Schroder Real Estate Investment Trust (SREI) H2 2026 earnings summary

Executive summary

• Achieved a 7.8% dividend yield with a 4% increase in dividends paid year-over-year and a 38% increase since 2019, maintaining a progressive dividend policy.

• Announced a proposed earnings-accretive consortium offer for Picton, expected to enhance scale, diversification, and balance sheet strength.

• Board succession announced: Alastair stepping down as Chair, Priscilla Davies to become Chair, and Richard Dakin joining as non-exec director.

• Portfolio is diversified, with 66% exposure to higher growth multi-let industrial and retail warehouse sectors.

• Sustainability strategy advanced, with clear KPIs and asset-level improvements in ESG scores.

Financial highlights

• Portfolio value declined 0.1% in H2, with annual NAV down 1.1%; NAV total return just under 5% for the year.

• Rental and related income increased by 3% year-over-year to £32.7 million, despite asset sales.

• EPRA earnings were £16.5 million, down 3% from the prior year, but dividend payments increased 4%.

• Property operating expenses were £4.3m, including an £800k one-off arrears write-off.

• Rent collection rate reached 98%.

Outlook and guidance

• Confident in further dividend growth, supported by reversionary potential and fixed low-cost debt.

• Expect continued rental growth in multi-let industrials and retail warehouse sectors.

• Protracted but resilient recovery anticipated for UK real estate, with market uncertainty from geopolitical events.

• Progressive dividend policy to continue, with earnings accretion targeted from the Picton transaction.

• Platform for accelerated growth supported by high income, low debt cost, and robust balance sheet.