Schroder Real Regulatory News (SREI)

For release 14 September 2020

Schroder Real Estate Investment Trust Limited

("SREIT"/ the "Company" / "Group")

ASSET MANAGEMENT AND RENT COLLECTION UPDATE

Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, provides an update on recent asset management activity across its portfolio. This follows the Company’s recent announcement regarding the commencement of a share buyback programme.

13 new lettings, renewals and reviews have completed across the portfolio since 30 June 2020. This positive activity increased contracted rental income by £210,000 per annum compared with the position at 30 June 2020 and totals £800,000 of rent. The activity included the following:

Leeds, Coverdale House (Office)

New lease completed for a three year term to the Secretary of State for Housing, Communities and Local Government for a 17,578 sq ft family court at £15.00 per sq ft equating to £281,670 per annum. The rental level achieved is in-line with the independent estimated rental value (‘ERV’) and represents a 6% increase to the previous passing rent of £265,000 per annum.

Multi-let industrials

Nine new lettings, renewals and rent reviews have completed at the Company’s multi-let industrial estates in Milton Keynes, Leeds and Norwich. This activity equates to a total annualised rent of £360,000 and generated additional contracted rental income of £180,000 per annum compared with the position at 30 June 2020. Key activity included: Milton Keynes, Stacey Bushes Industrial Estate - New ten year lease to Goodman Precision Engineering Limited, a racing engineering company, for two units totalling 10,861 sq ft at £7.50 per sq ft equating to £81,500 per annum. This is 15% ahead of ERV and the previous passing rent. The tenant will receive seven months rent free and there is a break option in year five. Milton Keynes, Stacey Bushes Industrial Estate – Lease renewal with The Saab Centre for a new ten year lease at a rent of £32,300 per annum, or £8.50 per sq ft, compared with previous rent of £17,715 per annum. This represented an 82% increase in rent and is 22% ahead of ERV.

Rent collection

The rent collected that was payable in June 2020 for the period ending 30 September 2020 currently totals 82% of contracted rents. The breakdown between sectors for rent collection is 95% of Office collected, 92% of Industrial collected, 53% of Retail and Leisure collected, and 100% of Other collected. The Company remains in active dialogue with its tenants for all rents due to be paid.

Balance sheet and buy-back

As at 30 June 2020, the Company had cash of £85.4 million resulting in a loan to value ratio, net of cash, of approximately 24%. On 8 September the Company announced a share buy-back programme. The Board believes that investment in the SREIT’s shares at the prevailing price and discount to net asset value offers attractive value for its shareholders. Alongside share buy-backs the focus continues to be on identifying attractive new acquisitions and delivering net income growth through new lettings and asset management.

Material valuation uncertainty clause

The Company has been informed by the independent valuers that the industry-wide material valuation uncertainty clause is to be removed for the next valuation on 30 September 2020.

-ENDS-

For further information:

Schroder Real Estate Investment Management Limited: Duncan Owen / Nick Montgomery / Frank Sanderson	020 7658 6000
Northern Trust: Jingjing Qi	01481 745529
FTI Consulting: Dido Laurimore / Richard Gotla / Meth Tanyanyiwa	020 3727 1000