Schroder Real Estate Investment Trust Limited

Annual Report & Consolidated Financial Statements

For the year ended 31 March 2026

Overview

Contents

Overview

4 Performance summary

Strategic report

6 Chair’s statement

9 Investment Manager’s report

35 Sustainability report

43 Business model

45 Our stakeholders

46 Principal risks and uncertainties

Governance report

52 Board of Directors

53 Report of the Directors

55 Corporate governance

58 Audit Committee report

60 Management Engagement Committee report

61 Nomination Committee report

62 Directors’ remuneration report

64 Statement of Directors’ responsibilities

65 Independent Auditor’s report to the members of

Schroder Real Estate Investment Trust Limited

Financial statements

73 Consolidated statement of comprehensive income

74 Consolidated statement of financial position

75 Consolidated statement of changes in equity

76 Consolidated statement of cash flows

77 Notes to the financial statements

Other information (unaudited)

97 EPRA performance measures (unaudited)

100 Alternative performance measures (unaudited)

101 AIFMD disclosures (unaudited)

102 Sustainability performance measures (environmental)

(unaudited)

116 Sustainability performance measures (social)

(unaudited)

118 Sustainability performance measures (governance)

(unaudited)

119 Streamlined energy and carbon reporting

122 Asset list

123 Report of the Depositary to the shareholders

124 Glossary

125 Resolutions at the Annual General Meeting

127 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 8.3%

(MSCI Benchmark: 6.2%).

7.8%

dividend yield, and commitment to delivering

progressive dividend policy.

Robust balance sheet provides dividend protection:

3.4% current average interest cost of which 86% is

fixed rate or capped with 7.4 years average maturity.

Share price at a 24% discount to NAV offers an

attractive entry point given 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 2026. MSCI Benchmark is MSCI UK

Balanced Portfolios Quarterly Property Index.

1 Based on a share price of 46.2p as at close on 9 July 2026 and an annualised

dividend of 3.588 pps.

2 Based on a share price of 46.2p as at close on 9 July 2026 and NAV of 60.9 pps as at

31 March 2026.

3 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Overview

Performance summary

Net asset value £m

31 March 2026 297.9

31 March 2025 301.4

Net asset value total return %

31 March 2026 4.8

31 March 2025 11.0

Value of property assets and joint venture assets

£m

31 March 2026 474.6

31 March 2025 480.0

Underlying portfolio total return %

31 March 2026 5.4

31 March 2025 9.1

Estimated open market rental value

£m

31 March 2026 39.3

31 March 2025 40.3

EPRA earnings £m

31 March 2026 16.5

31 March 2025 17.0

Dividend cover

31 March 2026 94%

31 March 2025 100%

31 March

2026

31 March

2025

Property performance

Value of Property Assets and

Joint Venture Assets

£m 474.6 480.0

Annualised rental income

£m 31.2 28.9

Estimated open market

rental value

£m 39.3 40.3

Underlying portfolio total return % 5.4 9.1

MSCI Benchmark total return

% 5.7 6.2

Underlying portfolio income

return % 5.5 5.6

MSCI Benchmark income return % 4.8 4.8

Financial summary

Net Asset Value (‘NAV’) £m 297.9 301.4

NAV per Ordinary Share p 60.9 61.6

EPRA Net Tangible Assets

£m 297.8 301.3

EPRA Net Reinstatement Value

£m 330.1 333.9

EPRA Net Disposal Value

£m 316.6 319.9

IFRS profit for the year £m 14.1 31.1

EPRA earnings

£m 16.5 17.0

Dividend cover

% 94 100

Capital values

Share price p 47.5 49.9

Share price discount to NAV % (22.0) (19.0)

NAV total return

% 4.8 11.0

Earnings and dividends

EPRA earnings

(pps) 3.4 3.5

Dividends paid (pps) 3.6 3.5

Annualised dividend yield on

the 31 March share price % 7.6 7.2

Bank borrowings

On-balance sheet borrowings

£m 186.1 181.1

Loan to Value ratio (‘LTV’),

net of all cash

% 36.8 36.9

Ongoing charges

Ongoing charges (including

fund only expenses)

% 1.31 1.25

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 2026, including the share of rents from joint venture assets.

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 2026.

5 This is an Alternative Performance Measure (‘APM’). EPRA calculations are included in the EPRA Performance measures section on pages 97 to 99.

6 This is an APM with further details on page 100.

7 This is an APM with further details on page 100.

8 On-balance sheet borrowings reflect the loan facilities with Canada Life and RBSI without the deduction of unamortised finance costs of £0.2m.

9 This is an APM. Details are included in the APM section on page 100.

10 This is an APM and calculated in accordance with the AIC methodology. Details are included in the APM section on page 100.

4 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Overview

5 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report

6 Chair’sstatement

9 InvestmentManager’sreport

35 Sustainabilityreport

43 Businessmodel

45 Ourstakeholders

46 Principalrisksanduncertainties

Chair’s statement

Dear Shareholder,

I am pleased to announce our audited financial results for the

year ended 31 March 2026, my last as Non-Executive Chair of

Schroder Real Estate Investment Trust Limited (the ‘Company’ or

‘SREIT’).

Today’s results follow a period of volatility and uncertainty for

UK real estate and investment markets more generally, but

we remain well positioned given our clear strategy, a focus on

higher growth sectors (which is underpinning the portfolio’s

above average reversionary yield), a lean cost base and peer

group leading debt terms.

Highlights from our audited year end results are set out below:

— Net asset value (‘NAV’) of £297.9 million or 60.9 pence per

share (‘pps’), reflecting a NAV total return of 4.8% for the

year

— Dividends paid totalling £17.6 million or 3.6 pps, a 4%

increase on the prior year

— Sector-leading debt profile underpinning earnings

resilience, with a long duration of 7.4 years and a low

average interest cost of 3.4%

— Continued close management of expenses, with ongoing

charges of 1.31%

— Asset management activity materially reduced the vacancy

rate to 9.8% which, combined with a high portfolio

reversionary yield of 8.3%, provides significant earnings

growth potential

— Favourable allocation to the higher growth sectors of

multi-let industrial and retail warehousing, with a near-term

pipeline of income enhancing asset management activity

— Long term track record of outperformance against the MSCI

Benchmark, with 2.3% annual relative outperformance on a

rolling three-year basis

— For the second consecutive year, in November we were

awarded ‘Highest 10-year risk adjusted relative return’ by

MSCI for all UK and European funds

— Delivering on strategy to improve portfolio sustainability

performance, recognised by an improved, peer group

topping GRESB score

At the start of 2026, the UK real estate market was expected to

benefit from modest but resilient economic growth, continued

healthy levels of occupational demand, and constrained

new development. Inflation had continued to ease, raising

expectations that the Bank of England would continue a gradual

monetary easing cycle, supporting asset values.

The Middle East conflict introduced uncertainty to this outlook,

with a sharp rise in energy prices and second order effects

meaning inflation is expected to remain elevated over 2026 and

2027, squeezing occupiers and consumers. This is compounded

by domestic political instability and concern that increased

Government deficit spending will lead to a persistently higher-

for-longer interest rate environment, with the 10-year Gilt

currently around 5%.

As a result, the momentum seen in 2025 real estate transaction

volumes has paused, accompanied by weaker REIT share price

ratings. The market uncertainty is impacting capital values

through increased yields, with the MSCI Monthly Index (a

good proxy for the Company’s Benchmark) showing a small

decline over 2026 to date, contrasting with a 1.3% increase over

calendar 2025. More positively, continued rental growth has, so

far, largely offset the negative yield impact, particularly in the

more structurally supported sectors, demonstrating the sector’s

attractive inflation hedging characteristics.

Whilst market uncertainty will inevitably result in some occupiers

delaying decisions, this is against the backdrop of constrained

supply. This dynamic could intensify further, with the energy

shock increasing the price and decreasing the availability of

construction materials, leading to further cost push inflation and

higher rents to justify new development. Supply is also impacted

by stretched planning departments and political uncertainty

relating to factors such as increased taxation and leasehold

reform, most recently with the banning of upward only rent

reviews.

Although the market backdrop has therefore clearly changed

since the interim results last November, the successful

implementation of our strategy over recent years means we are

well placed to navigate a more uncertain period for the reasons

set out below.

In an elevated interest rate environment, we benefit from

owning a higher yielding portfolio, with an initial yield of 6.1%

compared with the MSCI Benchmark average of 5.1%. Based

on the independent valuer assumptions, we also benefit from a

reversionary yield of 8.3% compared with the MSCI Benchmark

of 6.2%, with the potential for this to be enhanced through

capital investment and asset management.

Complementing a higher yielding portfolio, our long-term,

fixed rate debt remains a compelling differentiator amongst

Alastair Hughes

Chair

6 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Strategic report — Chair’s statement continued

ourREITpeergroup,with70%oftotaldebtdrawnfixedatan

averageof2.5%foranaverageof10years.Combinedwith

ourtacticalrevolvingcreditfacility(‘RCF’),theaverageinterest

rateforourtotaldrawndebtattheyear-endwas3.4%,withan

averagedurationof7.4years.Thehighportfolioyieldandlow

borrowingcostensuresthattheportfoliowillcontinuetodeliver

anattractivespreadoverborrowingcostsoverthemediumto

longterm,contrastingwithpeerswherenearertermrefinancing

eventscoulderodeearnings.

Portfoliooutperformanceoverrecentyearshasbeendrivenby

bothfavourablesectorweightingsandactivemanagement.Over

halfourportfoliobyvaluecompriseseightmulti-letindustrial

estatesoccupiedbymorethan180tenants,wherewecontinue

todeliverstrongincomegrowththroughnewdevelopment

andphasedrefurbishments,attractinghighqualitytenants

suchasSiemensandBYD.Overthelastthreeyears,wehave

invested£11.4millioninrefurbishmentsandredevelopments

acrosstheindustrialportfolio,whichhascontributedtolike-for-

likeportfoliorentalgrowthoverthatperiodof3.5%perannum

(MSCIBenchmark3.4%)andalike-for-likeincomereturnover

thefinancialyearof5.5%(MSCIBenchmark5.1%).

Almost20%oftheportfoliocomprisessustainablyrentedand

well-locatedretailwarehouseandconvenienceretailassetsin

denselypopulatedurbanareas,whicharesectorswithimproving

occupierandinvestorsentiment.Recentassetmanagement

initiativeshavesecurednewtenantssuchasLidl,Tesco,andThe

GymGrouponlongleaseswithinflation-linkedrentreviews,

maintainingtheoverallportfolioleasetermtoearliestbreak

at5.3years.Alongsideextractinghealthyincomegrowthfrom

larger,multi-letretailassets,theCompanywillcontinuetosell

smallerretailandothernon-coreassetswherebusinessplans

havebeencompleted.

Alongsidesmallerassetsales,performanceduringtheyearwas

negativelyimpactedbyourofficeexposure,whichcomprises

aregionalportfolio(14%byportfoliovalue),anda50%interest

inaCentralLondonassetonStoreStreetinBloomsbury(8%

byvalue).AtStoreStreet,weareprogressinga‘planninggain’

strategyinadynamicsub-marketbenefitingfrominfrastructure

improvements,newdevelopmentsatmateriallyhigherrents,

anddiverseoccupierdemandincludingAIandlifescience

companies.

Thebiggestperformancedetractorovertheyearwasthe

Company’s25%interestinCityTowerinManchester,valuedat

£23.3millionattheyearend,or4.9%ofportfoliovalue.50%of

CityTowercomprisesofficeuse,withtheremainderincluding

hotel,retail,andcarparkuses.TheManagerhasaclearstrategy

toaddresstheofficevoidthroughrefurbishmentwhilstalso

minimisingvoidcosts,withtheobjectiveofsellingtheasset

within24months,withfurtherdetailsincludedintheManager’s

Report.

Itisencouragingthatlong-termrelativeoutperformanceof

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

refurbishmentandredevelopmentinitiativeswhichimprove

assetsustainabilityperformance,enablingustocapturea‘green

premium’anddeliveronournetzerocarboncommitments.This

activity,outlinedinmoredetailintheManager’sReport,also

deliveredanimprovementinourportfolioGRESBscore,withthe

Companytopinitspeergroup.

Asnotedabove,ourstrategyisfocussedondrivingsustainable

earningsgrowth,witha4%dividendincreaseoverthemost

recentfinancialyear,anda38%increaseinthequarterly

dividendsincecompletingtheCanadaLifedebtrefinancingin

2019.Thegrowthinearningshasalsobeensupportedbyclose

controlofexpenses,withanongoingchargesratioof1.31%

comparingfavourablywithpeers,partlydrivenbytheManager

feereductioneffective1October2025,whichincludes50%linked

tomarketcapitalisationforalignment.

Inparallelwithimplementingthestrategy,theBoardand

Managerhavepursuedopportunitiesforgrowth,butwithahigh

barsothatanycorporateacquisitionmustdelivermaterialand

near-termearningsanddividendaccretionforshareholders.

Wearealsoclearthatcorporateactivitymustalignwithour

sectorpreferences,beapplicabletoourintegratedsustainability

approach,and,critically,maintainourbalancesheetresilience.

Theseoverarchingprincipleshavebeenclearlyarticulatedto

shareholdersoverrecentyearsandhavereceivedgoodsupport.

AsInotedinmyintroduction,followingnineyearsontheBoard,

includingfourasChair,inlinewithbestpracticeIwillretire

attheAnnualGeneralMeeting(‘AGM’)inSeptember2026.

Followingacomprehensivesuccessionplanningprocessled

bymyfellowIndependentNon-ExecutiveDirectors,Alexandra

InnesandSanjayPatel,togetherwithanexternalsearch

firm,IamdelightedtoannouncethatPriscillaDavies,current

SeniorIndependentDirectoroftheCompany,willbecome

Chairwitheffectfrom22September2026aftertheAGM.

Priscillahasextensivefinancialservicesexperienceacrossa

rangeofsectorsincludingassetmanagementandalternative

investmentscoveringrealestate,privateequity,infrastructure,

andrenewables.AsSeniorIndependentDirector,Priscillahas

providedmewithstrongsupport,particularlyaswehaveevolved

thestrategyandexploredgrowthopportunities.Priscillawill

thereforeprovideimportantcontinuityasweprogressour

strategy.

WearealsotodayannouncingtheappointmentofRichardDakin

asaNon-ExecutiveDirector,effective10July2026.Richardis

theformerEuropeHead,InvestmentBankingandDebtand

StructuredFinance,attheglobalrealestateservicesfirm,CBRE

Group,retiringin2024.Previously,Richardenjoyeda32-year

careeratLloydsBankingGroupwherehewasManaging

DirectorandHeadofCorporateRealEstateBusinessSupport.

Richardisanexperiencednon-executivedirector,previously

spendingovernineyearsontheboardofDerwentLondonplc,

andiscurrentlyanon-executivedirectoratBerkeleyGroup

Holdingsplc.Wearedelightedtowelcomesuchahighly

respectedrealestateindustryfiguretotheBoard.Following

7 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Chair’s statement continued

theAGMon22September2026,AlexandrawillbecomeSenior

IndependentDirectorandRichardwillbecomechairofthe

ManagementEngagementCommittee.Priscillawillalsosucceed

measchairoftheNominationCommittee.

Inparallel,Schroderscontinuetoprogresssuccessionplanning

forNickMontgomery,givenhiswiderresponsibilitiesasGlobal

HeadofRealEstate.NickwillleadtheCompanyforaslongas

isrequiredtoensureasmoothtransition.Identifyinganew,

marketfacing,fundmanagertoreplaceNick,withtheexperience

andtrackrecordofsuccessfullymanagingcomparablestrategies

isastrategicpriorityfortheBoardandtheManager.Following

anorderlysuccessionprocess,Nickwillretainoversightofthe

Company,includinginhisroleaschairofSchroders’directreal

estateInvestmentCommittee.Nickremainswellsupportedby

BradleyBigginsasco-FundManager,alongsideadeepbenchof

investment,assetmanagement,operations,andotherspecialist

functions.

InFebruary2026itwasalsoannouncedthatSchrodershad

agreedthetermsofarecommendedall-cashofferbyNuveen,

whichinAprilwasstronglyapprovedbySchrodersshareholders.

Thetransaction,whichisscheduledtocompletelaterthisyear

followingregulatoryapprovals,createsoneoftheworld’slargest

globalactiveassetmanagers,withnearly$2.5trillionofassets

undermanagement(‘AUM’).Fromarealestateperspective,

thecombinedUKandContinentalEuropeanAUMwillexceed

$50billion,andtheSchrodersteamarepositiveaboutthe

opportunitiesarisingfromgreaterscale.

Despitecurrentmarketuncertainty,thesignificanteffortsby

theBoardandManageroverrecentyearsmeantheCompany

iswellpositioned,withattractiveearningsgrowthprospects

underpinnedbyasectorleadingbalancesheet.

Inaddition,thereisalsosignificantpotentialvalueembeddedin

theCompany’sportfolio,whichtheSchrodersteamwillextract

throughactiveassetmanagement,adisciplinedapproach

tocapitalexpendituredeployment,andaprotractedmarket

recovery.

Fromapersonalperspective,Iexpecttoretirefromtheboard

atatimeofgreatopportunityfortheCompany,andIthankour

Shareholdersfortheircontinuedsupport.

Alastair Hughes

Chair

9July2026

8 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

“Income is important to our

shareholders, and we are pleased to

have increased dividends paid by 4%

compared to the prior year. Active

asset management has driven portfolio

void to the lowest level since 2022

which should support future earnings.”

Financial results

TheCompany’sNAVasat31March2026was£297.9millionor

60.9pencepershare(‘pps’),comparedwith£301.4million,or

61.6pps,asat31March2025.Thisreflectedadecreaseover

thefinancialyearof0.7ppsor1.1%.Dividendstotalling£17.6

millionwerepaidduringtheyear,whichresultedinaNAVtotal

returnof4.8%.AdetailedanalysisoftheNAVmovementisset

outinthetablebelow:

NAV movement

£m PPS

NAVasat31March2025

301.4 61.6

Unrealisednetincreaseinthe

valuationsofthedirectrealestate

portfolioandjointventures

9.1 1.9

Capitalexpenditure

(9.1) (1.9)

Realisedgainondisposal,netof

disposal costs (1.4) (0.3)

EPRAearnings

16.5 3.4

Dividendspaid (17.6) (3.6)

Interestratederivatives 0.0 0.0

Others (1.0) (0.2)

NAV as at 31 March 2026

297.9 60.9

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

of489,110,576.

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

3 Comprisescapitalexpenditureof£9.0milliononthedirectlyheldportfolioand£0.1

millioninvestedacrossthetwojointventures.

4 EPRAearningsasperthereconciliationonpage97.

5 Thecalculationofpencepershareisbasedonsharesinissueasat31March2026

of489,110,576.

Net asset value pershare(pence)

31 March 2026 60.9

31March2025 61.6

EPRA earnings pershare(pence)

31 March 2026 3.4

31March2025 3.5

Dividends paid pershare(pence)

31 March 2026 3.6

31March2025 3.5

Followingaperiodofsustainedcapitalgrowth,theunderlying

portfoliofellinvalueby-0.1%duringthefinancialyear.Thiswas

largelyduetoCityTowerinManchester,whichrepresented

4.9%ofportfoliovalueattheyearend.Theindustrialandretail

warehouseelementsoftheportfolio,representing66.0%of

value,continuedtoperformstrongly,generatingcapitalvalue

growthduringtheyearof3.0%and1.3%respectively.

Inlinewiththestrategy,£9.1millionofcapitalexpenditurewas

investedinassetmanagementandredevelopmentprojectsto

enhancethesustainabilityprofileofassets.Thisshoulddrive

capitalgrowthandfuturerentalincreasesoverthemediumto

longerterm.

Sixsmallerassetsweresoldduringtheyearforanaggregate

considerationof£13.7million,with£0.3millionofdisposal

costs,andcomparedtoanopeningbookvalueof£14.8million.

Fourassetsweresoldaboveopeningbookvalue,withtwosold

below.

EPRAearningsforthefinancialyeartotalled£16.5million,or

3.4pps,adecreaseof£0.5millionor3%onthepriorfinancial

year.Whilstactiveassetmanagementledtoa7%increasein

rentandotherincome,thecostsassociatedwithvoidspace

increased,whichcombinedwitha£0.8millionchargefor

baddebts,ledtothereductioninEPRAearnings.Mostof

thebaddebtrelatestopriorperiodrentorthetimetakenby

liquidatorstodisclaimalease,withrentcollectionduringthe

financialyearremainingstrongat98%.

Toenhancealignmentwithshareholders,witheffectfrom1

October2025theManager’sfeewas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46.2pps,thisresultsinanannualisedcostsavingof£0.3

millionor12%.

Lettingsuccessduringtheyearimprovedthevoidrateto9.8%

asapercentageoftheindependentvaluer’sestimatedrental

value,andincludingtheimpactofunconditionallyexchanged

leaseagreements.Thisisthelowestlevelsince2022,which

shouldsupportfutureearningsgrowth.

Therewasa4%increaseindividendspaidinthefinancialyear

to£17.6million.

Investment Manager’s report

Nick Montgomery

Fund Manager

9 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report— Investment Manager’s report continued

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,createthe

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,offering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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atlowerriskofobsolescence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.

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over

thelongterm.Specificexamplesaresetoutinthecasestudies

onpages17to31.

Thereisasignificantnear-termpipelineofopportunitiesto

implementthestrategy,aswecontinuetocapturethehigh

portfolioreversion.

Bradley Biggins

Fund Manager

Our strategy

10 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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66.0%byvalue(2025:63.4%),

drivenbymostofthecapitalexpenditureduringtheyear

beingallocatedtothesesectors.

Increase exposure to larger, higher value, assets with

strong fundamentals and inherent opportunities for

active management and development

Almostallcapitalexpenditureduringtheyearwasinvested

inourtop15assetswhichnowrepresent83.9%oftotal

portfoliovalue(2025:81.1%).Anacquisitionofanadjoining

ownershiptooneofourmulti-letindustrialestateswasalso

completedpostyearend.

Sell smaller, secondary assets with higher

sustainability performance risk

Duringtheyear,sixsmaller,secondaryassetsweresold

wherewehadcompletedthebusinessplanoridentified

highersustainabilityperformancerisk.

Drive income and value growth through active

management and operational excellence

Lettingsduringtheyearimprovedthevoidrateto9.8%,

calculatedasapercentageoftheindependentvaluer’s

estimatedrentalvalue(‘ERV’),thelowestlevelsince2022,

whichshouldsupportfutureearningsgrowth.Ouractive

approachmeanttheCompanywasawarded‘Highest10-

yearriskadjustedrelativereturn’byMSCIforallUKand

Europeanfundsforthesecondconsecutiveyear.

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2025GlobalRealEstateSustainabilityBenchmark

(‘GRESB’)scoreimprovedto80outof100,placingthe

CompanyfirstamongstaGRESBdefinedpeergroup

comprisingsixdiversifiedREITs(2024:secondofseven).

16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.

Fiveassetsachievedanimprovedscoreasattheyear-end

relativetothebaselinescoresat1April2025.

Control costs

Continuedclosemanagementofexpenses,withanongoing

chargesratioof1.31%comparingfavourablywithpeers.

Managerfeeamendedsuchthat50%isnowbasedon

marketcapitalisationtoprovidefurtheralignmentwith

shareholdersandcostsavings.Thiswaseffectiveforthe

secondhalfofthefinancialyear,withshareholdersto

benefitfromthechangeforthewholeofthenextfinancial

year.

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an

averageinterestratefordrawndebtof3.4%andanaverage

termof7.4years.Thereisaclearstrategytoreducethenet

LTVbacktowithinthestrategicrangefrom36.8%atthe

yearend.

11 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

“We are delighted to have won two

awards in the most recent MSCI UK

and European Property Investment

Awards, the second consecutive

year of doing so. The awards

recognise top performing funds over

the longer term.”

Theportfoliohasdeliveredpositive,topquartile,andabove

benchmarktotalreturnsoverthree,fiveand10years,

recognisedinNovember2025bySREITwinningthe‘Highest

10-yearriskadjustedrelativereturn’awardforallUKfunds,and

‘Europeanlong-termrisk-adjustedrelativereturn’awardforall

Europeanfunds.

Followingthisperiodofsustainedoutperformance,duringthe

financialyeartheunderlyingportfoliodeliveredatotalreturn

of5.4%,slightlyunderperformingtheMSCIBenchmarkat

5.7%.Whilsttheindustrialandretailwarehouseelementsof

theportfolioperformedstrongly,generatingabovebenchmark

totalreturnsduringtheyearof8.5%and6.4%respectively,

officeassetsincludingCityTowerinManchesterweighedon

overallrelativeperformance.

Portfolioperformancehascontinuedtobesupportedbyan

abovebenchmarkincomereturn,whichwas5.5%forthe

portfoliocomparedto4.8%forthebenchmark.

Thetablebelowshowsperformanceto31March2026.

SREIT total return

Period to

31 March 2026

One year

(%)

Three years

(% p.a.)

Five years

(% p.a.)

Retail 4.9 7.7 6.6

Office -0.2 -1.0 -0.4

Industrial 8.5 8.8 10.3

Other 0.6 1.5 1.8

All sectors 5.4 5.9 6.2

MSCI Benchmark total return

Period to

31 March 2026

One year

(%)

Three years

(% p.a.)

Five years

(% p.a.)

Retail 7.5 5.4 4.5

Office 4.1 -1.8 -2.4

Industrial 6.4 6.6 6.0

Other 4.6 2.8 2.3

All sectors 5.7 3.4 2.8

Relative

Period to

31 March 2026

One year

(%)

Three years

(% p.a.)

5 years

(% p.a.)

Retail -2.4 2.2 2.0

Office -4.1 0.8 2.0

Industrial 1.9 2.1 4.0

Other -3.8 -1.2 -0.5

All sectors -0.3 2.3 3.3

Portfolio performance

12 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Asat31March2026,theportfoliocomprised32properties

valuedat£474.6million.Thisincludestheshareofjoint

venturepropertiestheUniversityofLawinBloomsbury,

London(50%interest)andCityTowerinManchester(25%

interest).Theportfoliogeneratedrentalincomeof£31.2million

perannum,reflectinganetinitialyieldof6.1%.Thiscompared

with5.1%fortheMSCIBenchmark.

Theindependentvaluer’sERVoftheportfoliois£39.3million

perannum.Thisis£8.1millionabovetherentalincome

currentlygeneratedbytheportfolioandreflectsareversionary

incomeyieldof8.3%,whichcomparesfavourablywiththe

Benchmarkat6.2%.Leasingactivitythroughtheyearhasbeen

inlinewiththeERV,whichgivesusconfidenceinourabilityto

capturefutureincomegrowth.

Assetmanagementactivitymeansthereisgoodvisibility

ofnear-termreversionaryincome.TheCompanybenefits

from£1.6millionoffixedannualisedrentalincreasesover

the12monthspostyear-end.Inaddition,attheyearend

theCompanyhadexchangedagreementsforleasefor

newlettingstotalling£0.9millionperannumofnewrent,

summarisedinthetablebelow.

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broadly

inlinewithinvestmentcompanypeersbutlowerthanthe

Benchmarkof11.4yearswhichhaslongleaseportfolios

included.Wherepossible,longerleasesaresoughtaspartof

assetmanagementactivity,particularlywherematerialcapital

expenditureisbeinginvested.Forexample,theagreements

forleaseinthetablebelow,generatingcontractedincomeof

£0.9million,haveanaverageleaselengthtoearliestbreak

of16years.Oftentheselongerleasesalsoincludefixedor

inflationlinkedrentreviews.

Approximately13%oftheportfoliobycontractedrentwas

inflationlinkedattheyearend,typicallystructuredasfiveyearly

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

Prices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16%ofrentbenefits

fromfixedupliftswithoutaninflationlink.Asnotedabove,

theproportionoftheportfoliowithinflation-linkedleaseswill

increasewithongoingassetmanagementactivity.

Thetablebelowsummarisestheportfolioinformationasat

31March2026.Thepropertyvaluesandweightingsrepresent

theyearendvaluationsasdeterminedbytheindependent

valuerasat31March2026.

Exchanged agreements for lease

Asset Tenant Rent (p.a.) Lease terms Comments

Leeds,MillshawPark

IndustrialEstate

SlazengerPadelClubs

(guaranteedbySportsdirect.com)

£465,363 15years,nobreaks Completesimminentlyonreceiptof

planning

Salisbury,ChurchillWayWest TheGymGroup £155,000 15years,nobreaks.Fiveyearly

reviewstoCPI(1-3%)

Completionissubjecttolandlord

works,scheduledforSeptember

HeadingleyCentral Tescoplc £115,000 15years,nobreaks.Fiveyearly

reviewstoCPI(1-3%)

Completionissubjecttolandlord

works,scheduledforAugust

HeadingleyCentral IdunaEVCIAssetCo1Limited

(backedbyOctopusEnergy)

£73,200 20years,nobreaks.Fiveyearly

reviewstoCPI(2-5%)

Awaitingplanningforsub-stationwith

completionexpectedin2026

Bedford,St.John’sRetailPark IdunaEVCIAssetCo1Limited

(backedbyOctopusEnergy)

£73,200 20years,nobreaks.Fiveyearly

reviewstoCPI(2-5%)

Completionissubjecttotenantworks,

scheduledforSeptember

Total £881,763 Weighted16years

Portfolio information

Portfoliometric

SREIT

31 March 2026

(MSCI

Benchmark

31March

2026)

SREIT

31March2025

(MSCI

Benchmark

31March

2025)

Portfoliovalue(£m) 474.6 480.0

Numberofproperties 32 38

Numberoftenants 299 312

Averagelotsize(£m) 14.8 12.6

Netinitialyield(%) 6.1 (5.1) 5.6

(5.1)

Reversionaryyield(%) 8.3 (6.2) 8.4(6.2)

Annualrent(£m) 31.2 28.9

Estimatedrentalvalue(£m) 39.3 40.3

Annualrentwithinflationlinkeduplifts(%) 13 12

Annualrentwithfixeduplifts(%) 16 8

WAULT(yearstoearliestofbreakorexpiry) 5.3 (11.4) 5.3(11.5)

Voidrate(%) 9.8 (8.4) 12.3(8.7)

Real estate portfolio

13 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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 £55.1m 11.6%

London, Store Street,

The University of Law Campus (50% share)

Sector Value

Portfoliovalue

Office/university £37.8m 8.0%

Norwich,

Union Park Industrial Estate

Sector Value

Portfoliovalue

Industrial £25.2m 5.3%

Telford,

Horton Park Industrial Estate

Sector Value

Portfoliovalue

Industrial £15.0m 3.2%

Salisbury,

Churchill Way West

Sector Value

Portfoliovalue

Retailwarehouse £13.1m 2.8%

Leeds,

Millshaw Park Industrial Estate

Sector Value

Portfoliovalue

Industrial £52.0m 11.0%

Bedford,

St. John’s Retail Park

Sector Value

Portfoliovalue

Retailwarehouse £33.9m 7.1%

Manchester,

City Tower (25% share)

Sector Value

Portfoliovalue

Office/hotel/retail £23.3m 4.9%

Manchester,

Marshall Building

Sector Value

Portfoliovalue

Office/retail £13.6m 2.9%

Edinburgh,

The Tun

Sector Value

Portfoliovalue

Office £12.1m 2.5%

Cheadle, Manchester,

Stanley Green Trading Estate

Sector Value

Portfoliovalue

Industrial £45.0m 9.5%

Chippenham,

Langley Park Industrial Estate

Sector Value

Portfoliovalue

Industrial £25.6m 5.4%

Leeds,

Headingley Central

Sector Value

Portfoliovalue

Hotel/retail £22.3m 4.7%

Birkenhead,

Valley Business Park

Sector Value

Portfoliovalue

Industrial £13.5m 2.8%

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83.9%duetorounding.

14 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Sector weighting by value as at 31March 2026

SREIT

MSCI

Benchmark

SouthEast 11.6% 20.0%

RestofUK 41.1% 12.6%

Industrial 52.7% 32.6%

City - 3.6%

Mid-townandWestEnd 8.0% 7.4%

RestofSouthEast 3.1% 5.0%

RestofUK 11.3% 6.0%

Offices 22.3% 22.0%

Retail warehouse 13.3% 10.0%

SouthEast - 7.2%

RestofUK 6.0% 2.7%

Standard retail 6.0% 9.9%

Standard retail by ancillary/single use

- Retail ancillary to main use 4.2% -

- Retail single use 1.8% -

Other 5.6% 20.1%

Shopping centres - 2.1%

Unattributed indirects - 3.4%

Regional weighting by value as at 31 March 2026

SREIT

MSCI

Benchmark

CentralLondon 8.0% 17.2%

SouthEastexcludingCentralLondon 17.0% 36.3%

RestofSouth 12.0% 6.6%

MidlandsandWales 21.2% 22.6%

North 39.3% 13.1%

Scotland 2.5% 4.0%

NorthernIreland - 0.2%

15 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Tenants

Rentalincomeisdiverseandcomprised299tenantsasat31March2026,includingthetenantsofpropertiesheldbyjointventures.

Thelargestandtop15tenantsrepresent8.24%and36.63%oftheportfoliorespectively,calculatedasapercentageofannualrent,

andtherearethreetenantsthatrepresentmorethan3%ofannualrent.

Top 15 tenants by annual rent as at 31 March 2026

Annual rent

(£million)

%oftotal

annual rent

TheUniversityofLawLimited 2.57 8.24

Siemens 1.44 4.62

BuckinghamshireNewUniversity 1.30 4.17

ExpressBiFoldingDoorsLimited 0.90 2.88

VenusHotelsLimited 0.65 2.08

PublicSectorIncome 0.60 1.92

MatalanRetailLtd 0.57 1.83

PremierInnHotelsLtd 0.47 1.51

IXYSUKWestcodeLtd 0.47 1.51

LidlGreatBritainLimited 0.43 1.38

SLRConsultingLtd 0.43 1.38

JaguarLandRover 0.41 1.31

WickesBuildingSuppliesLimited 0.40 1.28

TheGymLimited 0.40 1.28

HazlewoodsManagementServicesLimited 0.39 1.25

Total as at 31 March 2026 11.43 36.63

Rent collection

Thediversificationandgranularityoftheunderlyingrentalincome,andahighlevelofoccupierengagement,hassupportedrent

collectionrateswith98.0%ofthecontractedrentscollectedfortheyearended31March2026.Thebreakdownbetweensectorsis

99.3%ofofficerentcollected,95.8%ofotherrentcollected,98.3%ofretailandleisurerentcollectedand97.5%ofindustrialrent

collected.

Rentreceivabletotalled£2.7million,netofVAT,attheyearend,ofwhich£0.9millionisprovidedagainstasabaddebt.Thisreflects

furtherprogresscollectinghistoricalarrearsduringthefinancialyearandcomparesto£2.4millionand£330,000respectivelyasat

31March2025.

1Columndoesnotsumduetorounding.

16 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Top 15 properties by value

Active asset management

Set out below are examples of

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 2025

Newlettings,renewalsandrentreviews

596,000 sq ft

Across596,000sqft

£6.3m

Totalling£6.3millioninannualisedrentalincome

New lettings

Across31units

£3.0m

Totalling£3.0millionofrent

Lease renewals

25leaserenewals

£1.9m

Totalling£1.9millionofrent

24%

£366,000or24%aheadofthepreviouspassinglevel

£65,000or4%aheadof31March2025ERV

Rent reviews

15rentreviews

£1.4m

Totalling£1.4millionofrent

23%

£267,000or23%aheadofthepreviouspassinglevel

17 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Stanley Green Trading Estate

18 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Location Cheadle, Manchester

Purpose Industrial

Valuation(£m) 45.0

Squarefootage 226,899

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developedan11-unit,warehousescheme

onthesiteatacostof£9.0million.Theassetnowcomprises

226,899sqftoftradecounter,self-storageandwarehouse

accommodationacross25unitsandisfullylet.

Asat31March2026thevaluationwas£45.0million,reflecting

anetinitialyieldof4.5%andareversionaryyieldof6.3%.The

assethasbeenastrongperformersinceacquisitionin2020,

generatingatotalreturnof14.6%perannumto31March2026

comparedtotheMSCIAllIndustrialoverthesameperiodof

7.9%perannum.

Key activity

— Anew10-yearleasecompletedwithABBLimited(‘ABB’)

atarentof£252,250perannumor£15.50persqftfor

the16,274sqftnewlycompletedunit.ABBarealarge

manufacturingbusinesswhowillusethepropertyfor

electrificationandautomationengineering.Thereisa

rentreviewonthefifthanniversarytothehigherofopen

marketrentalvalueortheConsumerPriceIndex(‘CPI’)

compoundedannuallywithacapandcollarat4%and

2%perannumrespectively.Thetenantbenefitsfrom

16monthsofrentfreeandabreakoptionatthefifth

anniversary,subjecttoaneight-monthrentpenalty.

— Theoriginalestateisundergoingaphasedrefurbishment

toimprovefinancialandsustainabilityperformance.This

isdrivingrentalgrowth,includinganew5-yearleaseto

RealEarthLtdatarentof£107,968perannumor£14.00

persqftfora7,712sqftunit,anincreaseof8%onthe

previouspassingrent.Anoutstandingrentreviewfrom

20September2022hascompletedwithHowdenJoinery

PropertiesLimitedat£115,150perannumor£11.50per

sqftfora10,014sqftunit,anincreaseof28%onthe

previouspassingrent,andaregearisinnegotiationto

extendtheleaseandincreasetherent.

Stanley Green Trading Estate

Strategy looking forward

Thisisacompellingcasestudyforthegreenpremiumand

ourstrategy.Forexample,a4,000sqftunitontheexisting

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

comparableunitswithEPC‘A+’havebeenletataround

£19.50persqft,reflectinga39%premium.

Followingthesuccessnotedinkeyactivity,continue

toincreasetherentaltoneofthepre-existing150,000

sqftestatethroughrentreviewsandregears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

19 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Millshaw Park Industrial Estate

20 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Location Leeds

Purpose Industrial

Valuation(£m) 52.0

Squarefootage 475,138

Asset overview and performance

MillshawParkIndustrialEstateinLeedswasacquiredinJuly

2015for£22.7million.The475,138sqftmulti-letindustrial

estatecomprises30unitsandisstrategicallylocatedsouth

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

Itcovers28.7acresandhassignificantfrontagetotheA6110

ringroad.Theestateisoneofthelargestindustrialestates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2026,theassetwasvaluedat£52.0million,

reflectinganetinitialyieldof4.9%andareversionaryyieldof

7.1%.Theassethasbeenastrongperformersinceacquisition,

generatingatotalreturnof12.1%perannumto31March

2026comparedtotheMSCIAllIndustrialoverthesameperiod

of9.5%.

Key activity

— Exchangedanagreementforleaseona51,707sqftunit

withSlazengerPadelClubs,fora15-yeartermwithout

breaksatarentof£465,363perannumor£9.00persq

ft.Thisisanincreaseof86%comparedtotheprevious

passingrentandfollowsa£1.9millionrefurbishmentto

enhancethesustainabilitycredentialsoftheunit,which

hasachievedanincreasetoanEPC‘A’ratingfromthe

previous‘C’.Similarsizeun-refurbishedunitsarecurrently

letataround£6.50persqft,providingrentalgrowth

potential.Sportsdirect.comRetailLimitedguarantees

thetenant’sobligationsforthefirstfiveyearsoftheterm

andcompletionissubjecttoplanningwhichisexpected

imminently.

— TwonewlettingswithBunzlUKLimitedandSterlingEvent

GroupLimitedcompletedon5,500sqftunitsforfive-year

termswithabreakonthethirdanniversary.Thecombined

rentis£116,000perannumor£10.50persqftwhichisin

linewiththeERVattheyear-end.

— Five-yearrenewalwithLeedsParcelCompanyLimitedona

23,687sqftunitat£206,000perannumor£8.70persqft,

reflectinganincreaseof31%onthepreviousrent.Six-year

renewalwithLeedsSouth&EastFoodBankona4,518sq

ftunitat£47,440or£10.50persqft,reflectinganincrease

of51%onthepreviousrent.

— Fiverentreviewscompletedacross53,000sqftincreasing

rentby26%to£449,000perannum.

Strategy looking forward

Postyearend,theCompanyacquiredthreeadjoining

unitscomprising12,989sqft,for£2.0millionor£152per

sqft.Thepricereflectedanetinitialyieldof6.4%basedon

apassingrentof£135,659perannum,withareversionary

rentof£156,882perannum.Theacquisitionalsoincludes

asmallpieceoflandwiththepotentialtobuildanew

tradecounterunit.Asat30June2026theunaudited

valuationoftheacquiredunitsis£2.1million.

ThewiderLeedsindustrialmarkethasmaintainedalow

vacancyratewhichiscurrently3.6%;thisissignificantly

belowthenationalaverageof5.7%.Thislackofsupply

willsupportcontinuedrentalgrowthasweexecutenew

lettingsandrenewalsacrosstheestate.

Continueimplementing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

21 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

The University of Law

22 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Location London

Purpose University Campus

Valuation(£m) 37.8

Squarefootage 85,814

Asset overview and performance

85,814sqftofeducationalspaceacrosstwofreeholdbuildings

ona0.8-acresitethatarelettoTheUniversityofLawona

leaseexpiringDecember2029.Thebuildingsare400metres

northoftheElizabethlineTottenhamCourtRoadstationandin

anareaofCentralLondonbenefitingfromnewdevelopments

andpublicrealmimprovements.Thelocationattractsadiverse

rangeof‘knowledge-based’occupationaldemandincluding

media,technology,lifescience,consumerbrandsandfinance.

Sitedensityislowandthereisanopportunitytoincreasethe

massing,underpinningthevalueforfutureredevelopment.

Asat31March2026,theCompany’s50%interestintheasset

wasvaluedat£37.8million,reflectingareversionaryyieldof

6.2%,andacapitalvalueequivalentto£881persqft.Since

acquisitioninDecember2014,theassethasgeneratedatotal

returnof4.6%perannumto31March2026comparedtothe

MSCIAllOtheroverthesameperiodof5.0%.

Despitetherecentleaseextensionandimprovementsinthe

location,theassetreducedinvalueby1.8%overthefinancial

year,largelyduetoweakersentimenttowardsoffices.

Key activity

— Followingaleaseregear,thetenantrentfreeperiod

endedon16October2025andtheyarenowpayinga

rentof£2.4millionperannum(£55persqftfor100%)

reflectinganetinitialyieldof5.8%.Therearefixeduplifts

inthelease,meaningrentwillincreasebyafurther9%

to£2.6millionbyDecember2028,reflectingarunning

yieldof6.4%.TheleaseiscontractedoutoftheLandlord

andTenantAct1954,providingtheCompanywithgreater

flexibilityandcontroloverthepropertyattheendofthe

term.

— Completedaplanningpre-applicationwithCamden

Council(‘Camden’)toestablishprospectsofdelivering

alargelynewbuildscheme,withnotablesustainability

credentials,acrossthesitetoremedyexistingbuilding

constraints,increasemassing,andliftrestrictionsonuse

classtoallowflexibilityofoccupiertype.

— Aconsultantteamwasappointedacrossmultiple

disciplinestoprepareandpresentmaterialsforthe

pre-applicationswithCamden,withfourpre-applications

completedoverafour-monthperiodfromJuneto

September2025.Positivefeedbackreceivedonprinciples

ofdevelopment.

Strategy looking forward

Thereisencouraginginvestmentactivityinthelocalarea,

with101NewCavendishStreetacquiredbyAresand60

GreatPortlandStreetacquiredbyHillcrestduringtheyear.

Inaddition,Camdengrantedplanningpermissionfora

refurbishmentofWhittingtonHousewhichisonthesame

blockasStoreStreetandacomprehensiverefurbishment

andextensionoftheadjacentofficeat7RidgmountStreet.

Leasingactivityinthelocalareacontinuestopushheadline

primerentsupwardsandprovepre-letdemandforgradeA

officespace.Forexample,the135,000sqftredevelopment

byDerwentoftheNetworkBuildingonTottenhamCourt

Roadwaspre-letinitsentiretytotheAIfirmDataBricksand

theentiretyofthe45,000sqftdevelopmentWhiskeySierra,

alsoonTottenhamCourtRoad,waspre-lettoDr.Martens

withrentsachievingapproximately£160persqft.

Monitorlocalrentalandinvestmentmarketandconsider

optimaltimetomarkettheassetforsalewiththesupportof

thepre-applicationtomaximisevalue.

Find out more on our website

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

The University of Law

23 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

City Tower

24 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Location Manchester

Purpose Mixed-use

Valuation(£m) 23.3

Squarefootage 613,333

Asset overview and performance

CityTowercomprises613,333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2026,theCompany’s25%interestintheasset

wasvaluedat£23.3million,reflectinganetinitialyieldof5.9%

(afterdeductingnon-recoverablecosts)andareversionary

yieldof13.2%.Overthethreeyearsto31March2026,the

assetdeliveredanincomereturnof6.1%perannumwhich

comparedwiththeMSCIAllOfficesoverthesameperiodof

4.0%.

Asnotedabove,CityTowerwasthemaindragonreturns

duringthefinancialyear,withthevaluationfallingby18%due

toincreasedvacancy,weaksentimenttowardslargerregional

assets,andsome(albeitstilllimited)transactionalevidence

athigheryields.Whilstimpactedbyweaksentimenttowards

offices,progresswasmadeovertheyearmanagingriskatCity

Towerwithamajorhotelregearandretaillettings.Forcontext,

asummaryofthecomponentpartsofthevaluationasat31

March2026issetoutbelow:

— Office:£48m,51%ofthetotalassetvalue

— Hotel:£26m,27%

— Retail:£17m,18%

— Carparking:£3m,3%

Key activity (statistics below reflect 100% share)

— ThehotelleasewasassignedfromJupiterHotelsLimited

toVenusHotelsLimitedinJanuary2026,withseveral

guarantorssupportingthenewtenant.Theassignment

wassupportedbyacommittedcapitalexpenditure

programmeofapproximately£10million,tobedeployed

bytheendof2026acrossbedroomrefurbishment,

commonareas,meetingrooms,andmechanicaland

engineeringupgrades.Thecommittedinvestment

programmehassinceexpandedmaterially,reflecting

theoperator’sambitiontorepositionthehotelanddrive

averageroomratesfrom£93pernighttoapproximately

£125pernight,anddeliverenhancedlong-termincome

securityandcapitalvalue.

Strategy looking forward

ThestrategicfocusatCityToweristodrivenetoperating

incomethroughachangeinoccupierexperience.Practical

completionofthenew16thfloorHorizonLoungewas

achievedinDecember2025,providingahigh-quality

transitionfloorofferingmeetingrooms,collaborative

space,andhospitality-ledamenity.

Thishasbeencomplementedbytherefreshofthe28th

floorSkyLounge,abest-in-classamenityfloor,completed

earlyin2026.Together,theseinitiativesprovideoccupiers

withon-siteflexibilityandawellbeing-focusedamenity

whichshouldsupporthigherrentalmarginsacrossthe

asset.

Find out more on our website

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

City Tower

25 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Marshall Building (formerly St Ann’s House)

26 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Location Manchester

Purpose Mixed-use

Valuation(£m) 13.6

Squarefootage 47,924

Asset overview and performance

MarshallBuildingisa47,924sqftmixed-useofficeandretail

buildinginManchestercitycentre,prominentlylocatedonSt

Ann’sSquare,neartotheprimeretailcore.StAnn’sSquare

featuresalistedchurch,theRoyalExchangeTheatre,amixof

officeoccupiersandhigh-qualityluxuryretailaswellasleisure

operators.Thebuildingbenefitsfromitsproximitytotwotram

stationsandiscomprisedofretailonthegroundfloor,with

fiveofficefloorsabove.ItwasacquiredinMay2022for£14.7

million.

Asat31March2026,theassetwasvaluedat£13.6million,

reflectinganetinitialyieldof6.6%andareversionaryyieldof

10.4%.SinceacquisitioninMay2022,theassethasgenerated

atotalreturnof-0.1%perannumto31March2026compared

totheMSCIAllOfficeoverthesameperiodof-4.8%.

Key activity

— Anextensiverefurbishmentofthegroundfloor,

basementandcommonareaswithafocusonenhancing

sustainabilityperformanceoftheassethascompleted.

Worksincludeanexpansionofthereceptionhaving

securedgroundfloorspacefromaprevioustenant,anew

entrance,togetherwithanewcyclestoragearea,shower

facilitiesandloungeinthebasementlinkedtothenew

receptionwithmodernfurniture.Theexternalfacade

hasbeenrefreshedwithnewglazingtotherear,andan

upgradetolightingandsignage.Photovoltaicpanelshave

beeninstalledontherooftoenableon-siterenewable

energygeneration.WearetargetinganEPCratingof‘A’.

— CatArefurbishmentofthefifthfloor(topfloor)has

completed,andwearetargetingsecuringarentof

£28persqftgiventhesustainabilityandamenity

improvementsfromthebroaderworks,reflectinga74%

upliftonthepreviouspassingrentonthefloor.

— AleaserenewalcompletedwithVerlingueLtdonaneight

yearlease,atarentof£196,830perannumor£27.00per

sqftforthe7,290sqftunit,anincreaseof64%onthe

previouspassingrent.

— CompletedanewleasewithDavidMRobinsonLimited

(‘DMR’)fortheformerRussell&BromleyLimitedstore.

DMRwillpositionthestoreashighqualityluxuryretail,

sellingjewelleryandwatchesfromfamousSwissbrands.

Therentremainsat£175,000perannumandthetermis

extendedto10yearswithoutbreaksfromsixyears.

Strategy looking forward

Tocomplementtheofficespaceandaddfurtheramenity

fortheoccupiers,secureahigh-qualitycaféoperatorfor

thevacantgroundfloorretailunit.

Letthefifthflooratarentof£142,156perannum,or

£28persqft,orhigher.Thiswouldbeanincreaseof

74%onthepreviouspassingrentandistheresultofthe

improvementtothesustainabilityperformanceofthe

assetthroughtherefurbishmentdescribedabove.

Wearetargetingtotalrentattheassetofapproximately

£1.5milliononcompletionoftherepositioninginfour

years’time;thisis49%higherthanthepassingleveltoday.

Find out more on our website

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

Marshall Building (formerly St Ann’s House)

27 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Headingley Central

28 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Location Leeds

Purpose Hotel/Retail

Valuation(£m) 22.3

Squarefootage 116,007

Asset overview and performance

Mixed-use116,007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.Assetmanagementresultedinalongweighted

averageunexpiredleasetermtoearliestbreakof10.4years.

Asat31March2026,theassetwasvaluedat£22.3million,

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

of8.3%.Overthethreeyearsto31March2026,theasset

deliveredatotalreturnof8.0%perannumwhichcompared

withtheMSCIAllRetailoverthesameperiodof5.4%.

Key activity

— Anew10-yearreversionaryleasewithoutbreakshas

completedonUnits11-16toSainsbury’sSupermarkets

Ltd,commencingon15November2032atarentof

£207,500perannumor£14.14persqftforthe14,674sq

ftunit.Thisextendsthetermto17years.Therearerent

reviewsoncommencementoftheleaseandatthefifth

anniversarytoopenmarketrentalvalue.Thetenantwill

benefitfrom12monthsofrentfreefrom7October2025.

— Anew25-yearlease(breakatyear15)completedonUnit

24toMcDonaldsRestaurantsLimitedwitheffectfrom29

October2025atarentof£75,000perannumor£13.07

persqftforthe5,737sqftunit.Onapersqftbasisthis

isanincreaseof26%comparedtothepreviouspassing

rent.

— Anagreementforleasewitha15-yearterm,without

breaks,hasexchangedonUnit22toTescoStoresLimited

atarentof£115,000perannumor£19.43persqftfor

the5,920sqftunit.Thisisanincreaseof87%compared

tothepreviouspassingrent.Thereisarentreviewon

thefifthandtenthanniversarytoCPIcompounded

annuallywithacapandcollarat3%and1%perannum

respectively.Thetenantbenefitsfromeightmonthsof

rentfreefromleasecompletionandacapitalcontribution

of£300,000.

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an

alternative,complementaryusetotheoverallscheme.A

preapplicationhasbeensubmittedforleisureuse,with

otheroptionsalsobeingconsideredsuchasself-storage.

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.

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

29 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Churchill Way West

30 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Location Salisbury

Purpose Retail Warehouse

Valuation(£m) 13.1

Squarefootage 49,940

Asset overview and performance

49,940sqft,three-unit,retailwarehouseterraceina

prominentlocationonSalisbury’snorthernringroad.The

propertyadjoinsaWaitrosefoodandhomestore.Theproperty

wasformerlylettoSmythsToys(Unit1),Homesense(Unit2),

andSportsDirect(Unit3),payingacombinedrentof£645,000

perannum,oranaveragerentof£12.90persqft.Theleases

toSmythsToysandHomesensewereruntoexpiryinearly

2025tofacilitateanassetmanagementinitiativetoenhance

thesustainabilitycredentialsoftheassetandbringLidlGreat

BritainLimited(‘Lidl’)tothescheme.

TodelivertheLidllettinga£1.5millionrefurbishmentwas

implementedtoreconfiguretheunitsandenhancethe

sustainabilitycredentialsoftheasset,Lidlwererequiredto

installphotovoltaicpanelstotheroof,withtheEPCfortheir

unitimprovingtoan‘A+’ratingfroma‘D’.

TheleasetoLidl,whoarepaying£440,000perannum

or£19.61persqftona25-yearlease(breakatyear20),

completedon27February2026.Lidlreceivedfourmonths

ofrentfree,andtheleasehasfiveyearlyrentreviewstothe

ConsumerPricesIndexincludingowneroccupiers’housing

costs(‘CPIH’)plus1%compoundedannually,withacapand

collarat3%and1%perannumrespectively.

Asat31March2026,theassetwasvaluedat£13.1million,

reflectingareversionaryyieldof6.8%.Overthethreeyearsto

31March2026,theassethasgeneratedatotalreturnof13.7%

perannumcomparedtotheMSCIAllRetailWarehouseover

thesameperiodof6.8%.

Key activity

— ExchangedanagreementforleaseonUnit2withThe

GymLimited,fora15-yeartermwithoutbreaksatarent

of£155,000perannum,or£20.57persqft.Therewillbe

five-yearlyrentreviewstoCPIcompoundedannuallywith

acapandcollarat3%and1%perannumrespectively.

Completionissubjecttolandlordworks.

— CombinedwiththeLidllettingthisreflectsanincreaseof

68%comparedtothepreviouspassingrentforthetwo

units.

Strategy looking forward

Assumingtheaboveactivityproceedsasplanned,the

combinednewrentatChurchillWayWest,Salisburywillbe

approximately£885,000perannumor£17.72persqft,a

37%increaseonthecontractedrentreceivedpriortothe

initiatives.

Ofthat£885,000annualrent,Sportsdirect.comRetail

Ltdarepaying£290,000,or£14.52persqftonUnit3.

Thestrategywillbetousetherecentevidencedescribed

aboveatapproximately£20persqft,tomaterially

increasetherentonreviewin2028.

Find out more on our website

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

Churchill Way West

31 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

Disposals

TheCompanycontinuestoprogressdisposalsofsmaller

assetsoncompletionofassetmanagementorwherethereare

concernsregardingfutureperformance.Disposalproceeds

willinitiallybeusedtorepaytheunhedgedelementofthe

Company’srevolvingcreditfacilitywhichincurredaninterest

rateof5.4%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%.

Thetablebelowsummarisesthedisposalsmadeduring

theyear.Furthersmalldisposalsarebeingprogressedon

completionofassetmanagementinitiatives.

Asset Sector

Completion

date

Sale price

£m

Net initial

yield

Book value as

at 31 March

2025

£m

Premium /

(Discount)

Truro,15/16KingStreet Retail 12/05/2025 1.3 8.0% 1.1 14%

Leicester,12/14EastGates Retail 23/07/2025 1.0 10.0% 0.9 11%

Chelmsford,67/68HighStreet Retail 07/08/2025 2.1 7.9% 2.1 (2%)

Marlow,PacificHouse Office 21/10/2025 1.7 -% 1.5 11%

Haydock,HaydockIndustrialEstate Industrial 28/11/2025 4.5 7.1% 4.3 5%

Liverpool,88-94ChurchStreet

Office/Retail 27/02/2026

3.2

8.3% 4.9

(34%)

Total 13.7 14.8 (7%)

Transactions

32 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Investment Manager’s report continued

86% of total drawn debt was either

fixed or hedged against movements

in interest rates

Average drawn debt term

Years 7.4

Average interest rate for

drawn debt% 3.4

Asat31March2026,theaverageinterestratefordrawndebt

was3.4%,withanaveragetermof7.4years,and86%oftotal

drawndebtwaseitherfixedorhedgedagainstmovementsin

interestrates.TheCompanyhadcash,includingcashheldin

jointventures,of£11.4millionandanetloantovalue(‘LTV’)

ratioof36.8%,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

£186.1milliontotalborrowingsattheyearend,hasanaverage

loanmaturityof10.0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£19.0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10.0

years

2.5

273.2

3.8

46.1

585

185

451

185

— NetLTVonthesecuredassetsagainstthisloanis46.1%.OnthisbasisthepropertieschargedtoCanadaLifecouldfallinvalue

by29%priortothe65%LTVcovenantbeingbreached;

— Theinterestcoverratiois585%basedonactualnetrentsforthequarterto31March2026.A68%fallinnetincomecouldbe

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

— Theprojectedinterestcoverratiois451%basedonprojectednetrentsfortheyearended31March2027.A59%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42%and65%

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£56.5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 75.0/56.5 06/06/2027 5.4 163.7 34.5 60 236 200

— TheRCFbenefitsfromaninterestrate‘collar’whichappliesto£30.5millionofthe£56.5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34.5%.OnthisbasisthepropertieschargedtoRBSIcouldfallinvalueby

42%priortothe60%LTVcovenantbeingbreached;

— Theprojectedinterestcoverratiois236%basedonprojectednetrentsfortheyearended31March2027.A15%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63%and36%

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

Balance sheet

33 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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.

— Fortheyearended31March2026weachievedtwoofthe

KPIsandthereforeareductioninthemarginof3.3basis

points.Furtherdetailsareinthesustainabilityreport.

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2026.

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2026fromatotalavailablefacilityof£75.0million.

6 Totalinterestrateasat31March2026comprisingapplicableSONIArateof3.76%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

Despiteuncertaintyaroundthecostofenergyandtheimpactoninflation,persistentconstructioncostinflationmeanswe

expectacontinuedshortageofgoodqualityspace.Thisshouldleadtosustainedrentalgrowthfornewdevelopmentsand

existingassetsthatcanberepositionedtocaptureoccupationaldemand,particularlyinthemorestructurallysupported

sectorssuchasmulti-letindustrial,retailwarehousingandcertainalternativesectors.

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.

Nick Montgomery and Bradley Biggins

Schroders Capital

9July2026

34 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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

16%

Reductioninassociatedoperationalscope1and2GHG

emissions

(CY25vsCY24)

EPRA sBPR Awards for Sustainability Reporting

Gold

AchievedGoldAwardfortheeighthconsecutiveyear

Increasing no. assets with on-site renewables

AssetswithsolarPVinstalled(FY25:7assets)

Improve Global Real Estate Sustainability Benchmark

(‘GRESB’)

rating*

Increasedscoreto80outof100(2024:79)

1st

1stinGRESBdefinedPeerGroup

of6(2024:2ndof7)

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

(FY25:100%)

100%

EPCcoverage

(FY25:99%)

31%

EPCsratedBorabove

(FY25:24%)

65%

EPCsratedCorabove

(FY25:59%)

Notes:

Alldataisreportedat31March2026unlessotherwisestated.Wheremoreaccurateinformationhasbecomeavailable,previousperiodperformancehasbeenrestated.

*GRESBresultsissuedOctober2025andrelatetodataprovidedfor2024calendaryear.

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 GlobalRealEstateSustainabilityBenchmark(GRESB)RatingisanoverallmeasureofhowwellESGissuesareintegratedintothemanagementandpracticesofindividual

assetsandportfoliosbasedonself-reporteddata.Theratingiscalculatedrelativetotheglobalperformanceofallreportingentities.Formoreinformation,pleasevisit

https://www.gresb.com/nlen/.AllintellectualpropertyrightstothisdatabelongexclusivelytoGRESBB.V.Allrightsreserved.GRESBB.V.hasnoliabilitytoanyperson

(includinganaturalperson,corporateorunincorporatedbody)foranylosses,damages,costs,expensesorotherliabilitiessufferedasaresultofanyuseoforreliance

onanyoftheinformationwhichmaybeattributedtoit.

3 TheCompany’spre-definedGRESBpeergroupforthe2025submissionisNorthernEurope:Diversified:Listed.

4 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.

TheremainingfootprintwithoutEPCs(0.2%byNLA)relatestospacewhereEPCsarenotmandatory.PleasenotethattheCompanyremainscompliantwithMEESregulations.

35 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report

36 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Sustainability report continued

Strategic evolution and changes to the investment

objective and policy

AttheCompany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(‘NZC’)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two

sustainability-relatedKPIsdefinedintheinvestmentpolicy

andsetoutinthetablebelow.Inrespectoftheyearended

31March2026thisreviewwasundertakenbytheManagement

EngagementCommitteeinMay2026.

TheManageralsoobtainedindependentreviewofthe

performanceoftwoassetsbytheCompany’sauditor,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)

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2026,83%ofportfolioassetsbyvalue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is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calculationofaweighted

averageassetlevelcurrentandtargetscore–between1and5.

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eachassetbusinessplan.

Asat31March2026,fiveassets–MillshawParkIndustrial

EstateinLeeds,CityTowerinManchester,MarshallBuildingin

Manchester,ChurchillWayWestinSalisburyandCliftonParkin

York–alldemonstratedanimprovedscorerelativetothescores

at1April2025.Scoreimprovementswereachievedthrough

activeassetmanagementactivitiesincludingheatingsystemand

lightingupgrades,improvedEPCratings,andtheinstallationof

on-sitesolarphotovoltaic(PV)panels.

37 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Sustainability report continued

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

theCompanytodeliverthetargetedpositivechangeovertime

anddemonstratethattoshareholders.

Table 1: Asset-level ESG Scorecard baseline performance, performance at 31 March 2026 and potential target

score (scores out of 5) for 16 Company assets representing 83% of the property portfolio by Gross Property Value.

Asset

ESG Scorecard score

baseline

ESG Scorecard score

at 1 April 2025*

ESG Scorecard score

at 31 March 2026

Target ESG Score card

score*

StaceyBushesIndustrialEstate,MiltonKeynes 2.2 2.2 2.2 4.0

Millshaw Park Industrial Estate, Leeds* 2.1 2.1 2.3 4.1

StanleyGreenTradingEstate,Cheadle 2.4 3.0 3.0 4.2

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

StJohn’sRetailPark,Bedford 2.7 2.7 2.7 4.2

LangleyPark,Chippenham 2.8 2.8 2.8 4.2

UnionParkIndustrialEstate,Norwich 2.6 2.6 2.6 4.1

City Tower, Manchester (25%) 2.8 2.8 2.9 4.1

HeadingleyCentral,Leeds 2.6 2.6 2.6 4.3

HortonParkIndustrialPark,Telford 2.3 2.3 2.3 3.9

Marshall Building, Manchester** 2.2 2.5 2.5 3.2

Churchill Way West, Salisbury 2.4 2.4 2.6 3.6

TheTun,Edinburgh 2.9 2.9 2.9 4.3

ThePromenade,Cheltenham 2.6 2.6 2.6 3.9

TheGalaxy,Luton 2.5 2.5 2.5 4.2

Clifton Park, York 2.5 2.8 3.0 3.9

Total portfolio 83% of portfolio assessed by Gross Property Value

* WherenewinformationhasbeenmadeavailableresultinginchangestopreviouslycommunicatedESGScorecardscores,thescoreshavebeenupdated.

** MarshallBuildingscoreimprovedfrom2.46to2.51.

*** 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Managerrecognisesitsresponsibilitytosupportthe

transitiontoNetZeroCarbon(NZC)

andalowcarbonsociety

andbelievesthatanactiveapproachtounderstandingand

managingclimaterisksandopportunitiesisfundamentalto

deliveringresilientinvestmentreturns.

In2019TheManagersignedtheBetterBuildingPartnership’s

(BBP)ClimateCommitment

confirmingits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whichin2022announcedits‘PathwaytoNetZero

Carbon’assetoutagainst‘SustainabilityKPI2’above.

Buildingonthe2023baselineassessmentreportedlastyear,

in2025theManagercommissionedastatusupdateusing

2024calendaryearutilitydataandamethodologyaligned

withtheCarbonRiskRealEstateMonitor(CRREM)

to assess

performanceagainsttheCompany’s2023baselineandits

2030and2040whole-buildingenergyuseandGHGemissions

intensitytargetsforstandingrealestateassetsandtheportfolio

inaggregate.

Theportfolio-level2024calendaryearstatusupdatesetoutin

Table2showschangeagainstthe2023baseline,withan18%

reductioninenergyuseintensityanda19%reductioninGHG

emissionsintensity.

6 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

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

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

9 ‘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.

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

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

38 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Sustainability report continued

Thesereportedchangesreflectacombinationoffactors,

includingimprovementsindatacoverageandquality,ongoing

methodologicalrefinements,and,incertaincases,underlying

improvementsinassetperformance.

Duringtheyearended31March2026,theCompanyprogressed

atargetedprogrammeofdecarbonisation-relatedcapital

expenditureacrossseveralassets,deliveringmeasurable

improvementsinsustainabilitycredentials:

— £1.9millionrefurbishmentofUnit22atMillshawPark

IndustrialEstateinLeeds,whichachievedanupgradeinEPC

ratingfrom‘C’to‘A’,supportedbymeasuressuchasheating

systemelectrificationanda50kWproof-mountedsolar

photovoltaic(PV)arrayforcleanenergygeneration.

— AtStanleyGreenTradingEstateinCheadle,phased

refurbishmentworksacrossmultipleunitsdeliveredenergy

andcarbonimprovements,demonstratedbyupgradesto

EPC‘A’or‘B’fromlowerratings.

— AtCliftonParkinYork,wheretherefurbishmentofBlockC

includedinstallationoflow-carboninfrastructure,delivered

animprovementtoanEPC‘A’ratingfrom‘C’.

— AtChurchillWayWestinSalisbury,acomprehensive

reconfigurationandrefurbishmentofUnits1and2

incorporatedmeasuressuchasphotovoltaicpanels,

improvedbuildingfabricandgasremoval,resultinginan

EPC‘A+’ratingforUnit1andtargetingatleasta‘B’forUnit

TheManageriscommittedtoregularlymonitoringand

disclosingperformanceagainsttheNZCtargetsanda2025

calendaryearNZCstatusassessmentwillbepresentedaspartof

the30June2026NAVannouncement.

Table 2: Summary of the Company’s baseline and NZC targets, alongside 2024 calendar year energy use and GHG

intensity status

Baseline (2023)

2024 calendar year

status

% change between

2023 and 2024

calendar years

2030 Target (%

Change required to

reach 2030 target

(from 2024))

2040 Target (%

Change required to

reach 2040 target

(from 2024))

EnergyUseIntensity(kWh/m²) 161.0 131.6 -18%

78.4

(-40%)

55.3

(-58%)

GHGIntensity**(kgCO2e/m²) 29.4 23.8 -19%

13.1

(-45%)

1.1

(-96%)

 Source:Verco,October2025

 Wholebuildingoperationalenergyandgreenhousegasintensityanalysisandtargetshavebeenpreparedwithanindependentthird-partyconsultantusingactual2023–2024calendar

yearutilitydata.Calculationsmayusebenchmarksorestimateswhenasset-leveldataqualityisinsufficient.ThemethodologyappliedwasestablishedforSchrodersCapitaltoenable

extrapolationandtargetsettingatthewhole-buildinglevel.Despiteeffortstoensureaccuracy,resultsareindicativeandsubjecttoassumptionsandlimitations.

 Baseline,current,andtargetintensitiesreflectownership-adjusted,whole-buildingperformanceforfull-yearoccupancy.InterimNZCtargetsrelyon2023baselineassessmentsandmay

changewithimproveddata,portfolioshifts,orupdatestoCRREMmethodologies.GHGintensityincludesfugitiverefrigerantemissionsandcarbonemissionsfromenergyuse(both

landlordandtenantareas).For2024,EVcharging,outdoorconsumption,andprocessloadsareexcludedasperCRREMguidelines.

Our 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invested.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(SDGs):(8)DecentWorkandEconomicGrowth;(13)

ClimateActionand(11)SustainableCitiesandCommunities.

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

ThisreportpresentsourapproachtomanagingESG

considerationsandperformanceagainstoursustainability

objectives.

CasestudieshighlightingESGinpracticeareusedthroughout

anddetailedsustainabilityperformancedataispresentedinthe

EPRAaligned‘SustainabilityPerformanceMeasures(unaudited)’

frompage102.

39 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Sustainability report continued

Protecting our Planet (Environmental)

Performance against objectives from the start of the financial year

Goal FY26 outcome

ProgresstowardstheCompany’sNetZeroCarbon(NZC)commitments

includingNZCby2040

— Theportfolio-level2024calendaryearstatusupdateshowschangeagainst

the2023baseline,withan18%reductioninenergyuseintensityanda19%

reductioninGHGemissionsintensity

— A2025calendaryearstatus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=16%reduction

— Reductionssupportedbycontinuedheatingandcoolingsystem

electrification(e.g.MarshallBuilding,Manchester),alongsidecontinued

decarbonisationoftheUKNationalGridandtheresultantreductioninthe

UKGovernmentGHGconversionfactorforelectricity

— (CalendarYear25vs.CalendarYear24)

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fourassets

increasingthenumberofassetswithsolarPVto11(FY25:7)

— 99%oftheCompany’slandlordprocuredelectricitywasonarenewabletariff

asat31December2025(CalendarYear2024:98%)

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

— 8%reduction

— Reductionsinfluencedbyoccupancylevelsandtheresolutionofidentified

faultsdrivingoverconsumptioninthepreviousyear

— (CalendarYear25vs.CalendarYear24)

Sendzerolandlordwastetolandfillandprioritisewasterecycling

— Zerowastedirectlytolandfill

— 54%ofwastewasrecycledand46%wasincineratedwithenergyrecovery

— (12monthsto31December2025)

Maintain100%MEEScomplianceandimproveproportionofassetswith

EPCratingsBorabove(floorarea)

— EPCcoverage=100%(FY25:99%)

— EPCsaboveBrating=31%(FY25:24%)

— EPCsaboveCrating=65%(FY25:59%)

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third-partyClimate

Xphysicalclimateriskplatform.

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installationofan

apiaryatCityTower.

Note:Alldataisreportedat31March2026unlessotherwisestated.Wheremoreaccurateinformationhasbecomeavailable,previousperiodperformancehasbeenrestated.

TheBoardandManagerconsider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additiontotheinitiativesoutlinedabovewhichsupport

theCompany’sNZCcommitments,theCompanyisalso

includedintheManager’sphysicalclimateriskandresilience

programme,acknowledgingthatunderstandingtheexposure

andresilienceoftheportfolio’srealestateassetstophysical

climaterisks,bothnowandinthefuture,isessentialtoprotect

propertyvalues,income,andensurethesafetyofourbuilding

occupants.PhysicalclimateriskscreeningfortheCompany,

usingtheClimateXSpectraplatform,wasupdatedinQ22025

toincorporatethelatestavailableclimateriskscenariodata.

Theanalysisremainsfocusedonthehighestemissionsclimate

scenariofromtheIPCC(i.e.RCP8.5)uptotheyear2100(at

intervalsof5yearsto2050and10yearsto2100).Theseinsights

willbesupportedbyvulnerabilityandsensitivityassessments

in2026,prioritisingrisksbetween2025-2050,withtheaim

ofidentifyingwheretoprioritiseinvestmentinappropriate

adaptationsolutions,whereconsiderednecessary,toensurewe

continuetodeliverresilientbuildingsandprotectfutureincome

forourinvestors.

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,supportfornaturecontinuedthrough

theactivemanagementoftherooftopapiaryatCityTowerwhich

includesavarietyofpollinatingplants,comprisingflowers,fruits

andherbsthatbloomacrossdifferentseasons,andprovidea

sustainedfoodsourceforlocalwildlife.

12 https://hive.greenfinanceinstitute.com/gfihive/assessing-the-materiality-of%20nature-related-financial-risks-for-the-uk/#:~:text=The%20UK%20is%20one%20of,related%20

financial%20risks%20originate%20overseas.

40 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Sustainability report continued

Supporting people and places (Social)

Performance against objectives from the start of the financial year

Goal FY26 outcome

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

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

completed(FY25:100%).

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

portfolio(FY25:0).

Improveproportionofassetswhereoccupierengagementactivitiesare

implemented

100%ofCompanyassets.(FY25:100%).

Improveproportionofassetswherecommunityengagementactivitiesare

implemented

23%ofCompanyassets(FY25:23%).

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

chargingetc.)facilities

— Activetransportinfrastructureinplacefor24assets(FY25:23assets).

— Supportprovisionofelectricvehiclechargingfor18assets(FY25:18

assets).

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

Managerrecognisesthatthedesignandmanagementofreal

estateplay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moreresilientinvestmentsinthelongrun.

Overthecourseofthereportingyear,theCompanycontinuedto

strengthenengagementwithoccupiersandlocalcommunities

acrosstheportfolio,recognisingtheimportanceofbehavioural

changeindeliveringsustainabilityoutcomes.Initiatives

includedthedistributionofsustainability-focusedoccupier

newslettersandtheuseofdedicatedengagementplatforms,

suchas“Locale”,implementedatassetsincludingCityTower,

Manchester.

Inaddition,assetsacrosstheportfoliowereutilisedtosupport

communityandsocialvalueinitiatives,includingfoodbank

collections,Christmasgiftdonationsfordisadvantagedfamilies,

andbookcollections.Atanassetlevel,occupierengagement

programmesincorporatedarangeofwellbeingandeducational

activities.TheapiaryatCityTowercontinuestoproduce

localhoney,whichisharvestedbyoccupiersandsold,with

allproceedsdonatedtoMustardTree,acharityfocusedon

alleviatingpovertyandpreventinghomelessness.

13 https://centreforlondon.org/reader/act-local/introduction/#the-case-for-neighbourhoods

41 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Sustainability report continued

Responsible Business (Governance)

Performance against objectives from the start of the financial year

Goal FY26 outcome

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

— Maintained3-starstatus.

— Increasedscoreto80outof100(2024:79)

— 1stinpre-definedPeerGroupof6(2024:2ndof7)

— Maintained‘A’ratinginGRESBPublicDisclosure

Increasecoverageofsustainabilityauditsacrossportfolio

— ESGScorecardscompletedfor83%oftheportfoliobyGrossProperty

Value.

— 16assetlevelESGScorecardscompleted(15third-partyaudits;1

internallycompleted)(FY25:16ESGScorecards).

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

acrossportfolio

— 2xnewWiredScorecertificationsand8xnewModeScorecertifications

— 15assetswithsustainabilitycertifications(FY2025:9assetswith

sustainabilitycertifications).

MaintainEPRAGoldAwardforSustainabilityReporting GoldAwardfortheeighthyearrunning.

SustainabilityLinkedLoantiedtoRCFagreedwithRBS 2outof3KPIsachieved.Pleaserefertothesectionbelow.

 Note:Alldataisreportedat31March2026unlessotherwisestated.Wheremoreaccurateinformationhasbecomeavailable,previousperiodperformancehasbeenrestated.*GRESB

resultsissuedOctober2025andrelatetodataprovidedfor2024calendaryear.

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,including

directrealestateassetsheldbytheCompany.Thisprovides

theframeworkforhowsustainabilityprinciplesaremanaged

throughoutitsinvestmentprocess.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2026weachievedtwooftheKPIs

andthereforeareductioninthemarginof3.3basispoints.

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.

6,377,904kWh

(CalendarYear2024)

6,072,408kWh

(CalendarYear2025)

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’.

Nonewdevelopmentsormajor

renovationsduringtheFY25

reportingyear

ComprehensiverefurbishmentofUnit

1atChurchillWayWest,Salisbury,

improvingtheEPCfroma‘D’toan‘A+’

Yes

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

 Note:Alldataisreportedat31March2026unlessotherwisestated.*Wheremoreaccurateinformationhasbecomeavailable,previousperiodperformancehasbeenrestated.

42 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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FinancialConductAuthority(‘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Limited

(SREIM)entity-levelTCFDdisclosureandtheSchrodersPlc

Climatereport2024.Thesereportsprovidedetailsonthe

approachtotheconsiderationofclimate-relatedrisksand

opportunitiesacrossGovernance,Strategy,Riskmanagement

andTargetsacrossSchrodersGroupandSchrodersCapital

realestate.Therelevantclimaterelatedfinancialdisclosures

arepublishedat:https://www.schroders.com/en-gb/uk/

institutional/funds-and-strategies/tcfd-entity-and-product-

reports/

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

Schroders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:www.

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

do/sustainable-investing/our-sustainable-investment-

policiesdisclosures-voting-reports/industry-involvement/,and

compliancewithUNPRIisavailablehere:www.schroders.

com/en-gb/uk/institutional/what-we-do/sustainableinvesting/

our-sustainable-investment-policies-disclosuresvoting-reports/

disclosures-and-statements/the-un-principles-forresponsible-

investment/.

TheManagerisanactivemember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ten

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.

TheManagerispartofSchrodersplcwhosestatement

onSlaveryandHumanTraffickinghasbeenpublishedin

accordancewiththeModernSlaveryAct2015.Schroders’latest

ModernSlaveryStatementcanbefoundhere:https://mybrand.

schroders.com/m/24e94f0b1010267b/original/Schroders-

Modern-Slavery-Statement-2024.pdf

Further details of Schroders’ Slavery and Human Trafficking

Statement

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

slavery-and-human-trafficking-statement/.

43 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Business model

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FCA

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and

theAuthorisedClosed-EndedInvestmentSchemesRulesand

Guidance,2021,asamendedfromtimetotime.

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metrics).

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.

44 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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’.

45 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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(the“UKCode”)andtheAICCodeof

CorporateGovernance(the“AICCode”)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.Duringtheyear,theBoard

ofDirectorsengagedwithanumberofmajorshareholders,

andtooktheirviewsintoaccountaspartofdecision-making.

Priortoandduringtheprocessfortheproposedofferfor

PictonPropertyIncomeLimited(“Picton”)byLondonMetric

PropertyPlc(“LMP”)andtheCompany,theBoardofDirectors

engagedwithanumberofmajorshareholders,andtooktheir

viewsintoaccountaspartofdecision-making.

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,

Valuers,andLenders.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43.

46 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Principal risks and uncertainties

Strategic report

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whilst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:

Access to capital

Key risks

ApersistentlyhighdiscountinsharepricerelativetoNAV

resultinginaninabilitytoraisenewequitycapitalandgrow,

preventingthecompanyfromachievingeconomiesofscale.

ThiscouldleadtoactivistpressureandtheCompanybecoming

atargetforopportunists.

Mitigation of risk

– TheInvestmentManagerandbrokermonitorandreview

marketsentiment.Announcementsarereleasedtothe

marketwithkeyandtimelyinformation.

– TheCompanyactivelyreachesouttoretailinvestorsand

theco-managersregularlyengagewithshareholders

througheventssuchasInvestorMeetCompanywebinars.

Since2023,theshareofownershipbyadviserandretail

platformshasgrownfrom23%to38%.

– 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.

– TheBoardregularlyengageswithmajorshareholders

andtakestheirviewintoaccountindecision-making.The

recentofferforPictonisevidenceofthis.

– TheBoardregularlyreviewstheCompany’sinvestment

objectiveandstrategyandconsidersalternativecoursesof

actiontoreducethesharepricediscount,suchasareturn

ofcapitaltoinvestors.

– TheInvestmentManagerworkswiththeCompany’s

broker,Schrodersdistributionandexternaldistribution

supporttopromotetheCompany.

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.

Investment 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.

47 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Strategic report — Principal risks and uncertainties continued

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reviewedthe

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

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

inMay2026.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.

Valuation/liquidity

Key risks

Propertyvaluationsareinherentlysubjectiveanduncertain.

Thisuncertaintyisheightenedbymarketuncertaintyduetothe

warsinUkraineandtheMiddleEast,leadingtohighinflation

andthemarketexpectinghigher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.

48 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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providedbythe

fundaccountantstoensurefinancialdataiscompleteand

accurate.

AninternalcontrolsreviewisperformedbyErnst&Young

(“EYorthe“Auditor”)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

FCA,theGuernseyFinancialServicesCommissionandtheUK

REITregulationstomaintaintheCompany’sREITstatusfortax

purposes.

49 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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90to93.

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.

Asat31March2026,theCompany’sprincipalborrowingswith

CanadaLifeareforaweighteddurationof10.0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46to48,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46to48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

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2026,propertyvaluationswouldhave

tofallby29%beforetherelevantCanadaLifeLoantoValue

covenantswerebreached,andactualnetrentalincomewould

needtofallby68%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42%,priortothe60%LTVcovenantbeingbreached,

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

2026,a15%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29%/42%declinesinproperty

valuationsand68%/15%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£18.5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.

Managementareprogressingdiscussionswithlendersto

explorerefinancingopportunities.

50 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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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47.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49.

TheDirectorshavenotidentifiedanymatterswhichwould

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

goingconcernforaperiodofatleast12monthsfromthedate

theAnnualreportandconsolidatedfinancialstatementsare

approvedandhavesatisfiedthemselvesthattheGrouphas

adequateresourcestocontinueinoperationalexistencefor

thisperiod.

Afterdueconsideration,theBoardbelievesthatitis

appropriatetoadoptthegoingconcernbasisinpreparingthe

financialstatements.

Impact of the proposed acquisition of Picton Property

Income Limited

On12May2026,SREITannouncedanindicativeall-shareoffer

underRule2.4oftheCityCodeonTakeoversandMergersfor

PictonPropertyIncomeLimited,tobeundertakenalongside

LMP.Undertheproposedtransaction,SREITwouldacquire

approximately54%ofPicton’sportfolio,fundedthroughthe

issueofnewSREITshares.Thetransactionremainsindicative

andnon-bindingasatthedateofapprovalofthesefinancial

statements,andissubjecttoanumberofpre-conditions,

includingthepublicationofafirmofferannouncement

underRule2.7oftheCityCode,confirmatoryduediligence,

lenderconsents,andBoardapprovals.Accordingly,thereis

nocertaintyatthisstagethatthetransactionwillproceedto

completion.

Notwithstandingthis,theBoardhasalsoreviewedforecastsof

liquidity,cashflowandcovenantcomplianceforthecombined

group,assumingcompletionofthetransactionandthe

assumptionofPicton’sexistingdebtfacilities.Underbotha

basecaseandasevere-but-plausibledownsidescenario,the

combinedgroupwouldmaintainpositivecashbalances,retain

significantundrawncommittedfacilityheadroom,andremain

comfortablywithincovenantthresholdsthroughoutthegoing

concernperiod.

Basedontheiranalysisonacombinedgroupbasis,the

Directorsaresatisfiedthatthereisareasonableexpectation

thattheGroupwouldcontinuetobeabletomeetitsongoing

andfuturecommitmentsforatleast12monthsfromthedate

ofapprovaloftheconsolidatedfinancialstatementsassuming

completionofthetransaction.Thegoingconcernconclusion

isnotreliantonthetransactioncompleting,asthestandalone

SREITanalysissetoutabovealsosupportsthegoingconcern

basis.

ByorderoftheBoard

Alastair Hughes

Chair

9July2026

51 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Governance report

51 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

52 BoardofDirectors

53 ReportoftheDirectors

55 Corporategovernance

58 AuditCommitteereport

60 ManagementEngagementCommitteereport

61 NominationCommitteereport

62 Directors’remunerationreport

64 StatementofDirectors’responsibilities

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

SchroderRealEstateInvestmentTrustLimited

Governance report

52 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Governance report

Board of Directors

Alastair Hughes Priscilla Davies Alexandra Innes Sanjay Patel

Status:

IndependentNon-Executive

ChairandchairoftheNomination

Committee

Status:

SeniorIndependentDirectorand

Chair-elect

Status:

ChairoftheManagement

EngagementCommitteeandinterim

chairoftheNomination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.Alastair

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.

HavingservedasaDirectorfor

nineyears,Alastairwillnotseekre-

electionattheforthcomingAGM,in

accordancewiththeAICCode.

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.

Priscillaiscurrentlya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

andnon-executivedirectorandchair

atUBSAssetManagementUKLtd.

Priscilla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Ltdand

CTHealthcareTrustplc,andSenior

IndependentDirectoratSTSGlobal

IncomeandGrowthTrustplcand

FacilitiesbyADFplc.

Alexandra’spriorboardrolesinclude

KnightFrankLLP,DowlaisGroupplc,

andtheAllEnglandLawnTennisClub

(Championships).

AlexandraisamemberoftheProperty

BoardandFinanceCommitteeatthe

UniversityofCambridge,aswellasthe

GlobalAdvisoryBoardatCambridge

InstituteforSustainabilityLeadership.

AlexandraholdsanM.A.Hons

EconomicsfromCambridgeUniversity,

isaCharteredMemberoftheCISI

(MCSI),andaFellowofChapterZero.

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 per annum*:

£62,000 per annum

Current remuneration per annum*:

£45,000 per annum

Current remuneration per annum*:

£45,000 per annum

Current remuneration per annum*:

£48,000 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

expertiseinalternativeinvestments

andsustainability.

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.

*Asatthedateofthereport,pleaseseetheDirectors’remunerationreportforfurtherdetails.

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.

53 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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 2026 (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2025 30June2025 0.897pencepershare

30June2025 29August2025 0.897pencepershare

30September2025 19December2025 0.897pencepershare

31December2025 27March2026 0.897pencepershare

TheCompanydeclaredadividendfortheyearended31March

2026of0.897pencepersharewhichwaspaidon26June

2026.Thedividendof0.897ppswaswhollydesignatedasan

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

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

fullPIDs.

Share capital

Asat31March2026theCompanyhad565,664,749(2025:

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

ordinaryshareswereheldintreasury(2025:76,554,173)

(representing13.5%oftheCompany’stotalissuedshare

capital).ThetotalnumberofvotingrightsoftheCompany

was489,110,576attheyearend(2026: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

2026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which

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

TheInvestmentManagerreceivedamanagementfeepayable

monthlyinarrears.

Uptoandincluding30September2025,themanagement

feewascalculatedbyreferencetotheCompany’sNAVat

thefollowingannualrates: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.

Witheffectfrom1October2025,themanagementfeeis

payablemonthlyinarrearsinpoundssterlingandiscalculated

byreferencetotheCompany’sQuarterlyNAVandMarket

Capitalisationastheaggregateof:

-0.9%perannuminrespectofthefirst£500million(Tier1),

beingthesumof(i)onetwelfthof0.9%of50%oftheTier

1QuarterlyNAVand(ii)onetwelfthof0.9%of50%ofthe

lowerof(a)theTier1QuarterlyNAVand(b)theTier1Market

Capitalisation;

-wheretheQuarterlyNAVisgreaterthan£500million,0.8%

perannuminrespectoftheamountbetween£500millionand

£1billion(Tier2),beingthesumof(i)onetwelfthof0.8%of

50%oftheTier2QuarterlyNAVand(ii)onetwelfthof0.8%of

50%ofthelowerof(a)theTier2QuarterlyNAVand(b)theTier

2MarketCapitalisation;and

-wheretheQuarterlyNAVisgreaterthan£1billion,0.7%per

annuminrespectoftheamountover£1billion(Tier3),being

thesumof(i)onetwelfthof0.7%of50%oftheTier3Quarterly

NAVand(ii)onetwelfthof0.7%of50%ofthelowerof(a)the

Tier3QuarterlyNAVand(b)theTier3MarketCapitalisation.

Whilstthereisnoperformancefee,thereisapotentialincrease

ordecreaseinthemanagementfeespayabletotheInvestment

ManageroffivebasispointsofNAVperannum,dependenton

both(i)deliveryofthesustainabilityKPItargetsintherevised

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

anincomereturnaheadoftheMSCIBenchmark.

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.

InFebruary2026,itwasannouncedthatSchrodershadagreed

thetermsofarecommendedall-cashofferbyNuveen,which

inAprilwasstronglyapprovedbySchrodersshareholders.The

transactionisscheduledtocompletelaterintheyearfollowing

regulatoryapprovals.

54 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Governance report — Report of the Directors continued

Administration

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

AIFM,isCompanySecretarytotheCompany.LanghamHall

(Guernsey)LimitedwasappointedastheCompanySecretary

totheGroup’ssubsidiaries,andasDesignatedManager.

LanghamHallUKDepositaryLLPistheCompany’sDepositary.

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FCA’s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

2026.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 (%)

LondonMetricPropertyplc 54,041,418 11.1

Schrodersplc 48,887,423 10.0

PremierFundManagers

Limited 41,680,575 8.0

EmbarkInvestment

Services(UK) 34,207,624 7.0

Independent Auditor

Resolutionstoreappoint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AGMofthe

Company.TheAuditCommittee’sevaluationoftheAuditoris

describedintheAuditCommitteeReportonpage58.

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is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(‘PIDs’).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 for the year to

31 December 2025

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/

55 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Corporate Governance

Governance report

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(‘UKCode’)ortheAssociationofInvestment

CompaniesCodeofCorporateGovernance(‘AICCode’)are

deemedtomeettheCode,andneedtakenofurtheraction.

TheBoardhasconsideredtheprinciplesandrecommendations

oftheAICCode,withtheexceptionofProvision34,which

isapplicableforaccountingperiodsbeginningonorafter1

January2026.TheAICCodeaddressesalltheprinciplessetout

intheUK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Code,exceptas

setoutbelow.

TheUK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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2026,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

performswellacrossallareasandhastherelevantskills,

knowledge,andexperienceasawhole.

56 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Governance report — Corporate governance continued

Non-executive Directors, rotation of Directors and

Directors’ tenure

TheUK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.Accordingly,

followingnineyearsofserviceontheBoard,AlastairHughes

willnotseekre-electionattheforthcomingAGM.

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52

ofthereport.TheBoardconsiderseachoftheDirectorstobe

independent.Asat31March2026,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Company’s

recruitmentprocess.

ThebelowtablessetoutthegenderandethnicdiversitycompositionoftheBoardasat31March2026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eachoftheDirectorsstandingforre-electionatthe

forthcomingAGM.TheBoardalsoconsidersthediversityand

inclusionpoliciesofitskeyserviceproviders.

57 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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 3/3 1/1 1/1

PriscillaDavies 4/4 3/3 1/1 1/1

AlexandraInnes 4/4 3/3 1/1 1/1

SanjayPatel 4/4 3/3 1/1 1/1

Inadditiontopre-scheduledmeetings,duringtheyear,theBoardhadheldeightadditionalBoardmeetingsrelatedtothe

proposedacquisitionofPicton.Followingtheyearend,theBoardhasheld13additionalmeetingsrelatedtotheproposed

acquisitionofPicton.TheNominationCommitteehasheldtwoadditionalmeetingstoconsidersuccessionplanningfortheBoard.

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AGM,duetobeheldat3.00pm

on22September2026,providesanappropriateforumfor

investorstocommunicatewiththeBoardandencourages

investorstoattend.TheNoticeofthenextAGMcanbefound

onpage127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UKLR6.6.1issetout.TheBoardconfirmsthatthere

arenodisclosurestobemadeinthisregard.

58 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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three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frameworkofinternal

control;

― ThemanagementrepresentationlettertotheAuditor;

― TheexternalAuditor’stermsofengagement,auditplan,

andauditfindingsreport;

― Theindependence,effectivenessandobjectivityofthe

externalAuditor;

― TheindependenceoftheCompany’sValuers;and

― TheriskassessmentoftheCompany.

ToreviewthereportedKPIsusedtomeasuretheperformance

oftheInvestmentManageronitsexecutionofthebrown

togreenstrategy,EYwereagainengagedtoindependently

reperformtheperformanceoftwoassetsviaanISRS4400

(Revised)‘AgreedUponProcedures’(AUP)engagementwitha

finalreportissuedinMay2026.Thefullreportcanbefoundon

theCompany’swebsite.

AsnotedintheCorporateGovernancereport,anevaluation

ofthecommitteeswasconductedbytheDirectorsinMarch

2026,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 controls

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

frameworkofinternalcontrolsissubstantiallyreliantonthe

internalcontrols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.

TosupportthisreviewtheCommitteemetwithkey

stakeholders,includingthein-houseRiskandInformation

SecurityteamsoftheInvestmentManager,aswellasthe

outsourcedaccountingproviderCBREandtheDepositary,and

reviewedexternallypreparedcontrols’reportsofkeyservice

providerstotheCompanyincludingthoseoftheInvestment

Manager,Depositary,GuernseyAdministrator,Property

Manager,andtheValuer.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regularly

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,anditsmaterialcontrols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.

Significant matters considered by the Audit Committee

in relation to the financial statements

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warsinUkraineand

theMiddleEast,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

49to50,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will

beviableandisagoingconcern

overrelevantperiods.

59 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Governance report — Audit Committee report continued

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.

Proposed acquisition of Picton

Matter Action

Considerationoftheproposed

acquisitionofPictonbyLMPandthe

CompanyontheCompany’sgoing

concernassessment.

AsdisclosedintheGoing

ConcernandViabilityStatements

onpages49to50,theAudit

Committeehasreviewed

forecastsofliquidity,cashflow

andcovenantcompliancefor

thecombinedgroup,assuming

completionofthetransaction

andtheassumptionofPicton’s

existingdebtfacilities.Underboth

abasecaseandasevere-but-

plausibledownsidescenario,the

combinedgroupwouldmaintain

positivecashbalances,retain

significantundrawncommitted

facilityheadroom,andremain

comfortablywithincovenant

thresholdsthroughoutthegoing

concernperiod.

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February

2026,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’s 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AGM.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.

£20,000foranon-auditservicewaspaidtoEYinrelationtothe

AgreedUponProcedures(‘AUP’)exercisefortheyearended

31March2026.

Sanjay Patel

Chair of the Audit Committee

9July2026

60 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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;

― ThattheInvestmentManagershouldbeawardedthe

additionalmanagementfeeformeetingsustainabilityKPIs

alongsidedeliveryofanincomereturnaheadoftheMSCI

benchmark;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.

Wewerepleasedtoannouncethemanagerfeechangeeffective1

October2025,linking50%ofthefeetomarketcapitalisation,and50%to

theCompany’sNAV.Thisresultedinafeereductionandservestoalign

thefeewithshareholderreturns.

Theongoingchargesratioof1.31%comparesfavourablywithpeersand

hasbeensupportedbytheclosecontrolofexpenses.

WerecommendedthattheInvestmentManagershouldbeawardedthe

additionalmanagementfeeoffivebasispointsperannumformeeting

sustainabilityKPIsalongsidedeliveryofanincomereturnaheadof

theMSCIbenchmark.Inturn,wearepleasedtoreportabasispoint

reductioninthesustainabilitylinkedloaninterestpaid,asthemanager

mettwoofthethreerelevantsustainabilitymetrics.

Application during the year (continued)

TheManagementEngagementCommitteealsoreviewedtheterms

oftheInvestmentManagementAgreementandrecommended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.

InFebruary2026itwasannouncedthatSchrodershadagreedtheterms

ofarecommendedall-cashofferbyNuveen,whichhassubsequently

beenapprovedbySchrodersshareholders.Thistransaction,whichis

scheduledtocompletelaterintheyearfollowingregulatoryapprovals,

createsoneoftheworld’slargestglobalactiveassetmanagers,with

nearly$2.5trillionofassetsundermanagement.ThecombinedUKand

continentalEuropeanrealestateassetsundermanagementwillexceed

$50billion.Wearepositiveabouttheopportunitiesthisgreaterscalewill

bring.

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Valuers,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

9July2026

61 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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.

AlexandraInnesactedastheCommittee’sinterimchair

duringtheBoard’ssuccessionplanningprocessforAlastair

Hughes,inaccordancewithprovisionswithintheUKCode

andtheAICCode,wheretheChairshouldrefrainfrom

chairingtheNominationCommitteewhenitisdealingwiththe

appointmentoftheBoardChair’ssuccessor.

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planning.

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,

withtheexceptionofMrHughes,whowillnotbeseeking

re-electionattheAGMfollowinganine-yeartenure.

Approach

Selection and induction

— TheNominationCommitteepreparesajobspecificationforeach

role,outliningknowledge,professionalskills,personalqualities,

andexperiencerequirements,andanindependentrecruitment

firmisappointed.FortheChairandthechairsofcommittees,the

CommitteeconsiderscurrentBoardmemberstoo.

— 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assesseseachDirectorannually.

The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2026.

— 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52.

— Basedonitsassessment,theNominationCommitteeprovided

individualrecommendationsforeachDirector’sre-election,

apartfromAlastairHugheswhoisnotseekingre-electionatthe

forthcomingAGM.

Succession

— Duringtheyear,theNominationCommitteeconsideredtheneedfor

orderlysuccessionplanningandasuitableplanwasagreed.

Followingyearend,wearepleasedtoannouncethe

appointmentofPriscillaDaviesasChair-elect,tosucceed

AlastairHugheswhenhestepsdownasChairatthe

forthcomingAGM.Thisfollowsacomprehensiveexternal

searchprocessundertakenbySanjayPatelandmyselfas

representativesoftheNominationCommittee,inconjunction

withRussellReynoldsasourappointedsearchfirm.Priscilla

bringspriorexperienceaschair,alongsideextensive

governanceandfinancialservicesexperience.AsPriscillais

currentlySeniorIndependentDirector,thisappointmentalso

bringsimportantcontinuitytotheBoardandshareholders.We

willthankAlastairinduecourseforhisexcellentleadershipas

Chairoverthelastnineyears.

WearealsopleasedtoreporttheappointmentofRichard

DakinasaNon-ExecutiveDirector,effective10July2026.

RichardbringsextensiverealestateknowledgetotheBoard,

withformerrolesincludingEuropeHead,InvestmentBanking

andDebtandStructuredFinanceatCBREGroupandHead

ofCorporateRealEstateBusinessSupportatLloydsBanking

Group.Anexperiencednon-executivedirectoratlistedreal

estatecompanies,includingBerkeleyGroupHoldingsplcand

previouslyDerwentLondonplc,weareconfidentRichardwill

provideavaluablecontributiontotheBoard.

FollowingtheAGMon22September2026,Iwillsucceed

PriscillaasSeniorIndependentDirectorandRichardwill

succeedmeaschairoftheManagementEngagement

Committee.PriscillawillalsobecomechairoftheNomination

Committee,succeedingAlastair.

Withthesenewappointments,theBoardhastheappropriate

skillsetsandexperiencetodeliveronourstrategicpriorities

andnextstagesofgrowth.Wecontinuetomeetallaspectsof

theDiversityListingRules.

IwouldliketothanktheNominationCommittee,andRussell

Reynolds,fortheirsupportwiththeseappointments.

Alexandra Innes

Interim chair of the Nomination Committee

9July2026

62 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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2025,99.40%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2025wereinfavour,while0.60%wereagainst,and

544,889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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2026,Directorsreceived

abasefeeof£38,300perannum,andtheChairreceived

£60,000perannum,irrespectiveofadditionalroles.The

chairoftheAuditCommitteewasentitledtoanadditional

feeof£8,200.TheNominationCommitteechairwasentitled

toanadditionalfeeof£5,000.ThechairoftheManagement

EngagementCommitteeandtheSeniorIndependentDirector

areeachentitledtoreceiveanadditionalfeeof£5,700

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CodeandtheAIC

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2026.

Fees paid to Directors

ThefollowingamountswerepaidbytheCompanyforservices

asnon-executiveDirectors:

Director 31 March 2026 (£) 31March2025(£)

AlastairHughes(Chair) 60,000 58,500

PriscillaDavies

44,000 42,500

AlexandraInnes

47,350 42,500

SanjayPatel

46,500 41,125

StephenBligh(retired

on30June2024)

- 10,625

Total 197,850 195,250

1 SeniorIndependentDirector

2 ChairoftheManagementEngagementCommittee,andincludedaone-off

paymentof£3,350asinterimchairoftheNominationCommitteefrom30July

2025to31March2026

3 ChairoftheAuditCommittee

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.

63 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Governance report — Directors’ remuneration report continued

Thisreviewsupportedanincreaseoffeespayabletoeach

Directorof3%roundedtothenearest£1,000.

Duringtheyear,aChairsuccessionplanningprocesswas

required,andsince30July2025,AlexandraInnesservedas

interimchairoftheNominationCommittee.Inrecognition

ofthisadditionalworkloadandtimecommitment,theBoard

approvedaone-offpaymentof£3,350toAlexandraInnesfor

theyearended31March2026,basedontheadditionalfee

payabletothechairoftheNominationCommittee,onapro-

ratabasis.

Followingthisreview,andeffectivefrom1April2026,Directors

receiveabasefeeof£39,000,withtheChairreceiving£62,000.

TheManagementEngagementCommitteechairreceivesan

additionalfeeof£6,000(anincreasefrom£5,700),withthe

chairoftheAuditCommitteereceivinganadditionalfeeof

£9,000(anincreasefrom£8,200).TheSeniorIndependent

Directorreceivesanadditionalfeeof£6,000(anincreasefrom

£5,700).ThefeespayabletoDirectorseffectivefrom1April

2026aresetoutbelow:

Director From 1 April 2026 (£)

Year ended 31 March

2026 (£)

AlastairHughes

(Chair)

62,000 60,000

PriscillaDavies

45,000 44,000

AlexandraInnes

45,000 47,350

SanjayPatel

48,000 46,500

Total 200,000 197,850

1 Thisperannumfeewillbepaidonapro-ratabasisuntiltheChair’sretirement

attheAGMon22September2026.

2SeniorIndependentDirector

3 ChairoftheManagementEngagementCommittee,andincludedaone-off

paymentof£3,350asinterimchairoftheNominationCommitteefrom30July

2025to31March2026fortheyearended31March2026

4 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

9July2026

64 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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50andGovernance

Reportonpages51to64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

9July2026

65 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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2026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2026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:

― ObtaininganunderstandingoftheDirector’sapproach

toassessinggoingconcern,includingmeetingwiththe

InvestmentManagertounderstandtheprocessthey

followedinpreparingthegoingconcernassessment;

― ObtainingtheGroup’sgoingconcernassessmentand

supportingcashflowforecastsandcovenantcompliance

calculations.TheInvestmentManagerprepared

assessmentsfortheGrouponastandalonebasis

(‘standalonegroup’)andalsothecombinedgrouptotake

accountoftheproposedacquisitionofPictonProperty

IncomeLimited(Picton)(‘combinedgroup’);

― Consideringeventsbeyondtheperiodofassessment

andwhethersucheventsshouldbeconsideredbythe

InvestmentManagerintheirgoingconcernassessment,

intheeventthatsucheventsmayimpacttheconclusions

reached;

― Discussingthegoingconcernassessmentwiththe

AuditCommitteeand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through

ourauditproceduresinrelationtotheassessments;

― Forthestandalonegroupweconsideredthe

appropriatenessoftheassumptionsusedinthebasecase

andseverebutplausibledownsidescenariocashflow

forecastsandforecastcovenantcompliancecalculations.

Wechallengedthesensitivitiesandassumptionsmade,

includingtheGroup’sabilitytocontinuetocomply

withfinancialcovenantsandthereasonableness

ofassumptionsonrefinancingintheperiod.We

involvedEYspecialiststosupportourevaluationofthe

reasonablenessoftheDirector’sassumptionthattheRBSI

facilitywouldberefinancedinJune2027;

― Forthecombinedgroup,weobtainedanunderstanding

ofthetermsoftheproposedacquisitionofPicton

PropertyIncomeLimitedandthepre-conditionsto

besatisfied.Weperformedadditionalproceduresto

understandPicton’sfinancialposition,itsfinancing

arrangements(includingtherequirementsforlender

consentspriortochangeofcontrol)anditsforecast

contributiontotheproposedcombinedgroupoverthe

goingconcernperiod;

― Challengingthestresstestingperformedand

corroboratingthekeyassumptionsintheforecasts,and

ensuringthiswasconsistentwithourauditworkinthese

areas;

― Testingthearithmeticaccuracyoftheassessmentsand

recalculatingtheGroup’sforecastcovenantcompliance

calculations;and

― Assessingthegoingconcerndisclosuresinthefinancial

statementsandevaluatingwhethertheseprovided

anexplanationoftheDirectors’assessmentthatwas

consistentwiththeauditevidenceweobtained.

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

oftwelvemonthsfromwhenthefinancialstatementsare

authorisedforissue.

66 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Governance report — Independent Auditor’s report continued

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portfolios

– Riskofrevenuerecognition,includingthetiming

ofrevenuerecognition,thetreatmentofrents

andleaseincentives

Materiality

– Overallgroupmaterialityof£2.97mwhich

represents1%ofequity.

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

explainedthemostsignificantfutureimpactsfromclimate

changeontheiroperationsonpage47intheprincipalrisks

anduncertainties.Theyhavealsoexplainedtheirclimate

commitmentsonpage36.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.

67 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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Risk

Our response to the risk

Key observations

communicated to the

Audit Committee

Risk of incorrect valuation of directly

and indirectly held investment

property portfolios (Fraud risk)

RefertotheMaterialaccounting

policies(page77);andNote10ofthe

Consolidated Financial Statements

(page85to87).

TheGroup’sinvestmentpropertyportfolio

consistsofUKpropertieshelddirectlyand

throughjointventures,withacombined

carryingvalueof£466.3m(2025:

£470.5m).

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.

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tobe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andtourofStoreStreet,London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(74%ofthetotalvalue,14properties;2025:

79%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arecorrectlyincludedintheconsolidatedfinancial

statements;and

— assessedtheadequacyoftheadditionaldisclosuresofestimatesand

valuationassumptionsdisclosedinthenotesinaccordancewithIFRS13–

FairValueMeasurement.

Basedonthework

performed,wehadno

matterstoreporttotheAudit

Committee.

68 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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Risk

Our response to the risk

Key observations

communicated to the

Audit Committee

Risk of revenue recognition, including

the timing of revenue recognition,

the treatment of rents and lease

incentives

Refer to the Audit Committee Report (page

58) and Material accounting policies (page

80)

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

£28.1mofrentalincome(2025:£27.2m),

rentreceivableof£4.1m(2025:£4.7m)

andLeaseIncentiveof£9.0m(2025: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evaluated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recalculate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andreceivablesandchallengingthejudgmentsinvolved

includingexpectedcreditlossontherentreceivablebalanceasawhole.For

asampleoftenants,we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review

corroboratingevidencetoconcludeonwhetherthejournalsare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haveno

matterstoreporttothe

AuditandRiskCommittee.

69 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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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£2.97million

(2025:£3.01million),whichis1%(2025: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%

(2025:75%)ofourplanningmateriality,namely£2.23m

(2025:£2.26m).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Committeethatwewouldreport

tothemalluncorrectedauditdifferencesinexcessof£0.15m

(2025:£0.15m),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64andpages96

to128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

Group,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

Group’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49

to50;

― Directors’explanationastoitsassessmentoftheGroup’s

prospects,theperiodthisassessmentcoversandwhythe

periodisappropriatesetoutonpages49to50;

― Director’sstatementonwhetherithasareasonable

expectationthattheGroupwillbeabletocontinuein

operationandmeetsitsliabilitiessetoutonpage49to50;

70 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Governance report — Independent Auditor’s report continued

― Directors’statementonfair,balancedandunderstandable

setoutonpage64;

― Board’sconfirmationthatithascarriedoutarobust

assessmentoftheemergingandprincipalriskssetouton

page46;

― Thesectionoftheannualreportthatdescribesthereview

ofeffectivenessofriskmanagementandinternalcontrol

systemssetoutonpage58;and

― Thesectiondescribingtheworkoftheauditcommittee

setoutonpages58to59.

Responsibilities of directors

AsexplainedmorefullyintheStatementofDirectors’

Responsibilitiessetoutonpage64,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Group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

fraudorallegationsoffraudulentfinancialreporting

affectingtheGroup.

71 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Governance report — Independent Auditor’s report continued

― 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,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;

– Inspecting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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7years,

coveringtheyearsending31March2020to31March

2026.

― Theauditopinionisconsistentwiththeadditionalreport

totheaudit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July2026

72 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements

73 Consolidatedstatementofcomprehensiveincome

74 Consolidatedstatementoffinancialposition

75 Consolidatedstatementofchangesinequity

76 Consolidatedstatementofcashflows

77 Notestothefinancialstatements

Financial statements

73 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements

Consolidated statement of comprehensive income

for the year ended 31 March 2026

		31/03/2026	31/03/2025
	Notes	£000	£000
Rental income		28,071	27,192
Otherincome	3	1,558	484
Propertyoperatingexpenses	4	(4,323)	(2,657)
Net rental and related income		25,306	25,019
(Loss)/profit on the disposal of investment property	10	(1, 763)	469
Net unrealised valuation gain on investment property	10	5,888	16,232
Net change in fair value of financial instrument at fair value	20	18	(153)
Expenses
Investmentmanagementfee	2	(2,530)	(2,458)
Valuers’andotherprofessionalfees		(2, 161)	(2,215)
Administrators’fees	2	(70)	(68)
Auditor’s remuneration	5	(238)	(209 )
Directors’fees	6	(198)	(186)
Otherexpenses	6	(17 6)	(229)
Total expenses		(5,371)	(5,365 )
Operating profit		24,078	36,202
Finance income		196	355
Finance costs		(6, 670)	(6,589)
Net finance costs		(6,47 4)	(6,234)
Shareofprofit(excludingvaluationmovement)injointventures	11	3,035	3,579
Shareofvaluationlossinjointventures	11	(6,586)	(2,489)
Shareof(loss)/profitinjointventures		(3,551)	1,090
Profit before taxation		14,053	31,058
Taxation	7	-	–
Profit and total comprehensive income for the year attributable to the equity holders of the parent		14,053	31,058
Basicanddilutedearningspershare	8	2.9p	6.3p

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.

74 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements

Notes

		31/03/2026	31/03/2025
		£000	£000
Investmentproperty	10	405,850	404,798
Investmentinjointventures	11	60,429	65,722
Interestratederivativecontracts	20	84	66
Non-current assets		466,363	470,586
Tradeandotherreceivables	12	20,546	21,463
Cashandcashequivalents	13	10,979	3,720
Current assets		31,525	25,183
Investmentpropertyheldforsale	10	-	1,100
Total assets		497 ,888	496,869
Issuedcapitalandsharepremium(excludingtreasuryreserves)	14	219,090	219,090
Treasuryreserves	14	(37 , 101)	(37,101)
Revenuereserves	14	115,892	119,388
Equity		297 ,881	301,377
Interest-bearingloansandborrowings	15	185,857	180,611
Leaseliability	10	1,350	1,508
Non-current liabilities		187 ,207	182,119
Tradeandotherpayables	16	12,800	13,373
Current liabilities		12,800	13,373
Total liabilities		200,007	195,492
Total equity and liabilities		497 ,888	496,869
Netassetvalueperordinaryshare	17	60.9p	61.6p

The financial statements on pages 73 to 95 were approved at a meeting of the Board of Directors held on 9 July 2026 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 2026

75 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements

Notes

		Issued capital and
		share	Treasury	Revenue
		premium	reserve	reserve	Total
		£000	£000	£000	£000
Balance as at31March 2024		219,090	(37 , 101)	105,361	287 ,350
Profitfortheyear		–	-	31,058	31,058
Dividendspaid	9	–	-	(17,031)	(17,031 )
Balance as at31March 2025		219,090	(37 ,101)	119,388	301,377
Profitfortheyear		-	-	14,053	14,053
Dividendspaid	9	-	-	(17,549)	(17,549)
Balance as at31March 2026		219, 090	(37 , 101)	115,892	297 ,881

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 2026

76 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements

Notes

		31/03/2026	31/03/2025
		£000	£000
Operating activities
Profitfortheyear		14,053	31,058
Adjustmentsfor:
Loss/(profit)onthedisposalofinvestmentproperty	10	1,7 63	(469)
Netvaluationgainoninvestmentproperty	10	(5,888)	(16,232)
Netchangeinfairvalueoffinancialinstrumentatfairvalue	20	(1 8)	153
Shareofloss/(gain)onjointventures		3,551	(1,090)
Netfinancecost		6,47 4	6,234
Operating cash generated before changes in working capital		19,935	19,654
Decrease/(increase)intradeandotherreceivables		1,507	(1,138)
(Decrease)/increaseintradeandotherpayables		(532)	63
Cash generated from operations		20,910	18,579
Investing activities
Proceedsfromthesaleofinvestmentproperty		13,454	1,439
Additionstoinvestmentproperty	10	(8,991)	(6,089)
Additionstojointventures	11	(1,293)	(845)
Netincomedistributedfromjointventures		1,990	3,569
Cash flows generated/(used) in investing activities		5,160	(1,926)
Financing activities
Additionstodebt	15	5,000	4,500
Netfinancecostspaid		(6,262)	(6,407)
Dividendspaid	9	(17 ,549)	(17,031)
Cash flows used in financing activities		(18,811)	(18,938)
Net increase/(decrease) in cash and cash equivalents for the year		7 ,259	(2,285)
Opening cash and cash equivalents		3,720	6,005
Closing cash and cash equivalents	13	10,979	3,720

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 2026

77 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Notes to the financial statements

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 2026 comprise the Company and its

subsidiaries (together referred to as the ‘Group’).

New standard and interpretations

Except as noted below, 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.

IFRS 18 Presentation and Disclosure in Financial

Statements

The new standard IFRS 18 was issued in April 2024 and is

effective for annual reporting periods beginning on or after

1 January 2027 but earlier application is permitted. This new

standard replaces IAS 1 Presentation of Financial Statements

and amends IAS 7 Statement of Cash Flows. IFRS 18 introduces

three defined categories for income and expenses – operating,

investing and financing – to improve the structure of the

income statement, and requires all companies to provide

new defined subtotals, including operating profit. IFRS 18

will require disclosure of explanations of company-specific

measures that are related to the income statement, referred to

as management-defined performance measures. IFRS 18 sets

out enhanced guidance on how to organise information and

whether to provide it in the financial statements or in the notes.

The Company will apply IFRS 18 for annual reporting periods

beginning on 1 April 2027.

The Company is still assessing the impact of IFRS 18, which

has been issued but is not yet effective. While the presentation

of the Statement of Comprehensive Income will change on

implementation, the valuation and measurement of balances

will not be impacted. The Company will continue to assess the

impact of IFRS 18 as additional guidance is released prior to

implementation.

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 2026, property valuations would have

to fall by 29% before the relevant Canada Life Loan to Value

covenants were breached, and actual net rental income would

need to fall by 68% 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 42%, prior to the 60% LTV covenant being breached,

and based on projected net rents for the quarter to March

2026, a 15% 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 29%/42% declines in property

valuations and 68%/15% 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 £18.5 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.

Management are progressing discussions with lenders to

explore refinancing opportunities.

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.

78 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

1 Material accounting policy information

(continued)

The Board and Investment Manager have considered the

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

page 47. 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 49.

The Directors have not identified any matters which would

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

going concern for a period of at least 12 months from the date

the Annual report and consolidated financial statements are

approved and have satisfied themselves that the Group has

adequate resources to continue in operational existence for

this period.

After due consideration, the Board believes that it is

appropriate to adopt the going concern basis in preparing the

financial statements.

Impact of the proposed acquisition of Picton Property

Income Limited

On 12 May 2026, SREIT announced an indicative all-share offer

under Rule 2.4 of the City Code on Takeovers and Mergers for

Picton Property Income Limited (“Picton”), to be undertaken

alongside LondonMetric Property Plc (“LMP”). Under the

proposed transaction, SREIT would acquire approximately 54%

of Picton’s portfolio, funded through the issue of new SREIT

shares. The transaction remains indicative and non-binding

as at the date of approval of these financial statements, and is

subject to a number of pre-conditions, including the publication

of a firm offer announcement under Rule 2.7 of the City Code,

confirmatory due diligence, lender consents, and Board

approvals. Accordingly, there is no certainty at this stage that

the transaction will proceed to completion.

Notwithstanding this, the Board has also reviewed forecasts of

liquidity, cash flow and covenant compliance for the combined

group, assuming completion of the transaction and the

assumption of Picton’s existing debt facilities. Under both a

base case and a severe-but-plausible downside scenario, the

combined group would maintain positive cash balances, retain

significant undrawn committed facility headroom, and remain

comfortably within covenant thresholds throughout the going

concern period.

Based on their analysis on a combined group basis, the

Directors are satisfied that there is a reasonable expectation

that the Group would continue to be able to meet its ongoing

and future commitments for at least 12 months from the date

of approval of the consolidated financial statements assuming

completion of the transaction. The going concern conclusion

is not reliant on the transaction completing, as the standalone

SREIT analysis set out above also supports the going concern

basis.

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

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.

79 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

1 Material accounting policy information

(continued)

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.

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.

For the purposes of these financial statements, in order to

avoid double counting, the fair value reported in the financial

statements is:

― Reduced by the carrying amount of any accrued income

resulting from the spreading of lease incentives and/or

minimum lease payments

― In the case of investment property held under a lease,

increased by the carrying amount of any liability to the

head lessor that has been recognised in the statement of

financial position as a finance lease obligation

― Reduced by any properties reclassified as held for sale

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.

80 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

1 Material accounting policy information

(continued)

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. Surrender premiums

and dilapidations are recognised in line with individual lease

agreements when cash inflows are certain.

Lease incentives

When the Group provides incentives to its tenants, the cost of

incentives is recognised over the lease term, on a straight-line

basis, as a reduction of rental income. Where a rent incentive

fits the definition of a lease modification under IFRS 16, the

cost of incentives is recognised over the remaining lease term

starting from the effective date of the lease modification, on a

straight-line basis, as a reduction of rental income.

Impairment

Financial assets

Financial assets measured at amortised cost comprise trade

and other receivables that are held within a business model

whose objective is to collect contractual cash flows from the

leasing of investment properties and where the contractual

terms give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount

outstanding. These assets are initially recognised at fair value

and subsequently measured at amortised cost, less any

expected credit losses recognised in accordance with IFRS 9.

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.

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.

The Group considers a financial asset in default when

internal or external information indicates that the Group is

unlikely to receive the outstanding contractual amounts in

full before taking into account any credit enhancements held

by the Group. A financial asset is written off when there is no

reasonable expectation of recovering the contractual cash

flows.

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.

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 rate 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.

81 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

1 Material accounting policy information

(continued) Basis of consolidation

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.

For the six month period to 30 September 2025 the fee was

calculated at 0.9% of the NAV of the Company in line with

the tiered fee structure set out in the table below. With effect

from 1 October 2025, a revised fee basis was agreed and was

calculated at 0.45% of the NAV of the Company, plus 0.45% of

the market capitalisation of the Company.

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 for the		Management fee for the
		six months to		six months to
		30 September 2025		31 March 2026
		Percentage		Percentage
		per annum		per annum
	Percentage per	of market	Percentage per	of market
NAV	annum of NAV	capitalisation	annum of NAV	capitalisation
<£500 million	0.90%	0.00%	0.45%	0.45%
£500 million - £1 billion	0.80%	0.00%	0.40%	0.40%
£1 billion+	0.70%	0.00%	0.35%	0.35%

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

£144,000 (2025: £151,000) has been accrued for the year to

31 March 2026. The total charge to the Consolidated Statement

of Comprehensive Income during the year was £2,530,000

(2025: £2,458,000). At the year end £675,000 (2025: £299,000)

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 £127,000 (2025:

£122,000).

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 2025 to 31 March 2026 were £50,000 (2025: £50,000)

net of VAT.

82 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

3 Other income

		31/03/2026	31/03/2025
	Notes:	£000	£000
Dilapidations, surrender premiums and all other miscellaneous income		1,558	484
		1,558	484

4 Property operating expenses

		31/03/2026	31/03/2025
	Notes:	£000	£000
Agents’ fees		143	329
Repairs and maintenance		166	78
Advertising		89	68
Rates		623	648
Service charge, insurance and utilities on vacant units		2,450	1,434
Ground rent		90	68
Credit impairment losses, provisions and write backs		762	32
		4,323	2,657

5 Auditor’s remuneration

Fees payable to Ernst and Young LLP for the audit of the Group and subsidiary annual accounts: £238,000 (2025: £209,000).

Fees payable to Ernst and Young LLP for a non-audit service: £20,000 (2025: £20,000).

6 Other expenses

		31/03/2026	31/03/2025
	Notes:	£000	£000
Professional fees		93	159
Other expenses		82	70
		175	229

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 £197,850 (2025: £186,000), as set out in the Directors’ Remuneration Report on pages 62 to 63.

83 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

7 Taxation

		31/03/2026	31/03/2025
	Notes:	£000	£000
Tax expense in the year		-	–
Reconciliation of effective tax rate
Profit before tax		14,053	31,058
Effect of:
Tax using the UK corporation tax rate of 25% (2025: 25%)		3,513	7,764
Revaluation gain on investment property non-(taxable)/deductible		(1,472)	(4,058)
Revaluation (profit)/loss on financial instrument non-deductible		(5)	38
Share of capital loss of associates and joint ventures non-deductible		1,647	622
Loss/(profit) on the disposal of investment property non-taxable		441	(117)
UK REIT exemption		(4,124)	(4,249 )
Current tax expense in the year		–	–

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 £14,053,000 (2025: profit of

£31,058,000) and the weighted average number of ordinary

shares in issue during the year of 489,110,576 shares

(2025: 489,110,576).

84 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

9 Dividends paid

		Rate	31/03/2026
In respect of:	Ordinary shares	(pence)	£000
Q/e 31 March 2025 (dividend paid 30 June 2025)	489.11 million	0.897	4,388
Q/e 30 June 2025 (dividend paid 29 August 2025)	489.11 million	0.897	4,387
Q/e 30 Sept 2025 (dividend paid 19 December 2025)	489.11 million	0.897	4,387
Q/e 31 Dec 2025 (dividend paid 27 March 2026)	489.11 million	0.897	4,387
		3.588	17,549

		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

A dividend for the quarter ended 31 March 2026 of 0.897 pence per share was approved and paid on the 26 June 2026.

85 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

10 Investment property

	Leasehold	Freehold	Total
	£000	£000	£000
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
Additions	1,407	7,584	8,991
Disposal of assets held at fair value	-	(11,906)	(11,906)
Loss on the sale of assets	-	(1,763)	(1,763)
Fair value leasehold movement	(158)	-	(158)
Net unrealised valuation gain on investment property	(188)	6,076	5,888
Carrying value as at 31 March 2026	27,029	378,821	405,850

The balance above includes

	Leasehold	Freehold	Total
	£000	£000	£000
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
Investment property	25,679	378,821	404,500
Fair value leasehold adjustment	1,350	-	1,350
Carrying value as at 31 March 2026	27,029	378,821	405,850

1 A reclassification was made in the prior year to correct for properties previously disclosed as leasehold in error.

	31/03/2026	31/03/2025
	£000	£000
Fair value as estimated by the external valuer	413,535	413,310
Less: properties reclassified as held for sale	-	(1,100)
Add: lease liabilities recognised separately	1,350	1,508
Less: lease incentive balance included in trade and other receivables	(9,035)	(8,920)
Carrying value for financial reporting purposes	405,850	404,798

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).

86 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

10 Investment property (continued)

The properties have been valued individually and not as part of

a portfolio.

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 £9.0 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 2026

			Retail
			(incl. retail
31 March 2026		Industrial 1	warehouse) 1	Office 1	Other 1	Total
Fair value (£’000)		250,335	87,375	57,725	18,100	413,535
Area (‘000 sq ft)		2,276	394	312	198	3,180
Net passing rent per square foot per annum	Range	£2.36 – £19.53	£4.27 – £86.11	£8.47 – £32.93	£3.89 – £21.66	£2.36 – £86.11
	Weighted average	£6.30	£13.20	£15.81	£5.94	£8.06
Gross ERV per square foot per annum	Range	£2.50 – £20.08	£4.00 – £86.11	£8.47 – £35.95	£1.00 – £21.50	£1.00 – £86.11
	Weighted average	£8.04	£16.99	£23.35	£8.28	£10.67
Net initial yield 1	Range	0.00% – 10.87%	0.00% – 28.44%	0.00% – 33.18%	0.00% – 9.68%	0.00% – 33.18%
	Weighted average	5.22%	5.50%	7.32%	6.02%	5.62%
Equivalent yield	Range	5.79% – 8.60%	6.16% – 12.17%	8.11% – 13.92%	6.17% – 10.12%	5.79% – 13.92%
	Weighted average	6.78%	7.29%	10.51%	8.69%	7.55%

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) 1	Office 1	Other 1	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 .

87 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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 2026

	Industrial	Retail	Office	Other	All sectors
	£000	£000	£000	£000	£000
Increase in ERV by 5%	10,653	3,019	2,601	207	16,480
Decrease in ERV by 5%	(10,631)	(2,959)	(2,584)	(207)	(16,381)
Increase in net initial yield by 0.25%	(9,792)	(3,187)	(1,699)	(632)	(15,310)
Decrease in net initial yield by 0.25%	10,587	3,439	1,854	590	16,470

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

11 Investment in joint ventures

	£000
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
Purchase of further units in City Tower Unit Trust	250
Purchase of further units in Store Unit Trust	1,043
Share of operating profit of joint venture	3,035
Distributions received from joint venture	(3,035)
Valuation loss on joint venture	(6,586)
Closing balance as at 31 March 2026	60,429

88 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

11 Investment in joint ventures (continued)

Summarised joint venture financial information for the year ended 31 March 2026

		Store Street Unit
	City Tower Unit Trust	Trust	Total
	31/03/2026	31/03/2026	31/03/2026
	£000	£000	£000
Non-current assets - Investment property	93,100	75,600	168,700
Current assets	1,385	2,794	4,179
Total liabilities 1	(2,599)	(3,480)	(6,079)
Revenues for the year	9,129	4,044	13,173
Total profit (excluding valuation movement)	4,934	3,602	8,536
Net asset value attributable to the Group	22,972	37,457	60,429
Share of profit (excluding valuation movement) in joint ventures	1,234	1,801	3,035

Summarised joint venture financial information 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 joint ventures	1,697	1,882	3,579

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 Schroder Capital UK Real Estate Fund and Immobilien Europa Direkt.

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

	31/03/2026	31/03/2025
	£000	£000
Rent receivable	4,095	4,727
Sundry debtors and prepayments	7,416	7,816
Lease incentives 1	9,035	8,920
	20,546	21,463

1 refer to lease incentive policy section in Note 1.

As at 31 March 2026, total bad debt provisions of £0.9 million (2025: £0.3 million) had been recognised against rent receivable.

13 Cash and cash equivalents

As at 31 March 2026 the Group held £11.0 million (2025: £3.7 million) of cash in bank. No other deposits exist.

89 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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 (2025: 565,664,749)

of which 76,554,173 Ordinary shares are held in treasury

(2025: 76,554,173). The total number of voting rights of the

Company was 489,110,576 (2025: 489,110,576) as at the

financial year end.

Treasury share reserve

76,554,173 (2025: 76,554,173) ordinary shares, which represent

13.5% (2025: 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.

	31/03/2026	31/03/2025
	£000	£000
Non-current liabilities
Loan facilities	186,085	181,085
Unamortised arrangement fees	(228)	(474)
	185,857	180,611

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 2026 Interest Payment Date, the Canada

Life interest cover ratio was 585% (2025: 510%) against a

covenant of 185%; the forecast interest cover ratio was 451%

(2025: 484%) against a covenant of 185%; and the Loan to

Value ratio was 46.1% (2025: 47.0%) 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 2026 contained properties valued at £273.15 million

(2025: £275.54 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 2026, a sum of £56.5m was

drawn down (31 March 2025: £51.5m).

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 2026 Interest Payment Date, the RBSI projected

interest cover ratio was 236% (2025: 255%) against a covenant

of 200% and the Loan to Value ratio was 34.5% (2025: 31.2%)

against a covenant of 60%.

The RBSI facility has a first charge security over certain property

assets which at 31 March 2026 contained properties valued at

£163.66 million (2025: £165.0 million).

90 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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:

	31/03/2026
	£000
Loan balance brought forward as at 31 March 2025	180,611
Drawdown on RBSI RCF (cash)	5,000
Repayment of RBSI RCF (cash)	-
Non-cash amortisation of arrangement fees	246
Loan balance carried forward as at 31 March 2026	185,857

	31/03/2025
	£000
Loan balance brought forward as at 31 March 2024	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 as at 31 March 2025	180,611

Financing costs for the year ended 31 March 2026 totalling £6.67m (2025: £6.59m) is comprised of cash loan interest payments of

£6.46m (2025: £6.76m), non-cash reduction in accrued loan interest of £0.04m (2025: £0.42m), and non-cash amortisation of loan

arrangement fees of £0.25m (2025: £0.25m).

16 Trade and other payables

	31/03/2026	31/03/2025
	£000	£000
Deferred income	5,301	5,814
Rental deposits	3,069	2,551
Interest payable	1,326	1,358
Other trade payables and accruals	3,104	3,650
	12,800	13,373

17 NAV per Ordinary Share

The number of ordinary shares in issue was 489,110,576

as at 31 March 2026 (2025: 489,110,576). The NAV per

Ordinary Share is based on the net assets of £297,881,000

(2025: £301,377,000) and 489,110,576 (2025: 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.

91 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

18 Financial instruments, properties and associated

risks (continued)

Market price risk (continued)

The Group is exposed to market price risk arising from

macroeconomic and geopolitical uncertainty, including

ongoing international conflicts. These developments have

contributed to increased volatility in financial markets

and may adversely impact property valuations and capital

market conditions. The Manager is closely monitoring these

developments. 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 Poors).

The maximum exposure to credit risk for rent receivables at the reporting date by type of sector was:

	31/03/2026	31/03/2025
	Carrying	Carrying
	amount £000	amount £000
Office	391	375
Industrial	3,234	3,193
Retail, leisure and other	1,078	925
	4,703	4,493

1 Rental receivable of £3.6m per Note 12 excluding credit impairment losses of 0.9m and other tenant receivables of £0.1m. 2025: Rental receivable of £4.7m per Note 12 excluding

credit impairment losses of £0.3m and other tenant receivables of £0.5m.

Rent receivables which are past their due date were:

	31/03/2026	31/03/2025
	Carrying	Carrying
	amount £000	amount £000
0-30 days	2,561	2,893
31-60 days	201	59
61-90 days	111	90
91 days plus	1,830	1,451
	4,703	4,493

1 Rental receivable of £3.6m per Note 12 excluding bad debt provisions of £0.9m and other tenant receivables of £0.1m. 2025: Rental receivable of £4.7m per Note 12 excluding bad

debt provisions of £0.3m and other tenant receivables of £0.5m.

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 2026

total provisions of £0.89 million (2025: £0.33 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.

92 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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 2026	£000	£000	£000	£000	£000	£000
Financial liabilities
Interest-bearing loans and borrowings and
interest 2	185,857	225,544	3,142	63,464	9,680	149,258
Leasehold liability	1,350	10,831	49	49	294	10,439
Trade and other payables	7,499	7,499	4,430	-	-	3,069
Total financial liabilities	194,706	243,874	7,621	63,513	9,974	162,766

	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	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

1 The maturity analysis of financial liabilities are based on undiscounted contractual cashflows.

2 Assumes that the £56.5 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 2026 the fair

value of the Group’s £129.6 million loan with Canada Life was

£110.9 million (2025: £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 £56.5m

(2025: £51.5 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 £110,000 based on the cash balance as at 31 March

2026.

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 RBSI revolving credit facility had a drawn balance of

£56.5 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 £255,000 (assuming that the loan principal drawn remained

the same).

93 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

The Group is progressing discussions with lenders on

refinancing opportunities for this facility given its upcoming

expiry in June 2027.

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 (2025: nil).

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 3

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

2026, the fair value of the Group’s interest bearing loans

and borrowings was £186.1 million (2025: £181.1 million).

The loans are measured at amortised cost in the financial

statements.

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

	31/03/2026	31/03/2025
	£000	£000
Debt
Fixed-rate loan facility	129,585	129,585
Floating rate loan facility 1	56,500	51,500
	186,085	181,085
Equity
Called-up share capital	181,989	181,989
Reserves	115,892	119,388
	297,881	301,377
Total debt and equity	483,966	482,462

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 2026 was £75.0 million (2025: £75.0 million)

94 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

19 Operating leases

The Group leases out its investment property under operating leases. At 31 March 2026 the future minimum lease receipts under

non-cancellable leases are as follows:

	31/03/2026	31/03/2025
	£000	£000
Less than one year	24,882	25,356
Between one and five years	71,856	72,621
More than five years	56,686	59,156
	153,424	157,133

The total above comprises the total contracted rent receivable as at 31 March 2026.

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 and this may incur penalties for both the tenant and

landlord depending on the terms of the lease contracts.

20 Interest rate derivative contracts

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 2026 it had a deemed fair value of £0.08 million

(2025: £0.07 million) with an unrealised gain of £0.01 million

(2025: loss of £0.15 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 2026:

		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 the

inside back cover.

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 note 6. Transaction with depositors,

administrators and Company secretary are disclosed in Note 2.

95 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Financial statements — Notes to the financial statements continued

23 Capital commitments

As at 31 March 2026 the Group had capital commitments of

£5.2 million (2025: £8.3 million).

24 Post balance sheet events

On 12 May 2026, SREIT announced an indicative all-share offer

under Rule 2.4 of the City Code on Takeovers and Mergers for

Picton Property Income Limited (“Picton”), to be undertaken

alongside LondonMetric Property Plc (“LMP”).

Under the proposed transaction, SREIT would acquire

approximately 54% of Picton’s portfolio, with LMP acquiring

the remaining portfolio. The split of Picton’s portfolio between

SREIT and LMP has been determined by reference to Picton’s

debt facilities and the corporate entities that hold the assets

charged to each facility.

The proposed consideration would be satisfied through the

issue of new SREIT and LMP shares to Picton shareholders,

with no material cash consideration payable by SREIT. As part

of the transaction, SREIT would assume Picton’s existing debt

facilities associated with the assets it acquires.

The transaction remains indicative and non-binding as at the

date of approval of these financial statements, and is subject

to a number of pre-conditions, including the publication of

a firm offer announcement under Rule 2.7 of the City Code,

confirmatory due diligence, lender consents, court sanction

of a scheme of arrangement, and Board and shareholder

approvals. There is therefore no certainty at this stage that

the transaction will proceed to completion, and control of any

Picton assets would not pass to SREIT until completion.

Given the transaction had not completed or become

unconditional under Rule 2.7 of the City Code, at the date

of approval of these financial statements, an estimate of

the financial effect cannot reliably be made. The accounting

treatment and financial effect, if the transaction proceeds,

will be determined at completion based on the facts and

circumstances at that time, including the fair value of the assets

and liabilities acquired and the SREIT closing share price at

admission of the new shares.

No other significant events have occurred between the

balance sheet date and the date of approval of these financial

statements that would require adjustment to, or disclosure in,

the financial statements.

96 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

97 EPRAperformancemeasures(unaudited)

100 Alternativeperformancemeasures(unaudited)

101 AIFMDdisclosures(unaudited)

102 Sustainabilityperformancemeasures(environmental)

(unaudited)

116 Sustainabilityperformancemeasures(social)(unaudited)

118 Sustainabilityperformancemeasures(governance)

(unaudited)

119 Streamlinedenergyandcarbonreporting

122 Assetlist

123 ReportoftheDepositarytotheshareholders

124 Glossary

125 ResolutionsattheAnnualGeneralMeeting

127 NoticeofAnnualGeneralMeeting

IBC Corporateinformation

Other information (unaudited)

97 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

EPRA performance measures (unaudited)

Other information (unaudited)

AsrecommendedbytheEuropeanPublicRealEstate

Association,EPRAperformancemeasuresaredisclosedinthe

sectionbelow.

EPRA performance measures:summary table

31/03/2026 31/03/2025

EPRAearnings £ 16,496,000 £17,034,000

EPRAearningspershare 3.4pps 3.5pps

EPRANetReinstatement

Value £330,069,000 £333,948,000

EPRANetReinstatement

Valuepershare 67.5p 68.3p

EPRANetTangibleAssets £297,796,000 £301,311,000

EPRANetTangibleAssets

pershare 60.9p 61.6p

EPRANetDisposalValue £316,602,000 £319,860,000

EPRANetDisposalValue

pershare 64.7p 65.4p

EPRANetInitialYield 5.3% 5.1%

EPRA“topped-up”Net

InitialYield 6.0% 6.0%

EPRAvacancyrate 9.8% 12.4%

EPRAcostratios–including

directvacancycosts 33.7% 28.6%

EPRAcostratios–excluding

directvacancycosts 24.1% 22.0%

EPRALTV 36.8% 36.9%

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.

31/03/2026

£000

31/03/2025

£000

ProfitperIFRSincomestatement 14,053 31,058

Adjustments to calculate EPRA

Earnings:

Loss/(profit)onthedisposalof

investmentproperty 1,763 (469)

Netunrealisedvaluationgainon

investmentproperty (5,888) (16,232)

Netchangeinthefairvalueoffinancial

instruments (18) 153

Shareofvaluationloss

inassociatesandjointventures 6,586 2,489

Adjustmentsrelatedtonon-operating

andexceptionalitems - 35

EPRA earnings

16,496 17,034

Weightedaveragenumberofordinary

shares 489,110,576 489,110,576

IFRS earnings pershare (pence) 2.9 6.3

EPRA earnings pershare (pence) 3.4 3.5

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.

31/03/2026

£000

31/03/2025

£000

IFRSequityattributableto

shareholders 297,880 301,377

Adjustmentinrespectofrealestate

transfertaxesandcosts 32,273 32,637

Adjustmentinrespectofthefairvalue

offinancialinstruments (84) (66)

EPRA net reinstatement value 330,069 333,948

Sharesinissueattheendoftheperiod 489,110,576 489,110,576

EPRA NRV pershare (pence

pershare) 67.5p 68.3p

98 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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.

31/03/2026

£000

31/03/2025

£000

IFRSequityattributableto

shareholders 297,880 301,377

Fairvalueoffinancialinstruments (84) (66)

EPRANetTangibleAssets 297,796 301,311

Sharesinissueattheendoftheyear 489,110,576 489,110,576

IFRS NAV pershare (pence) 60.9p 61.6p

EPRA net tangible assets pershare

(pence) 60.9p 61.6p

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.

31/03/2026

£000

31/03/2025

£000

IFRSequityattributableto

shareholders 297,880 301,377

Adjustments to calculate EPRA Net

Disposal Value:

Thefairvalueoffixed-interestratedebt 18,722 18,483

EPRA net disposal value 316,602 319,860

Sharesinissueattheendoftheyear 489,110,576 489,110,576

EPRA net disposal value pershare

(pence) 64.7p 65.4p

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.

31/03/2026

£000

31/03/2025

£000

Investmentproperty–wholly-owned 413,535 413,310

Investmentproperty–

shareofjointventuresandfunds 61,075 66,650

Complete property portfolio 474,610 479,960

Allowanceforestimatedpurchasers’

costs 32,273 32,637

Gross up completed property

portfolio valuation 506,883 512,597

Annualisedcashpassingrentalincome 31,266 28,845

Propertyoutgoings 4,323 (2,657)

Annualised net rents 26,943 26,188

Notionalrentexpirationofrent-free

periods

3,533 4,321

Topped-up net annualised rent 30,476 30,509

EPRA NIY 5.3% 5.1%

EPRA “topped-up” NIY 6.0% 6.0%

1. Theperiodoverwhichrentfreeperiodsexpireisoneyearfor2026

(2025:1year).

99 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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.

31/03/2026

£000

31/03/2025

£000

Administrative/operatingexpenseline

perIFRSincomestatement 9,691 8,022

ShareofJointVentureexpenses 1,270 1,145

Less:Groundrentcosts (90) (68)

Costs (including direct vacancy

costs) 10,871 9,099

Directvacancycosts (3,073) (2,081)

Costs (excluding direct vacancy

costs) 7,798 7,018

Grossrentalincomelessgroundrent

costs–perIFRS 27,981 27,124

AddshareofJointVentures(Gross

RentalIncomelessgroundrentcosts) 4,304 4,723

Gross rental income 32,285 31,847

EPRAcostratio(includingdirect

vacancycosts) 33.7% 28.6%

EPRAcostratio(excludingdirect

vacancycosts) 24.1% 22.0%

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.

31/03/2026

£000

31/03/2025

£000

Estimatedrentalvalueofvacantspace 3,832 4,958

Estimatedrentalvalueofthewhole

portfolio 39,267 40,134

EPRA vacancy rate 9.8% 12.4%

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.

31/03/2026

£000

31/03/2025

£000

BorrowingsfromFinancialInstitutions 186,085 181,085

Cashandcashequivalents (10,979) (3,720)

Cashandcashequivalents–shareof

jointventures (368) (134)

Net debt 174,738 177,231

Investmentpropertiesatfairvalue–

directportfolio 413,535 413,310

Investmentpropertiesatfairvalue–

shareofjointventures 61,075 66,650

Total property value 474,610 479,960

LTV 36.8% 36.9%

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 9.0 0.1 9.1

Investment

properties

 Tenantincentives – – –

 Othermaterial

non–allocated

typesof

expenditure – – –

Total capital

expenditure 9.0 0.1 9.1

Aspernote10,theCompany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

£9.0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)£2.3millionatMarshall

Building,Manchester,b)£1.8millionatMillshaw,Leedsandc)

£1.4matChurchillWay,Salisbury.

The£0.1millioninvestedacrossjointventuresrelatedsolelyto

theGroup’s25%shareofunderlyingcapitalexpenditureworks

undertakenatCityTower.

100 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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97)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97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£762,000.

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74)

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74).

101 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

AIFMD disclosures (unaudited)

Other information (unaudited)

AIFMD remuneration disclosures for Schroder Real

Estate Investment Management Limited (‘SREIM’) for

the year to 31 December 2025

Thesedisclosuresformpartofthenon-auditedsectionofthis

annualreportandaccountsandshouldbereadinconjunction

withtheSchrodersplcRemunerationReportonpages61to

89ofthe2025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2025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.

Schrodersmanagesitsoverallcostbasebyreferencetoitscost

toincomeratio,definedastheratioofoperatingexpensesto

netoperatingincome.Withinthisframework,compensation

expense–includingthepoolfromwhichanyvariablepayis

funded–iscontrolledasacomponentoftheoverallcostto

incomeratio.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2025.

— 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61AIFMRTsofSREIMinrespectofthefinancial

yearended31December2025is£58.01million,of

which£39.80millionwaspaidtoseniormanagement,

£15.00millionwaspaidtoMRTsdeemedtobetakingrisk

onbehalfofSREIMortheAIFfundsthatitmanagesand

£3.21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March2026asshownbelow:(the

Companycalculatesandexternallyreportsitsleverageone

quarterinarrears):

Maximum limit

set

Actual as at

31.03.2026

Grossleverage 195 163

Commitmentleverage 220 166

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.

102 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Sustainability performance measures (environmental)

(unaudited)

Other information (unaudited)

TheCompanyreportssustainabilityinformation,inaccordance

withtheEPRABestPracticeRecommendationsonSustainability

Reporting(sBPR)2024,4thEdition,forthe12months1January

2025–31December2025,presentedwithcomparisonto1

January2024–31December2024.AspermittedbyEPRAsBPR,

environmentaldatahasbeendevelopedandpresentedinline

withtheGlobalRealEstateSustainabilityBenchmark(GRESB).

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2026.ThefullAssuranceStatementisavailableon

request.

Reporting Boundary

Thereportingboundarycoversallrealestatestanding

investments(excludinglandandcash)heldbytheCompany.

Energyconsumptionandassociatedgreenhousegas(GHG)

emissions,andwaterconsumptiondataispresentedwherethe

landlordretainsresponsibilityforthepaymentofinvoices.GHG

emissionshavebeenscopedtoLocation-basedScope1and

Scope2emissionsassociatedwithlandlord-procuredenergy

supplies.TheCompanydoesnotreportMarket-basedScope1

&2emissionsand,therefore,thishasnotbeenincludedinthe

datatablesbelow.WastedatahasbeenscopedtowhereSREIT

hasoperationalcontrol:managedpropertieswhereSREIT

isresponsibleforpaymentofinvoicesand/orarrangement

ofwastedisposalcontracts.Sustainabilitycertifications

arepresentedasproportionsoffloorareacoveredby

NetLettableArea(NLA)andGrossInternalArea(GIA)for

EnergyPerformanceCertificates(EPCs)andGreenBuilding

Certifications,respectively.

In2024,SREITheldatotalof40realestatestanding

investmentsforatleastoneday,ofwhich24werewithin

theCompany’soperationcontrolreportingboundary(i.e.

‘managed’assetswheresomeinternalutilitiesareprocured

directlybythelandlord).Oneoftheseoperationalcontrol

assetswassoldpart-waythroughthereportingyear.In

2025,SREITheld39realestatestandinginvestments,forat

leastoneday,ofwhich23remainedwithintheoperational

controlreportingboundary.Duringtheyear,fiveassets(one

assetwithoperationalcontrol)weresold.Thebreakdownof

assetsincluded,utilitiesscopeandLike-for-like(LfL)analysis

isconfirmedinthebelowtable.Lflexcludesassetsthatwere

purchasedorsoldduringthetwoyearsreported.Forthis

report,twoassetshavebeenexcludedfromtheLfLanalysis

duetosalesmid-waythroughthereportingperiod,andone

furtherassethasbeenexcludedasover50%ofthefloorarea

wasundermajorrenovationduringthereportingperiod,as

perGRESBdefinitions.

Whereappropriate(forrelevantassets),consumptiondataand

assetfloorareahasbeenadjustedtoreflecttheCompany’s

shareofownership.Energyandwaterconsumptiondatais

reportedaccordingtoautomaticmeterreadings,manual

meterreadsorinvoiceestimates.Historicconsumptiondata

havebeenrestatedwheremorecompleteandoraccurate

recordshavebecomeavailable.Whererequired,missing

consumptiondatahasbeenestimatedbypro-ratingdatafrom

otherperiodsusingrecognisedtechniquesandisreportedin

thetablesbelow.

TheCompanydoesnothaveanydirectemployees;itisserved

bytheemployeesoftheInvestmentManager(SchrodersReal

EstateInvestmentManagementLtd.)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.

103 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

Scope

Asset Name Sector Electricity

District

Heating &

Cooling Fuels Water Waste

GHG

Scope 1

GHG

Scope 2

Included

in LfL

Reason for

exclusion in LfL

Birkenhead Industrial Yes No No No No No Yes Yes

YORK,CliftonPark,ShiptonRd Office Yes No Yes Yes No Yes Yes Yes

MILTONKEYNES,StaceyBushes Industrial Yes No No Yes No No Yes Yes

LangleyPark,Chippenham Industrial Yes No Yes No No Yes Yes Yes

ILKESTON,AlbionShoppingCntr Retail Yes No No Yes Yes No Yes Yes

SOLD-LIVERPOOL,88-94ChurchStreet Retail Yes No No Yes Yes No Yes Yes

SALISBURY,ChurchillWay Retail

Warehouse

Yes No Yes No No Yes Yes No Over50%ofasset

under major

renovationduring

reportingperiod

CARDIFF,HaywoodHouse Office Yes No Yes Yes Yes Yes Yes Yes

StJohn'sRetailPark Retail

Warehouse

Yes No No Yes No No Yes Yes

NORWICH,FifersLane Industrial Yes No No No No No Yes Yes

StanleyGreenTradingEstate Industrial Yes No No Yes No No Yes Yes

CHELTENHAM,ThePromenade Office Yes No Yes Yes Yes Yes Yes Yes

SWINDON,StirlingCourt Industrial Yes No Yes Yes No Yes Yes Yes

LUTON,TheGalaxy Leisure Yes No No Yes Yes No Yes Yes

FAREHAM,DelmePlace,CamsEst Office Yes No No Yes Yes No Yes Yes

HeadingleyCentral MixedUse Yes No No Yes Yes No Yes Yes

SOLD-HowardHouse Office Yes No Yes Yes Yes Yes Yes No Soldduring

reportingyear(2024)

TheTun,EDINBURGH Office Yes No Yes Yes No Yes Yes Yes

TELFORD,Hortonwood7 Industrial Yes No Yes No No Yes Yes Yes

NORTHAMPTON,Century&Peterbridge Office Yes No Yes Yes Yes Yes Yes Yes

MILTONKEYNES,HeathfieldIndustrial Industrial Yes No No Yes No No Yes Yes

SOLD-MARLOW,PacificHouse Office Yes No No Yes No No Yes No Soldduring

reportingyear(2025)

Manchester,MarshallBuilding Office Yes No Yes Yes Yes Yes Yes Yes

Manchester,CityTower Office Yes No No Yes Yes No Yes Yes

Coverage

Inthisreport,energy(electricityandfuels),Scope1andScope2GreenhouseGas(GHG)emissions,water,andwastecoverage

relatetotheproportionofassets,byGrossInternalArea(GIA),forwhichlandlordprocuredutilitieshavebeenreportedineach

reportingyear,againstthetotalpossibleGIAforlandlordprocuredutilities.Wheredatacoverageislessthan100%,asupporting

explanationisprovidedwithinthedatanotesimmediatelybelowtherelevanttable.

Energy, Greenhouse Gas Emissions, and Water Intensities

Thedenominatorusedtocalculateenergy,GreenhouseGas(GHG)emissions,andwaterintensitieswaschosenforeachsector

basedonthefloorareaforwhichthereportedconsumptionapplies.Aswereportatsectorlevel,themajorityruleforasector

wastaken.Forallsectors,themajorityofassets’consumptionsuppliedcommonpartsareaandlettableareainthecaseofshared

servicesand/orvoidunits.Tenantdatawasnotyetobtainedatthetimeofwritingthisreportandhasthereforenotbeenincluded

inanyintensitycalculationswhichcanaffecttheintensityindicatorsshown.

IntensitieshavethereforebeencalculatedusingthesumofenergyconsumptionreportedforElec-Abs&Fuels-Abs,normalised

usingthesquaremetersofGrossInternalArea(GIA).Thisisexpressedaskilowatthourpermetersquareperyear(kWh/m2/

year).

104 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

Total Electricity Consumption (Elec-Abs) and Like-for-like total electricity consumption (Elec-LfL)

Electricity

Sector EPRA Category

Units of

Measure

Absolute LfL

2024 2025 2024 2025 % Change

TotalPortfolio Totallandlord-totalelectricity kWh 5,200,371 5,042,571 5,047,262 4,985,485 -1%

Totallandlord-estimatedelectricity % 0.4% 0.3% 0.3% 0.2% 0%

Proportionofelectricitygeneratedoff-siteandpurchasedbylandlord % 98.5% 99.1% 98.8% 99.2% 0%

Proportionofelectricitygeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Industrial Totallandlord-totalelectricity kWh 1,516,826 1,482,288 1,516,826 1,482,288 -2%

Totallandlord-estimatedelectricity % 0.3% 0.5% 0.3% 0.5% 0%

Proportionofelectricitygeneratedoff-siteandpurchasedbylandlord % 96.7% 98.1% 96.7% 98.1% 1%

Proportionofelectricitygeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Office Totallandlord-totalelectricity kWh 3,126,291 2,960,348 2,973,182 2,951,133 -1%

Totallandlord-estimatedelectricity % 0.2% 0.1% 0.0% 0.1% 0%

Proportionofelectricitygeneratedoff-siteandpurchasedbylandlord % 99.2% 99.5% 99.7% 99.9% 0%

Proportionofelectricitygeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Retail Totallandlord-totalelectricity kWh 200,917 222,258 200,917 222,258 11%

Totallandlord-estimatedelectricity % 0.0% 0.1% 0.0% 0.1% 0%

Proportionofelectricitygeneratedoff-siteandpurchasedbylandlord % 100.0% 100.0% 100.0% 100.0% 0%

Proportionofelectricitygeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

RetailWarehouse Totallandlord-totalelectricity kWh 15,915 64,733 15,915 16,861 6%

Totallandlord-estimatedelectricity % 0.0% 0.0% 0.0% 0.2% 0%

Proportionofelectricitygeneratedoff-siteandpurchasedbylandlord % 100.0% 100.0% 100.0% 100.0% 0%

Proportionofelectricitygeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Leisure Totallandlord-totalelectricity kWh 242,722 212,561 242,722 212,561 -12%

Totallandlord-estimatedelectricity % 3.3% 0.0% 3.3% 0.0% -3%

Proportionofelectricitygeneratedoff-siteandpurchasedbylandlord % 100.0% 100.0% 100.0% 100.0% 0%

Proportionofelectricitygeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

MixedUse Totallandlord-totalelectricity kWh 97,699 100,384 97,699 100,384 3%

Totallandlord-estimatedelectricity % 2.0% 1.1% 2.0% 1.1% -1%

Proportionofelectricitygeneratedoff-siteandpurchasedbylandlord % 97.9% 94.0% 97.9% 94.0% -4%

Proportionofelectricitygeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

105 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

— Renewableelectricity(%)iscalculatedaccordingtothe

attributesofenergysupplycontractsasat31December

2025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.

— Energywaspredominantlyprocuredfromthird-party

suppliersand,whererelevant,self-generatedusingon-site

renewableenergyinfrastructure(e.g.solarphotovoltaics).

— Self-generatedelectricitythatisexported/soldisnot

includedintheabovebreakdown.

Commentary:

— Therehavebeennosignificantchangesinelectricity

consumptionattheassetlevel,andthetotalportfolio

varianceisaresultofmodestincreasesanddecreases

inconsumptiondrivenby,forexample,changesin

occupancy,andtransitioningtoallelectricheating

andcoolingsystemswhichhaveledtosmallelectricity

increasesalongsidereductionsingas(e.g.Marshall

Building,Manchester).

106 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

Total Fuel Consumption (Fuels-Abs) and Like-for-like total fuel consumption (Fuels-LfL)

Fuel

Sector EPRA Category

Units of

Measure

Absolute LfL

2024 2025 2024 2025 % Change

TotalPortfolio Totallandlord-totalfuels kWh 1,405,477 1,093,769 1,330,642 1,086,923 -18%

Totallandlord-estimatedfuels % 0.2% 0.1% 0.0% 0.1% 0%

Proportionoffuelsgeneratedoff-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

Proportionoffuelsgeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Industrial Totallandlord-totalfuels kWh 413,924 329,000 413,924 329,000 -21%

Totallandlord-estimatedfuels % 0.0% 0.0% 0.0% 0.0% 0%

Proportionoffuelsgeneratedoff-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

Proportionoffuelsgeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Office Totallandlord-totalfuels kWh 991,553 757,923 916,718 757,923 -17%

Totallandlord-estimatedfuels % 0.3% 0.1% 0.0% 0.1% 0%

Proportionoffuelsgeneratedoff-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

Proportionoffuelsgeneratedon-siteandpurchasedbylandlord % 0.0% 0.0% 0.0% 0.0% 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Retail Totallandlord-totalfuels

kWh – – – –

Totallandlord-estimatedfuels

Proportionoffuelsgeneratedoff-siteandpurchasedbylandlord

Proportionoffuelsgeneratedon-siteandpurchasedbylandlord

%ofapplicableproperties-Included

RetailWarehouse Totallandlord-totalfuels kWh – 6,846 – – –

Totallandlord-estimatedfuels % 0.0%

Proportionoffuelsgeneratedoff-siteandpurchasedbylandlord % 0.0%

Proportionoffuelsgeneratedon-siteandpurchasedbylandlord % 0.0%

%ofapplicableproperties-Included % 100.0%

Leisure Totallandlord-totalfuels

kWh – – – –

Totallandlord-estimatedfuels

Proportionoffuelsgeneratedoff-siteandpurchasedbylandlord

Proportionoffuelsgeneratedon-siteandpurchasedbylandlord

%ofapplicableproperties-Included

MixedUse Totallandlord-totalfuels

kWh – – – –

Totallandlord-estimatedfuels

Proportionoffuelsgeneratedoff-siteandpurchasedbylandlord

Proportionoffuelsgeneratedon-siteandpurchasedbylandlord

%ofapplicableproperties-Included

107 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

— 100%oflandlordprocuredfuelsaresourcedfromNatural

Gas.

— Thefunddoesnotconsumeenergyfromdistrictheating

ordistrictcoolingsources.Therefore,theEPRAindicator

DH&C-AbsandDH&C-LfLisnotapplicableforthisfund

andtherefore,excludedfromthisreport.

Commentary:

— Thereductioninnaturalgasconsumptionacrossthetotal

portfoliohasbeensupportedbycontinuingtotransition

assetstoallelectricheatingandcoolingsystems(e.g.

MarshallBuilding,Manchester).

108 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

Total Building Energy Intensity (Energy-LfL)

Energy Intensity

Sector EPRA Category

Units of

Measure

Absolute LfL

2024 2025 2024 2025 % Change

TotalPortfolio Intensity kWh/m2/year 24.7 23.0 24.6 23.4 -5%

Industrial Intensity kWh/m2/year 12.1 11.4 12.1 11.4 -6%

Office Intensity kWh/m2/year 82.0 78.2 82.0 78.2 -5%

Retail Intensity kWh/m2/year 21.6 23.9 21.6 23.9 11%

RetailWarehouse Intensity kWh/m2/year 1.0 4.4 1.4 1.5 6%

Leisure Intensity kWh/m2/year 14.0 12.3 14.0 12.3 -12%

MixedUse Intensity kWh/m2/year 6.8 7.0 6.8 7.0 3%

109 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

Total direct and indirect greenhouse gas (GHG) emissions (GHG-Dir-Abs & GHG-Indir-Abs) and greenhouse gas

emissions intensity from buildings (GHG-Int)

GHG

Sector EPRA Category

Units of

Measure

Absolute LfL

2024 2025 2024 2025 % Change

TotalPortfolio TotalDirectScope1 tCO₂e 257 200 243 199 -18%

TotalIndirectScope2-LocationBased tCO₂e 1077 893 1045 882 -16%

Scope1&2GHGemissionsintensity kgCO₂e/m²/yr 5.0 4.1 5.0 4.2 -16%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Industrial TotalDirectScope1 tCO₂e 75.7 60.2 75.7 60.2 -20%

TotalIndirectScope2-LocationBased tCO₂e 314.1 262.4 314.1 262.4 -16%

Scope1&2GHGemissionsintensity kgCO₂e/m²/yr 2.4 2.0 2.4 2.0 -17%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Office TotalDirectScope1 tCO₂e 181.4 138.7 167.7 138.7 -17%

TotalIndirectScope2-LocationBased tCO₂e 647.3 524.0 615.6 522.4 -15%

Scope1&2GHGemissionsintensity kgCO₂e/m²/yr 16.3 13.1 16.5 13.9 -16%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Retail

TotalDirectScope1 tCO₂e – – – –

TotalIndirectScope2-LocationBased tCO₂e 41.6 39.3 41.6 39.3 -5%

Scope1&2GHGemissionsintensity kgCO₂e/m²/yr 4.5 4.2 4.5 4.2 -5%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

RetailWarehouse

TotalDirectScope1 tCO₂e – 1.3 – –

TotalIndirectScope2-LocationBased tCO₂e 3.3 11.5 3.3 3.0 -9%

Scope1&2GHGemissionsintensity kgCO₂e/m²/yr 0.2 0.8 0.3 0.3 -9%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Leisure

TotalDirectScope1 tCO₂e – – – –

TotalIndirectScope2-LocationBased tCO₂e 50.3 37.6 50.3 37.6 -25%

Scope1&2GHGemissionsintensity kgCO₂e/m²/yr 2.9 2.2 2.9 2.2 -25%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

MixedUse TotalDirectScope1 tCO₂e – – – –

TotalIndirectScope2-LocationBased tCO₂e 20.2 17.8 20.2 17.8 -12%

Scope1&2GHGemissionsintensity kgCO₂e/m²/yr 1.4 1.2 1.4 1.2 -12%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Conversionfactorsforgreenhousegas(GHG)reportingadoptedasfollows:

Country Utility Year

GHG emissions

factor per kWh

(kgCO2e) Emissions factor data source

UnitedKingdom Electricity 2024 0.20705 Ukgovernmentconversionfactorsforgreenhousegas

(ghg)reporting

UnitedKingdom Electricity 2025 0.177 Ukgovernmentconversionfactorsforgreenhousegas

(ghg)reporting

UnitedKingdom Gas 2024 0.1829 Ukgovernmentconversionfactorsforgreenhousegas

(ghg)reporting

UnitedKingdom Gas 2025 0.18296 Ukgovernmentconversionfactorsforgreenhousegas

(ghg)reporting

110 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

TheFund’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.

— GHGemissionsfromelectricity(Scope2)arereported

accordingtothe‘location-based’approach.TheFunddoes

notreportonamarket-basedapproachandtherefore

doesnotincludethebreakdownofthisinthetablebelow.

— 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.

— Fortheintensityratios,asperthemethodforcalculating

energyintensities,thedenominatordeterminedtobe

relevanttothebusinessissquaremetresofGrossInternal

Area(GIA).

Commentary:

— ThereductioninScope1GHGemissionsacrossthetotal

portfoliohasbeensupportedbycontinuingtotransition

assetstoallelectricheatingandcoolingsystems(e.g.

MarshallBuilding,Manchester).

— ThereductioninScope2GHGemissionshavebeen

supportedbythecontinueddecarbonisationofthe

UKNationalGridandtheresultantreductionintheUK

GovernmentGHGconversionfactorforelectricity.

111 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

Total Water Consumption (Water-Abs) and Like-for-like total water consumption (Water-LfL) and Building Water

Intensity (Water-Int)

Water

Sector EPRA Category

Units of

Measure

Absolute LfL

2024 2025 2024 2025 % Change

TotalPortfolio Totallandlord-totalwater m³ 17700 15903 17293 15898 -8%

Totallandlord-estimatedwater % 1% 2% 1% 2% 1%

Waterintensity m³/m²/year 0.1 0.1 0.1 0.1 -8%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Industrial Totallandlord-totalwater m³ 311.2 254.0 311.2 254.0 -18%

Totallandlord-estimatedwater % 51% 100% 51% 100% 95%

Waterintensity m³/m²/year 0.0 0.0 0.0 0.0 -18%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Office Totallandlord-totalwater m³ 13,095.3 12,320.9 12,688.3 12,315.8 -3%

Totallandlord-estimatedwater % 0% 0% 0% 0% -100%

Waterintensity m³/m²/year 0.3 0.2 0.3 0.3 -3%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Retail Totallandlord-totalwater m³ 3,789.4 2,788.3 3,789.4 2,788.3 -26%

Totallandlord-estimatedwater % 0% 0% 0% 0%

Waterintensity m³/m²/year 0.4 0.3 0.4 0.3 -26%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

RetailWarehouse Totallandlord-totalwater m³ 377.0 340.3 377.0 340.3 -10%

Totallandlord-estimatedwater % 0% 0% 0% 0%

Waterintensity m³/m²/year 0.0 0.0 0.0 0.0 -10%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Leisure Totallandlord-totalwater m³ 125.1 144.7 125.1 144.7 16%

Totallandlord-estimatedwater % 0% 0% 0% 0%

Waterintensity m³/m²/year 0.0 0.0 0.0 0.0 16%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

MixedUse Totallandlord-totalwater m³ 1.6 55.0 1.6 55.0 3319%

Totallandlord-estimatedwater % 0% 3% 0% 3%

Waterintensity m³/m²/year 0.0 0.0 0.0 0.0 3319%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

112 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

— Allwaterwasprocuredfromamunicipalsupply.Asfar

asSchrodersareaware,nosurface,ground,rainwater

orwastewaterfromanotherorganisationwasconsumed

duringthereportingperiodandthereforeisnotpresented

here.

— Fortheintensityratios,asperthemethodforcalculating

energyintensities,thedenominatordeterminedtobe

relevanttothebusinessissquaremetresofGrossInternal

Area(GIA)

Commentary:

— Reductionsinwaterconsumptionacrossthetotal

portfoliohavebeenprimarilydrivenbychangesinphysical

occupancy/footfalllevelsatindividualassets.

— Significantreductionsinwaterconsumptionwere

observedatManchester,CityTowerfollowingresolutionof

anincreaseinconsumptioninthepreviousreportingyear

(2024).

113 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

Total weight of waste by disposal route (Waste-Abs) and Like-for-like total weight of waste by disposal route

(Waste-LfL)

Waste

Sector EPRA Category

Units of

Measure

Absolute LfL

2024 2025 2024 2025 % Change

TotalPortfolio

Landfill-Landlord Tonnes – – – –

Incineration-Landlord Tonnes – – – –

Recycling-Landlord Tonnes 412.8 409.4 409.4 409.4 0%

Reuse-Landlord Tonnes – – – –

EnergyRecovery-Landlord Tonnes 340.8 342.7 337.4 342.7 2%

Other-Landlord Tonnes – – – –

Total-Landlord Tonnes 753.7 752.1 746.9 752.1 1%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Industrial

Landfill-Landlord Tonnes – – – –

Incineration-Landlord Tonnes – – – –

Recycling-Landlord Tonnes – – – –

Reuse-Landlord Tonnes – – – –

EnergyRecovery-Landlord Tonnes – – – –

Other-Landlord Tonnes – – – –

Total-Landlord Tonnes – – – –

%ofapplicableproperties-Included % 0.0% 0.0% 0%

Office

Landfill-Landlord Tonnes – – – –

Incineration-Landlord Tonnes – – – –

Recycling-Landlord Tonnes 83.02 96.74 79.62 96.74 21%

Reuse-Landlord Tonnes – – – –

EnergyRecovery-Landlord Tonnes 82.14 84.50 78.75 84.50 7%

Other-Landlord Tonnes – – – –

Total-Landlord Tonnes 165.17 181.24 158.37 181.24 14%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

Retail

Landfill-Landlord Tonnes – – – –

Incineration-Landlord Tonnes – – – –

Recycling-Landlord Tonnes 50.58 32.19 50.58 32.19 -36%

Reuse-Landlord Tonnes – – – –

EnergyRecovery-Landlord Tonnes 28.98 22.04 28.98 22.04 -24%

Other-Landlord Tonnes – – – –

Total-Landlord Tonnes 79.56 54.22 79.56 54.22 -32%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

RetailWarehouse

Landfill-Landlord Tonnes – – – –

Incineration-Landlord Tonnes – – – –

Recycling-Landlord Tonnes – – – –

Reuse-Landlord Tonnes – – – –

EnergyRecovery-Landlord Tonnes – – – –

Other-Landlord Tonnes – – – –

Total-Landlord Tonnes – – – –

%ofapplicableproperties-Included % 0.0% 0.0% 0%

114 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

Leisure

Landfill-Landlord Tonnes – – – –

Incineration-Landlord Tonnes – – – –

Recycling-Landlord Tonnes 277.32 275.57 277.32 275.57 -1%

Reuse-Landlord Tonnes – – – –

EnergyRecovery-Landlord Tonnes 220.18 223.08 220.18 223.08 1%

Other-Landlord Tonnes – – – –

Total-Landlord Tonnes 497.50 498.65 497.50 498.65 0%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

MixedUse

Landfill-Landlord Tonnes – – – –

Incineration-Landlord Tonnes – – – –

Recycling-Landlord Tonnes 1.92 4.86 1.92 4.86 153%

Reuse-Landlord Tonnes – – – –

EnergyRecovery-Landlord Tonnes 9.54 13.09 9.54 13.09 37%

Other-Landlord Tonnes – – – –

Total-Landlord Tonnes 11.46 17.95 11.46 17.95 57%

%ofapplicableproperties-Included % 100.0% 100.0% 100.0% 100.0% 0%

115 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (environmental) continued

— Reporteddatarelatestonon-hazardouswasteonly,robust

tonnagedataonthesmallquantitiesofhazardouswaste

producedisnotavailable.

Commentary:

— ThereductioninoverallwastegenerationfortheRetail

sectorhasbeeninfluencedbyareductioninoccupancy.

— TheincreaseinoverallwastegenerationfortheOfficeand

Mixed-Usesectorshasbeeninfluencedbyincreasesin

occupancy.

Sustainability certification: Energy Performance

Certificates (Cert-Tot)

EPC Rating

% Net Lettable Area

(ownership adjusted)

A+ 2.9%

A 7.3%

B 20.4%

C 34.2%

D 20.9%

E 14.1%

0.0%

N/A 0.0%

NoEPC 0.2%

Coverage 99.8%

— TheUKMinimumEnergyEfficiencyStandardsregulation

(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CompanyremainscompliantwithMEESregulations.

Ingeneralterms,sincetheintroductionoftheEPC

Regulationsin2008,EPCsarerequiredforlettingofunits

orbuildingsorthesaleofbuildings.

— EnergyPerformanceCertificate(EPC)recordsforthe

Companyareprovidedfortheportfolioasat31March

2026byportfolioNetLettableArea(NLA);

— 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;

— Whererequired,EPCsareknownfor99.8%oftheportfolio.

TheremainingNLAwithoutEPCsrelatestospacewhere

EPCsarenotmandatory.Inallcasescompliancewith

MEESismaintained.

Sustainability certification:Green building certificates

(Cert-Tot)

Rating

% Net Lettable Area

(ownership adjusted)

BREEAM/InUse|Good 4.30%

BREEAM/InUseCoverage 4.30%

BREEAM/RefurbishmentandFit-out|VeryGood 0.33%

BREEAM/RefurbishmentandFit-outCoverage 0.33%

BREEAM/NewConstruction|Excellent 2.63%

BREEAM/NewConstructionCoverage 2.63%

WiredScore|Certified 2.20%

WiredScore|Platinum 4.65%

WiredScoreCoverage 6.85%

ModeScore|Certified 33.55%

ModeScore|Silver 14.00%

ModeScore|Gold 3.45%

ModeScoreCoverage 51.00%

ActiveScore|Certified 51.00%

ActiveScoreCoverage 51.00%

Fitwel/Multi-TenantBaseBuildingv2.1|3Star 4.65%

FitwelCoverage 4.65%

Total portfolio green building certificates

coverage (excluding duplicates) 63%

— GreenbuildingcertificaterecordsfortheFundare

providedasof31March2026byportfolioNetLettable

Area(NLA);

— Dataprovidedincludesmanagedandnon-managed

assets(i.e.thewholeportfolio);

— Whereappropriate(forrelevantassets),floorarea

hasbeenadjustedtoreflecttheCompany’sshareof

ownership.

116 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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’sprinciplesandperformancemeasuresin

relationtopeopleincludingdiversity,genderpaygap,values,

employeesatisfactionsurvey,wellbeingandretentionare

presentedintheSchroders(plc)AnnualReportandAccounts

forthe12monthsto31December2025availablehere:

— https://mybrand.schroders.com/m/74f3d9a5f99e1565/

original/Schroders-Annual-Report-FY25-Full-report-

interactive.pdf

Employee gender diversity (Diversity-Emp)

Asat31March2026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Schroders(plc)AnnualReportandAccountsforthe12

monthsto31December2025.

Gender pay ratio (Diversity-Pay)

TheremunerationoftheCompany’sBoardissetoutonpages

62to63ofthisReportandAccountsdocument.

ThelateststatutoryUKpaygapdisclosures,alongside

voluntaryglobalgenderpaygapandUKethnicitypaygap

analysisforSchrodersplcareavailableontheSchrodersplc

PayGapReportingwebpagehere:https://www.schroders.com/

en/global/individual/about-us/people-and-culture/inclusion-at-

schroders/pay-gaps/

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.

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2026.

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

2025(pages23and24).

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 2026:

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 (%)

FY25 FY26

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

FY25 FY26

All Sectors 0 0

117 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Sustainability performance measures (social) continued

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 (%)

FY25 FY26

Total 23% 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

continuedtostrengthenengagementwithoccupiersandlocal

communitiesacrosstheportfolio,recognisingtheimportance

ofbehaviouralchangeindeliveringsustainabilityoutcomes.

Initiativesincludedthedistributionofsustainability-focused

occupiernewslettersandtheuseofdedicatedengagement

platforms,suchas“Locale”,implementedatassetsincluding

CityTower,Manchester.Inaddition,assetsacrosstheportfolio

wereutilisedtosupportcommunityandsocialvalueinitiatives,

includingfoodbankcollections,Christmasgiftdonationsfor

disadvantagedfamilies,andbookcollections.Atanassetlevel,

occupierengagementprogrammesincorporatedarange

ofwellbeingandeducationalactivities,particularlyatCity

Towerwhereastructuredengagementcalendarisdelivered,

designedtoenhancetheoccupierexperience.

118 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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

31March2026and:

— Theaveragetenureofthefourdirectorsat31March2026

is4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,chairedbyAlastair

Hughes,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.

119 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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2026.The

statementhashoweverbeenpreparedforthecalendaryear,

the12monthsto31December2025,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2025,withintheportfolio,there

were23propertieswithintheoperationalcontrolreporting

boundaryandin2024therewere24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reportedatpresent.As

arealestatecompanywithnodirectemployeesorcompany

ownedvehiclesasat31December2025,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,kgCO

e/m2/yr.

120 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Streamlined energy and carbon reporting continued

Energy Consumption and Greenhouse Gas Emissions

ThetablebelowsetsouttheCompany’senergyconsumption.

Absolute energy Like for Like energy

Utility 2024 2025 2024 2025

Fuel 1,405,477 1,093,769 1,330,642 1,086,923

Electricity 5,200,371 5,042,571 5,047,262 4,985,485

DistrictHeating/DistrictCooling – – – –

Total 6,605,848 6,136,340 6,377,904 6,072,408

Changeinenergy -7% -5%

ThetablebelowsetsouttheCompany’sgreenhousegasemissions.

Absolute emissions Like for Like emissions

Scope 2024 2025 2024 2025

Scope 1 257.06 200.12 243.37 198.86

Scope 2 1,076.74 892.54 1,045.04 882.43

Total 1,333.80 1,092.65 1,288.41 1,081.29

Changeinemissions -18% -16%

Thelike-for-likeenergyconsumptionandGreenhouseGas(GHG)emissionsforthe2025calendaryearforthemanagedassets

heldwithintheCompanyhasreducedby16%,whencomparedtothe2024calendaryear.

ThetablebelowsetsouttheCompany’senergyandgreenhousegasemissionsintensitiesbysectoronalike-for-likebasis:

Absolute Energy Intensities Absolute Emissions Intensities

Sector 2024 2025 2024 2025

Industrial 12.13 11.38 2.45 2.03

Office 81.17 73.29 16.33 13.06

Retail 21.56 23.85 4.46 4.22

RetailWarehouse 0.99 4.44 0.20 0.79

Leisure 14.02 12.28 2.90 2.17

MixedUse 6.85 7.04 1.42 1.25

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35to42ofthe

SREITannualreportfortheyearending31March2026

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(CO

),methane(CH

),

hydrofluorocarbons(HFCs),nitrousoxide(N

0),

perfluorocarbons(PFCs),sulphurhexafluoride(SF

)

andnitrogentrifluoride(NF

).

– GHGemissionsfromelectricity(Scope2)arereported

accordingtothe‘location-based’approach.

121 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Other information (unaudited) — Streamlined energy and carbon reporting continued

– Thefollowinggreenhousegasemissionsconversionfactorsandsourceshavebeenapplied:

Country

Emissions

Source Year GHG Emissions Factor Emissions Factor Data Source

United

Kingdom

Electricity 2024 0.20705

ukgovernmentconversionfactorsfor

greenhousegas(ghg)reporting

Electricity 2025 0.177

Gas 2024 0.1829

ukgovernmentconversionfactorsfor

greenhousegas(ghg)reporting

Gas 2025 0.18296

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.

Duringthereportingyearto31March2026,theCompany

progressedatargetedprogrammeofdecarbonisation-

relatedcapitalexpenditureacrossseveralassets,delivering

measurableimprovementsinsustainabilitycredentials.

— £1.9millionrefurbishmentofUnit22atMillshaw

ParkIndustrialEstate,whichachievedanupgradein

EnergyPerformanceCertificate(EPC)ratingfrom‘C’

to‘A’,supportedbymeasuressuchasheatingsystem

electrificationanda50kWproof-mountedsolar

photovoltaic(PV)arrayforcleanenergygeneration.

— AtStanleyGreenTradingEstate,phasedrefurbishment

worksacrossmultipleunitsdeliveredenergyandcarbon

improvements,demonstratedbyupgradestoEPC‘A’or‘B’

fromlowerratings.

— AtCliftonPark,wheretherefurbishmentofBlockC

includedinstallationoflow-carboninfrastructure,delivered

animprovementtoanEPC‘A’ratingfrom‘C’.

— AtChurchillWayWest,acomprehensivereconfiguration

andrefurbishmentofUnits1and2incorporated

measuressuchasphotovoltaicpanels,improvedbuilding

fabricandgasremoval,resultinginanEPC‘A+’ratingfor

Unit1andtargetingatleast‘B’forUnit2.

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theendof2025.Asat31December2025,99%of

theCompany’slandlord-controlledelectricitywasonrenewable

tariffs.Nocarbonoffsetswerepurchasedduringthereporting

period.Theremainderoflandlordelectricitysuppliesnot

procuredunderrenewabletariffsincludesuppliesforvoids

wherethelandlordtemporarilyregainsresponsibilityaftera

tenantvacatesaunitwheretheywereresponsibleforutility

procurement.

1 BetterBuildingsPartnershipClimateCommitmentavailablehere:https://www.betterbuildingspartnership.co.uk/member-climate-commitment

122 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Asset list

Other information (unaudited)

Thetablebelowsummarisestheportfolioinformationasat31March2026,excludingpostyearendactivity.Thepropertyvalues

presentedrepresenttheyearendvaluationsasdeterminedbytheindependentvaluersasat31March2026

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 50-60

StanleyGreenTradingEstate,STOCKPORT Industrial NorthWest 40-50

TheUniversityofLaw,BLOOMSBURY(50%Share) UniversityCampus WestEnd 30-40

StJohn'sRetailPark,BEDFORD RetailWarehouse Eastern 30-40

LangleyParkWay,CHIPPENHAM Industrial SouthWest 20-30

UnionParkIndustrialEstate,NORWICH Industrial Eastern 20-30

CityTower,MANCHESTER(25%Share) MixedUse NorthWest 20-30

HeadingleyCentral,HEADINGLEY MixedUse Yorkshire&Humberside 20-30

HortonParkIndustrialPark,TELFORD Industrial WestMidlands 10-20

MarshallBuilding,MANCHESTER MixedUse NorthWest 10-20

ValleyBusinessPark,BIRKENHEAD Industrial NorthWest 10-20

ChurchillWayWest,SALISBURY RetailWarehouse SouthWest 10-20

TheTun,EDINBURGH Offices Scotland 10-20

WatlingStreet,BLETCHLEY RetailWarehouse SouthEast 10-20

21/27StirlingCourt,SWINDON Industrial SouthWest 10-20

RoyscotHouse,CHELTENHAM Offices SouthWest 0-10

106OxfordRoad,UXBRIDGE Offices SouthEast 0-10

TheGalaxyCentre,LUTON Leisure Eastern 0-10

DelmePlace,FAREHAM Offices SouthEast 0-10

Wickes,CHESTER RetailWarehouse NorthWest 0-10

HeathcoteIndustrialEstate,WARWICK Industrial WestMidlands 0-10

HaywoodHouse,CARDIFF Offices Wales 0-10

TheLakes,NORTHAMPTON Offices EastMidlands 0-10

HallLane,SANDBACH Industrial NorthWest 0-10

CliftonPark,YORK Offices Yorkshire&Humberside 0-10

ImperialHouse,SHEFFIELD Retail Yorkshire&Humberside 0-10

TheAlbionCentre,ILKESTON Other EastMidlands 0-10

24/25HighStreet,CHELMSFORD Retail SouthEast 0-10

SetonHouse,WARWICK Offices WestMidlands 0-10

TheOrangery,Old&NewStables,FAREHAM Offices SouthEast 0-10

MostonRoad,SANDBACH Industrial NorthWest 0-10

28 AsperthirdpartyvaluationreportsunadjustedforIFRSleaseincentiveamounts.

123 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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$200billionandwe

deployourservicestoover300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2026,ourworkincluded

thereviewofsix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).

124 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

Glossary

Other information (unaudited)

Alternative performance

measure (‘APM’)

pleaseseepage100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52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.

125 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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127to128.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

2026;(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2027or

ontheexpiryof15monthsfromthepassingofResolution10.

126 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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2027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

9July2026

127 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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22

September2026at3.00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2026.

Resolution2(OrdinaryResolution) ToapprovetheRemunerationReportfortheyearended31March2026.

Resolution3(OrdinaryResolution) ToelectRichardDakinasaDirectoroftheCompany.

Resolution4(OrdinaryResolution) Tore-electPriscillaDavies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125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2027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2027

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

9July2026

128 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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

18September2026.

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

of18September2026.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.

4 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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

Broadwalk House

3rd Floor

5 Appold Street

Broadgate

London EC2A 2DA

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)

Produced by

www.blackandcallow.com

1 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2026

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

schroders.com