCompany’sBoardcomprisedfour

members:2(50%)female;2(50%)male.

ForfurtherinformationonSchrodersplc’semployeegender

anddiversity,coveringmoreemployeecategories,pleaserefer

tothe2024SchrodersInclusionReport.

Gender pay ratio (Diversity-Pay)

TheremunerationoftheCompany’sBoardissetoutonpages

59to60ofthisReportandAccountsdocument.

TheSchrodersplcfemalerepresentationandgenderpay

reportcanbefoundinthe2024SchrodersInclusionReport.

FurtherinformationonDiversityandInclusionatSchroderscan

befoundinthe2024SchrodersInclusionReport.

ThefollowingarereportedforSchrodersinrelationtothe

InvestmentManagementoftheCompany:

Training and development (Emp-Training)

Schrodersrequiresemployeestocompletemandatoryinternal

training.Schrodersencouragesallstaffwithprofessional

qualificationstomaintainthetrainingrequirementsoftheir

respectiveprofessionalbody.

129 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Sustainability performance measures (social) continued

Employee performance appraisals (Emp-Dev)

Schrodersperformancemanagementprocessrequiresannual

performanceobjectivesettingandannualperformance

reviewsforallstaff.TheInvestmentManagerconfirms

thatperformanceappraisalswerecompletedfor100%of

investmentstaffrelevanttotheCompanyinthe12monthsto

31March2025.

ThefollowingarereportedforSchrodersplc:

ForcommentaryonSchrodersPLC’sturnoverandretention

ratespleaserefertoSchrodersAnnualReportandAccounts

2024(pages16and17).

Employee health and safety (H&S-Emp)

Schrodersplcdoesnotincludeemployeehealthandsafety

performancemeasuresinitsAnnualReportandAccounts.

Thefollowingarereportedinrelationtotheassetsheldinthe

Company’sportfoliooverthereportingperiodto31March

2025:

Asset health and safety assessments (H&S-Asset)

ThetablebelowsetsouttheproportionoftheCompany’s

portfoliowhereoperationalcontrolisretained,andwhere

healthandsafetyimpactswereassessedorreviewedfor

complianceorimprovement:

Portfolio by floor area (%)

FY24 FY25

All sectors 100% 100%

Asset health and safety compliance (H&S-Comp)

Thetablebelowsetsoutthenumberofincidentsof

non-compliancewithregulations/andorvoluntary

codesidentified:

Number of incidents

FY24 FY25

All sectors 0 0

Community engagement, impact assessments and

development programmes (Comty-Eng)

ThetablebelowsetsouttheproportionoftheCompany’s

totalportfoliowhichcompletedlocalcommunityengagement,

impactassessmentsand/ordevelopmentprograms:

Portfolio by number assets (%)

FY24 FY25

Total 43% 23%

Communityengagementinitiativesarecarriedoutwhere

deemedrelevanttoindividualassets,incollaborationwiththe

relevantsiteteam.

Overthecourseofthereportingyear,theCompanyhas

continueditsengagementeffortswithbothoccupiersand

communities.Receptionspaceacrossseveralofficesin

theportfoliohavebeenusedtosupportcharitycollection

initiativesincludingfoodbankcollections,Christmasgift

collectionsforchildrenfromdeprivedfamilies,andbook

collections.AtCityTower,Manchester,thethird-partyProperty

Manager,supportedbytheInvestmentManager,operatean

extensiveengagementcalendarincludingworkshopswith

thesitebeekeeperwhereoccupierscanmeetthebees,anda

45-minutemindfulnessChineseTeaCeremonythatblendstea

tastingwithmeditation.

130 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited)

Sustainability performance measures (governance)

(unaudited)

Composition of the highest governance body

(Gov-Board)

TheBoardoftheCompanycomprisedfournon-executive

independentDirectors(0executiveboardmembers)asat

31March2025and:

— Theaveragetenureofthefourdirectorsto31March2025

is3yearsand7months;and

— ThenumberofDirectorswithcompetenciesrelatingto

environmentalandsocialtopicsistwo,AlexandraInnes

andPriscillaDavies,andtheirexperiencecanbeseenin

theirbiographies.

Nominating and selecting the highest governance body

(Gov-Select)

TheroleoftheNominationCommitteeistoconsiderand

makerecommendationstotheBoardonitscompositionso

astomaintainanappropriatebalanceofskills,experience

anddiversity,includinggender,andtoensureaprogressive

refreshingoftheBoard.Onindividualappointments,the

NominationCommitteeleadstheprocessandmakes

recommendationstotheBoard.

BeforetheappointmentofanewDirector,theNomination

Committeepreparesadescriptionoftheroleandcapabilities

requiredforaparticularappointment.WhiletheNomination

Committeeisdedicatedtoselectingthebestpersonfor

therole,itaimstopromotediversificationandtheBoard

recognisestheimportanceofdiversity.TheBoardagreesthat

itsmembersshouldpossessarangeofexperience,knowledge,

professionalskillsandpersonalqualitiesaswellasthe

independencenecessarytoprovideeffectiveoversightofthe

affairsoftheCompany.

Process for managing conflicts of interest (Gov-Col)

TheCompany’sConflictsofInterestPolicysetsoutthepolicy

andproceduresoftheBoardandtheCompanySecretaryfor

themanagementofconflictsofinterest.

131 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Streamlined energy and carbon reporting

(unaudited)

Other information (unaudited)

SchroderRealEstateInvestmentTrustLimited(the‘Company’)

isarealestateinvestmentcompanywithapremiumlistingon

theOfficialListoftheUKListingAuthorityandwhoseshares

aretradedontheMainMarketoftheLondonStockExchange

(ticker:SREI).

TheCompanyisarealestateinvestmenttrust(‘REIT’)and

benefitsfromthevarioustaxadvantagesofferedbythe

UKREITregime.TheCompanycontinuestobedeclared

asanauthorisedclosed-endedinvestmentschemebythe

GuernseyFinancialServicesCommissionundersection8of

theProtectionofInvestors(BailiwickofGuernsey)Law,2020

andAuthorisedClosed-EndedInvestmentSchemesRulesand

Guidance,2021.

TheBoardandInvestmentManagerinrecognitionofthe

importanceitplacesonsustainabilityhasincludedareport

fortheCompanyalignedwiththeUKCompanies(Directors’

Report)andLimitedLiabilityPartnerships(EnergyandCarbon

Report)Regulations2018,(theRegulations)onitsUKenergy

use,associatedScope1and2greenhousegas(‘GHG’)

emissions,anintensitymetricand,whereapplicable,global

energyuse.ThisreportingisalsoreferredtoasStreamlined

EnergyandCarbonReporting(‘SECR’).

ThisEnergyandCarbonReportappliesfortheCompany’s

annualreportforthe12monthsto31March2025.The

statementhashoweverbeenpreparedforthecalendaryear,

the12monthsto31December2024,toreportannualfigures

foremissionsandenergyusetheavailableperiodforwhich

suchinformationisavailable.Inaddition,theRegulations

adviseprovidinganarrativeonenergyefficiencyactionstaken

inthepreviousfinancialyear.

Asarealestateinvestmentcompany,energyconsumptionand

emissionsresultfromtheoperationofbuildings.Thereporting

boundaryhasbeenscopedtothoseheldpropertieswherethe

Companyretainedoperationalcontrol:wheretheCompanyis

responsibleforoperatingtheentirebuilding,sharedservices

(e.g.commonpartslighting,heating,andairconditioning),

externallightingand/orvoidspaces.‘Operationalcontrol’

hasbeenselectedasthereportingboundary(asopposedto

‘financialcontrol’or‘equityshare’)asthisreflectstheportion

oftheportfoliowheretheCompanycaninfluenceoperational

proceduresand,ultimately,sustainabilityperformance.

Thisincorporatesconsumptionintenantareas,wherethe

landlordprocuresenergyforthewholebuildingandwhere

rechargesarenotmadedirectly(i.e.basedonsub-metered

kWhconsumption).In2024,withintheportfolio,there

were22propertieswithintheoperationalcontrolreporting

boundaryandin2023therewere23suchproperties.All

CompanyassetsarelocatedintheUK.

TheCompanyisnotdirectlyresponsibleforanyGHG

emissions/energyusageatsinglelet/FRIassetsnoratmulti-let

assetswherethetenantisresponsibleforprocuringtheirown

energy.Theseemissionsformpartofthewidervaluechain(i.e.

‘Scope3’)emissions,whicharenotmonitoredatpresent.As

arealestatecompanywithnodirectemployeesorcompany

ownedvehiclesasat31December2022,thereisnoenergy

consumptionoremissionsassociatedwithtraveloroccupation

ofcorporateofficestoreport.Fugitiveemissionsassociated

withrefrigerantlossesfromairconditioningequipmentare

widelyunderstoodbytheindustrytobelessmaterialthan

othersourcesofemissionsanddataisoftennotcollected.

TheCompanyreceivedfugitiveemissionsdatainprevious

reportingyears,andthisconfirmedthattheyweredeminimis

andconsequentlyhavenotbeencapturedincurrentreporting.

Inadditiontoreportingabsoluteenergyconsumptionand

GHGemissions,theCompanyhasreportedseparatelyon

performancewithinthe‘like-for-like’portfolio,aswellas

providingintensityratios,whereappropriate.Thelike-for-

likeportfolioincludesbuildingswhereeachofthefollowing

conditionsismet:

— Ownedforthefull24-monthperiod(sales/acquisitions

areexcluded)

— Nomajorrenovationorrefurbishmenthastakenplace

— Atleast24monthsdataisavailable

Fortheintensityratios,thedenominatordeterminedtobe

relevanttothebusinessissquaremetresofnetlettablearea

formostsectors,includingIndustrialDistributionWarehouses

(RefrigeratedandNon-Refrigerated),Leisure,Mixed-Use,

OfficesandRetailWarehouses.ForRetail:HighStreet,themost

relevantdenominatoriscommonpartsarea.Theintensityratio

isexpressedas:

— Energy:kilowatthourspermetresquare(netlettablearea

orcommonpartsarea)peryear,or,kWh/m2/yr.

— GHG:kilogramscarbondioxideequivalentpermetre

square(netlettableareaorcommonpartsarea)peryear,

or,kgCO2e/m2/yr.

132 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Streamlined energy and carbon reporting continued

ThetablebelowsetsouttheCompany’senergyconsumption.

Absolute Energy (kWh) Like-for-Like Energy (kWh)

2023 2024 2023 2024 % Change

Gas 1,455,039 1,295,225 1,192,537 1,219,677 2%

Electricity 5,132,838 4,716,518 4,888,385 4,578,069 -6%

Total 6,587,877 6,011,743 6,080,922 5,797,746 -5%

ThetablebelowsetsouttheCompany’sgreenhousegasemissions.

Absolute Emissions (tCO2e) Like-for-like Emissions (tCO2e)

2023 2024 2023 2024 %Change

Scope1(Directemissionsfromgas

consumption) 266.17 236.90 218.15 223.08 2%

Scope2(Indirectemissionsfrom

electricity) 1062.88 976.56 1012.26 947.89 -6%

Total 1329.05 1213.45 1230.41 1170.97 -5%

Thelike-for-likeenergyconsumptionandGreenhouseGas(GHG)emissionsforthe2024calendaryearforthemanagedassets

heldwithintheCompanyhasreducedby5%,whencomparedtothe2023calendaryear.AtStJohn’sRetailPark,Bedford,carpark

lightingupgradeshavecontributedtoareductioninelectricityconsumption.

ThetablebelowsetsouttheCompany’senergyandgreenhousegasemissionsintensitiesbysectoronalike-for-likebasis:

Energy Intensities (kWh per m2)

GHG Emission Intensities (kgCO2e per

m2)

2023 2024 2023 2024

Office: Corporate: Low-Rise Office 25.95 21.72 9.76 8.33

Retail: High Street 64.01 58.49 13.26 12.11

Industrial: Refrigerated Warehouse 0.09 0.35 0.02 0.09

Mixed use: Other 96.65 88.06 20.02 18.24

Industrial: Manufacturing 26.04 27.22 7.45 7.59

Lodging, Leisure & Recreation: Other 60.23 67.49 12.47 13.97

Office: Corporate: Mid-Rise Office 52.30 49.01 24.72 23.27

Industrial: Non-refrigerated Warehouse 5.02 4.29 1.25 0.94

Mixed use: Office/Retail 57.20 45.13 14.30 11.92

Retail: Retail Centers: Warehouse 1.88 1.39 0.42 0.29

Methodology

— AllenergyconsumptionandGHGemissionsreported

occurredattheCompanyassetsallofwhicharelocatedin

theUK.

— Energyconsumptiondataisreportedaccordingto

automaticmeterreads,manualmeterreadsorinvoice

estimates.Historicenergyandconsumptiondatahave

beenrestatedwheremorecompleteandoraccurate

recordshavebecomeavailable.Whererequired,missing

consumptiondatahasbeenestimatedthroughpro-

rataextrapolation.Datahasbeenadjustedtoreflectthe

Company’sshareofassetownership,whererelevant.

— Thesustainabilitycontentlocatedonpages97to130of

theSREITannualreportfortheyearending31March

2025hasbeenassuredinaccordancewithAA1000.The

samedatasethasbeenusedtocompilethisdatareport.

ThefullAssuranceStatementisavailableonrequest.

— TheCompany’sGHGemissionsarecalculatedaccording

totheprinciplesoftheGreenhouseGas(GHG)Protocol

CorporateStandard.

— TheCompany’sGreenhouseGasEmissionsarereported

astonnesofcarbondioxideequivalent(tCO2e),which

includesthefollowingemissionscoveredbytheGHG

Protocol(whererelevantandavailablegreenhousegas

emissionsfactorsallow):carbondioxide(CO2),methane

(CH4),hydrofluorocarbons(HFCs),nitrousoxide(N20),

perfluorocarbons(PFCs),sulphurhexafluoride(SF6)and

nitrogentrifluoride(NF3).

— GHGemissionsfromelectricity(Scope2)arereported

accordingtothe‘location-based’approach.

— Thefollowinggreenhousegasemissionsconversion

factorsandsourceshavebeenapplied:

133 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Streamlined energy and carbon reporting continued

Country

Emissions

Source

Year GHG Emissions Factor Emissions Factor Data Source

United

Kingdom

Electricity 2023 0.207074

UKGovernmentconversionfactorsfor

greenhousegas(ghg)reporting,2023and2024

Electricity 2024

0.207050

Gas 2023 0.1829

UKGovernmentconversionfactorsfor

greenhousegas(ghg)reporting,2023and2024

Gas 2024

0.1829

Energy Efficiency Actions

Environmental data management system and quarterly reporting

EnvironmentaldatafortheCompanyiscollatedbythird-partyPropertyManagersandsustainabilityconsultantsDeepki,supported

bytheirproprietarycommercialrealestateESGdataintelligenceplatform,DeepkiReady.Energy,water,waste,andgreenhouse

gasemissiondataarecollectedandvalidatedforallassetswheretheportfoliohasoperationalcontrolonatleastaquarterlybasis.

Energy target, improvement programme and net zero carbon

In2019theManagersignedtheBetterBuildingPartnership’s(‘BBP’)ClimateCommitmentwhichincludesanetzeroambition

alignedtotheParisAgreementaimtolimitwarmingto1.5°C.TheManager’scommitmentwasfurtherunderlinedbytheCompany

whoin2022announcedits‘PathwaytoNetZeroCarbon’committingto:

— Operationalwholebuildingsemissionstobealignedtoa1.5°Cpathwayby2030.

— Embodiedemissionsforallnewdevelopmentsandmajorrenovationstobenetzeroby2030.

— OperationalScope1and2(landlord)emissionstobenetzeroby2030.

— Operationalandembodiedwholebuilding(scope1,2and3–landlordandtenant)emissionstobenetzeroby2040.

TheInvestmentManagertogetherwiththird-partypropertymanagerslooktoidentifyanddeliverenergyandgreenhousegas

emissionsreductionsonacost-effectivebasis.TheprogrammeinvolvesreviewingallmanagedassetswithintheCompanyand

identifyingandimplementingimprovementinitiatives,whereviable.Theprocessisofcontinualreviewandimprovement.

OverthereportingyeartheManagerhascompletedassetmanagementinitiativessuchastheinstallationofarooftopsolar

photovoltaic(PV)arrayatStAnn’sHouse,Manchester.ThePVarrayisforecasttogenerate36,170kWhofelectricalenergyinits

firstyear,foruseon-site,helpingtoreducetheasset’srelianceonthenationalelectricitygrid,reducingexposuretovolatileenergy

costs,andreducinggreenhousegas(GHG)emissions.Aspartofthelettingofthe4thfloorSouthtoSLRConsultingatTheTun,

Edinburgh,CATAfit-outworksincludedtheinstallationofnewLEDlightingsupportedbyPassiveInfrared(PIR)sensors,tocontrol

demandandreduceelectricityconsumption,aswellasanewheatpumpair-conditioningsystem,bothhelpingtoachievean

EPC‘A’rating.CarparklightingupgradeswerealsocarriedoutatStJohn’sRetailPark,Bedford,carparklightingupgradeshave

contributedtoareductioninelectricityconsumption.

Renewable electricity tariffs and carbon offsets

TheInvestmentManagerhasanobjectivetoprocure100%renewableelectricityforalllandlord-controlledsuppliesforwhichit

hasresponsibility,whichincludestheassetsoftheCompany,by2025.Asat31December2024,98.2%oftheCompany’slandlord-

controlledelectricitywasonrenewabletariffs.Nocarbonoffsetswerepurchasedduringthereportingperiod.

134 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Asset list

Other information (unaudited)

Thetablebelowsummarisestheportfolioinformationasat31March2025,excludingpostyearendactivity.Thepropertyvalues

presentedrepresenttheyearendvaluationsasdeterminedbytheindependentvaluersasat31March2025:

Property Sector Region Value Range (£m)

StaceyBushesIndustrialEstate,MILTONKEYNES Industrial SouthEast 50-60

MillshawParkIndustrialEstate,LEEDS Industrial Yorkshire&Humberside 40-50

StanleyGreenTradingEstate,STOCKPORT Industrial NorthWest 40-50

TheUniversityofLaw,BLOOMSBURY(50%Share) Office WestEnd 30-40

StJohn'sRetailPark,BEDFORD RetailWarehouse Eastern 30-40

CityTower,MANCHESTER(25%Share) MixedUse NorthWest 20-30

LangleyParkWay,CHIPPENHAM Industrial SouthWest 20-30

UnionParkIndustrialEstate,NORWICH Industrial Eastern 20-30

HeadingleyCentral,HEADINGLEY MixedUse Yorkshire&Humberside 20-30

HortonParkIndustrialPark,TELFORD Industrial WestMidlands 10-20

ValleyBusinessPark,BIRKENHEAD Industrial NorthWest 10-20

StAnn'sHouse,MANCHESTER MixedUse NorthWest 10-20

TheTun,EDINBURGH Offices Scotland 10-20

ChurchillWayWest,SALISBURY RetailWarehouse SouthWest 10-20

Matalan,BLETCHLEY RetailWarehouse SouthEast 10-20

21/27StirlingCourt,SWINDON Industrial SouthWest 0-10

106OxfordRoad,UXBRIDGE Offices SouthEast 0-10

TheGalaxyCentre,LUTON Leisure Eastern 0-10

RoyscotHouse,CHELTENHAM Offices SouthWest 0-10

Wickes,CHESTER RetailWarehouse NorthWest 0-10

DelmePlace,FAREHAM Offices SouthEast 0-10

88/94ChurchStreet,LIVERPOOL Retail NorthWest 0-10

HeathcoteIndustrialEstate,WARWICK Industrial WestMidlands 0-10

HaydockIndustrialEstate,HAYDOCK Industrial NorthWest 0-10

HaywoodHouse,CARDIFF Offices Wales 0-10

TheLakes,NORTHAMPTON Offices EastMidlands 0-10

ImperialHouse,SHEFFIELD Retail Yorkshire&Humberside 0-10

HallLane,SANDBACH Industrial NorthWest 0-10

CliftonPark,YORK Offices Yorkshire&Humberside 0-10

TheAlbionCentre,ILKESTON Other EastMidlands 0-10

24/25HighStreet,CHELMSFORD Retail SouthEast 0-10

67/68HighStreet,CHELMSFORD Retail SouthEast 0-10

SetonHouse,WARWICK Offices WestMidlands 0-10

PacificHouse,MARLOW Offices SouthEast 0-10

15/16KingStreet,TRURO Retail SouthWest 0-10

TheOrangery,Old&NewStables,FAREHAM Offices SouthEast 0-10

12/14EastGates,LEICESTER Retail EastMidlands 0-10

MostonRoad,SANDBACH Industrial NorthWest 0-10

28 AsperthirdpartyvaluationreportsunadjustedforIFRSleaseincentiveamounts.

135 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Report of the Depositary to the Shareholders

Other information (unaudited)

Establishedin2013,LanghamHallUKDepositaryLLPisan

FCAregulatedfirmthatworksinconjunctionwiththeManager

andtheCompanytoactasdepositary.Consistingexclusively

ofqualifiedandtraineeaccountantsandalternativespecialists,

theentityrepresentsnetassetsofUS$129billionandwe

deployourservicestoover175alternativeinvestmentfunds

acrossvariousjurisdictionsworldwide.Ourroleasdepositary

primarilyinvolvesoversightofthecontrolenvironmentof

theCompany,inlinewiththerequirementsoftheAlternative

InvestmentFundManagersDirective(AIFMD).

Ourcashmonitoringactivityprovidesoversightofallthe

Companyheldbankaccountswithspecifictestingofbank

transactionstriggeredbyshareissues,propertyincome

distributionsviadividendpayments,acquisitions,and

third-partyfinancing.Wereviewwhethercashtransactionsare

appropriatelyauthorisedandtimely.Theobjectiveofourasset

verificationprocessistoperformareviewofthelegaltitleofall

propertiesheldbytheCompany,andshareholdingofspecial

purposevehiclesbeneaththeCompany.

WetestwhetheronanongoingbasistheCompanyis

beingoperatedbytheManagerinlinewiththeCompany’s

prospectus,andtheinternalcontrolenvironmentofthe

Manager.ThisincludesareviewoftheCompany’sandits

subsidiaries’decisionpapersandminutes.

WeworkwiththeManagerindischargingourduties,holding

formalmeetingswithseniorstaffonaquarterlybasisand

submitquarterlyreportstotheManagerandtheCompany,

whicharethenpresentedtotheBoardofDirectors,settingout

ourworkperformedandthecorrespondingfindingsforthe

period.

Forthefinancialyearended31March2025,ourworkincluded

thereviewofoneinvestmentpropertydisposalandfour

interimdividends.Basedontheworkperformedduringthis

period,weconfirmthatnoissuescametoourattentionto

indicatethatcontrolsarenotoperatingappropriately.

Joe Hime

HeadofDepositary

Forandonbehalfof:

LanghamHallUKDepositaryLLP,London,UK

LanghamHallUKDepositaryLLPisalimitedliability

partnershipregisteredinEnglandandWales

(withregisterednumberOC388007).

136 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Glossary

Other information (unaudited)

Alternative performance

measure (‘APM’)

pleaseseepage95forfulldetailsofthekeyAPMsusedbytheCompany.

Annualised dividend yield

beingthedividendpaidduringtheperiodannualisedandexpressedasapercentageoftheperiodendshareprice.

Articles

meanstheCompany’sarticlesofincorporation,asamendedfromtimetotime.

Companies Law

meansTheCompanies(Guernsey)Law,2008.

Company

isSchroderRealEstateInvestmentTrustLimited.

Directors

meansthedirectorsoftheCompanyasatthedateofthisdocumentwhosenamesaresetoutonpage49ofthis

documentand‘Director’meansanyoneofthem.

Disclosure Guidance and

Transparency Rules

meansthedisclosureguidanceandtransparencyrulescontainedwithintheFCA’sHandbookofRulesandGuidance.

Earnings per share (‘EPS’)

istheprofitaftertaxationdividedbytheweightedaveragenumberofsharesinissueduringtheperiod.Dilutedand

adjustedEPSpersharearederivedassetoutunderNAV.

Estimated rental value (‘ERV’)

IstheGroup’sexternalvaluers’reasonableopinionastotheopenmarketrentwhich,onthedateofthevaluation,

couldreasonablybeexpectedtobeobtainedonanewlettingorrentreviewofaproperty.

EPRA

istheEuropeanPublicRealEstateAssociation.

EPRA Net Tangible Assets

istheIFRSequityattributabletoshareholdersadjustedforitemsincludingdeferredtax,thefairvalueoffinancial

instrumentsandintangibleassets.

EPRA Net Disposal Value

istheIFRSequityattributabletoshareholdersadjustedforitemsincludinggoodwillasaresultofdeferredtaxand

thefairvalueofinterestratedebt

FCA

istheUKFinancialConductAuthority.

Gearing

istheGroup’snetdebtasapercentageofadjustednetassets.

Group

istheCompanyanditssubsidiaries.

GFSC

istheGuernseyFinancialServicesCommission.

Initial yield

istheannualisednetrentsgeneratedbytheportfolioexpressedasapercentageoftheportfoliovaluation.

Interest cover

isthenumberoftimesGroupnetinterestpayableiscoveredbyGroupnetrentalincome.

Market Abuse Regulation

meansregulation(EU)No.596/2014oftheEuropeanParliamentandoftheCouncilof16April2014onmarketabuse,

asamendedbytheMarketAbuse(Amendment)(EUExit)Regulations2019.

MSCI

(formerlyInvestmentPropertyDatabankor‘IPD’)isaCompanythatproducesanindependentbenchmarkofproperty

returns.

Manager/Investment Manager

meansSchroderRealEstateInvestmentManagementLimited

Net asset value and NAV per

isshareholders’fundsdividedbythenumberofsharesinissueatthefinancialyearend.

NAV total return

iscalculatedtakingintoaccountbothcapitalreturnsandincomereturnsintheformofdividendspaidto

shareholders.

Net rental income

istherentalincomereceivableintheperiodafterpaymentofgroundrentsandnetpropertyoutgoings.

REIT

isaRealEstateInvestmentTrust.

Reversionary yield

istheanticipatedyieldwhichtheinitialyieldwillrisetooncetherentreachestheestimatedrentalvalue.

SONIA

SterlingOvernightIndexedAverage–anovernightrate,setinarrears,andbasedonactualtransactionsinovernight

indexedswapsforunsecuredtransactionsintheSterlingmarket.

Weighted average unexpired

lease term (‘WAULT’)

Weightedaverageunexpiredleasetermassumingearlierofleasebreakorleaseexpiry.

UK Listing Rules

meansthelistingrulesmadebytheFCAunderPartVIIoftheUKFinancialServicesandMarketsAct2000,as

amendedfromtimetotime.

137 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Resolutions at the Annual General Meeting

Other information (unaudited)

This sectionis important and requires your

immediate attention.

Ifyouareinanydoubtaboutthecontentsofthissection

ofthedocumentortheactionyoushouldtake,youare

recommendedtoseekimmediatelyyourownpersonalfinancial

advicefromanappropriatelyqualifiedindependentadvisor

authorisedpursuanttotheFinancialServicesandMarkets

Act2000(asamended).

Ifyouhavesoldorotherwisetransferredallyoursharesinthe

Company,pleasesendthisdocument(includingtheNotice

ofAGM)andtheaccompanyingdocumentsatoncetothe

purchaser,transferee,ortothestockbroker,bankorother

personthroughwhomthesaleortransferwaseffectedfor

onwardtransmissiontothepurchaserortransferee.However,

suchdocumentsshouldnotbedistributed,forwardedor

transmittedinorintotheUnitedStates,Canada,Australiaor

Japanorintoanyotherjurisdictionastodosowouldconstitute

aviolationofapplicablelawsandregulationsinsuchother

jurisdiction.

TheNoticeoftheAnnualGeneralMeetingofShareholdersis

setoutonpages139to140.Thefollowingparagraphsexplain

theresolutionstobeputtotheAGM.

Resolutions1–8 (Ordinary Resolutions)

Resolutions1-8arebeingproposedtoapprovetheordinary

businessoftheCompanyto:(i)considerandapprovethe

AnnualReportoftheCompanyfortheyearended31March

2025;(ii)considerandapprovetheDirectors’Remuneration

Report,(iii)electorre-electtheDirectors;and(iv)appointthe

AuditorsandauthorisetheDirectorstodeterminetheAuditor’s

remuneration.

Resolution9Approval of the Company’s dividend

policy (Ordinary Resolution)

TheCompany’sdividendpolicyistopayasustainablelevelof

quarterlydividendstoshareholders(inarrears).Itisintended

thatsuccessfulexecutionoftheCompany’sstrategywillenable

aprogressivedividendpolicy.

TheCompany’sobjectiveandstrategy,outlinedintheChair’s

StatementandInvestmentManager’sReport,istodeliver

sustainablenetincomegrowthinduecoursethroughactive

managementoftheunderlyingportfolio.Anyfuturedecision

toincreasethedividendwillbedeterminedbyfactorsincluding

whetheritissustainableoverthelongterm,currentand

anticipatedfuturemarketconditions,rentalvaluesandthe

potentialimpactofanyfuturedebtrefinancing.

AstheCompanyisaREIT,theBoardmustalsoensurethat

dividendsarepaidinaccordancewiththerequirementsofthe

UKREITregime(pursuanttopart12oftheUKCorporation

TaxAct2010)inordertomaintaintheCompany’sREITstatus.

Shareholdersshouldnotethatthedividendpolicyisnota

profitforecastanddividendswillonlybepaidtotheextent

permittedinaccordancewiththeCompaniesLawandtheUK

REITregime.

TheBoardacknowledgesthatthedividendpolicyis

fundamentaltoshareholders’incomerequirementsaswellas

theCompany’sinvestmentandfinancialplanning.Therefore,in

accordancewiththeprinciplesofgoodcorporategovernance

andbestpracticerelatingtothepaymentofinterimdividends

withouttheapprovalofafinaldividendbyacompany’s

shareholders,aresolutiontoapprovetheCompany’sdividend

policywillbeproposedannuallyforapproval.

Resolution10Authority to disapply pre-emption rights

(Special Resolution)

TheDirectorsrequirespecificauthorityfromshareholders

beforeallottingnewordinarysharesforcash(orsellingshares

outoftreasuryforcash)withoutfirstofferingthemtoexisting

shareholdersinproportiontotheirholdings.Resolution10

empowerstheDirectorstoallotnewordinarysharesforcash

ortosellordinarysharesheldbytheCompanyintreasuryfor

cash,otherwisethantoexistingshareholdersona pro rata

basis,uptosuchnumberofordinarysharesasisequalto

10%oftheordinarysharesinissue(includingtreasuryshares)

onthedatetheresolutionispassed.Noordinaryshareswill

beissuedwithoutpre-emptionrightsforcash(orsoldoutof

treasuryforcash)atapricelessthantheprevailingnetasset

valueperordinaryshareatthetimeofissueorsalefrom

treasury.

TheDirectorsdonotintendtoallotorsellordinaryshares

otherthantotakeadvantageofopportunitiesinthemarket

astheyariseandwillonlydosoiftheybelieveittobe

advantageoustotheCompany’sexistingshareholdersand

whenitwouldnotresultinanydilutionofthenetassetvalue

perordinaryshare(owingtothefactthatnoordinaryshares

willbeissuedorsoldoutoftreasuryforapricelessthanthe

prevailingnetassetvalueperordinaryshare).

Thisauthoritywillexpireontheearlieroftheconclusionofthe

annualgeneralmeetingoftheCompanytobeheldin2026or

ontheexpiryof15monthsfromthepassingofResolution10.

138 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited) — Resolutions at the Annual General Meeting continued

Resolution11Authority to repurchase shares

(Special Resolution)

TheBoardrecognisesthatmovementsintheordinaryshare

price,premiumordiscount,aredrivenbynumerousfactors,

includinginvestmentperformance,gearingandmarket

sentiment.Accordingly,itfocusesitseffortsprincipallyon

addressingsourcesofriskandreturnasthemosteffectiveway

ofproducinglong-termvalueforshareholders.

However,theDirectorsmayconsiderrepurchasingordinary

sharesiftheybelieveittobeinshareholders’interestsasa

wholeandasameansofcorrectinganyimbalancebetween

supplyanddemandfortheordinaryshares.Themakingand

timingofanyrepurchaseofordinaryshareswillbeatthe

absolutediscretionoftheBoard,althoughtheBoardwillhave

regardtotheeffectsofanysuchrepurchaseonlong-term

shareholdersinexercisingitsdiscretion.Anyrepurchase

ofordinaryshareswillbesubjecttocompliancewiththe

CompaniesLawandwithinanyguidelinesestablishedfrom

timetotimebytheBoard.

AnnuallytheCompanypassesaresolutiongrantingthe

Directorsgeneralauthoritytopurchaseinthemarketupto

14.99%ofthenumberofsharesinissue.TheDirectorsintend

toseekarenewalofthisauthorityfromtheshareholdersatthe

AGM.Noshareswererepurchasedunderthisauthority.

IntheeventthattheBoarddecidestorepurchaseordinary

shares,purchaseswillonlybemadethroughthemarketfor

cashatpricesnotexceedingtheprevailingNAVoftheordinary

shares(aslastcalculated)wheretheDirectorsbelievesuch

purchaseswillenhanceshareholdervalue.Suchpurchaseswill

alsoonlybemadeinaccordancewiththeUKListingRulesand

theDisclosureGuidanceandTransparencyRuleswhich

providethatthemaximumpricetobepaidforeachordinary

sharemustnotbemorethanthehigherof:(i)fivepercent

abovetheaveragemid-marketvalueoftheordinaryshares

forthefivebusinessdaysbeforethepurchaseismade;and

(ii)anamountequaltothehigherof(a)thepriceofthelast

independenttrade;and(b)thehighestcurrentindependent

bidforanordinaryshareonthetradingvenueswherethe

marketpurchasesbytheCompanypursuanttotheauthority

conferredbythatresolutionwillbecarriedout.TheCompanies

Lawalsoprovides,amongotherthings,thatanysuchpurchase

issubjecttotheCompanypassingthesolvencytestcontained

intheCompaniesLawattherelevanttime.Anyordinaryshares

purchasedunderthisauthoritymaybecancelledorheldin

treasury.

Thisauthoritywillexpireattheconclusionoftheannual

generalmeetingoftheCompanytobeheldin2026unless

varied,revokedorrenewedpriortosuchdatebyordinary

resolutionoftheCompany.

TheBoardconsidersthattheresolutionstobeproposedatthe

AGMareinthebestinterestsoftheCompany’sshareholders

asawhole.TheBoardthereforerecommendsunanimouslyto

shareholdersthattheyvoteinfavourofeachoftheresolutions,

astheyintendtodoinrespectoftheirownbeneficialholdings.

Alastair Hughes

Chair

10June2025

139 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Notice of Annual General Meeting

Other information (unaudited)

NoticeisherebygiventhattheAnnualGeneralMeetingoftheCompanywillbeheldat1LondonWallPlace,EC2Y5AUon

16September2025at12.00pm.

Resolution To consider and, if thought fit, pass the following Ordinary Resolutions:

Resolution1(OrdinaryResolution) Toreceive,considerandapprovetheAnnualReportandConsolidatedFinancialStatementsoftheCompanyforthe

yearended31March2025.

Resolution2(OrdinaryResolution) ToapprovetheRemunerationReportfortheyearended31March2025.

Resolution3(OrdinaryResolution) Tore-electPriscillaDaviesasaDirectoroftheCompany.

Resolution4(OrdinaryResolution) Tore-electAlastairHughesasaDirectoroftheCompany.

Resolution5(OrdinaryResolution) Tore-electAlexandraInnesasaDirectoroftheCompany.

Resolution6(OrdinaryResolution) Tore-electSanjayPatelasaDirectoroftheCompany.

Resolution7(OrdinaryResolution) ToappointErnstandYoungLLPasAuditoroftheCompanyuntiltheconclusionofthenextAnnualGeneralMeeting.

Resolution8(OrdinaryResolution) ToauthorisetheBoardofDirectorstodeterminetheAuditor’sremuneration.

Resolution9(OrdinaryResolution) ToreceiveandapprovetheCompany’sDividendPolicywhichappearsonpage137oftheAnnualReport.

To consider and, if thought fit, pass the following Special Resolutions:

Resolution10(SpecialResolution) ThattheDirectorsoftheCompanybeandareherebyempoweredtoallotordinarysharesoftheCompanyforcash

asifthepre-emptionprovisionscontainedunderArticle13oftheArticlesofIncorporationdidnotapplytoanysuch

allotmentsandtosellordinaryshareswhichareheldbytheCompanyintreasuryforcashonanon-pre-emptivebasis

providedthatthispowershallbelimitedtotheallotmentandsalesofordinaryshares:

a. uptosuchnumberofordinarysharesasisequalto10%oftheordinarysharesinissue(includingtreasuryshares)

onthedateonwhichthisresolutionispassed;

b. atapriceofnotlessthanthenetassetvaluepershareascloseaspracticabletotheallotmentorsale;

providedthatsuchpowershallexpireontheearlieroftheconclusionoftheannualgeneralmeetingoftheCompany

tobeheldin2026orontheexpiryof15monthsfromthepassingofthisSpecialResolution,exceptthattheCompany

maybeforesuchexpirymakeoffersoragreementswhichwouldormightrequireordinarysharestobeallottedor

soldaftersuchexpiryandnotwithstandingsuchexpirytheDirectorsmayallotorsellordinarysharesinpursuanceof

suchoffersoragreementsasifthepowerconferredherebyhadnotexpired.

Resolution11(SpecialResolution) ThattheCompanybeauthorised,inaccordancewithsection315ofTheCompanies(Guernsey)Law,2008,as

amended(the‘CompaniesLaw’),tomakemarketacquisitions(withinthemeaningofsection316oftheCompanies

Law)ofordinarysharesinthecapitaloftheCompanyeitherforretentionastreasuryshares,insofaraspermittedby

theCompaniesLaworcancellation,providedthat:

a. themaximumnumberofordinarysharesherebyauthorisedtobepurchasedshallbe14.99%oftheissued

ordinarysharesonthedateonwhichthisresolutionispassed;

b. theminimumpricewhichmaybepaidforanordinaryshareshallbe£0.01;

c. themaximumprice(exclusiveofexpenses)whichmaybepaidforanordinaryshareshallbeanamountequal

tothehigherof(i)5%abovetheaverageofthemid-marketvalueoftheordinaryshares(asderivedfromthe

regulatedmarketonwhichtherepurchaseiscarriedout)forthefivebusinessdaysimmediatelyprecedingthe

dateofthepurchase;and(ii)thehigherof(a)thepriceofthelastindependenttrade;and(b)thehighestcurrent

independentbidatthetimeofpurchase,ineachcaseontheregulatedmarketwherethepurchaseiscarriedout;

d. suchauthorityshallexpireattheconclusionoftheannualgeneralmeetingoftheCompanytobeheldin2026

unlesssuchauthorityisvaried,revokedorrenewedpriortosuchdateofthegeneralmeeting;and

e. theCompanymaymakeacontracttopurchaseordinarysharesundersuchauthoritypriortoitsexpirywhichwill

ormaybeexecutedwhollyorpartlyafteritsexpirationandtheCompanymaymakeapurchaseofordinaryshares

pursuanttoanysuchcontract.

ByOrderoftheBoard

Forandonbehalfof

Schroder Investment Management Limited

Company Secretary

10June2025

140 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Notes

Other information (unaudited)

1 Tobepassed,anOrdinaryResolutionrequiresasimple

majorityofthevotescastbythoseshareholdersvotingin

personorbyproxyattheAGM(excludinganyvoteswhich

arewithheld)tobevotedinfavouroftheresolution.

2 Tobepassed,aSpecialResolutionrequiresamajorityofat

least75%ofthevotescastbythoseshareholdersvotingin

personorbyproxyattheAGM(excludinganyvoteswhich

arewithheld)tobevotedinfavouroftheresolution.

3 Amemberwhoisentitledtoattendandvoteatthe

meetingisentitledtoappointoneormoreproxiesto

exercisealloranyoftheirrightstoattend,speakandvote

insteadofhimorher.Aproxyneednotbeamemberof

theCompany.Morethanoneproxymaybeappointed

providedthateachproxyisappointedtoexercisethe

rightsattachedtodifferentsharesheldbythemember.

4 Ifreturnedwithoutanindicationastohowtheproxy

shallvoteonanyparticularmatter,theproxywillexercise

discretionastowhether,andifsohow,tovote.

5 Aformofproxyisenclosedforuseatthemeetingand

anyadjournmentthereof.Theformofproxyshouldbe

completedandsent,togetherwiththepowerofattorney

orotherauthority(ifany)underwhichitissigned,ora

notarialcertifiedcopyofsuchpowerorauthority,soasto

reachtheCompany’sRegistrars,ComputershareInvestor

Services(Guernsey)Limited,c/oThePavilions,Bridgwater

Road,Bristol,BS996ZYatleast48hoursbeforethetimeof

theAGM(excludinganypartofadaythatisnotaworking

day).

6 Completingandreturningaformofproxywillnotprevent

amemberfromattendinginpersonatthemeetingand

votingshouldheorshesowish.

7 Tohavetherighttoattendandvoteatthemeetingor

anyadjournmentthereof(andalsoforthepurposeof

calculatinghowmanyvotesamembermaycastonapoll)

amembermusthavehisorhernameenteredonthe

12September2025.

8 PursuanttoRegulation41oftheUncertificatedSecurities

(Guernsey)Regulations2009,entitlementtoattendand

voteatthemeetingandthenumberofvoteswhichmay

becastthereatwillbedeterminedbyreferencetothe

14September2025.Changestoentriesintheregister

ofmembersoftheCompanyafterthattimeshallbe

disregardedindeterminingtherightsofanymemberto

attendandvoteatsuchmeeting.

9 Ifalltheshareshavebeensoldortransferredbythe

addressee,theNoticeofAnnualGeneralMeetingand

anyotherrelevantdocumentsshouldbepassedtothe

personthroughwhomthesaleortransferwaseffectedfor

transmissiontothepurchaserortransferee.

141 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Other information (unaudited)

Corporate information

Registered Address

2ndFloor,DoreyCourt

ElizabethAvenue

StPeterPort

GuernseyGY12HT

Directors (all non-executive)

AlastairHughes(Chair)

PriscillaDavies

AlexandraInnes

SanjayPatel

Investment Manager and Accounting Agent

SchroderRealEstateInvestmentManagementLimited

1LondonWallPlace

LondonEC2Y5AU

Company Secretary

SchroderInvestmentManagementLimited

1LondonWallPlace

LondonEC2Y5AU

Depositary

LanghamHallUKDepositaryLLP

8thFloor

1FleetPlace

LondonEC4M7RA

Solicitors to the Company as to English Law:

StephensonHarwoodLLP

1FinsburyCircus

LondonEC2M7SH

Independent Auditor

Ernst&YoungLLP

POBox9

RoyalChambers

St.Julian’sAvenue

St.PeterPort

GuernseyGY14AF

Property Valuer

CBRELimited

Henrietta House

HenriettaPlace

LondonW1G0NB

Corporate Brokers

J.P.MorganSecuritiesplc

25BankStreet

CanaryWharf

LondonE145JP

Tax Advisors

DeloitteLLP

2NewStreetSquare

LondonEC4A3BZ

Receiving Agent and UK Transfer/Paying Agent

ComputershareInvestorServices(Guernsey)Limited

13 Castle Street

St Helier

JerseyJE11ES

Advocates to the Company as to Guernsey Law:

MourantOzannes(Guernsey)LLP

RoyalChambers

StJulian’sAvenue

St.PeterPort

GuernseyGY14HP

The Company’s privacy notice is available on its webpages.

FATCA GIIN

5BM7YG.99999.SL.826

Other information (unaudited)

142 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025

Notes

Other information (unaudited)

Schroder Real Estate Investment Management Limited

1 London Wall Place, London EC2Y 5AU, United Kingdom

T +44 (0) 20 7658 6000

@schroders

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