Annual Report (ESEF) • Jun 13, 2025
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Download Source File549300ZIJJTMTIIQJP672024-04-012025-03-31iso4217:GBP549300ZIJJTMTIIQJP672023-04-012024-03-31iso4217:GBPxbrli:shares549300ZIJJTMTIIQJP672025-03-31549300ZIJJTMTIIQJP672024-03-31549300ZIJJTMTIIQJP672023-03-31ifrs-full:SharePremiumMember549300ZIJJTMTIIQJP672023-03-31ifrs-full:RetainedEarningsMember549300ZIJJTMTIIQJP672023-03-31ifrs-full:IssuedCapitalMember549300ZIJJTMTIIQJP672023-03-31ifrs-full:TreasurySharesMember549300ZIJJTMTIIQJP672023-03-31549300ZIJJTMTIIQJP672023-04-012024-03-31ifrs-full:SharePremiumMember549300ZIJJTMTIIQJP672023-04-012024-03-31ifrs-full:RetainedEarningsMember549300ZIJJTMTIIQJP672023-04-012024-03-31ifrs-full:IssuedCapitalMember549300ZIJJTMTIIQJP672023-04-012024-03-31ifrs-full:TreasurySharesMember549300ZIJJTMTIIQJP672024-03-31ifrs-full:SharePremiumMember549300ZIJJTMTIIQJP672024-03-31ifrs-full:RetainedEarningsMember549300ZIJJTMTIIQJP672024-03-31ifrs-full:IssuedCapitalMember549300ZIJJTMTIIQJP672024-03-31ifrs-full:TreasurySharesMember549300ZIJJTMTIIQJP672024-04-012025-03-31ifrs-full:SharePremiumMember549300ZIJJTMTIIQJP672024-04-012025-03-31ifrs-full:RetainedEarningsMember549300ZIJJTMTIIQJP672024-04-012025-03-31ifrs-full:IssuedCapitalMember549300ZIJJTMTIIQJP672024-04-012025-03-31ifrs-full:TreasurySharesMember549300ZIJJTMTIIQJP672025-03-31ifrs-full:SharePremiumMember549300ZIJJTMTIIQJP672025-03-31ifrs-full:RetainedEarningsMember549300ZIJJTMTIIQJP672025-03-31ifrs-full:IssuedCapitalMember549300ZIJJTMTIIQJP672025-03-31ifrs-full:TreasurySharesMember Schroder Real Estate Investment Trust Limited Annual Report & Consolidated Financial Statements For the year ended 31 March 2025 Overview Contents Overview 4 Performance summary Strategic report 6 Chair’s statement 8 Investment Manager’s report 31 Sustainability report 40 Business model 42 Our stakeholders 43 Principal risks and uncertainties Governance report 49 Board of Directors 50 Report of the Directors 52 Corporate governance 55 Audit Committee report 57 Management Engagement Committee report 58 Nomination Committee report 59 Directors’ remuneration report 61 Statement of Directors’ responsibilities 62 Independent Auditor’s report to the members of Schroder Real Estate Investment Trust Limited Financial statements 70 Consolidated statement of comprehensive income 71 Consolidated statement of financial position 72 Consolidated statement of changes in equity 73 Consolidated statement of cash flows 74 Notes to the financial statements Other information (unaudited) 92 EPRA performance measures (unaudited) 95 Alternative performance measures (unaudited) 96 AIFMD disclosures (unaudited) 97 Sustainability performance measures (environmental) (unaudited) 128 Sustainability performance measures (social) (unaudited) 130 Sustainability performance measures (governance) (unaudited) 131 Streamlined energy and carbon reporting 134 Asset list 135 Report of the Depositary to the shareholders 136 Glossary 137 Resolutions at the Annual General Meeting 139 Notice of Annual General Meeting IBC Corporate information Overview The Company is well positioned with an attractive income profile and low cost long-term debt. Seeking to improve the sustainability performance of buildings to generate higher income and capital growth. 1 Portfolio focused on higher growth sectors with a reversionary yield of 8.4% (MSCI Benchmark: 6.2%). 2 6.8% 1 dividend yield 100% covered by EPRA earnings over the financial year. 2 3 Robust balance sheet provides dividend protection: 3.5% current average interest cost of which 88% is fixed rate or capped with 8.5 years average maturity. 4 Share price at a 14% discount to NAV offers an attractive entry point given market recovery, earnings growth potential, and evolving shareholder register. 3 5 Progressing thematic sustainability strategy – manufacture green premium, address carbon, drive earnings growth. Notes Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. References to these assets are for illustrative purposes only and are not a recommendation to buy and/or sell. Source: Schroders. Company data as at 31 March 2025. MSCI Benchmark is MSCI UK Balanced Portfolios Quarterly Property Index. 1 Based on a share price of 53.0p as at close on the 10 June 2025 and an annualised dividend of 3.588pps. 2 Based on EPRA earnings and dividends paid for the year ended 31 March 2025. 3 Based on a share price of 53.0p as at close on the 10 June 2025 and NAV of 61.6pps as at 31 March 2025. 3 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Overview Performance summary Net asset value £m 31 March 2025 301.4 31 March 2024 287.4 Net asset value total return % 31 March 2025 11.0 31 March 2024 1.1 Value of property assets and joint venture assets 1 £m 31 March 2025 480.0 31 March 2024 459.3 Underlying portfolio total return % 31 March 2025 9.1 31 March 2024 3.2 Estimated open market rental value 3 £m 31 March 2025 40.3 31 March 2024 38.8 EPRA earnings £m 31 March 2025 17.0 31 March 2024 16.3 Dividend cover 31 March 2025 100% 31 March 2024 100% 31 March 2025 31 March 2024 Property performance Value of Property Assets and Joint Venture Assets 1 £m 480.0 459.3 Annualised rental income 2 £m 28.9 29.8 Estimated open market rental value 3 £m 40.3 38.8 Underlying portfolio total return % 9.1 3.2 MSCI Benchmark total return 4 % 6.2 (1.3) Underlying portfolio income return % 5.6 6.2 MSCI Benchmark income return % 4.8 4.7 Financial summary Net Asset Value (‘NAV’) £m 301.4 287.4 NAV per Ordinary Share p 61.6 58.8 EPRA Net Tangible Assets 5 £m 301.3 287.1 EPRA Net Reinstatement Value 5 £m 333.9 318.4 EPRA Net Disposal Value 5 £m 319.9 305.8 IFRS profit for the year £m 31.1 3.0 EPRA earnings 5 £m 17.0 16.3 Dividend cover 6 % 100 100 Capital values Share price p 49.9 41.9 Share price discount to NAV % (19.0) (28.7) NAV total return 7 % 11.0 1.1 Earnings and dividends EPRA earnings 5 (pps) 3.5 3.3 Dividends paid (pps) 3.5 3.3 Annualised dividend yield on the 31 March share price % 7.2 8.0 Bank borrowings On-balance sheet borrowings 8 £m 181.1 176.6 Loan to Value ratio (‘LTV’), net of all cash 9 % 36.9 37.1 Ongoing charges Ongoing charges (including fund and property expenses) 10 % 2.70 2.53 Ongoing charges (including fund only expenses) 11 % 1.25 1.19 1 Reconciles to the valuation reports from CBRE for both the direct portfolio and the two Joint Ventures. Does not include any IFRS adjustments for lease incentives, nor the fair value of the leasehold adjustment for The Galaxy, Luton. 2 Represents the annualised rental income of the portfolio as at 31 March 2025, including the share of rents from joint venture assets. Note the University of Law, tenant at Store Street in Bloomsbury, is in a 10-month rent free period ending on 16 October 2025. Adding back the Company’s share of its annual rent of £2,359,885 results in annual rent of £31.2 million. 3 Represents the ERV of the portfolio as estimated by the valuers, including the share of rents for the joint venture assets. 4 Source: MSCI Quarterly Version of Balanced Monthly Index Funds including the share of rents for the joint venture assets on a like-for-like basis as at 31 March 2025. 5 This is an Alternative Performance Measure (‘APM’). EPRA calculations are included in the EPRA Performance measures section on pages 92 to 94. 6 This is an APM with further details on page 95. 7 This is an APM with further details on page 95. 8 On-balance sheet borrowings reflect the loan facilities with Canada Life and RBSI without the deduction of unamortised finance costs of £0.5m. 9 This is an APM. Details are included in the APM section on page 95. 10 This is an APM and calculated in accordance with the AIC recommended methodology. Details are included in the APM section on page 95. 11 This is an APM and calculated in accordance with the AIC methodology. Details are included in the APM section on page 95. 4 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Overview 5 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report 6 Chair’s statement 8 Investment Manager’s report 31 Sustainability report 40 Business model 42 Our stakeholders 43 Principal risks and uncertainties Chair’s statement We are today announcing our audited financial results for the year ended 31 March 2025, with the highlights below: — The portfolio allocation to higher growth sectors and successful asset management activity underpinned a 4.8% increase in the net asset value (‘NAV’) to £301.4 million, or 61.6 pence per share (‘pps’) — Above average portfolio yield and activity supported a fully covered dividend of 3.5 pps, which was 4% higher versus the previous year, and a NAV total return of 11.0% — Continued long-term outperformance of the underlying portfolio with a total return of 9.1% compared with the MSCI Benchmark (the ‘Benchmark’) of 6.2% — Sector leading debt profile, with a long duration of 8.5 years and a low average interest cost of 3.5% — Delivering on the strategy to enhance income and capital growth through improved portfolio sustainability performance, with an encouraging pipeline of further near-term initiatives — Active shareholder engagement led to increased demand from retail platforms and new wealth manager investors, driving an improved share price rating — Board and Manager demonstrating best-in-class governance, including a manager fee change and succession planning The UK economy continues its fragile recovery, with weaker growth expectations following tariff increases and resultant capital markets volatility. Inflation is expected to fall, despite elevated wage growth, which has enabled the Bank of England to reduce the base rate to 4.25%, with expectations of further cuts during 2025, reducing investors’ cost of capital. Whilst weaker GDP growth may dampen rental value growth, restricted development is set to mitigate the impact and continue driving rents higher for the best space in the more structurally supported sectors. Although investment and occupational market activity has understandably slowed in response to the recent macro-economic and geopolitical headwinds, the yield premium offered by the sector should still nonetheless support a sustainable recovery over 2025 and 2026. Against this backdrop, our diversified portfolio benefits from a favourable sector allocation, with 64% of the portfolio allocated to the higher growth industrial (51% of value) and retail warehousing (13%) sectors. These are generally multi-let assets providing a pipeline of value enhancing refurbishment and repositioning initiatives, with a total of £6.7 million invested in portfolio activity during the year. This resulted in an underlying portfolio value of £480 million at the year end, reflecting a capital value increase over the 12 month period of 3.4% (Benchmark: 1.4%). This contributed to the 4.8% increase in the NAV over the year to £301.4 million or 61.6 pps. The favourable allocation also contributed to estimated rental value growth of 4.2% over the year (Benchmark: 3.6%), with the strongest growth resulting from the active management of our retail warehouse portfolio (8.6% vs. the Benchmark at 2.6%). This, in turn, supported an income return from the underlying portfolio of 5.6% (Benchmark: 4.8%), resulting in a total return from the underlying portfolio of 9.1%, compared with the Benchmark of 6.2%. As mentioned above, market volatility is impacting on occupier decision making, which has slightly delayed our expected fall in the void rate, which was 12.3% at the year end, with 4.2% currently let or under offer. The Company’s underlying portfolio remains one of the best performing in its Benchmark peer group over all time periods, driven by the above average income return, favourable sector allocation and active management approach. Portfolio activity including 76 letting transactions during the year and since the year end, combined with tight management of costs and our sector-leading debt profile, boosted earnings by 5%, enabling the Company to pay dividends totalling £17.0 million, or 3.5 pps. Dividends were fully covered by earnings, which combined with the increase in NAV, resulted in a NAV total return of 11.0%, delivering our strongest performance since 2022. The Company has today announced a further quarterly dividend of 0.897 pps, in line with the previous quarter. Despite the recent reduction in the base rate to 4.25%, our long-term, fixed-rate debt remains a compelling positive differentiator amongst the immediate peer group, with 72% of debt drawn at the year-end fixed at an average of 2.5% for an average of 11.0 years. This fixed-rate loan has a significant positive fair value that is not reflected in the Company’s NAV. Combined with our tactical revolving credit facility (‘RCF’), the average interest rate for our total drawn debt was 3.5%, with an average term of 8.5 years, and 88% of total drawn debt either fixed or hedged against movements in interest rates. At the year end, the Company’s consolidated net loan to value was 36.9%, with sales planned to bring this in line with our target long-term guidance of 25% to 35%. It is encouraging that the strong relative performance of the underlying portfolio is, in many cases, being driven by refurbishment and redevelopment initiatives to improve asset sustainability performance, which is enabling us to extract the ‘green premium’ and deliver on our net zero carbon commitments. Key initiatives for our industrial assets include delivering operational net zero in design or ‘EPC A+’ space at Stacey Bushes Industrial Estate in Milton Keynes and Stanley Green Trading Estate in Manchester, which has seen us attracting new occupiers such as BYD and Siemens, achieving rental uplifts of up to 40%. 6 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Strategic report — Chair’s statement continued Significant projects are also ongoing across our office portfolio, including refurbishment programmes to deliver EPC A rated buildings, which is driving positive letting activity. The Company over the period saw a reduction in the portfolio level energy and carbon intensity, and also maintained its GRESB score, in a year when GRESB made changes to it scoring approach. Together this progress supported the Manager achieving the threshold required to receive the additional five basis points of NAV fee. Further detail is included within the Sustainability report. Shareholders have responded positively to our strategic evolution, and the Manager has continued its programme of active shareholder engagement including research, conferences, asset tours, and targeting of retail platform investors via specialist channels such as Investor Meet Company. This activity and our attractive, fully covered dividend yielding 6.8% today, has driven more demand for our shares, with new institutional and wealth manager investors, and advisor and retail platforms now representing 30.96% of the shareholder register as at the year end. Although our shares continue to trade at a discount to NAV, the above-mentioned efforts have led to an improvement in the share price rating in absolute terms and relative to peers, with the discount to NAV improving from 28.7% at the start of the financial year to 14% today. The Board and Manager are cognisant of the growth opportunities that could arise from a further improvement in the rating, and these are given regular consideration alongside our core strategic objectives. The Company and its Manager are focused on demonstrating best-in-class governance. The Board has met the UK Listing Rules diversity targets throughout the year, and we benefit from Schroders’ regulatory engagement relating to, for example, the FCA’s consultation on cost disclosure, as well as with the Treasury on attracting more domestic demand for UK investment company shares. The Board is very supportive of the Manager’s focus on delivering value for our shareholders and during the year we considered new fee structures providing greater alignment with shareholder returns. As a result, with effect from 1 October 2025, the Manager’s fee will be amended so that 50% is linked to market capitalisation, with the balance linked to NAV. Based on the current fee of 0.9% and today’s share price of 53.0 pps, this would result in an annualised fee reduction of £0.2 million or 7.0%. The market capitalisation linked fee is capped at the prevailing NAV, and the existing fee tiers linked to the Company’s size remain unchanged. The Board and Manager are also implementing succession planning for me as Chair, and for Nick Montgomery as co- manager. I joined the Board in April 2017 and intend to step down in 2026. At Schroders, Nick’s appointment as Global Head of Real Estate means that a new co-manager will be appointed alongside Bradley Biggins, and this hiring process is ongoing. Nick remains highly involved with the Company and, following the new co-manager appointment, Nick will continue to provide oversight through his role as chair of the Manager’s Investment Committee, which is responsible for approving the Company’s transactional activity and strategic recommendations to the Board. The Board expect this to be a smooth transition, with shareholders benefiting from the deep bench of real estate investment and asset management specialists at Schroders. Looking forward, and despite near-term market uncertainty, our clear investment strategy and focus on owning assets in more structurally supported sectors positions us to be a beneficiary in an improving environment for commercial real estate. The Board and Manager are highly focused on delivering sustainable earnings growth through crystallising the portfolio reversionary potential, completing selective disposals to repay debt and recycle into higher yielding investments, and careful management of expenses. Successful implementation of this strategy should support the progressive dividend policy over time. I look forward to my final year working with my fellow Board members and the Manager in delivering our strategy and thank shareholders for their continued support. Alastair Hughes Chair 10 June 2025 7 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial results Schroder Real Estate Investment Trust Limited’s (‘SREIT’, or ‘the Company’) net asset value (‘NAV’) as at 31 March 2025 was £301.4 million or 61.6 pence per share (‘pps’), compared with £287.4 million, or 58.8 pps, as at 31 March 2024. This reflected an increase over the financial year of 2.8 pps or 4.8%. Dividends totalling £17.0 million were paid during the year, which resulted in a NAV total return of 11.0%. A detailed analysis of the NAV movement is set out in the table below: NAV movement £m PPS NAV as at 31 March 2024 1 287.4 58.8 Unrealised net increase in the valuations of the direct real estate portfolio and joint ventures 2 21.6 4.4 Capital expenditure 3 (6.7) (1.4) Realised gain on disposal, net of disposal costs 0.5 0.1 EPRA earnings 4 17.0 3.5 Dividends paid (17.0) (3.5) Interest rate derivatives (0.2) (0.0) Others (1.2) (0.3) NAV as at 31 March 2025 5 301.4 61.6 1 The calculation of pence per share is based on shares in issue as at 31 March 2024 of 489,110,576. 2 Prior to all capital expenditure, and movement in IFRS 16 lease incentives. 3 Comprises capital expenditure of £6.1 million on the directly held portfolio and £0.6 million invested across the two joint ventures. 4 EPRA earnings as per the reconciliation on page 92. 5 The calculation of pence per share is based on shares in issue as at 31 March 2025 of 489,110,576. Net asset value per share (pence) 31 March 2025 61.6 31 March 2024 58.8 EPRA earnings per share (pence) 31 March 2025 3.5 31 March 2024 3.3 Dividends paid per share (pence) 31 March 2025 3.5 31 March 2024 3.3 Dividend cover 31 March 2025 100% 31 March 2024 100% Capital growth for the underlying portfolio, including joint ventures, was 3.4% over the financial year ended 31 March 2025. £6.7 million of capital expenditure was invested in asset management and redevelopment projects, including joint ventures, that should drive capital growth and future rental increases over the medium to longer term. The disposal of Howard House in Bedford completed in December 2024 for £1.475 million and reflected a 51% increase on the 31 March 2024 independent valuation of £0.975 million. After transaction costs of £30,000, the realised gain on disposal was £470,000. EPRA earnings for the financial year totalled £17.0 million, or 3.5 pps, an increase of £700,000 or 4.3%, on the prior financial year of £16.3 million. Active asset management led to an increase in rent and other income compared to the prior financial year. There was a 4% increase in the dividend paid in the financial year to £17.0 million from £16.4 million in the previous year. Investment Manager’s report Nick Montgomery Fund Manager 8 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Strategic report — Investment Manager’s report continued UK market context The UK economy continues its fragile recovery, with future trajectories of economic growth, inflation, and interest rates, now also dependent on tariff negotiations between the US and its trade partners. There remains considerable uncertainty relating to current geopolitical events that have triggered significant market volatility. We continue to monitor the situation and how this may impact our investment activity. Stagflationary risks remain for the UK economy. Whilst inflation (CPI) declined to 2.6% for the year to March, upcoming increases to the energy price cap, National Insurance contributions, and minimum wage create upward pressures. Economic growth was near zero in the second half of calendar 2024 and whilst quarterly growth rebounded to 0.7% in Q1, this does not reflect the potential impact of tariffs. Conditions in the manufacturing sector remain challenging, with a sharp decline across output and new orders in March, in contrast the services sector remains more positive. Retailers have noted softer demand in recent months with consumer sentiment remaining in negative territory. The household savings rate reached 12% in Q4 2024, its highest on record excluding the pandemic, indicating that despite lower inflation and still reasonably robust (yet weakening) labour markets, consumers are cautious over the outlook. UK GDP growth forecasts have been revised down since the start of the year with the consensus forecast for annual 2025 GDP growth at 0.8% in May versus 1.3% in December 2024. The news of a US-UK trade deal could alleviate the potential downside for economic growth. In May the Bank of England implemented its fourth 25bps cut to the base rate this cycle, bringing it to 4.25%. The market is now expecting the base rate to end the year at 3.75%-4.0%, lower than earlier in the year given increased uncertainty and softening growth expectations. The five-year Sonia swap rate has declined to 3.8% from the recent January peak of 4.6%. This and the prospect of further interest rate cuts should be supportive to real estate financing activities. Average UK real estate values declined by 25% from the cycle high of June 2022 to the low of March 2024. This is a significant correction and compares with a 44% average market decline during the 2007 to 2009 global financial crisis (GFC), and a 27% decline during the recession of the early 1990s. It is also one of the largest corrections globally. Since then, average valuations have slowly recovered, increasing by 2.5% to March 2025, driven by yield compression and modest rental growth. In addition to rebased valuations, there is fundamental support for continued rental growth given the lack of available high quality ESG compliant space, and significant construction cost inflation in the past four years, resulting in a constrained pipeline of new development. Monetary policy could support asset valuations, though the 10-year gilt yield remains elevated at 4.6%. Our proprietary market forecasts show average commercial real estate total returns in 2025 and 2026 at 9-10% per annum, and 8-9% per annum in 2027 and 2028, representing above average returns. Downside risks to these forecasts have risen, including the impact to businesses of higher costs and muted growth. This could trigger rising delinquencies for weaker businesses that are already exposed to wage and energy price appreciation or lower consumer spending. Business spending will also likely be subdued and businesses will likely defer decision-making. We continue to favour industrial estates and urban logistics assets benefitting from e-commerce and urbanisation trends. We believe that the current situation is likely to accelerate nearshoring dynamics, even if tariffs might be short lived. This form of supply chain re-organisation will create winners and losers. Gateway locations and areas particularly dependent on (US-)exports could see a short-term decline in demand. The retail sector seems to have found a floor though the risk to consumer confidence and margin pressure for retailers means we continue to favour retail parks with a low exposure to fashion that attract discount retailers, as well as convenience formats including supermarkets. We also see potentially mis- priced opportunities to execute upgrades and refurbishments of well-located workspaces. Bradley Biggins Fund Manager 9 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Structural factors driving our strategic ambition The built environment is responsible for 34% of energy-related CO2 emissions according to the United Nations Environment Programme (2025), and owners therefore have a responsibility to take a lead on tackling contributions to climate change. As most of today’s stock will likely still be required and in use in 2050, it is only by transforming less sustainable buildings into modern, fit for purpose assets that the sector will reach Net Zero Carbon, and asset obsolescence resulting from enhanced regulations can be mitigated. This strategic imperative, the Company’s active approach, and Schroders’ specialist resources relating to sustainability and positive impact investing more generally, created an opportunity to formally place sustainability at the centre of the Company’s investment proposition. This should enable the Company to proactively respond to the UK’s Net Zero Carbon objectives and enhance long term total returns by focusing on decarbonisation strategies that adapt existing buildings to achieve the ‘Green Premium’, which generally has two components: — Evolving regulations and obligations mean tenants are demanding buildings that benefit from sustainability attributes including being more energy efficient, having enhanced natural resource management, promoting the health and well-being of occupants, offer access to high- quality green space and community facilities, as well as being capable of withstanding extreme weather events. As we are witnessing across the Company’s portfolio, commercial occupiers will pay a higher rent for these more sustainable buildings because it helps them to meet their own sustainability targets, attract and retain staff, and cut their energy bills. — Investors are prepared to pay higher prices for buildings that demonstrate some or all of these sustainability attributes because they tend to let more quickly at higher rents, suffer lower vacancy rates, require less capital expenditure in the long term and are less at risk of obsolesence due to more stringent future environmental regulation. Approach to capitalise on this opportunity Effective 1 April 2024, the Company’s investment policy includes specific sustainability key performance indicators (KPIs) linked to the proportion of the portfolio where relevant activity is ongoing, including asset level improvement targets based on Schroders’ proprietary ESG Scorecard-based approach, as well as progress delivering the Company’s ‘pathway to net zero’ commitments. Full details on the Company’s sustainability- related objectives and Schroders Capital’s capabilities can be found in the Company circular dated 21 November 2023, published on the Company’s website: https://mybrand. schroders.com/m/4f1e5329b0b2ec56/original/SREIT-Circular- FINAL.pdf. Strategy in action The Company has successfully executed asset management initiatives focused on improving the sustainability performance of assets to generate higher income and capital growth. This activity has been across all sectors and was a key driver of portfolio outperformance in the financial year. Specific examples are set out in the case studies on pages 18 to 28. There is a significant near-term pipeline of opportunities to implement the strategy, as we continue to capture the high portfolio reversion. Our strategy 10 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Progress delivering the investment strategy The strategy is complemented by the following imperatives, and progress made during the year and since year end, is set out below: 1 Apply a research-led approach to determine attractive sectors and locations in which to invest in commercial real estate Increased allocation to higher growth sectors, with industrial, predominately multi-let estates, and retail warehousing now comprising 63.4% by value (2024: 61.5%) because of capital expenditure in these assets and two small office and retail disposals. 2 Increase exposure to larger, higher value, assets with strong fundamentals and inherent opportunities for active management and development £6.7 million of capital expenditure invested during the year including £1.6 million relating to the development of the new Starbucks drive-thru developments at St John’s Retail Park in Bedford and our retail park in Milton Keynes. Our top 15 assets now represent 81.1% of total portfolio value (2024: 80.5%). 3 Sell smaller, secondary assets with higher sustainability performance risk During the year we completed the sale of a small office asset at a 51% premium to its value at the start of the year, and post year end we sold a small retail asset at a 28% premium, with further disposals in progress and planned. 4 Drive income and value growth through active management and operational excellence. Asset management delivered rental growth through the year of 4.2%, ahead of the MSCI Benchmark of 3.6%, and there are ongoing regear negotiations with major tenants in return for sustainability related asset improvements. 5 Apply our integrated sustainability and ESG approach at all stages of the investment process and asset life cycle, targeting improvement in the sustainability performance of assets to manufacture the green premium for shareholders The 2024 Global Real Estate Sustainability Benchmark (‘GRESB’) score remained at 79 out of 100, placing SREIT second amongst a GRESB defined peer group comprising seven diversified REITs (2023: first of six). 15 assets now have an ESG scorecard completed by an external consultant along with a sustainability audit or net zero carbon audit (a further asset has an internally completed ESG scorecard). These scores provide a baseline against which the relevant sustainability KPI in the investment policy can be measured and will inform future works to improve sustainability performance with the aim of increasing the score for each asset. Three assets – Stanley Green Trading Estate, St Ann’s House and Clifton Park – achieved an improved score as at the year end relative to the baseline scores at 1 April 2024. 6 Control costs Ongoing charges (including fund only expenses) of 1.25% remain low. 7 Maintain a strong balance sheet with a long-term strategic target loan to value, net of cash, within the range of 25% to 35% The Company has a peer group leading debt profile, with a clear strategy to reduce the net LTV back to within the strategic range from 36.9% at the year end. 11 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued The underlying portfolio continues to deliver strong relative outperformance, with a positive total return for the financial year of 9.1% compared to 6.2% for the MSCI Benchmark (the ‘Benchmark’). This relative outperformance was partly due to a stronger income return from the portfolio of 5.6% compared to 4.8% for the Benchmark. Favourable sector weightings compared to the Benchmark contributed positively to relative performance. In particular, the Company’s overweight position to the retail and industrial sectors, which comprises almost entirely retail parks and multi- let industrial estates, was a key driver of outperformance. In contrast, the office sector continued to face headwinds and underperformed the overall Benchmark, albeit the Company’s office portfolio outperformed the office segment of the Benchmark. Active asset management generated most of the outperformance relative to the Benchmark. Capital expenditure initiatives, with sustainability improvements as a focus, to bring Lidl to Churchill Way West retail park in Salisbury, the new Starbucks drive-thru developments at St John’s Retail Park in Bedford and our retail park in Milton Keynes, and leasing up the operationally net zero industrial development at Stanley Green Trading Estate in Manchester, meant these assets were key contributors to the portfolio outperformance. The tables show performance to 31 March 2025. SREIT total return Period to 31 March 2025 One year (%) Three years (% p.a.) Five years (% p.a.) Retail 14.4 3.5 4.4 Office 2.7 -3.2 0.7 Industrial 10.9 2.9 11.6 Other 3.4 2.4 5.0 All sectors 9.1 1.2 6.0 MSCI Benchmark total return Period to 31 March 2025 One year (%) Three years (% p.a.) Five years (% p.a.) Retail 9.1 0.1 1.8 Office 1.5 -7.4 -3.4 Industrial 9.0 -3.5 7.6 Other 4.0 -1.0 1.3 All sectors 6.2 -3.2 2.1 Relative Period to 31 March 2025 One year (%) Three years (% p.a.) 5 years (% p.a.) Retail 4.8 3.5 2.6 Office 1.2 4.5 4.2 Industrial 1.7 6.7 3.7 Other -0.6 3.5 3.6 All sectors 2.8 4.6 3.9 Portfolio performance 12 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued As at 31 March 2025, the portfolio comprised 38 properties valued at £480.0 million. This includes the share of joint venture properties City Tower in Manchester (25% interest) and the University of Law in Bloomsbury, London (50% interest). The portfolio generated rental income of £28.9 million 1 per annum, reflecting a net initial yield of 5.6%. 1 Note the University of Law, tenant at Store Street in Bloomsbury, is in a 10-month rent free period ending on 16 October 2025. Adding back the Company’s share of its annual rent of £2,359,885 results in a net initial yield of 6.1%. This compared with the Benchmark’s 5.1%. The portfolio benefits from fixed contractual annualised rental income uplifts of £4.1 million over the next 12 months. The independent valuer’s estimated rental value (‘ERV’) of the portfolio is £40.3 million per annum, reflecting a reversionary income yield of 8.4%, which compares favourably with the Benchmark at 6.2%. The portfolio is overweight multi-let industrial estates where we consider supply and demand dynamics to be favourable given relatively limited development. This is evidenced by rent reviews and lease renewals completed since the beginning of the financial year, where rents were agreed 31% higher than the previous level, and we expect continued rental growth from our industrial portfolio. In addition, there is an overweight position in retail warehouses, where we have sustainable levels of rent and limited exposure to fashion. This is the only part of the retail sector which has seen a meaningful fall in vacancy since the pandemic and is also a sector in which we expect continued rental growth. At the year end the portfolio void rate was 12.3%, which is within the ten-year range of 5% to 13%. This is higher than the Benchmark void rate of 8.7% due to asset improvement strategies being pursued, which should drive future rental and capital growth. The portfolio weighted average lease length, calculated to the earlier of lease expiry or break, is 5.3 years, reflecting no change from the start of the financial year. This is lower than the Benchmark of 11.5 years due to the active strategy of the Company, whereas the Benchmark has long lease portfolios included. Approximately 12% of the portfolio by contracted rent is inflation linked, typically structured as five yearly reviews to either the Retail Price Index (‘RPI’) or the Consumer Price Index (‘CPI’). In some cases, these inflation-linked leases can also be reviewed to open market value, if higher, or include fixed guaranteed increases. A further 8% of rent benefits from fixed uplifts without an inflation link. The proportion of the portfolio with inflation-linked leases should increase with ongoing asset management activity. The tables below summarise the portfolio information as at 31 March 2025. The property values and weightings represent the year end valuations as determined by the independent valuers as at 31 March 2025: Portfolio information Portfolio metric SREIT 31 March 2025 (MSCI Benchmark 31March 2025) SREIT 31 March 2024 (MSCI Benchmark 31 March 2024) Portfolio value (£m) 480.0 459.3 Number of properties 38 39 Number of tenants 312 314 Average lot size (£m) 12.6 11.8 Net initial yield (%) 5.6 1 (5.1) 6.1 (5.2) Reversionary yield (%) 8.4 (6.2) 8.4 (6.1) Annual rent (£m) 28.9 1 29.8 Estimated rental value (£m) 40.3 38.8 Annual rent with inflation linked uplifts (%) 12 11 Annual rent with fixed uplifts (%) 8 14 WAULT (years to earliest of break or expiry) 5.3 (11.5) 5.3 (11.1) Void rate (%) 12.3 (8.7) 10.9 (8.1) 1 Note the University of Law, tenant at Store Street in Bloomsbury, is in a 10-month rent free period ending on 16 October 2025. Adding back the Company’s share of its annual rent of £2,359,885 results in annual rent of £31.2 million and a net initial yield of 6.1%. Real estate portfolio 13 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Top 15 properties by value 1 4 5 6 2 3 87 9 10 11 12 13 14 15 Milton Keynes, Stacey Bushes Industrial Estate Sector Value 1 Portfolio value Industrial £52.5m 10.9% London, Store Street, The University of Law Campus (50% share) Sector Value 1 Portfolio value Office//university £38.4m 8.0% Chippenham, Langley Park Industrial Estate Sector Value 1 Portfolio value Industrial £25.6m 5.3% Telford, Horton Park Industrial Estate Sector Value 1 Portfolio value Industrial £14.4m 3.0% Edinburgh, The Tun Sector Value 1 Portfolio value Office £11.5m 2.4% Leeds, Millshaw Park Industrial Estate Sector Value 1 Portfolio value Industrial £48.6m 10.1% Bedford, St. John’s Retail Park Sector Value 1 Portfolio value Retail warehouse £33.7m 7.0% Norwich, Union Park Industrial Estate Sector Value 1 Portfolio value Industrial £24.2m 5.0% Birkenhead, Valley Park Industrial Estate Sector Value 1 Portfolio value Industrial £13.1m 2.7% Salisbury, Churchill Way West Sector Value 1 Portfolio value Retail warehouse £10.8m 2.3% Cheadle, Manchester, Stanley Green Trading Estate Sector Value 1 Portfolio value Industrial £43.3m 9.0% Manchester, City Tower (25% share) Sector Value 1 Portfolio value Office/hotel/retail £28.3m 5.9% Leeds, Headingley Central Sector Value 1 Portfolio value Hotel/retail £21.7m 4.5% Manchester, St Ann’s House Sector Value 1 Portfolio value Office/retail £12.2m 2.5% Milton Keynes, Watling Street Sector Value 1 Portfolio value Retail warehouse £10.8m 2.3% 1 As per third party valuation reports unadjusted for IFRS lease incentive amounts. Percentages do not add to 81.1% due to rounding. 14 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Sector weighting by value as at 31March 2025 SREIT MSCI Benchmark South East 10.9% 20.7% Rest of UK 39.8% 11.9% Industrial 50.7% 32.6% City - 3.5% Mid-town and West End 8.0% 7.3% Rest of South East 3.4% 5.2% Rest of UK 12.0% 6.2% Offices 23.4% 22.2% Retail warehouse 12.7% 9.8% South East - 7.0% Rest of UK 7.5% 2.6% Standard retail 7.5% 9.6% Standard retail by ancillary/single use - Retail ancillary to main use 4.8% - - Retail single use 2.7% - Other 5.7% 20.3% Shopping centres - 2.0% Unattributed indirects - 3.5% Capital growth for the year ended 31 March 2025 SREIT MSCI Benchmark Industrial 5.2% 4.3% Offices -2.7% -2.4% Retail warehouse 12.6% 5.2% Standard retail 0.8% 1.5% Other -3.1% -1.1% Regional weighting by value as at 31 March 2025 SREIT MSCI Benchmark Central London 8.0% 17.2% South East excluding Central London 16.6% 36.3% Rest of South 11.4% 6.6% Midlands and Wales 21.5% 22.6% North 40.1% 13.1% Scotland 2.4% 4.0% Northern Ireland - 0.2% 15 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Tenants Rental income is diverse and comprised 312 tenants as at 31 March 2025, including the tenants of properties held by joint ventures. The largest and top 15 tenants represent 4.98% and 31.94% of the portfolio respectively, calculated as a percentage of annual rent, and there are only three tenants that represent more than 3% of annual rent. Top 15 tenants by annual rent as at 31 March 2025 1 Annual rent (£ million) % of total annual rent Siemens 1.44 4.98 Buckinghamshire New University 1.30 4.50 Express Bi Folding Doors Limited 0.90 3.11 Jupiter Hotels Limited 0.65 2.25 Public Sector Income 0.60 2.08 Matalan Retail Ltd 0.57 1.97 Premier Inn Hotels Ltd 0.47 1.63 IXYS UK Westcode Ltd 0.47 1.63 Trioworld UK Ltd 0.46 1.59 Lidl Great Britain Limited 0,.43 1.49 Jaguar Land Rover 0.41 1.42 Wickes Building Supplies Ltd 0.40 1.38 Balfour Beatty Group Limited 0.39 1.35 The Gym Limited 0.37 1.28 Cine-UK Limited 0.37 1.28 Total as at 31 March 2025 9.23 31.94 Rent collection The diversification and granularity of the underlying rental income, and a high level of occupier engagement, has supported rent collection rates with 97.5% of the contracted rents collected for the year ended 31 March 2025. The breakdown between sectors is 98.1% of office rent collected, 99.3% of other rent collected, 96.9% of retail and leisure rent collected and 97.1% of industrial rent collected. Rent receivable totalled £2.4 million, net of VAT, at the year end, of which £330,000 is provided against as a bad debt. This reflects further progress collecting historical arrears during the financial year and compares to £2.3 million and £360,000 respectively as at 31 March 2024. 1 Note the University of Law, tenant at Store Street in Bloomsbury, is in a 10-month rent free period ending on 16 October 2025. Adding back the Company’s share of its annual rent of £2,359,885 would mean this is the Company’s largest tenant. 16 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued The Company continues to progress disposals of smaller assets on the completion of asset management, proceeds will initially be used to repay the unhedged element of the Company’s revolving credit facility which incurred an interest rate of 6.1% at the year end. This is part of the strategy to reduce the Company’s net loan to value to within the long-term strategic target range of25% to 35%. Bedford, Howard House (Office) On 20 December 2024, the £1,475,000 sale of Howard House, an 11,603 sq ft multi-let office asset in Bedford, completed. The price was 51% ahead of the 31 March 2024 independent valuation. Truro, 15/16 King Street (Retail) On 12 May 2025, the £1.25 million sale of 15/16 King Street, a Grade II listed freehold asset comprising two ground floor retail units in Truro, completed. The price was 28% ahead of the 31 March 2024 independent valuation of £0.975 million. This follows the lettings of the ground floor retail units, with the price reflecting a net initial yield of 8.0%. Further small disposals are being progressed on completion of asset management initiatives. Transactions 17 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Transactions Active asset management Set out overleaf are examples of ongoing active asset management initiatives that should support continued outperformance of the underlying portfolio from both a financial and sustainability perspective. Operational highlights since 1 April 2024 76 New lettings, renewals and rent reviews 870,000 sq ft Across 870,000 sq ft £8.0m Totalling £8.0 million in annualised rental income New lettings 25 Across 25 units £2.5m Totalling £2.5 million of rent Lease renewals 38 38 lease renewals £3.3m Totalling £3.3 million of rent 14% £395,000 or 14% ahead of the previous passing level 8% £225,000 or 8% ahead of 31 March 2025 ERV Rent reviews 13 13 rent reviews £2.2m Totalling £2.2 million of rent 26% £450,000 or 26% ahead of the previous passing level 18 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Stanley Green Trading Estate 19 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Location Cheadle, Manchester Purpose Industrial Valuation (£m) 43.3 Square footage 228,720 Asset overview and performance Stanley Green Trading Estate in Cheadle, Manchester was acquired in December 2020 for £17.3 million. At acquisition the asset comprised 150,000 sq ft of trade counter, self-storage and warehouse accommodation across 14 units on a nine- acre site, together with an adjoining 3.4-acre development site. SREIT subsequently completed a new, 11-unit, warehouse scheme on the development site at a cost of £9.0 million. The asset now comprises 228,720 sq ft of trade counter, self- storage and warehouse accommodation across 25 units. As at 31 March 2025 the valuation was £43.3 million, reflecting a reversionary yield, assuming the new development is fully let, of 6.0%. The asset has been a strong performer since acquisition, generating a total return of 16.7% per annum to 31 March 2025 compared to the MSCI All Industrial over the same period of 8.2% per annum. Over the 12-month period to 31 March 2025, the asset delivered a total return of 10.6% which compared with the MSCI All Industrial over the same period of 9.0%. Key activity — The speculative development of 11 warehouse and trade units completed in May 2023. The new units achieved an ‘A+’ EPC rating and BREEAM New Construction Excellent accreditation. The specification includes a photovoltaic system that we expect to generate more than 250 MWh of energy per annum, 24 electric vehicle charging points and an 800kVA substation to support the on-site renewables in powering the fully electric site. — Ten units, or 81% of the 11-unit development by estimated rental value, are now let. A 4,000 sq ft unit on the existing estate with EPC ‘C’ was let at £14.00 per sq ft, whereas the comparable operationally Net Zero Carbon units with EPC ‘A+‘ have been let at around £19.50 per sq ft, reflecting a 39% premium. In addition, the Company’s independent valuer has applied a 5.20% yield to the occupied operationally Net Zero Carbon units compared to 6.25% to 6.75% for the pre-existing asset. We believe these outcomes are largely driven by the superior sustainability credentials of the new units which serve as a proof of concept of the enhanced strategy adopted by the Company. — Phased refurbishment of the pre-existing 150,000 sq ft of trade counter, self-storage and warehouse accommodation has now commenced to enhance the aesthetic and sustainability credentials of the units. Works on five units, or 38,500 sq ft, are currently underway at an estimated cost of £1.1 million, of which £0.7 million had been spent at the year-end. This work is progressing with tenants in situ. The aim is to attract and retain high quality tenants and increase the rental tone to more closely align with the rents achieved on the new estate. For example, a 10-year lease renewal has completed to Screwfix Direct Limited who occupy one of the five units at a rent of £108,083 per annum or £14.50 per sq ft which reflects an increase of 54% on the current passing level and is in line with the 31 March 2025 ERV. Stanley Green Trading Estate Strategy looking forward The objective is for the final unit on the new development to be let during 2025, targeting a rent of £15.25 per sq ft or total rent of £248,179 per annum for the 16,274 sq ft unit, reflecting the enhanced specification. Increase the rental tone of the pre-existing 150,000 sq ft estate to more closely align with the rents achieved on the new estate by executing regears linked to refurbishments that enhance the aesthetic and sustainability credentials of the units. Find out more on our website schroders.com/schroder-real-estate-investment-trust 20 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Stacey Bushes Industrial Estate 21 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Location Milton Keynes Purpose Industrial Valuation (£m) 52.5 Square footage 347,926 Asset overview and performance Stacey Bushes Industrial Estate in Milton Keynes was acquired in two parts in 2014 for £14.3 million, with an additional six units developed in 2020 at a cost of £2.4 million. As noted below, a further new industrial unit, replacing an older unit, was developed at a cost of £3.0 million. The asset now comprises 67 industrial units across 347,926 sq ft. As at 31 March 2025, the asset was valued at £52.5 million, reflecting a net initial yield of 4.5% and a reversionary yield of 6.6%. The asset has been a strong performer since acquisition, generating a total return of 16.2% per annum to 31 March 2025 compared to the MSCI All Industrial over the same period of 10.8%. Over the 12-month period to 31 March 2025, the asset delivered a total return of 6.3% which compared with the MSCI All Industrial over the same period of 9.0%. Key activity — Since the year end a new 10-year lease has completed on the recently developed, BREEAM ‘Excellent’ and EPC ‘A+’ rated warehouse unit to Chinese electric vehicle manufacturer BYD (UK) Co., Limited, at a rent of £255,655 per annum or £14.79 per sq ft. This rent is in line with 31 March 2025 ERV, 40% ahead of the average estate ERV and sets a new headline for units of this size on the estate, further demonstrating the benefits of enhanced sustainability specification to drive rental growth. There is an upward only rent review at the fifth anniversary to the higher of either open market rental value or CPI compounded annually with a cap and collar at 4% and 2% respectively, and a tenant break option at the seventh anniversary. — A new 10-year lease without breaks has completed on 19 Heathfield Road to My Warehouse Ltd at a rent of £156,551 per annum or £9.50 per sq ft. This rent is in line with 31 March 2025 ERV. There is an upward only rent review at the fifth anniversary to the higher of either open market rental value or CPI compounded annually with a cap and collar at 5% and 3% respectively. — A new 10-year lease has completed on 25 Erica Road to Europcar Group UK Limited at a rent of £130,270 per annum or £14.91 per sq ft. This rent is in line with 31 March 2025 ERV. There is an upward only rent review at the fifth anniversary to open market rental value, and a tenant break option the previous day. Strategy looking forward Undertake profitable, rolling refurbishments of units to enhance their aesthetic and sustainability credentials. At the date of this report there are five vacant units representing an ERV of £158,000 per annum. These are under refurbishment to be let at a higher rental tone, benefitting from the evidence set in the transactions described above. Seek to acquire adjoining ownerships to increase the size of the estate, benefit further from scale, and unlock valuation synergies. Find out more on our website schroders.com/schroder-real-estate-investment-trust Stacey Bushes Industrial Estate 22 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Millshaw Park Industrial Estate 23 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Location Leeds Purpose Industrial Valuation (£m) 48.6 Square footage 459,743 Asset overview and performance Millshaw Park Industrial Estate in Leeds was acquired in July 2015 for £22.7 million. The 459,743 sq ft multi-let industrial estate comprises 27 units and is strategically located south of Leeds city centre close to the M62 and M621 motorways. It covers 28.3 acres and has significant frontage to the A6110 ring road. The estate is one of the largest, single-owned industrial estate in Leeds with a range of unit sizes from 2,000 to 60,000 sq ft and a low site cover of 37%. As at 31 March 2025, the asset was valued at £48.6 million, reflecting a net initial yield of 5.5% and a reversionary yield of 7.0%. The asset has been a strong performer since acquisition, generating a total return of 12.3% per annum to 31 March 2025 compared to the MSCI All Industrial over the same period of 9.8%. Over the 12-month period to 31 March 2025, the asset delivered a total return of 14.0% which compared with the MSCI All Industrial over the same period of 9.0%. Key activity — Rent reviews on four units covering 182,000 sq ft have completed increasing the aggregate rent for these units by 32% to £1.13 million per annum. — A new five-year reversionary lease has completed on the largest unit on the estate, Unit 10, to Alliance Healthcare (Distribution) Limited commencing on 1 October 2025 at a rent of £385,776 per annum or £6.75 per sq ft. This rent is 42% ahead of the current passing level and in line with 31 March 2025 ERV. There is a tenant break option on 24 March 2028 and if this is not exercised the tenant will benefit from a three-month rent-free period. — The above and three other leasing transactions since the start of the financial year have contributed to ERV growth of 13.2% through the year. This compares favourably to the MSCI Benchmark industrial average of 5.5%. Strategy looking forward The wider Leeds industrial market has maintained a low vacancy rate which is currently 2.7%, this is significantly below the national average of 5.1%. This lack of supply will support continued rental growth as we execute regears across the estate. Implement our strategy of improving the sustainability credentials of units to achieve enhanced rents and capital values, which we have achieved successfully at Stanley Green Trading Estate and Stacey Bushes Industrial Estate. Find out more on our website schroders.com/schroder-real-estate-investment-trust Millshaw Park Industrial Estate 24 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued City Tower 25 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Location Manchester Purpose Mixed-use Valuation (£m) 28.3 Square footage 615,146 Asset overview and performance City Tower comprises 615,146 sq ft of office, retail, leisure and hotel accommodation located on a three-acre island site in a core location. SREIT owns a 25% share of City Tower in a simple co-ownership structure. As at 31 March 2025, the Company’s 25% interest in the asset was valued at £28.3 million, reflecting a net initial yield of 4.2% and a reversionary yield of 10.0%. Over the 12-month period to 31 March 2025, the asset delivered a total return of 1.4% which compared with the MSCI All Offices over the same period of 1.5%. Key activity (statistics below reflect 100% share) — A new 10-year lease has exchanged on the 8,241 sq ft 14th floor to EC English Manchester Limited at a rent of £164,520 per annum or £20.00 per sq ft. This rent is in line with 31 March 2025 ERV. The tenant will benefit from a landlord capital contribution of £0.1 million and seven months of rent-free. There is a tenant break option on the fifth anniversary, and if the option is not exercised there is a fixed rental uplift to £197,424 per annum, or £24.00 per sq ft, and a further 11 months of rent free. Lease completion is subject to planning which is ongoing. — The 46,350 sq ft Podium B office space was vacated by the previous tenant in December 2024 and we have agreed terms with LCA Education Ltd for a 15-year lease without breaks. They will run university education from the space on behalf of The University of Greater Manchester. The initial rent will be £1.18 million per annum, or £25.50 per sq ft, which is 21% ahead of the previous passing level and 16% ahead of the 31 March 2025 ERV. — A rent review completed with Lidl Great Britain Limited increasing the rent by 14% to £368,880 per annum which is 13% ahead of the 31 March 2025 ERV. Strategy looking forward The hotel and car park components are let on long term leases with inflation linked uplifts, and the retail component is fully occupied. Of the office space, the two Podiums and 2 New York Street represent 123,000 sq ft of 351,000 sq ft of total office space, with the remainder in the tower. Therefore, the focus is to increase the net operating income generated by the office tower. The strategy to achieve that is to attract tenants by improving amenity through adding a new business lounge on the 16th floor following the success of the sky lounge on the 28th floor, which will also be refurbished. In addition, a managed workspace offering will be implemented across two of the floors to build on the success of the Elevate scheme and create an ecosystem in the building whereby small businesses upgrade from a turnkey solution to a traditional lease on a full floor. Find out more on our website schroders.com/schroder-real-estate-investment-trust City Tower 26 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Headingley Central 27 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued Location Leeds Purpose Hotel/Retail Valuation (£m) 21.7 Square footage 104,350 Asset overview and performance Mixed-use 104,350 sq ft prominently located town centre scheme anchored by core convenience retail and leisure operators including Premier Inn Hotels, Sainsbury’s and The Gym Group. Previous asset management has resulted in a long weighted average unexpired lease term to earliest break of 9.6 years. As at 31 March 2025, the asset was valued at £21.7 million, reflecting a net initial yield of 6.2% and a reversionary yield of 8.1%. Over the 12-month period to 31 March 2025, the asset delivered a total return of 9.7% which compared with the MSCI All Retail over the same period of 9.1%. Key activity — As part of our strategy to enhance the sustainability performance of our assets to drive higher income growth, an agreement for lease with a 20-year straight term has exchanged with Iduna EVCI Asset Co 1 Limited (‘Be.EV’), at a rent of £73,200 per annum. Be.EV, part of the Octopus Energy Generation Group, will rent 11 electric vehicle charge points at the scheme. Be.EV will pay all planning costs and the cost of installation of the substation, cabling, charging points and other infrastructure. — An agreement for lease with a 25-year term has exchanged on Unit 24 with McDonalds at a rent of £75,000 per annum, subject to planning and including a break clause 15 years into the term. On a per sq ft basis this is an increase of 28% compared to the previous passing rent. This unit is half of the former Wilkinsons which occupied Units 22-24, and the other half (Unit 22) is in advanced negotiations with another national grocery retailer. Strategy looking forward Following the success in previous years of converting office space at the scheme to a Premier Inn and space for The Gym, there is an opportunity to relet the final 12,524 sq ft of former office space for alternative, complementary use to the overall scheme. Implement sustainability initiatives including installing photovoltaic panels, enhancement of green space, and water recycling to improve the sustainability performance of the asset. Find out more on our website schroders.com/schroder-real-estate-investment-trust Headingley Central 28 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued 88% of total drawn debt was either fixed or hedged against movements in interest rates Average drawn debt term Years 8.5 Average interest rate for drawn debt % 3.5 As at 31 March 2025, the average interest rate for drawn debt was 3.5%, with an average term of 8.5 years, and 88% of total drawn debt was either fixed or hedged against movements in interest rates. As at 31 March 2025, the Company had cash, including cash held in joint ventures, of £3.9 million and a net loan to value (‘LTV’) ratio of 36.9%, which is slightly above the long-term strategic target range of 25% to 35%. Details of the loans are set out below, together with cover against covenants. Canada Life term loan The debt refinancing with Canada Life in 2019 provides a significant benefit in a higher interest rate environment. This long-term loan, which represented £129.6 million of the £181.1 million total borrowings at the year end, has an average loan maturity of 11.0 years, with a fixed average interest rate of 2.5%. At the year end, the incremental positive fair value benefit of this fixed rate loan was £18.5 million, which is not reflected in the Company’s NAV. Lender Loan (£m) Maturity Total interest rate (%) Asset value (£m) Cash (£m) LTV ratio (%) 2 LTV ratio covenant (%) 2 ICR (%) 3 ICR covenant (%) 3 Projected ICR (%) 4 Projected ICR covenant (%) 4 Facility A 64.8 15/10/2032 2.4 Facility B 64.8 15/10/2039 2.6 Canada Life Term Loan 129.6 Average loan maturity of 11.0 years 2.5 275.5 0.2 47.0 65 510 185 484 185 — Net LTV on the secured assets against this loan is 47.0%. On this basis the properties charged to Canada Life could fall in value by 28% prior to the 65% LTV covenant being breached; — The interest cover ratio is 510% based on actual net rents for the quarter to 31 March 2025. A 64% fall in net income could be sustained prior to the loan covenant of 185% being breached; — The projected interest cover ratio is 484% based on projected net rents for the year ending 31 March 2026. A 62% fall in net income could be sustained prior to the loan covenant of 185% being breached; and — After utilising available cash and uncharged properties, the valuation and actual net rents could fall by 39% and 68% respectively prior to either the LTV or interest cover ratio covenants being breached. RBSI revolving credit facility (‘RCF’) The balance of borrowings at the year-end totalling £51.5 million comprised a revolving credit facility (‘RCF’) from RBSI. This facility totals £75 million and can be drawn and repaid at any time up to maturity in June 2027. Lender Loan/ amount drawn (£m) Maturity Total interest rate (%) Asset value (£m) LTV ratio (%) 2 LTV ratio covenant (%) 2 Projected ICR (%) 4 Projected ICR covenant (%) 4 RBSI RCF 75.0/51.5 06/06/2027 6.0 165.0 31.2 65 255 200 — The RCF benefits from an interest rate ‘collar’ which applies to £30.5 million of the £47.0 million now drawn. The collar runs to the end of the RCF term and allows the Company to benefit from future falls in interest rates down to a 3.25% floor, whilst at the same time protecting the Company from rate increases above 4.25%. — Net LTV on the secured assets against this loan is 31.2%. On this basis the properties charged to RBSI could fall in value by 52% prior to the 65% LTV covenant being breached; — The projected interest cover ratio is 255% based on projected net rents for the year ending 31 March 2026. A 22% fall in net income could be sustained prior to the loan covenant of 200% being breached; and — After utilising available cash and uncharged properties, the valuation and actual net rents could fall by 64% and 40% respectively prior to either the LTV or projected interest cover ratio covenants being breached. Balance sheet 29 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Investment Manager’s report continued — The RCF is a ‘Sustainability Linked Loan’, with performance measured against KPIs, with each KPI having the potential to either reduce the margin by 1.65 basis points, increase it by 1.65 basis points or have no impact. — The KPIs are set out below, for the year ended 31 March 2025 we achieved a reduction in the margin of 1.65 basis points as we reduced landlord energy consumption sufficiently, held the GRESB rating at 3 stars, and did not complete any new developments or major renovations. — Change in landlord energy consumption (year on year) – A reduction by 5% or more: reduce the margin – No change or a reduction below 5%: no change – An increase: increase the margin — GRESB rating – 4 stars or above: reduce the margin – 3 stars: no change – 2 stars or below: increase the margin — Development or refurbishment projects that improve EPC or BREEAM rating to a minimum of EPC B or BREEAM Very Good – If all new developments or major renovations of the properties meet the requirement: reduce the margin – If no property has been refurbished or developed: no change – If one or more new developments or major renovations of the properties carried out during the term of the facility does not meet the requirement: increase the margin – A major refurbishment is defined as one that covers more than 50% of the floor area of an asset, this is in line with the GRESB definition 1 Fixed total interest rate for the loan term. 2 Loan balance less the amounts standing to the credit of the Sales Proceed Account and Remedy Account divided by the property values as at 31 March 2025. 3 This covenant is calculated by dividing the rental income received for the quarter preceding the Interest Payment Date (‘IPD’), less void rates, void service charge and void insurance, by the interest paid in the same quarter. 4 This covenant is calculated by dividing the forecast contracted rent for the four quarters following the year end, less forecast void rates, void service charge and void insurance, by forecast interest paid. 5 Facility drawn as at 31 March 2025 from a total available facility of £75.0 million. 6 Total interest rate as at 31 March 2025 comprising applicable SONIA rate of 5.19% and the margin of 1.65% at a LTV below 60%. Should the LTV be above 60%, the margin increases to 1.95%. 7 LTV ratio covenant of 65% for years one to three, from post commencement on 6 June 2022, then 60% for years four and five. Outlook Following a significant correction, real estate values have gradually recovered over the past year supported by looser monetary policy and rental growth. However, uncertainty persists regarding global trade relations, ongoing conflicts, Government finances, and their potential impact on labour markets, economic growth and inflation, and this is reflected in low transaction volumes since the start of the year. More positively, we expect continued rental growth as construction cost inflation has constrained new development in a market lacking high quality ESG compliant space, with structurally supported sectors continuing to benefit from strong occupier demand. This, combined with the potential for further interest rate cuts, should support capital value growth. The Company is well placed to benefit in this environment due to our exposure to higher growth sectors, low-cost long-term debt, and significant potential to drive earnings growth from active management and a higher reversionary income profile compared with peers. Finally, alongside these nearer-term factors, our strategy continues to reflect the impact of longer-term structural trends such as urbanisation, technological change, demographics and, arguably most critical for the real estate sector, sustainability. We therefore have conviction that our strategic evolution to place sustainability at the centre of our investment proposition should enhance our long-term total returns. Nick Montgomery and Bradley Biggins Schroders Capital 10 June 2025 30 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report Sustainability report Good progress has been made delivering on sustainability ambitions, with key achievements during the financial year summarised below: Annual reduction in landlord operational energy consumption and associated scope 1 and 2 greenhouse gas (‘GHG’) emissions on a like-for-like basis 5% Annual reduction in landlord operational energy consumption 5% Reduction in associated operational scope 1 and 2 GHG emissions (CY24 vs CY23) EPRA sBPR Awards for Sustainability Reporting 1 Gold Gold Award for the seventh year running Increasing no. assets with on-site renewables 7 Assets with on site renewables (31 Dec 23: 6 assets) Improve Global Real Estate Sustainability Benchmark (‘GRESB’) rating 79 Maintained 3 star rating: 79 score against backdrop of scoring changes (2024: 3 star rating and 79 score) 2nd 2nd in peer group out of 7 (2024: 1st out of 6) A Maintained ‘A’ rating in GRESB Public Disclosure Maintain 100% MEES 2 compliance and improve proportion of assets with EPC ratings B or above (floor area) 100% MEES compliance (FY24: 100%) 99% EPC coverage 3 (FY24: 99%) 24% EPCs rated B or above (FY24: 21%) 59% EPCs rated C or above (FY24: 60%) Notes: All data is reported at 31 March 2025 unless otherwise stated. 1 The EPRA Sustainability Best Practices Recommendations (sBPR) are intended to raise the standards and consistency of sustainability reporting for listed real estate companies across Europe. As with the EPRA financial BPR Awards, each year EPRA recognises companies which have issued the best-in-class annual sustainability performance report. Based on adherence to the EPRA sBPR in their public disclosure, companies are identified for Gold, Silver or Bronze Awards. 2 The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 establish a minimum level of energy efficiency for rented property in England and Wales. 3 The remaining footprint without EPCs relates to assets where improvement works have been scheduled and EPCs will be procured on completion of these works. Please note that the Company remains compliant with MEES regulations 31 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report 32 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Sustainability report continued Strategic evolution and changes to the investment objective and policy At the EGM on 15 December 2023, shareholders voted to formally include sustainability at the centre of the Company’s investment proposition, with a sustainability improvement and decarbonisation strategy focused on adapting existing buildings into those that are both modern and fit for purpose, thereby taking a proactive position in response to the UK’s Net Zero Carbon objectives whilst optimising portfolio performance to seek enhanced total returns for shareholders. Progress against the new objective will be demonstrated annually by review of performance in pursuit of the two sustainability-related KPIs. This took place in May 2025 in respect of the year ending 31 March 2025 and comprised a review by the Management Engagement Committee. The Manager also obtained independent reperformance of the performance of two assets by EY via an ISRS 4400 (Revised) ‘Agreed Upon Procedures’ (AUP) engagement. The AUP engagement agreed the following: — An ESG scorecard was performed for the asset. — The latest date the ESG scorecard was reviewed. — The questions in the ESG scorecard for the current score against underlying support. — The Amber and Red flags for the current score against underlying support. — The current score per question were consistent with the rating scale. — Re-calculating the final current score assigned using the methodology per the Schroders Capital – Direct Real Estate ESG Scorecard. The EY AUP report can be found on the Company’s website. Sustainability KPI 1 ESG Scorecard (asset level) The Company’s assets will be managed with a view to ensuring that at any given time during the Company’s ownership, at least 75% of the portfolio assets by value are being managed with a realistic and achievable plan to reach a score of at least 3 (out of a possible total score of 5), as measured on the ESG scorecard. For those 75% of the Company’s assets (by value), in each case where leases permit prompt commencement of works to improve their sustainability profile, the aim will be to take the asset to an improved score of at least 3 (out of a possible total score of 5) within five years from: (i) 1 April 2024 or, if later: (ii) the date it was acquired by the Company. Sustainability KPI 2 Net Zero Carbon commitments (portfolio level) Further, the Company’s assets will also continue to be managed in line with the Company’s existing ‘pathway to net zero’ commitments, which in summary include seeking to attain the following: — Operational whole buildings emissions to be aligned to a 1.5°C global warming pathway by 2030. — Embodied emissions for all new developments and major renovations to be net zero by 2030. — Operational scope 1 and 2 (landlord) emissions (as defined in the Greenhouse Gas Protocol) to be net zero by 2030. — Operational and embodied whole building (scope 1, 2 and 3 (landlord and tenant)) emissions to be net zero by 2040. Performance against objectives from the start of the financial year Sustainability KPI 1 - ESG Scorecard At 31 March 2025, 80% of assets by value in the portfolio are being managed using the ESG Scorecard which measures sustainability performance against a holistic range of pre- defined real estate sustainability criteria. These fall within the following four pillars: Environmental 1 Social 2 Certification and ratings 3 Tenant profile 4 Within each of these pillars, there are sub-topics against which each asset will be assessed. For each of these sub- topics, the Manager assigns a rating from 1 (low – significant improvements needed) to 5 (high – best in class or best industry practice). Many of the sub-topics are assessed on a quantitative basis, with some assessed on a qualitative basis. The justification provided against each rating will also indicate the timeline for expected improvements, and the determination of a target score. Each sub-topic is weighted to enable a weighted average asset level current and target score – between 1 and 5 – to be calculated. To date, 16 assets have been assessed and all present the potential for their scores to be improved beyond the minimum 3 out of 5 set in the investment objective. Improvement plans have been set in the context of each asset’s business plans. At 31 March 2025, three assets – Stanley Green Trading Estate, Manchester, St Ann’s House, Manchester and Clifton Park, York – all demonstrated an improved score relative to the baseline 33 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Sustainability report continued scores at 1 April 2024. Score improvements were achieved through active asset management activities including heating system and lighting upgrades, improved Energy Performance Certificate (EPC) ratings, and the installation of on-site solar photovoltaic (PV) panels. The Manager believes that measuring assets against its own proprietary scorecard in this manner will support consistent standardised portfolio-wide monitoring and enable it to define ambitious yet achievable asset-specific targets, ultimately helping to demonstrate the Company’s ability to deliver the targeted positive change over time. Table 1: Asset-level ESG Scorecard baseline performance, performance at 31 March 2025 and potential target score (scores out of 5) for 16 Company assets representing 80% of the property portfolio by Gross Property Value Asset ESG scorecard score at 1 April 2024 ESG scorecard score at 31 March 2025 Target ESG scorecard score Stacey Bushes Industrial Estate, Milton Keynes 2.2 2.2 4.0 Millshaw Park Industrial Estate, Leeds 2.6 2.6 4.1 Stanley Green Trading Estate, Manchester 2.4 3.0 4.2 The University of Law, Store St, London (50%) 2.6 2.6 4.5 St John’s Retail Park, Bedford 2.7 2.7 4.2 City Tower, Manchester (25%) 2.8 2.8 4.1 Langley Park Way, Chippenham 2.8 2.8 4.2 Union Park Industrial Estate, Norwich 2.6 2.6 4.1 Headingley Central, Leeds 2.6 2.6 4.3 Horton Park Industrial Estate, Telford 2.3 2.3 3.9 St Ann’s House, Manchester 2.2 2.5 3.2 The Tun, Edinburgh 2.9 2.9 4.3 The Galaxy, Luton 2.5 2.5 4.2 Churchill Way West, Salisbury 2.4 2.4 3.6 The Promenade, Cheltenham 2.6 2.6 3.9 Clifton Park, York 2.5 2.8 3.9 Total portfolio 80% of portfolio assessed by Gross Property Value * Where new information has been made available resulting in changes to previously communicated baseline scores or target score, the scores have been updated. ** The ESG Scorecard Score at 31 March 2025 for Stanley Green is the weighted average (by capital value) result of the two separated scorecards for Phase 1 and Phase 2. *** Highlighted rows indicate where an asset score has improved through the year. Sustainability KPI 2 – Net Zero Carbon commitments The built environment is responsible for 34% of energy- related CO2 emissions, 1 globally, and directly accounts for 25% of emissions in the United Kingdom. 2 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 o C, in line with the Paris Agreement. 3 The Board and Manager recognise that the Company has a responsibility to embark on a journey to Net Zero Carbon (‘NZC’) 4 and that an active approach to understanding and managing climate risks and opportunities is fundamental to delivering resilient investment returns and supporting the transition to a low carbon society. In 2019 the Manager signed the Better Building Partnership’s (‘BBP’) Climate Commitment 5 and has a net zero ambition aligned to the Paris Agreement which aim to limit warming to 1.5°C. The Manager’s commitment was further underlined by the Company which in 2022 announced its ‘Pathway to Net Zero Carbon’ as set out on page 32. As communicated in last year’s annual report and consolidated financial statements for the Company, in early 2024 the Manager undertook a comprehensive re-baselining of the operational energy and associated greenhouse gas (GHG) emissions of the Company. Utilising 2023 calendar year data, decarbonisation pathways for all of the Company’s direct real estate assets were developed using the industry adopted 1 United Nations Environment Programme (2025). Global Status Report for Buildings and Construction 2024/2025: Not just another brick in the wall - The solutions exist. Scaling them will build on progress and cut emissions fast. Paris. https://wedocs.unep.org/20.500.11822/47214 2 United Kingdom Green Building Council (2024). Climate Change Mitigation. https://ukgbc.org/our-work/climate-change-mitigation/ 3 Intergovernmental Panel on Climate Change (IPCC): Sixth Assessment Report. https://www.ipcc.ch/assessment-report/ar6/ 4 ‘Net Zero Carbon’ is when the carbon emissions emitted as a result of all activities associated with the development, ownership and servicing of a building are zero or negative. 5 BPP’s Climate Commitment available here: https://www.betterbuildingspartnership.co.uk/member-climate-commitment 6 Further information on the Carbon Risk Real Estate Monitor (CRREM) is available here: https://www.crrem.eu/tool/ 34 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Sustainability report continued Carbon Risk Real Estate Monitor (CRREM) 6 and have been aggregated to portfolio level to create the Company’s 2030 and 2040 whole building operational energy and GHG emissions intensity targets presented in Table 2 below. During the reporting year, recommended energy and carbon interventions and emissions reduction pathways were reviewed with the investment team through a dedicated engagement programme led by the Manager’s Sustainability & Impact (S&I) team. Where possible, recommended interventions have been incorporated into asset business plans in line with the principles of the ‘energy hierarchy’, prioritising measures that reduce energy consumption and increase operational efficiency of buildings before implementing renewable technologies. The Board and Manager completed asset management initiatives such as the installation of a rooftop solar photovoltaic (PV) array at St Ann’s House, Manchester. The PV array is forecast to generate 36,170 kWh of electrical energy in its first year, for use on-site, helping to reduce the asset’s reliance on the national electricity grid, reducing exposure to volatile energy costs, and reducing greenhouse gas (GHG) emissions. As part of the letting of the 4th floor South to SLR Consulting at The Tun, Edinburgh, CAT A fit-out works included the installation of new LED lighting supported by Passive Infrared (PIR) sensors, to control demand and reduce electricity consumption, as well as a new heat pump air- conditioning system, both helping to achieve an EPC ‘A’ rating. At St John’s Retail Park, Bedford, car park lighting upgrades have contributed to a reduction in electricity consumption. The Board and Manager is committed to tracking progress against these targets and will present it’s 2024 calendar year data progress update as part of the 30 June 2025 NAV update, allowing for the integration of tenant energy (Scope 3 GHG emissions) data which is a significant component of the Company’s energy use and emissions profile. The Board and Manager can communicate 5% reductions in both like-for-like landlord procured operational energy consumption and GHG emissions for landlord controlled areas, when comparing the 2024 and 2023 calendar years. Further information on landlord procured energy is presented in the EPRA Sustainability performance measures (environmental) (unaudited) on pages 97 to 127. Table 2: The Company’s baseline performance and reduction requirements to 2030 for operational Energy Use and GHG Intensity Baseline (2023) reflecting whole building level performance for whole year at full operation 2030 Target* % Change required to reach 2030 target 2040 target % Change required to reach 2040 target Energy Use Intensity (kWh/m²) 161 90 -44% 64 -61% GHG Intensity (kgCO2e/m²) 29 14 -52% 3 -96% * The NZC interim targets are dynamic and depend on the year-on-year assets’ performance and updates of CRREM pathways. The NZC analysis process is continual with annual reassessment of progress against targets, with audits providing more informed inputs to support target setting, and the actual effect of interventions being captured. ** GHG intensity includes both fugitive emissions (i.e. emissions associated with refrigerant gases used across assets) and carbon emissions oc- curring from energy consumption within the asset (covering both landlord and tenant areas). The Company’s wider approach to sustainability The Board and Manager believe that focusing on sustainability, and Environmental, Social and Governance (ESG) considerations more generally, throughout the real estate life cycle, will deliver enhanced long-term returns for shareholders as well as have a positive impact on the environment and the communities where the Company is investing. A key part of our sustainable investment strategy is delivering operational excellence for occupiers as well as demonstrating continued improvements in sustainability performance. The Manager’s real estate investment strategy, which aims to proactively take action to improve social and environment outcomes, focuses on the pillars of ‘People, Planet and Place’ which are referenced to three core UN Sustainable Development Goals (‘SDG’s): (8) Decent Work and Economic Growth; (13) Climate Action and (11) Sustainable Cities and Communities. 35 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Sustainability report continued This report seeks to present our approach to managing ESG considerations and performance against our sustainability objectives. Case studies highlighting ESG in practice are used throughout and detailed ESG performance data are presented with the EPRA sBPR aligned sustainability performance measures sections from page 97. Active management of sustainability performance is a key component of responsible asset and building management. Reducing consumption, improving operational efficiency, and delivering higher quality, more sustainable spaces, will benefit tenants’ occupational costs and may support tenant retention and attraction, in addition to mitigating environmental impacts and helping to future-proof the portfolio against future legislation. Further information on the Manager’s Sustainable Investment approach, and sustainable investment policy https://mybrand.schroders.com/m/727267dc02a87fed/original/ schroder-real-estate-sustainability-policy-2024.pdf Protecting our Planet (Environmental) Performance against objectives from the start of the financial year Goal FY25 outcome Progress towards Net Zero Carbon by 2050 — Results of the new NZC baseline published in the annual report year ended 31 March 2024 discussed with portfolio and asset management teams for integration into business planning. — On-site improvements have included installing solar photovoltaic panels at St Ann’s House, as well as Heating, Ventilation, and Air-Conditioning (HVAC) and lighting upgrades at The Tun and Clifton Park. — Landlord performance shown in EPRA report confirms 5% reduction in landlord procured energy consumption and 5% reduction in associated Scope 1 and 2 GHG emissions. — A 2024 calendar year progress update will be undertaken following receipt of tenant utility data as part of the Company GRESB submission. Annual reduction in landlord energy consumption and associated scope 1 and 2 greenhouse gas (GHG) emissions on a like-for-like basis — Energy = 5% reduction — GHG emissions = 5% reduction — (Calendar Year 24 vs. Calendar Year 23) Increase use of on-site renewable energy and source 100% of landlord electricity through renewable tariffs by 2025 — Roof mounted solar photovoltaic (PV) panels installed on St Ann’s House increasing the number of assets with solar PV to 7 (FY24: 6 assets). — 98.2% of the Company’s landlord procured electricity was on a renewable tariff (CY23: 97.8%). — (Reported as at 31 December 2024). Annual reduction in landlord procured like-for-like water consumption 2% reduction (Calendar Year 24 vs. Calendar Year 23) Send zero landlord waste to landfill and prioritise waste recycling — Zero waste directly to landfill. — 55% of waste was recycled and 45% was incinerated with energy recovery. — (12 months to 31 December 2024) Maintain 100% MEES 7 compliance and improve proportion of assets with EPC ratings B or above (floor area) — EPC coverage = 99% 8 (FY24: 99%) — EPCs rated B and above = 24% (FY24: 21%) — EPCs rated C and above = 59% (FY24: 60%) Assess physical climate risk profiles for all assets and develop resilience strategies where material risks identified Physical climate risk profiles maintained for all assets using new (onboarded H2 2024) third-party database. Improve biodiversity opportunities across the portfolio Opportunities continue to be explored through the Manager’s operational Impact and Sustainability Action Plans and as part of development projects, where appropriate. Reporting period activity has included wildflower planting at Delme Place and engagement with an ecological society in York. Note: All data is reported at 31 March 2025 unless otherwise stated. Where more accurate information has become available, previous period performance has been restated. The Board and Manager considers the relationship between real estate investments and the environment to be important. By addressing risks related to the transition to a low-carbon economy such as compliance with current and future legislation, meeting market demands, and by embracing practices, such as energy-efficient building design, renewable energy integration, and climate resilience measures, we believe there is an opportunity to enhance property value, attract tenants, and reduce operational expenses. In support of the Company’s commitment to Net Zero Carbon (‘NZC’) by 2040, over the reporting year the Manager has completed asset management initiatives such as the installation of a rooftop solar photovoltaic (PV) array at St 36 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Sustainability report continued Ann’s House, Manchester. The PV array is forecast to generate 36,170 kWh of electrical energy in its first year, for use on-site, helping to reduce the asset’s reliance on the national electricity grid, reducing exposure to volatile energy costs, and reducing greenhouse gas (GHG) emissions. As part of the letting of the 4th floor South to SLR Consulting at The Tun, Edinburgh, CAT A fit-out works included the installation of new LED lighting supported by Passive Infrared (PIR) sensors, to control demand and reduce electricity consumption, as well as a new heat pump air-conditioning system, both helping to achieve an EPC ‘A’ rating. At St John’s Retail Park, Bedford, car park lighting upgrades have contributed to a reduction in electricity consumption. The Board and Manager also recognise the importance of ensuring investment activity is conducted in a way which supports nature. The UK is one of the most nature-depleted countries in the world, with three quarters of the UK being found to present a high level of ecosystem degradation. Nature degradation could cause a 12% loss to UK GDP 9 with potential implications on the occupational market and real estate income. Responsible real estate companies can help to fight back against this nature decline by adopting investment practices which consider nature and taking real world action. During the reporting year the Company has planted wildflowers at Delme Place and continues to work with stakeholders at Clifton Park to support the provision of habitat for the nationally scarce Tansy Beetle along the adjacent River Ouse. 7 The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 establish a minimum level of energy efficiency for rented property in England and Wales. 8 The remaining footprint without EPCs relates to assets where improvement works have been scheduled and EPCs will be procured on completion of these works. Please note that the Company remains compliant with MEES regulations. 9 Assessing the Materiality of Nature-Related Financial Risks for the UK. Green Finance Institute, April 2024. https://hive.greenfinanceinstitute.com/gfihive/assessing-the-materiality-of- nature-related-financial-risks-for-the-uk/#:~:text=The%20UK%20is%20one%20of,related%20financial%20risks%20originate%20overseas. 37 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Sustainability report continued Supporting people and places (Social) Performance against objectives from the start of the financial year Goal FY25 outcome Ensure the health, safety and wellbeing of building occupiers and users — 100% of managed assets where Health and safety assessments were completed (FY24: 100%). — 0 (zero) reportable health and safety incidents in the Company’s managed portfolio (FY24: 0). Improve proportion of assets where occupier engagement activities are implemented 100% of Company assets. (FY24: 100%). Improve proportion of assets where community engagement activities are implemented 23% of Company assets (FY24: 43%). Improve availability of low carbon transport (active transport facilities; EV charging etc.) facilities — Active transport infrastructure in place for 23 assets (FY24: 21 assets). — Support provision of electric vehicle charging for 18 assets (FY24: 14 assets). Note: All data is reported at 31 March 2025 unless otherwise stated. The recognition of the social impacts of real estate investments has notably increased in the past decade, with stakeholders expecting that built assets positively contribute to society. The Board and Manager recognise that the design and management of real estate plays a crucial role in physical and mental well-being, influencing factors such as employment opportunities, access to services, and social connections. Understanding and responding to the needs of building occupiers and local communities where possible aids us in creating vibrant and inclusive places which ultimately helps deliver making better, more resilient investments in the long run. Over the course of the reporting year, the Company has continued its engagement efforts with both occupiers and communities. All occupiers received a sustainability newsletter, and an online occupier engagement portal, Locale, is used across several sites including City Tower. Reception space across several offices in the portfolio has been used to support charity collection initiatives including foodbank collections, Christmas gift collections for children from deprived families, and book collections. At City Tower, Manchester, the third-party Property Manager, supported by the Manager, operate an extensive engagement calendar including workshops with the site beekeeper where occupiers can meet the bees, and a 45-minute mindfulness Chinese Tea Ceremony that blends tea tasting with meditation. In Q4 2024, a customer experience consultancy, Real Service, was appointed to undertake a customer satisfaction survey across the portfolio. The survey used a mix of telephone interviews and email questionnaires to gain insights into occupiers’ sentiment towards the buildings they occupy, and the management service provided. In 2025, the Manager, on behalf of the Company, will work with the third-party property managers to address the outcomes from this survey. 38 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Sustainability report continued Responsible Business (Governance) Performance against objectives from the start of the financial year Goal FY25 outcome Improve Global Real Estate Sustainability Benchmark (‘GRESB’) rating — Maintained 3-star status. — Maintained score of 79 against backdrop of GRESB scoring changes. — 2nd in Peer Group out of 7 (Previous submission: 1st out of 6). — Maintained ‘A’ rating in GRESB Public Disclosure Increase coverage of sustainability audits across portfolio — ESG Scorecards completed for 80% of the portfolio by Gross Property Value. — 16 asset level ESG Scorecards completed (15 third-party audits; 1 internally completed) (FY24: 15 ESG Scorecards). Improve coverage and quality of sustainability certifications (e.g. BREEAM) across portfolio — 2x new BREEAM In-Use assessment (1x recertification): – Fareham, Delme Place = BREEAM In-Use Part 2 ‘Good’ (certificate received post 31 March) – new certificate. – 106 Oxford Road = BREEAM In-Use Part 2 ‘Good’ (certificate received post 31 March) – recertification. — 9 assets with sustainability certifications (FY2024: 10 assets with sustainability certifications). — The Company is awaiting 2x additional BREEAM In-Use certificates for assessments submitted before 31 December 2024. Maintain EPRA Gold Award for Sustainability Reporting Gold Award for the seventh year running. Sustainability Linked Loan tied to RCF agreed with RBS 1 out of 3 KPIs achieved. Please refer to the section below. Note: All data is reported at 31 March 2025 unless otherwise stated. The Manager operates an Environmental Management System (‘EMS’) certified to ISO 14001 for the asset management of direct real estate investments in the UK and across Europe. This provides the framework for how sustainability principles are managed throughout its investment process and the Manager has developed a suite of proprietary tools to support the delivery at both asset and portfolio level including an ESG Scorecard for consistent assessment of asset sustainability performance, Impact and Sustainability Action Plans for continually improving standing investments, a Sustainable Development and Refurbishment Brief for projects, and Property Manager Sustainability Requirements for use in contractual Property Manager Agreements. Sustainability linked loan performance Underlying its commitment to the sustainability performance of the Company, the Manager and Board have established a Sustainability linked Loan (SLL) tied to its revolving credit facility (RCF). The SLL includes three key performance indicators (KPIs) which will be used to assess the Company’s performance and determine the margin rate applied to the loan. Each KPI has the potential to either reduce the margin by 1.65 basis points, increase it by 1.65 basis points or have no impact. For the year ended 31 March 2025 we achieved a reduction in the margin of 1.65 basis points as we reduced landlord energy consumption sufficiently, held the GRESB rating at 3 stars, and did not complete any new developments or major renovations. Further details are in the table below. KPI Previous period performance* Current period performance KPI target achieved 1. 5% reduction in like-for-like energy consumption across landlord procured energy supplies within the portfolio. 6,080,922 kWh (Calendar Year 2023) 5,797,746 kWh (Calendar Year 2024) Yes (-5% reduction) 2. All new developments or major renovations of the Properties carried out during the term of the Facility achieve a minimum EPC ‘B’ rating, or a minimum BREEAM rating of ‘Very Good’. KPI achieved – Stanley Green Units 5a to 8d, and Stacey Bushes 19 Hollin Lane both delivered to EPC ‘A+’ and BREEAM New Construction ‘Excellent’. There have been no new developments or major renovations during the FY25 reporting year. N/A 3. 4-star or above GRESB rating. 3-star GRESB rating. 3-star GRESB rating. No (static) * Where more accurate information has become available, previous period performance has been restated. Note: All data is reported at 31 March 2025 unless otherwise stated. 39 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Sustainability report continued Task Force on Climate-Related Financial Disclosures In compliance with the requirements set out in chapter 2 of the Environmental, Social and Governance sourcebook (“ESG Sourcebook”) of the FCA Handbook, the Manager publishes a mandatory product-level disclosure consistent with the Task Force on Climate-Related Financial Disclosures (TCFD). This is in addition to the Schroders Real Estate Investment Management (SREIM) entity-level TCFD disclosure and the latest Schroders plc group climate report. These reports provide details on the approach to the consideration of climate-related risks and opportunities across Governance, Strategy, Risk management and Targets across Schroders Group and Schroders Capital real estate. The relevant climate related financial disclosures are published on the Manager’s website at https://www. schroders.com/en/global/individual/corporate-transparency/ reporting/. Further details of Schroders’ industry involvement www.schroders.com/en/global/individual/about-us/what-we-do/ sustainable-investing/our-sustainable-investment-policies- disclosures-voting-reports/industry-involvement/ Further details of compliance with UN PRI www.schroders.com/en-gb/uk/institutional/what-we-do/sustainable- investing/our-sustainable-investment-policies-disclosures- voting-reports/disclosures-and-statements/the-un-principles-for- responsible-investment/ Industry engagement The Manager supports, and collaborates with, several industry groups, organisations and initiatives including the United Nations Global Compact, United Nations Principles of Responsible Investment (UN PRI) and Net Zero Asset Managers Initiative (of which it is a founding member). Further details of Schroders’ industry involvement is available here and compliance with UN PRI is available here. The Manager is an active member of a number of real estate industry bodies including the European Public Real Estate Association (EPRA), Investors in Non-Listed Real Estate Vehicles (INREV), Association of Real Estate Funds (AREF) British Council for Offices (BCO), British Property Federation (BPF) and the Urban Land Institute (ULI). The Manager also regularly participates in the Better Buildings Partnership’s (BBP) programme of initiatives and working groups including net zero, climate resilience, investor engagement, and European investment working group, as well as the Institutional Investors’ Group on Climate Change Real Estate Net Zero working groups, and The World Business Council for Sustainable Development workshops. The Manager is a member of the Global Real Estate Sustainability Benchmark (GRESB) of which the Company has participated in the annual real estate survey for the past nine years. Slavery and Human Trafficking Statement The Company is not required to produce a statement on slavery and human trafficking pursuant to the Modern Slavery Act 2015 as it does not satisfy all the relevant triggers under that Act that required such a statement. Schroders Capital is part of Schroders plc and whose statement on Slavery and Human Trafficking has been published in accordance with the Modern Slavery Act 2015. Further details of Schroders’ Slavery and Human Trafficking Statement www.schroders.com/en/sustainability/corporate-responsibility/ slavery-and-human-trafficking-statement/. 40 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report Business model Company’s business Schroder Real Estate Investment Trust Limited is a real estate investment company with a listing on the Official List of the Financial Conduct Authority and whose shares are traded on the London Stock Exchange (ticker: SREI). The Company is a Real Estate Investment Trust (‘REIT’) and benefits from the various tax advantages offered by the UK REIT regime. The Company continues to be declared as an authorised closed-ended investment scheme by the Guernsey Financial Services Commission under section 8 of the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended and the Authorised Closed-Ended Investment Schemes Rules and Guidance, 2021. The Board The Board of Directors is responsible for the overall stewardship of the Company, including investment and dividend policies, corporate strategy, gearing, corporate governance and risk management. The Company has no executive Directors or employees. Operations The Board has delegated investment management and accounting services to the Investment Manager with the aim of delivering the Company’s investment objective and strategy. Details of the Investment Manager’s investment approach, along with other factors that have affected performance during the year, are set out in the Investment Manager’s Report. Performance The Board uses principal financial Key Performance Indicators (‘KPIs’) to monitor and assess the performance of the Company. These are the NAV total return, the performance of the Company’s underlying property portfolio relative to its MSCI Benchmark Index and the share price. Performance against these KPIs can be found on page 4 under ‘Performance Summary’. Investment objective The investment objective of the Company is to provide shareholders with an attractive level of income and the potential for income and capital growth from owning and actively managing a diversified portfolio of UK commercial real estate, while achieving meaningful and measurable improvements in the sustainability profile of the majority of the portfolio’s assets (considered against a range of objective environmental, social and governance metric). Investment policy The investment policy of the Company is to own a diversified portfolio of UK commercial real estate assets which are underpinned by good fundamental characteristics, and whose sustainability profiles can be improved while they are owned by the Company. The Company may invest across the full range of commercial real estate sectors. Diversification and asset allocation In order to spread investment risk, the Company will seek to invest in a portfolio that is diversified by location, sector, asset size, tenant exposure and lease expiry, and will focus on assets where making sustainability improvements will enhance total return. The value of any individual asset at the date of its acquisition may not exceed 15% of gross assets and the proportion of rental income deriving from a single tenant may not exceed 10%. More specifically in relation to sustainability-related activity: — The Company will focus on sustainability improvement in the selection and active management of real estate assets. Real estate assets will be selected and actively managed with a view to achieving a meaningful improvement in their sustainability profile, as measured against the Investment Manager’s scorecard of environmental, social, and governance (‘ESG’) metrics. — Across the portfolio, the Company will focus on opportunities to improve the sustainability performance of buildings which may include improving their fabric, phasing out fossil fuel-based heating systems, improving operational energy efficiency, and installing means of on-site renewable energy generation such as photovoltaic panels. — In addition to these energy and carbon efficiency-related opportunities, wider ESG considerations will also be taken into account when looking for ways to achieve meaningful improvement in the sustainability profile of real estate assets, and when demonstrating that such improvement is being achieved, including exposure to physical climate risks, access to green space and community facilities, building certifications, and tenant profile. — The ESG scorecard used by the Company will therefore use objective metrics to capture the performance of assets (and the improvements in performance during ownership by the Company) in respect of a broad range of ESG factors. 41 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Business model continued Sustainability KPIs — The Company’s assets will be managed with a view to ensuring that at any given time during the Company’s ownership, at least 75% of the portfolio assets by value are being managed with a realistic and achievable plan to reach a score of at least 3 (out of a possible total score of 5), as measured on the ESG scorecard. — For those 75% of the Company’s assets (by value), in each case where leases permit prompt commencement of works to improve their sustainability profile, the aim will be to take the asset to an improved score of at least 3 (out of a possible total score of 5) within five years from: (i) 1 April 2024, or, if later: (ii) the date it was acquired by the Company. — Further, the Company’s assets will also continue to be managed in line with the Company’s existing ‘pathway to net zero’ commitments, which in summary include seeking to attain the following: – Operational whole buildings emissions to be aligned to a 1.5°C global warming pathway by 2030. – Embodied emissions for all new developments and major renovations to be net zero by 2030. – Operational scope 1 and 2 (landlord) emissions (as defined in the Greenhouse Gas Protocol) to be net zero by 2030. – Operational and embodied whole building (scope 1, 2, and 3 (landlord and tenant)) emissions to be net zero by 2040. Borrowings The Company’s Articles limit borrowings to 65% of the Group’s gross assets, calculated as at the time of borrowing. The Board has established a gearing guideline for the Investment Manager, which seeks to limit Group on-balance- sheet debt, net of cash, of between 25% and 35% of Group portfolio value while recognising that this gearing may be exceeded in the short term from time to time. For these purposes, “Group” refers to the Company along with its subsidiaries at any given time. The term “Group portfolio value” signifies the fair market value of the Group’s property portfolio as appraised by the Company’s independent Valuer. It’s important to note that this valuation excludes the worth of other on-balance-sheet assets owned by the Group. The Board actively monitors this guideline and possesses the authority to instruct the Investment Manager to adjust the management of the Group’s assets. The objective here is to ensure that borrowings are maintained within a defined acceptable range. However, this directive takes into consideration the best interests of the shareholders. As a result, immediate action to correct deviations from this guideline may not be mandatory if such actions could negatively impact shareholder interests. Hedging It is the Board’s policy to minimise interest rate risk, to the extent commercially appropriate, either by ensuring that borrowings are on a fixed-rate basis, or through the use of interest rate swaps/ derivatives used solely for hedging purposes. Investment restrictions As the Company is a closed-ended investment fund for the purposes of the UK Listing Rules, the Group will adhere to the UK Listing Rules applicable to closed-ended investment funds. The Company and, where relevant, its subsidiaries will observe the following restrictions applicable to closed-ended investment funds in compliance with the current UK Listing Rules: — Neither the Company nor any subsidiary will conduct a trading activity which is significant in the context of the Group as a whole. — The Group will not invest in other listed investment companies. — Where amendments are made to the UK Listing Rules, the restrictions applying to the Company will be amended so as to reflect the new UK Listing Rules. In addition, the Board will ensure compliance with the UK REIT regime requirements. Investment strategy The Company’s strategy is focused on delivering sustainable dividend growth by improving the quality of its underlying portfolio through a disciplined, research-led approach to transactions and active asset management, focused on delivering sustainability improvements and operational excellence. This activity is complemented by maintaining a robust balance sheet and efficient management of costs. The Company aims to own a diversified portfolio of properties delivering an above average income return and benefitting from structural changes driving income and capital growth such as urbanisation, innovation in technology and changing demographics. These properties may benefit from favourable supply and demand characteristics and by improving their environmental performance, the Company can capture the rental and valuation premium that buildings with genuine green credentials can command, sometimes called the ‘Green Premium’. 42 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Our stakeholders Strategic report Section 172 statement Although the Company is registered in Guernsey, in accordance with the guidance set out in the UK Corporate Governance Code and the AIC Code of Corporate Governance a Section 172 statement is required. Section 172 of the UK Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing this, section 172 requires a director to have regard, among other matters, to: the likely consequences of any decision in the long term; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others; the impact of the company’s operations on the community and the environment; the desirability of the company maintaining a reputation for high standards of business conduct; and the need to act fairly with members of the company. The Directors give careful consideration to the factors set out above in discharging their duties under section 172. The Board is focused on ensuring that the Company delivers on its strategic objectives, while taking into account the impact on its stakeholders as a whole. It is our firm belief that prioritising positive stakeholder relationships is central to delivering long-term, sustainable returns. The Board is focused on ensuring that it understands its stakeholders’ needs. Shareholders The Board is committed to maintaining high standards of corporate governance in order to protect shareholder interests. The Investment Manager undertakes an active investor relations schedule in London and the regions throughout the year, which includes one-on-one and group meetings with shareholders as well as regular presentations to the sell-side analyst community. Shareholder feedback is encouraged either through the Corporate Broker or directly to the Investment Manager or Board. Occupiers The Company has a diverse range of tenants occupying space across the portfolio. This includes a wide range of businesses who operate out of our office or industrial space and the retailers and shoppers who work at or visit our retail and leisure properties. Active and constant engagement with these groups, either directly through site visits or through property managers or agents, is required to gather intelligence as to what is important to them. Understanding changing needs, both at an individual company level, as well as on a sectoral and broader economic level, is a key tenet informing both our individual asset management investment decisions as well as the longer-term strategic direction of the Company. Communities Our assets are located across the UK in a range of urban environments. The buildings and their occupiers are part of the fabric of local communities. The Company works hard to ensure that it is engaging with local communities, councils and individuals and that our asset strategies are sensitive to the unique heritage of each location. Environment The built environment is responsible for 34% of energy-related CO2 emissions, which places great responsibility on those companies that are direct or indirect contributors, to act in a way which would seek to reduce carbon emissions. The Board is sensitive to the Company’s role and is committed to continually improving and protecting the environment by using resources such as energy, water and materials in a sustainable manner for the prevention of greenhouse gas emissions and climate change mitigation. ESG considerations are integrated into the Company’s investment processes and each individual asset benefits from specific ESG-related objectives. The Board reviews its approach to managing ESG considerations and believes that this is integral in delivering better long-term returns for our investors and for safeguarding the future of the environment that we live and work in. Service providers As an externally-managed REIT, the Board is reliant on a range of service providers who have a direct working or contractual relationship or share a mutual interest with the Company. This includes, but is not limited to, Schroders as Investment Manager and Company Secretary, Property Managers, the Administrator, Depositary, Auditor, Tax advisors, Solicitors, Property Valuers and Banks. The Board has delegated to the Management Engagement Committee to regularly review these relationships. Lenders Borrowing allows the Company’s shareholders to increase exposure to assets consistent with the strategy and generate enhanced returns at a low cost. These lenders have a financial interest in the success of the Company. Decision-making The Board makes decisions on, among other things, the principal matters set out under the paragraph headed ‘The Board’ on page 40. 43 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Principal risks and uncertainties Strategic report The Board has carried out a robust assessment of the principal risks and emerging risks facing the Company including those that would threaten its business model, future performance, solvency or liquidity. The Board is responsible for the Company’s system of risk management and internal control and for reviewing its effectiveness. The Board has carried out a robust assessment of the principal risks and emerging risks facing the Company including those that would threaten its business model, future performance, solvency or liquidity. A framework of internal controls has been designed and established to monitor and manage those risks. This internal control framework provides a system to enable the Directors to mitigate these risks as far as possible, which assists in determining the nature and extent of the significant risks the Board is willing to take in achieving its strategic objectives. Emerging risks are monitored as part of this assessment. The Board notes that it has a robust framework of internal controls in place this can provide only reasonable, and not absolute, assurance against material financial misstatement or loss and is designed to manage, not eliminate, risk. The Board notes that the post-mitigation likelihood for economic and property market risks has increased due to heightened political uncertainty since the last review. A summary of the principal risks and uncertainties faced by the Company, and actions taken by the Board to manage and mitigate these risks and uncertainties, are set out below: Sustainability Key risks Sustainability considerations are not fully considered or understood in the acquisition and asset-planning processes leading to future issues (negative effect on price, valuation or ability to sell assets, future costs to remediate to meet the requirements of initiatives such as Net Zero Carbon/Climate Risk/BREEAM/EPC profile/GRESB). Mitigation of risk The Manager’s Investment Committee has a continued focus on sustainability to help ensure appropriate consideration is given before approving fund strategy and asset business plans on an annual basis, transactions and major capital expenditure. Impact and sustainability action plans identify asset improvement requirements in the context of the investment strategy. The Board regularly reviews the objectives and progress of the sustainability programme on at least an annual basis. EY, the Company’s auditor, independently reperformed the performance of two assets via an ISRS 4400 (Revised) ‘Agreed Upon Procedures’ (AUP) engagement with a final report issued in June 2025. The full report can be found on the Company’s website. The Investment Manager to the Company works alongside third-party Property Managers, and commercial real estate ESG data intelligence platform providers, Deepki, to provide, collate and report key sustainability data which is then reported to the Board and investors. Furthermore, the Board is provided with an assurance letter on an annual basis from S&P Global with regard to the sustainability content in this annual report. Investment and strategy Key risks An inappropriate investment strategy, or failure to implement the strategy, could lead to underperformance in the property portfolio compared to the property market generally by incorrect sector or geographic weightings or a loss of income through tenant failure, both of which could lead to a fall in the value of the underlying portfolio. Mitigation of risk The Board seeks to mitigate these risks by: — Diversification of its property portfolio through its investment restrictions and guidelines which are monitored and reported on by the Investment Manager. — Receiving from the Investment Manager timely and accurate management information including performance data, attribution analysis, property-level business plans and financial projections. — Monitoring the implementation and results of the investment process with the Investment Manager with a separate meeting devoted to strategy each year. — Determining a borrowing policy and the Investment Manager operates within borrowing restrictions and guidelines. 44 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Principal risks and uncertainties continued Economic and property market Key risks The NAV and share price performance of the Company could be affected by economic and property market risk. In the wider economy this could include inflation, stagflation or deflation, economic recessions, movements in interest rates, political/ policy changes, the wars in Ukraine and the Middle East, or other economic or external geopolitical shocks such as a wider conflagration or pandemic. The performance of the underlying property portfolio could also be affected by structural or cyclical factors impacting particular sectors or regions of the property market. These factors may affect the Company’s NAV, share price, capital expenditure and operating costs. Mitigation of risk The Board considers economic conditions and the uncertainty around (geo)political events when making investment decisions. The Board mitigates property market risk through the review of the Group’s strategy on a regular basis and discussions are held to ensure the strategy is still appropriate or if it needs updating. The Board and Investment Manager reviews the progress of implementing the strategy on a regular basis and provides the market with clear communications. Valuation/liquidity Key risks Property valuations are inherently subjective and uncertain. This uncertainty is heightened by market uncertainty due to the war in Ukraine, structural changes driven by Covid-19 and macroeconomic factors such as high inflation and increasing interest rates. Subjectivity in the valuation process could give rise to significant bias or errors in the valuation of the Company’s investment property portfolio. Mitigation of risk An external reputable valuer provides an independent quarterly valuation of all the property assets, including those held in joint ventures, which are reviewed at the quarterly Board meetings. The valuation process is reviewed by the Audit Committee every year and members of the Audit Committee directly meet with the valuers on at least an annual basis. The Company’s external valuer is provided with copies of all transactions and lease events by the Company’s lawyers, and quarterly updates by Asset Managers, to ensure that information used to value the portfolio is complete, accurate and up-to-date. The Company follows RICS best practice regarding valuer rotation. Gearing/leverage Key risks The Company utilises credit facilities. These arrangements increase the funds available for investment through borrowing. While this has the potential to enhance investment returns in rising markets, in falling markets the impact could be detrimental to performance, and also results in interest rate risk from higher interest rate costs and potential compliance with loan covenants. Mitigation of risk Gearing and compliance with covenants is monitored at each Board meeting against restrictions set internally and by lenders and is regularly announced to the market. Service provider Key risks The Company has no employees and has delegated certain functions to a number of service providers. Failure of controls and poor performance of any service provider could lead to disruption, reputational damage, or loss. Mismatch between the Company’s service needs and the external service providers may expose the Company to a range of operational failures. Mitigation of risk Service providers are subject to regular reviews by both the Investment Manager and the Management Engagement Committee against clearly documented contractual arrangements detailing service expectations, including confirmation of business continuity and cyber security arrangements. Detailed reviews of service providers’ terms of engagement as well as performance at Management Engagement Committee meetings Use of large international organisations as the Company’s depositary, auditor, broker, tax advisor etc. 45 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Principal risks and uncertainties continued Regulatory compliance Key risks The Company has to comply with a wide range of legislation and regulations, covering planning, health and safety, Company law, accounting, reporting, tax and UK Listing Rules. Mitigation of risk The Investment Manager has robust processes in place to ensure that accurate accounting records are maintained and that evidence to support the financial statements is available to the Board and the auditors. The Investment Manager operates established property accounting systems and has procedures in place to ensure that the quarterly NAV and gross asset value are calculated accurately. The property accounting function is outsourced to a reputable external service provider by the Investment Manager and the Investment Manager exercises robust oversight over the performance of this function. The Board has appointed the Investment Manager as AIFM in accordance with the Alternative Investment Fund Managers Directive (‘AIFMD’). The quarterly and annual NAV has numerous levels of reviews including by the Board. Additional support is produced by the fund accountants to ensure financial data is complete and accurate. An internal controls review is performed by Ernst & Young in accordance with ISAE 3402 annually to provide assurance on Schroders’ service organisations’ control procedures and an external audit is completed to provide an opinion on the financial statements which have been reviewed by the Board of Directors. The Company Secretary monitors legal and other regulatory requirements to ensure that adequate procedures and reminders are in place to meet the Company’s legal requirements and obligations. The Investment Manager undertakes full legal due diligence with advisers when transacting and managing the Company’s assets. All contracts entered into by the Company are reviewed by the Company’s legal and other advisers. Processes are in place to ensure that the Company complies with the conditions applicable to property investment companies set out in the UK Listing Rules. The Board is satisfied that the Investment Manager and local Administrator have adequate procedures in place to ensure continued compliance with the regulatory requirements of the Financial Conduct Authority (‘FCA’), the Guernsey Financial Services Commission and the UK REIT regulations to maintain the Company’s REIT status for tax purposes. 46 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Principal risks and uncertainties continued Risk assessment and internal controls Risk assessment includes consideration of the scope and quality of the systems of internal control operating within key service providers, and ensures regular communication of the results of monitoring by such providers to the Audit Committee, including the incidence of significant control failings or weaknesses that have been identified at any time and the extent to which they have resulted in unforeseen outcomes or contingencies that may have a material impact on the Company’s performance or condition. No significant control failings or weaknesses were identified from the Audit Committee’s ongoing risk assessment which has been in place throughout the financial year and up to the date of this report. The Board is satisfied that it has undertaken a detailed review of the risks facing the Company. A full analysis of the financial risks facing the Company and its subsidiaries is set out in note 18 on pages 85 to 88. Viability statement The Board is required to give a statement on the Company’s viability which considers the Company’s current position and principal risks and uncertainties together with an assessment of future prospects. The Board conducted this review over a five-year time horizon commencing from the date of this report which is selected to match the period over which the Board monitors and reviews its financial performance and forecasting. The Investment Manager prepares five-year total return forecasts for the commercial real estate market. The Investment Manager uses these forecasts as part of analysing acquisition opportunities as well as for its annual asset level business planning process. The Board receives an overview of the asset level business plans which the Investment Manager uses to assess the performance of the underlying portfolio and therefore make investment decisions such as disposals and investing capital expenditure. The Company’s principal borrowings with Canada Life are for a weighted duration of 11.0 years and the average unexpired lease term, assuming all tenants vacate at the earliest opportunity, is 5.3 years. The Company’s revolving credit facility with RBSI expires in June 2027. The Board’s assessment of viability considers the principal risks and uncertainties faced by the Company, as detailed in the Strategic report on pages 43 to 45, which could negatively impact its ability to deliver the investment objective, strategy, liquidity and solvency. This includes consideration of scenario stress testing and a cash flow model prepared by the Investment Manager that analyses the sustainability of the Company’s cash flows, dividend cover, compliance with bank covenants, general liquidity requirements and potential legal and regulatory changes for a five-year period. These metrics are subject to a sensitivity analysis which involves flexing a number of the main assumptions including macroeconomic scenarios, delivery of specific asset management initiatives, rental growth and void/reletting assumptions. The Board also reviews assumptions regarding capital recycling and the Company’s ability to refinance or extend financing facilities. Steps which are taken to mitigate these risks as set out in the Strategic report on pages 43 to 45 are also taken into account. Based on the assessment, the directors have concluded that there is a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the five-year period of their assessment. Going concern The Directors have examined significant areas of possible financial risk including liquidity (with a view to both cash held and undrawn debt facilities); the rates of both rent and service charge collections from tenants; have considered potential falls in property valuations; have reviewed cash flow forecasts; have analysed forward-looking compliance with third party debt covenants and in particular the Loan to Value covenant and interest cover ratios; and have considered the Group’s ongoing compliance with the REIT regime. Overall, after utilising available cash, excluding the cash undrawn against the RBSI facility and uncharged properties and units in Joint Ventures, and based on the reporting period to 31 March 2025, property valuations would have to fall by 28% before the relevant Canada Life Loan to Value covenants were breached, and actual net rental income would need to fall by 64% before the interest cover covenants were breached. Furthermore, the properties charged to RBSI could fall in value by 52%, prior to the 65% LTV covenant being breached, and based on projected net rents for the quarter to 31 March 2025, a 22% fall in net income could be sustained prior to the RBSI projected interest loan cover covenant of 200% being breached. These stress testing scenarios of 28%/52% declines in property valuations and 64%/22% declines in net income are deemed to be extremely unlikely. Should these scenarios occur, management have various actions available which include, but are not limited to, adding additional assets or excess cash into the security pool and selling assets to reduce LTV. As at the financial year end, the undrawn capacity of the £75.0 million RBSI facility was £23.5 million. This facility is an efficient and flexible source of funding due to its ability to be repaid and redrawn as often as required and matures in June 2027. 47 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Strategic report — Principal risks and uncertainties continued Regarding the Canada Life loan of £129.6 million, fifty per cent matures in 2032 and fifty per cent matures in 2039 respectively. The Board and Investment Manager also continue to closely monitor the ongoing changing macroeconomic and geopolitical environments on the Group. The Board and Investment Manager have considered the impact of sustainability risk as a principal risk as set out on page 43. In line with IFRS, investment properties are valued at fair value based on open market valuations as described in Note 10. The assessment of the open market valuation includes consideration of environmental matters and the condition of each property. The investment properties continue to be monitored by the Investment Manager and key considerations include EPC ratings and their impact on the properties’ forecast compliance with the Minimum Energy Efficiency Standards regulation. Having assessed the impact of climate change on the Group, the directors concluded that it is not expected to have a significant impact on the Group’s going concern or viability assessment. The Directors have not identified any matters which would cast significant doubt on the Group’s ability to continue as a going concern for the period to 30 June 2026 and have satisfied themselves that the Group has adequate resources to continue in operational existence for the period to 30 June 2026. After due consideration, the Board believes it is appropriate to adopt the going concern basis in preparing the financial statements. By order of the Board Alastair Hughes Chair 10 June 2025 Governance report 48 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 49 BoardofDirectors 50 ReportoftheDirectors 52 Corporategovernance 55 AuditCommitteereport 57 ManagementEngagementCommitteereport 58 NominationCommitteereport 59 Directors’Remunerationreport 61 StatementofDirectors’responsibilities 62 IndependentAuditor’sreporttothemembersof SchroderRealEstateInvestmentTrustLimited Governance report 49 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Board of Directors Governance report Alastair Hughes Priscilla Davies Alexandra Innes Sanjay Patel Status: Independentnon-executive ChairandchairoftheNomination Committee Status: SeniorIndependentDirector Status: ChairoftheManagement EngagementCommittee Status: ChairoftheAuditCommittee Alastairhasover30yearsof experienceinrealestatemarketsand currentlyholdsdirectorshipswith BritishLandPLC,TritaxBigBox,and QuadRealPropertyGroup.Hewas previouslytheManagingDirector ofJonesLangLaSalle(JLL)intheUK beforebecomingtheCEOforEurope, MiddleEastandAfrica,andthen latterlybecomingtheCEOforAsia Pacific.AlastairisaCharteredSurveyor andsatontheGlobalExecutiveBoard ofJLL. Priscillahasover25yearsoffinancial servicesexperienceacrossarangeof sectorsincludingassetmanagement andalternativeinvestments coveringrealestate,privateequity, infrastructure,andrenewables.She iscurrentlyanon-executivedirector andchairatUBSAssetManagement UKLtd,non-executivedirectorand chairofAuditandRiskCommitteeat CubicoSustainableInvestments,and non-executivedirectoratBankofNew YorkMellon(International)Limited. Priscillapreviouslyheldvarioussenior positionsatJanusHenderson,most latterlyasManagingDirectorofthe PrivateEquitybusinessandwasa non-executivedirectoratEmbark GroupLimitedanditsregulated subsidiaries.SheisalsoaChartered Accountantandamemberofthe CharteredAccountantsAustraliaand NewZealand. Alexandra’sexecutivecareer spannedinvestmentbanking,global capitalmarkets,andinvestment management,mostlatterlyas ManagingDirector,Barclaysplc,and priortothatasDirectorofGlobal CapitalMarketsatBankofAmerica MerrillLynch. Alexandraisanon-executive committeememberattheBankof England,anon-executivedirector atW1MWealthManagement,STS GlobalIncomeandGrowthTrust plc,andFacilitiesbyADFplcanda memberoftheFinanceCommittee attheUniversityofCambridge.Prior boardrolesincludeKnightFrankLLP, DowlaisGroupplc,andAllEngland LawnTennisClub(Championships). AlexandraholdsanM.A.Hons EconomicsfromCambridgeUniversity, andisaFellowofChapterZero.She isaGreenandSustainableFinance Professional,CharteredBanking Institute(CCBIGSFP),aChartered memberoftheCISI(MCSI),andholds theCFAInstituteCertificateinESG investing. SanjayisaCharteredAccountantand wasChiefFinancialOfficerandaBoard memberofCadoganGroupLimited, alargeprivaterealestateinvestment company,untilDecember2024.Prior tothisrole,SanjayservedasGroup FinanceDirectorontheBoardofStrutt &ParkerLLP.Sanjayisalsoadirector ofSirRichardSuttonLimitedwherehe isChairoftheAuditCommittee,anda memberoftheFinanceCommitteeat theUniversityofCambridge. Date of appointment: 26April2017 Date of appointment: 7June2022 Date of appointment: 16November2022 Date of appointment: 1January2024 Current remuneration: £60,000 per annum Current remuneration: £44,000 per annum Current remuneration: £44,000 per annum Current remuneration: £46,500 per annum Material interests in any contract which is significant to the Company’s business: - Material interests in any contract which is significant to the Company’s business: - Material interests in any contract which is significant to the Company’s business: - Material interests in any contract which is significant to the Company’s business: - Key skills and contributions tothe Board: Alastairhasextensiveexperiencein realestatemanagement,strategic leadership,andgovernancefrom hispreviousseniorexecutiveroles. Hisexperienceasachartered surveyorassistswithscrutinyof assetpurchasesandoversightofthe Company’sindependentvaluer. Key skills and contributions tothe Board: Priscillabringsextensiveexperience asaseniorexecutiveworkingfor assetmanagementbusinesses.She alsohasrelevantandrecentfinancial experience. Key skills and contributions tothe Board: Alexandrabringsknowledgeofthe economy,finance,capitalmarkets andinvestorstotheboard,alongside sustainabilityexpertise. Key skills and contributions tothe Board: Sanjaybringssubstantialexperience infinance,accounting,andreal estate,whichenabledhimtooversee andscrutinisetheManager’s fundaccountingfunctionandthe performanceoftheCompany’s Auditor.Sanjayalsohasrecentand relevantfinancialexpertisetoserveas chairoftheAuditCommittee. NoDirectorhasanyentitlementtopensionsandtheCompanyhasnotawardedanyshareoptionsorlong-termperformanceincentivestoanyofthem.Noelementof Directors’remunerationisperformancerelated.TherewerenopaymentstoDirectorsforlossofoffice. NoDirectorhasaservicecontractwiththeCompany.However,eachoftheDirectorshasaletterofappointmentwiththeCompany.TheDirectors’lettersofappointment, whichsetoutthetermsoftheirappointments,areavailableforinspectionattheCompany’sregisteredofficeaddressduringnormalbusinesshoursandwillbeavailable forinspectionattheAGM. 50 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Report of the Directors Governance report The Directors of the Company and its subsidiaries, together the ‘Group’, present the annual report and audited consolidated financial statements of the Group for the year ended 31 March 2025 (the ‘Annual Report and Consolidated Financial Statements’). Results and dividends Theresultsfortheyearunderreviewaresetoutinthe attachedfinancialstatements. DuringtheyeartheCompanyhasdeclaredandorpaidthe followinginterimdividendstoitsshareholdersinaccordance withthesolvencytest(containedintheCompaniesLaw): Dividend for quarterended Date Paid Rate 31March2024 28June2024 0.853pencepershare 30June2024 30August2024 0.853pencepershare 30September2024 20December2024 0.879pencepershare 31December2024 28March2025 0.897pencepershare TheDirectorsrecommendadividendfortheyearended 31March2025of0.897pencepersharetobepaidon30June 2025.Thedividendof0.897ppswillbewhollydesignatedasan interimpropertyincomedistribution(‘PID’). Alldividendspaidduringtheyearwereallocatedandpaidas fullPropertyIncomeDistributions(PIDs). Share capital Asat31March2025theCompanyhad565,664,749(2024: 565,664,749)ordinarysharesinissueofwhich76,554,173 ordinaryshares(representing13.2%oftheCompany’stotal issuedsharecapital)wereheldintreasury(2024:76,554,173). ThetotalnumberofvotingrightsoftheCompanywas 489,110,576attheyearend(2024:489,110,576)andthisfigure maybeusedbyshareholdersasthedenominatorforthe calculationsbywhichtheywilldetermineiftheywererequired tonotifytheirinterestin,orachangeintheirinterestof,the Company,undertheDisclosureGuidanceandTransparency Rulesasattheyearend. Key services providers TheBoardhasadoptedanoutsourcedbusinessmodelandhas appointedthefollowingkeyserviceproviders: Investment Manager SchroderRealEstateInvestmentManagementLimitedisthe InvestmentManageroftheCompany.TheBoardreviews theInvestmentManager’sperformanceatitsquarterly Boardmeetings.Inaddition,theBoardconducteditsannual strategicreviewwiththeInvestmentManagerinFebruary 2025toconsidertheCompany’sinvestmentstrategyin moredepth.Subsequently,theDirectorsformallydiscussed theperformanceandongoingsuitabilityoftheInvestment ManageratanannualmeetingoftheManagement EngagementCommittee. Onthebasisofthisreview,theBoardremainssatisfiedthatthe InvestmentManagerhastheappropriatecapabilitiesrequired tosupporttheCompanyandbelievesthatthecontinuing appointmentoftheInvestmentManagerunderthetermsof theInvestmentManagementAgreement,thedetailsoftheare setoutbelow,isintheinterestofshareholders. TheInvestmentManagerreceivedafeeof0.9%ofthe Company’sNAVuptobutnotincluding£500million;0.8%on theCompany’sNAVbetween£500millionuptoandincluding £1billion;and0.7%ontheCompany’sNAVover£1billion. Thefeeispayablemonthlyinarrears.Whilstthereisno performancefee,witheffectfromthefinancialyearended 31March2025,thereisapotentialincrease/decreaseof managementfeespayabletotheInvestmentManagerequalto fivebasispointsofNetAssetValueperannumdependenton both(i)deliveringthesustainabilityKPItargetsintherevised investmentpolicytotheBoard’ssatisfaction,and(ii)thedelivery ofanincomereturnaheadoftheMSCIBenchmark,because thenewstrategyisdesignedtodelivermoresustainable long-termincome. Followingtheyearend,itwasagreedwiththeManagerthat thefeepayableundertheInvestmentManagementAgreement willbeamendedsuchthat,effectivefrom1October2025,the managementfeeswillbe50%linkedtomarketcapitalisation cappedattheprevailingNAV,withthebalancelinkedtoNAV, andtheexistingtierslinkedtotheCompany’ssizeremaining unchanged. TheCompanyhasappointedtheInvestmentManagerasits AIFMundertheAIFMDirective.Thereisnoadditionalfeepaid totheInvestmentManagerforthisservice. Administration SchroderInvestmentManagementLimited,anaffiliateofthe AIFM,isCompanySecretarytotheCompanyforwhichitis paidafeeof£50,000perannum.LanghamHall(Guernsey) LimitedwasappointedastheCompanySecretarytothe Group’ssubsidiaries,andasDesignatedManager,forafeeof £67,000perannumandLanghamHallUKDepositaryLLPisthe Company’sdepositaryforafeeof£56,000perannum. 51 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Report of the Directors continued Anti-bribery policy TheCompanycontinuestobecommittedtocarryingoutits businessfairly,honestlyandopenly.Appropriatepoliciesare consideredtobeinplacetoensurecompliancewiththeUK BriberyAct2010. Directors TheDirectorsoftheCompany,togetherwiththeirbeneficial interestsintheCompany’sordinarysharecapitalasatthedate ofthisreport,aregivenbelow: Director Number of ordinaryshares Percentage (%) AlastairHughes 190,579 Lessthan0.1 SanjayPatel 142,657 Lessthan0.1 PriscillaDavies Nil Nil AlexandraInnes Nil Nil Substantial shareholdings TheCompanyhasreceivednotificationsinaccordancewith theFinancialConductAuthority’s(‘FCA’)DisclosureGuidance andTransparencyRule5.1.2Rofthebelowinterestsin5%or moreofthevotingrightsattachingtotheCompany’sissued sharecapitalasat31March2025.TheCompanyisreliant oninvestorstocomplywiththeseregulations,andcertain investorsmaybeexemptedfromprovidingthese.Assuch,this shouldnotbereliedonasanexhaustivelistofshareholders holdingabove5%oftheCompany’svotingrights. Notifier Number of ordinaryshares Percentage (%) Schrodersplc 67,842,383 13.8 RathbonesInvestment ManagementLtd 58,548,550 12.0 PremierFundManagers Limited 41,680,575 8.0 EmbarkInvestment Services(UK) 34,207,624 7.0 On8May2025,RathbonesInvestmentManagementLtd notifiedtheCompanythatitsholdinghaddecreasedto10.97% ofvotingrightsheld. Independent Auditor ResolutionstoreappointErnst&YoungLLP(‘EY’orthe ‘Auditor’),andtogivetheDirectorsauthoritytodetermine theAuditor’sremunerationforthecomingyear,willbeput toshareholdersattheAnnualGeneralMeeting(‘AGM’)ofthe Company. TheAuditCommittee’sevaluationoftheAuditorisdescribedin theAuditCommitteeReportonpage55. Disclosure of information to the Auditor TheDirectorswhoheldofficeatthedateofapprovalofthis Directors’Reportconfirmthat,asfarastheyareeachaware, thereisnorelevantauditinformationofwhichtheCompany’s AuditorisunawareandeachDirectorhastakenallthesteps thattheyoughttohavetakenasaDirectortomakethemselves awareofanyrelevantauditinformationandtoestablishthat theCompany’sAuditorareawareofthatinformation. Status for taxation TheDirectoroftheRevenueServiceinGuernseyhasgranted theCompanyexemptionfromGuernseyincometaxunderthe IncomeTax(ExemptBodies)(Guernsey)Ordinance,1989and theincomeoftheCompanymaybedistributedoraccumulated withoutdeductionofGuernseyIncomeTax.Exemptionunder theabove-mentionedOrdinanceentailsthepaymentbythe Companyofanannualfeeof£1,600. TheGroupcontinuestopaynocorporationorincometax becauseithastaxexemptstatusintheUKasaUKREIT. TheGrouphasbeenaUKREITsince2015andtheGroup’s propertyincomeandgainsareexemptfromUKcorporate taxesprovidedanumberofconditionsinrelationtothe Group’sactivitiesaremetincluding,butnotlimitedto, distributingatleast90%oftheGroup’sUKtaxexemptprofit aspropertyincomedistributions(‘PID’’s).Asfarasthedirectors areaware,theGroupremainsinfullcompliancewiththeREIT requirements. Shareholderswhoareinanydoubtconcerningthetaxation implicationsofaREITshouldconsulttheirowntaxadvisors. Key information document AKeyInformationDocument(‘KID’)fortheCompanyis publishedonatleastanannualbasis,inaccordancewiththe PackagedRetailandInsurance-BasedInvestmentProducts Regulation(‘PRIIPs’),andmadeavailableontheCompany’s website.Thecalculationoffiguresandperformancescenarios containedintheKIDareprescribedbyPRIIPSandhaveneither beensetnorendorsedbytheBoard.Infact,theBoardisofthe opinionthatPRIIPShasbeeninconsistentlyappliedbymarket participantsandhencecreatesconfusionamongstinvestors. AIFMD remuneration disclosures for Schroder Real Estate Investment Management Limited (‘SREIM’) for the year to 31 December 2024 Quantitativeremunerationdisclosurestobemadeinthis AnnualReportinaccordancewithFCAHandbookruleFUND 3.3.5arepublishedonthefollowingwebsite:https://www. schroders.com/en/global/individual/corporate-transparency/ disclosures/ 52 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report Corporate governance The Directors are committed to maintaining high standards of corporate governance. Insofar as the Directors believe it to be appropriate and relevant to the Company, it is their intention that the Company should comply with best practice standards for the business carried on by the Company TheGuernseyFinancialServicesCommission(‘GFSC’)states intheFinanceSectorCodeofCorporateGovernance(the ‘Code’)thatcompanieswhichreportagainsttheUKCorporate GovernanceCodeortheAssociationofInvestmentCompanies CodeofCorporateGovernancearedeemedtomeettheCode, andneedtakenofurtheraction. TheBoardhasconsideredtheprinciplesandrecommendations oftheAssociationofInvestmentCompaniesCodeofCorporate GovernancepublishedinFebruary2019(‘AICCode‘),which appliestoaccountingperiodsbeginningonorafter1January 2019.TheAICCodeaddressesalltheprinciplessetoutin theUKCorporateGovernanceCode,aswellassettingout additionalprinciplesandrecommendationsonissuesthatare ofspecificrelevance.AcopyoftheAICCodecanbefoundat www.theaic.co.uk. ItistheBoard’sintentiontocontinuetocomplywiththe AICCodeandwewillcontinuetoreporttheCompany’s compliancewiththeprinciplesandrecommendationsofthe AICCode,whichhasbeenendorsedbytheFinancialReporting Council(‘FRC’). Statement of compliance TheCompanyhascompliedwiththerecommendationsof theAICCodeandtherelevantprovisionsoftheUKCorporate GovernanceCode,exceptassetoutbelow. TheUKCorporateGovernanceCodeincludesprovisions relatingto: ― Theroleofthechiefexecutive; ― Executivedirectors’remuneration; ― Internalauditfunction;and ― theChair’smembershipoftheAuditandRiskCommittee. TheBoardconsidersthattheseprovisionsarenotrelevant totheCompany,beinganexternallymanagedinvestment company.Inparticular,alloftheCompany’sday-to-day managementandadministrativefunctionsareoutsourced tothirdparties.Asaresult,theCompanyhasnoexecutive Directors,employeesorinternaloperations.Theprovisionin relationtotheinternalauditfunctionisreferredtointheAudit Committeereport. Inlinewithcommonpracticeforinvestmentcompanies,and consideringthecompositionoftheAuditCommitteeinterms ofitscombinationofskills,experience,andknowledge,itis consideredappropriatefortheChairtobeamemberofthe AuditCommittee. Role of the Board TheBoardhasdeterminedthatitsroleistoconsiderand determinethefollowingprincipalmatterswhichitconsiders areofstrategicimportancetotheCompany: ― TheoverallobjectivesoftheCompany,asdescribedunder theparagraphaboveheaded‘InvestmentPolicyand Strategy’andthestrategyforfulfillingthoseobjectives withinanappropriateriskframework,inlightofmarket conditionsprevailingfromtimetotime; ― ThecapitalstructureoftheCompany,including considerationofanappropriatepolicyfortheuseof borrowingsbothfortheCompanyandinanyjoint venturesinwhichtheCompanymayinvestfromtimeto time; ― TheappointmentoftheInvestmentManager, Administratorandotherappropriatelyskilledservice providersandtomonitortheireffectivenessthrough regularreportsandmeetings;and ― ThekeyelementsoftheCompany’sperformanceincluding NAVgrowthandthepaymentofdividends. Board decisions TheBoardmakesdecisionson,amongotherthings,the principalmatterssetoutundertheparagraphaboveheaded ‘RoleoftheBoard’.Issuesassociatedwithimplementingthe Company’sstrategyaregenerallyconsideredbytheBoard tobenon-strategicinnatureandaredelegatedeithertothe InvestmentManagerortheAdministrator,unlesstheBoard considerstherewillbeimplementationmatterssignificant enoughtobeofstrategicimportancetotheCompany andshouldbereservedtotheBoard.Generallytheseare definedas: ― Largepropertydecisionsaffecting10%ormoreofthe Company’sassets; ― Largepropertydecisionsaffecting5%ormoreofthe Company’srentalincome;and ― DecisionsaffectingtheCompany’sfinancialborrowings. Board evaluation Withinthefinancialyearended31March2025,theBoard carriedoutaninternalevaluationoftheBoardandits Chair,whichinvolvedquestionnairesbeingcompletedby non-executiveDirectors.ItwasconcludedthattheBoard 53 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Corporate governance continued performswellandhastherelevantknowledgeandexperience asawhole. Non-executive Directors, rotation of Directors and Directors’ tenure TheUKCorporateGovernanceCoderecommendsthat Directorsshouldbeappointedforaspecifiedperiod.TheBoard hasresolvedinthisinstancethatDirectors’appointmentsneed notcomplywiththisrequirementasallDirectorsarenon- executiveandtheirrespectiveappointmentscanbeterminated atanytimewithoutpenalty.TheBoardhasapprovedapolicy thatallDirectorswillstandforre-electionannuallyanditisthe intentionthatnoDirectorwillserveformorethannineyears. TheappointmentandreplacementofDirectorsisgovernedby theCompany’sArticles,theCompaniesLaw,relatedlegislations andtheUKListingRules.TheArticlesmayonlybeamendedby aspecialresolutionoftheshareholders.Whenavacancyarises theBoardselectsthebestcandidatetakingintoaccountthe skillsandexperiencerequired,whiletakingintoconsideration boarddiversityaspartofagoodcorporategovernanceculture. Board composition and diversity TheBoardcurrentlyconsistsoffournon-executiveDirectors. ThebiographyofeachoftheseDirectorsissetoutonpage49 ofthereport.TheBoardconsiderseachoftheDirectorstobe independent.Asat31March2025,50%oftheindividualson theBoardofDirectorswerewomen,atleastoneindividualon theBoardofDirectorswasfromaminorityethnicbackground, andatleastoneoftheseniorpositionsontheBoardof Directorswasheldbyawoman.TheCompanyhastherefore metalloftherelevanttargetsinrelationtoBoarddiversityas setoutintheUKListingRules. TheCompanybelievesinthebenefitsofdiversityandplaces importanceonbroaddiversityoftheBoardaspartofits successionplanning.TheCompany’sdiversityandinclusion policy,outlinedbelow,wasappliedthroughouttherecruitment processforthetworecentBoardappointments. ThebelowtablessetoutthegenderandethnicdiversitycompositionoftheBoardasat31March2025andatthedateofthisreport. Number of Boardmembers Percentage oftheBoard (%) Number of senior positions onthe Board WhiteBritishorotherWhite(includingminority-whitegroups) 3 75% 2 Mixed/MultipleEthnicGroups - - - Asian/AsianBritish 1 25% 0 Black/African/Caribbean/BlackBritish - - - Otherethnicgroup,includingArab - - - Notspecified/prefernottosay - - - Number of Boardmembers Percentage oftheBoard (%) Number of senior positions onthe Board Men 2 50 1 Women 2 50 1 Notspecified/prefernottosay - - - GiventhattheCompanyisaREITwithnoexecutiveBoard members,thecolumnsandreferencesregardingexecutive managementhavenotbeenincluded.Theapproachto collectingthisdatawasconsistentforthepurposesof reportingundertheUKListingRules,andwasconsistent acrossallindividualsinrelationtowhomdataisbeing reported,wherebyallDirectorsconfirmedthattheabove disclosureswerecorrect. TheBoardhasadoptedadiversityandinclusionpolicy,which appliestoboththeBoardanditscommittees.Appointments andsuccessionplanswillalwaysbebasedonmeritand objectivecriteriaand,withinthiscontext,theBoardseeks topromotediversity(includingofgender,social,ethnic, professionalandeducationalbackgrounds,sexualorientation, cognitiveandpersonalstrengths),inclusionandequal opportunity.TheBoardwillencourageanyindependent recruitmentagenciesitengagestofindarangeofcandidates thatmeettheobjectivecriteriaagreedforeachappointment. CandidatesforBoardvacanciesareselectedbasedontheir skillsandexperience,whicharematchedagainstthebalance ofskillsandexperienceoftheoverallBoardtakingintoaccount thecriteriafortherolebeingoffered. TheindependenceofeachDirectorisconsideredona continuingbasis.TheBoardhasdeterminedthatallthe DirectorsareindependentoftheInvestmentManager.The Boardissatisfiedthatitisofsufficientsizewithanappropriate balanceofskillsandexperience,independenceandknowledge ofboththeCompanyandthewiderinvestmentcompany sector,toenableittodischargeitsrespectivedutiesand responsibilitieseffectivelyandthatnoindividualorgroupof individualsis,orhasbeen,inapositiontodominatedecision making.AccordinglytheBoardapprovesthenominationfor re-electionofeachoftheDirectorsattheforthcomingAnnual GeneralMeeting.TheBoardalsoconsidersthediversityand inclusionpoliciesofitskeyserviceproviders. 54 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Corporate governance continued Board committees TheBoardhasdelegatedcertainofitsresponsibilities toitsAudit,Nomination,andManagementEngagement committees.Eachofthesecommitteeshasformalterms ofreferenceestablishedbytheBoardwhichareavailable ontheCompany’swebsite.TheBoardbelievesthatits committeeshaveanappropriatecompositionandblend ofbackgrounds,skillsandexperiencetodischargetheir dutieseffectively.Detailsoftheworkofthesecommittees areavailableintheirrespectivereports.AsalltheDirectors arenon-executive,theBoardhasresolvedthatitisnot necessarytohaveaRemunerationCommittee. Board meetings and attendance TheBoardmeetsatleastfourtimeseachyear.Additional meetingsarealsoarrangedasrequiredandregular contactbetweenDirectors,theInvestmentManagerand theAdministratorismaintainedthroughouttheyear. RepresentativesoftheInvestmentManagerandCompany SecretaryattendeachBoardmeetingandotheradvisorsalso attendwhenrequestedtodosobytheBoard. AttendancerecordsforthefourquarterlyBoardmeetingsandcommitteemeetingsduringtheyearunderreviewaresetoutinthe tablebelow. Director Board Audit Committee Management Engagement Committee Nomination Committee AlastairHughes 4/4 2/2 1/1 1/1 PriscillaDavies 4/4 2/2 1/1 1/1 AlexandraInnes 4/4 2/2 1/1 1/1 SanjayPatel 4/4 2/2 1/1 1/1 Numberofmeetingsduringtheyear 4 2 1 1 Information flows AllDirectorsreceive,inatimelymanner,relevantmanagement, regulatoryandfinancialinformationandareprovided,ona regularbasis,withkeyinformationontheCompany’spolicies, regulatoryrequirementsandinternalcontrols.TheBoard receivesandconsidersreportsregularlyfromtheInvestment Managerandotherkeyadvisorsandadhocreportsand informationaresuppliedtotheBoardasrequired. Data protection and security TheBoardhasrevieweditssystemsandcontrolsinlightof theimplementationoftheGeneralDataProtectionRegulation (EURegulation2016/679)andtheDataProtection(Bailiwickof Guernsey)Law,2017(the‘GDPR’)in2018toensurethatthe CompanyiscompliantwiththerequirementsoftheGDPR. AspartofthatprocesstheBoardtookstepstoupdateits contractsandpoliciesaccordinglyandiscomfortablethat itmeetsitsobligationsasacontrollerofpersonaldata.The BoardalsorequiresitsInvestmentManagertohavearobust informationsecurityanddataprotectionenvironmentinplace. ThisisreviewedwiththeInvestmentManagerattheannual Manager‘svisitday.AllBoardcommunicationofaconfidential natureismanagedviaasecureapplication.TheCompany’s privacynoticeisavailableonitswebpages. Directors’ and officers’ liability insurance Duringtheyear,theCompanyhasmaintainedinsurancecover foritsDirectorsunderaliabilityinsurancepolicy. Relations with shareholders TheBoardbelievesthatthemaintenanceofgoodrelations withbothinstitutionalandretailshareholdersisimportant forthelong-termprospectsoftheCompany.TheBoard receivesfeedbackontheviewsofshareholdersfromits corporatebroker,theInvestmentManagerandfromtheChair. ThroughthisprocesstheBoardseekstomonitortheviews ofshareholdersandtoensureaneffectivecommunication programme. TheBoardbelievesthattheAnnualGeneralMeeting,due tobeheldat12.00pmon16September2025,providesan appropriateforumforinvestorstocommunicatewiththe Boardandencouragesinvestorstoattend.TheNoticeofthe nextAnnualGeneralMeetingcanbefoundonpage139ofthis document. Disclosures required under UK Listing Rule 6.6.4 UKListingRule6.6.4requirestheCompanytoincludecertain informationinasingleidentifiablesectionofthisannualreport oracross-referencetableindicatingwheretheinformation requiredinLR6.6.1issetout.TheBoardconfirmsthatthere arenodisclosurestobemadeinthisregard. 55 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Audit Committee report Governance report Composition TheAuditCommitteeischairedbySanjayPatel,withPriscilla Davies,AlastairHughes,andAlexandraInnesasmembers.The BoardconsidersthatSanjayPatel’sprofessionalexperience makeshimsuitablyqualifiedtochairtheAuditCommittee,and hiscontinuingprofessionalcommitmentsprovidehimwith recentrelevantfinancialexperience.TheAuditCommittee’s termsofreferenceareavailableontheCompany’swebpages. Responsibilities TheAuditCommitteeensuresthattheCompanymaintains thehigheststandardsofintegrityinfinancialreportingand internalcontrol.Thisincludesresponsibilityforreviewing thehalf-yearandannualfinancialstatementsaheadoftheir submissionstotheBoard.Inaddition,theAuditCommitteeis specificallychargedunderitstermsofreferencetoadvisethe Board,interalia,onthetermsandscopeoftheappointment oftheAuditor,includingtheirremuneration,independence, objectivityandreviewingwiththeAuditortheresultsand effectivenessoftheaudit. Work of the Audit Committee TheAuditCommitteemeetsnolessthantwiceayear. MeetingsarealsoattendedbytheInvestmentManagerand theAuditorasappropriate.Duringtheyearunderreview,the AuditCommitteemetontwooccasionstoconsider: ― Thecontentsoftheinterimandannualfinancial statementsandtoconsiderwhether,takenasawhole, theywerefair,balancedandunderstandableandprovided theinformationnecessaryforshareholderstoassessthe Company’sperformance,businessmodelandstrategy; ― TheeffectivenessoftheCompany’ssystemofinternal control; ― ThemanagementrepresentationletterstotheAuditor; ― TheexternalAuditor’stermsofengagement,auditplan, andyearendreport; ― Theindependence,effectivenessandobjectivityofthe externalAuditor; ― TheindependenceoftheCompany’sValuers;and ― TheriskassessmentoftheCompany. Duringtheyearunderreview,theAuditCommittee’sworkalso includedareviewofthereportingmethodologydeveloped bytheInvestmentManageronprogressingthebrown-to- greenstrategy.EY,theCompany’sAuditor,independently reperformedtheperformanceoftwoassetsviaanISRS4400 (Revised)‘AgreedUponProcedures’(AUP)engagementwitha finalreportissuedinJune2025.Thefullreportcanbefound ontheCompany’swebsite. AsnotedintheCorporateGovernancereport,anevaluation ofthecommitteeswascompletedbytheDirectorsinMarch 2025,whichconcludedthattheAuditCommitteecontinuedto functioneffectivelyandtodischargethemattersforwhichitis responsibleunderitstermsofreference. Recommendations made to, and approved by, the Board: ― Thatthereportandaccountsbeapproved; ― Thattheannualreportandthehalfyearreportbe preparedonagoingconcernbasisinaccordancewith theexplanationssetoutinthegoingconcernandviability statements;and ― Thatresolutionsinrelationtothere-appointmentofthe AuditorbeproposedattheAGM. Internal control TheUKCorporateGovernanceCode,andtheAICCode, requiretheBoardtoconduct,atleastannually,areviewofthe effectivenessoftheCompany’ssystemofinternalcontrols,and toreporttoshareholdersaccordingly.TheCompany’ssystem ofinternalcontrolsissubstantiallyreliantontheinternal controls,andinternalauditprocesses,ofboththeInvestment ManagerandthekeyserviceproviderstotheCompany.All aspectsofthewiderinternalcontrols’frameworkarereviewed atleastannually.Basedonthesereviews,theCommittee notedthattheCompany’sriskmanagementandinternal controlframework,anditsmaterialcontrolshadoperated effectivelyasatthebalancesheetdate. TosupportthisreviewtheCommitteemetwithkey stakeholders,includingthein-houseRiskteamofthe InvestmentManager,aswellastheDepositary,andreviewed externallypreparedcontrols’reportsofkeyserviceproviders totheCompanyincludingthoseoftheInvestmentManager, Depositary,GuernseyAdministratorandPropertyManager. ThefinancialproceduresofboththeInvestmentManager, andthethird-partyaccountancyandadministrativeservice provider,werealsoreviewed. TheAuditCommittee,onbehalfoftheBoard,alsoreviews adetailed‘RiskMatrix’identifyingsignificantstrategic, investment-related,operationalandserviceprovider-related risks. Basedonthesedetailedreviews,theCommitteenotedthatthe Company’sriskmanagementandinternalcontrolframework hadoperatedeffectivelyasatthebalancesheetdate.No significantissueswereidentifiedfromtheinternalcontrols’ review. AlthoughtheBoardbelievesthatithasarobustframework ofinternalcontrolsinplace,thiscanprovideonlyreasonable, andnotabsolute,assuranceagainstmaterialfinancial misstatementorlossandisdesignedtomanage,andnot eliminate,risk. 56 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Audit Committee report continued Significant matters considered by the Audit Committee in relation to the financial statements Property valuation Matter Action Propertyvaluationiscentraltothe businessandisasignificantarea ofjudgementwhichisinherently subjective,althoughthevaluations areperformedbyanindependent firmofvaluers,CBRE. Errorsinvaluationcouldhavea materialimpactontheCompany’s netassetvalue. TheAuditCommitteereviewed theoutcomesofthevaluation processthroughouttheyear anddiscussedthedetailofeach quarterlyvaluationwiththe InvestmentManagerattheBoard meetings. TheAuditCommitteemetwith CBREtodiscusstheprocess, assumptions,independence andcommunicationwiththe InvestmentManager.The Committeewassatisfiedthat thefirmhadtakenaconsidered approach. Market volatility Matter Action TheperformanceoftheCompany couldbeaffectedbyeconomicand propertymarketrisk.Inthewider economythiscouldincludeinflation, stagflationordeflation,economic recessions,movementsininterest rates,thewarinUkraine,orother externalshocks.Theperformance oftheunderlyingpropertyportfolio couldalsobeaffectedbystructural orcyclicalfactorsimpacting particularsectorsorregionsofthe propertymarket. AsdisclosedintheGoingConcern andViabilityStatementsonpages 46to47,theAuditCommittee hasconsideredvariousstress testsandsensitivitiestothe normalcashflowforecasts,andis confidentthattheCompanywill beabletocontinueinoperation andmeetitsliabilitiesastheyfall dueoverthefiveyearperiodofits assessment,TheAuditCommittee considersthattheCompanyisa goingconcern. Internal audit TheAuditCommitteeconsideredtheneedforaninternalaudit functionandconcludedthatthisfunctionisnotrequired,as theCompanyhasnodirectemployees,anditoutsourcesall day-to-daymanagementandadministrativefunctions.The InvestmentManagerhasitsowninternalauditors.Inthe absenceofaninternalauditfunction,assurancewasachieved byareviewbytheCommitteeoftheInvestmentManager’s groupISAE3402/AAF01/06InternalControlsReport.This reportcoveredtheactivitiesoftheInvestmentManager, SchroderRealEstateInvestmentManagementLimited. Additionally,theAuditCommitteereviewedtheinternal controlsofkeyserviceprovidersatameetingheldinMay 2025,whichincludedtheInvestmentManager,theDepositary, andCBREGlobalInvestmentAdministration(UK)Limited,to whomtheInvestmentManageroutsourcedresponsibility fortheCompany’saccountingrecordsandproductionof managementaccountsandfinancialstatements. External Auditor’ remuneration, independenceandeffectiveness Annually,theAuditCommitteeconsiderstheremunerationand independenceoftheexternalAuditor.TheAuditCommittee recommendstheremunerationoftheexternalAuditortothe Boardandkeepsunderreviewtheratioofaudittonon-audit feestoensurethattheindependenceandobjectivityofthe externalAuditoraresafeguarded. Effectiveness of the independent audit process TheAuditCommitteeevaluatedtheeffectivenessofEY priortomakingarecommendationonitsreappointment attheforthcomingAnnualGeneralMeeting.Aspartofthe evaluation,theAuditCommitteeconsideredfeedbackfrom theInvestmentManagerontheauditprocessandyear endreportfromtheAuditor,whichdetailstheAuditor’s compliancewithregulatoryrequirements,onsafeguards thathavebeenestablishedandtheirowninternalquality controlprocedures.TheAuditCommitteehaddiscussions withtheauditpartneronauditplanning,accountingpolicies andauditfindings,andmettheauditpartnerbothwith andwithoutrepresentativesoftheInvestmentManager present.ThechairoftheAuditCommitteealsohadinformal discussionswiththeauditpartnerduringthecourseofthe year.TheAuditCommitteeissatisfiedwiththeeffectiveness oftheAuditor. Non-audit services Inordertohelpsafeguardtheindependenceandobjectivity oftheAuditor,theAuditCommitteemaintainsapolicyon theengagementoftheexternalAuditortoprovidenon- auditservices.TheAuditCommittee’spolicyfortheuseof theexternalAuditorfornon-auditservicesrecognisesthat therearecertaincircumstanceswhere,duetoEY’sexpertise andknowledgeoftheCompany,itwilloftenbeinthebest positiontoperformnon-auditservices.Underthepolicy,the useoftheexternalAuditorfornon-auditservicesissubjectto pre-clearancebytheAuditCommittee.Clearancewillnotbe grantedifitisbelieveditwouldimpairtheexternalAuditor’s independenceorwhereprovisionofsuchservicesbythe Company’sAuditorisprohibited.Priortoundertakingany non-auditservice,EYalsocompletesitsownindependence confirmationprocesseswhichareapprovedbytheaudit partner. Duringtheyear,£20,000waspaidtoEYforanon-auditservice whichwasinrelationtotheAgreedUponProcedures(‘AUP’) exercise. Sanjay Patel Chair of the Audit Committee 10June2025 57 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Management Engagement Committee report Governance report TheManagementEngagementCommitteeischairedby AlexandraInneswithPriscillaDavies,AlastairHughes,and SanjayPatelasmembers.TheManagementEngagement Committee’stermsofreferenceareavailableontheCompany’s webpages. The Management Engagement Committee is responsible for: 1 ThemonitoringandoversightoftheInvestmentManager’s performanceandfees,andconfirmingtheInvestment Manager’songoingsuitability;and 2 ReviewingandassessingtheCompany’sotherservice providers,includingreviewingtheirfees. Recommendations made to, and approved by, the Board: ― ThattheongoingappointmentoftheInvestmentManager onthetermsoftheInvestmentManagementAgreement wasinthebestinterestsofshareholdersasawhole;and ― ThattheInvestmentManagementAgreementbe amendedsuchthat,effectivefrom1October2025, themanagementfeeswillbe50%linkedtomarket capitalisationcappedattheprevailingNAV,withthe balancelinkedtoNAV,andtheexistingtierslinkedtothe Company’ssizeremainingunchanged;and ― ThattheCompany’sserviceproviders’performance remainedsatisfactory. Oversight of the Investment Manager Approach TheManagementEngagementCommittee: — ReviewstheInvestmentManager’sperformance(includinginrelation tosustainabilityKPIs)andsuitability; — ConsidersthereportingithasreceivedfromtheInvestment Managerthroughouttheyear,andthereportingfromthe InvestmentManagertoshareholders; — Assessesmanagementfeesonanabsoluteandrelativebasis, receivinginputfromtheCompany’scorporatebroker,includingpeer groupandindustryfigures,aswellasthestructureofthefees; — ReviewstheappropriatenessoftheInvestmentManager’scontract, includingtermssuchasnoticeperiod;and — AssesseswhethertheCompanyreceivesappropriateadministrative, accounting,companysecretarialandmarketingsupportfromthe InvestmentManager. Application during the year TheManagementEngagementCommitteeundertookadetailedreview oftheInvestmentManager’sperformanceandagreedthatithasthe appropriatecapabilitiesrequiredtoallowtheCompanytomeetits investmentobjective.TheManagementEngagementCommitteealso reviewedthetermsoftheInvestmentManagementAgreementand recommendedtoamendtheagreementsuchthat,effectivefrom1 October2025,themanagementfeeswillbe50%linkedtomarket capitalisationcappedattheprevailingNAV,withthebalancelinked toNAV,andtheexistingtierslinkedtotheCompany’ssizeremaining unchanged.TheManagementEngagementCommitteereviewedthe otherservicesprovidedbytheInvestmentManagerandagreedthey weresatisfactory. Oversight of other service providers Approach TheManagementEngagementCommitteereviewstheperformanceand competitivenessoftheCompany’sserviceprovidersonatleastanannual basisincludingthePropertyManagers,theDepositary,theAdministrator, theTaxAdvisor,theCorporateBroker,theValuer,theSolicitorsandthe Registrar. TheManagementEngagementCommitteereceivesfeedbackfromthe AuditCommitteeonitsreviewoftheAuditor. Application during the year Theannualreviewofserviceproviderswassatisfactory.TheManagement EngagementCommitteenotedthattheAuditCommitteehadundertaken adetailedevaluationoftheInvestmentManager,Depositary,and GuernseyAdministrator’sinternalcontrols. Alexandra Innes Chair of the Management Engagement Committee 10June2025 58 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Nomination Committee report Governance report TheNominationCommitteeischairedbyAlastairHughes,with PriscillaDavies,AlexandraInnes,andSanjayPatelasmembers. TheNominationCommittee’stermsofreferenceareavailable ontheCompany’swebpages. The Nomination Committee is responsible for: 1 Therecruitment,selectionandinductionofDirectors; 2 Theirassessmentduringtheirtenure;and 3 TheBoard’ssuccession. Recommendations made to, and approved by, the Board: ― ThatallDirectorscontinuetodemonstratecommitment totheirroles,provideavaluablecontributiontothe deliberationsoftheBoard,andremainfreefromconflicts withtheCompanyanditsDirectors,soshouldallbe recommendedforre-electionbyshareholdersattheAGM. Approach Selection and induction — TheNominationCommitteepreparesajobspecificationforeach role,andanindependentrecruitmentfirmisappointed.Forthe Chairandthechairsofcommittees,theCommitteeconsiders currentBoardmemberstoo. — Jobspecificationoutlinestheknowledge,professionalskills, personalqualitiesandexperiencerequirements. — PotentialcandidatesassessedagainsttheCompany’sdiversity policy. — TheNominationCommitteediscussesthelonglist,invitesanumber ofcandidatesforinterviewandmakesarecommendationtothe Board. Board evaluation — TheNominationCommitteeassesseachDirectorannually. — EvaluationfocusesonwhethereachDirectorcontinuesto demonstratecommitmenttotheirroleandprovidesavaluable contributiontotheBoardduringtheyear,takingintoaccounttime commitment,independence,conflictsandtrainingneeds. — Followingtheevaluation,theNominationCommitteeprovidesa recommendationtoshareholderswithrespecttotheannualre- electionofDirectorsattheAGM. — AllDirectorsretireattheAGMandtheirre-electionissubjectto shareholderapproval. Succession — TheBoard’ssuccessionpolicyisthatDirectors’tenurewillbeforno longerthannineyears,exceptinexceptionalcircumstances,and thateachdirectorwillbesubjecttoannualre-electionattheAGM. — TheNominationCommitteereviewstheBoard’scurrentand futureneedsatleastannually.Shouldanyneedbeidentifiedthe NominationCommitteewillinitiatetheselectionprocess. — TheNominationCommitteewilloverseethehandoverprocessfor retiringDirectors. — TheNominationCommitteereviewstheinductionandtrainingof newDirectors. Application Selection and induction — Nonewappointmentsweremadeduringtheyear. Board evaluation — TheannualBoardevaluationwasundertakeninMarch2025. — TheNominationCommitteereviewedeachDirector’stime commitmentandindependencebyreviewingacompletelistof appointments,includingprobononot-for-profitroles,toensure thateachDirectorremainedfreefromconflictandhadsufficient timeavailabletodischargeeachoftheirdutieseffectively.All Directorswereconsideredtobeindependentincharacterand judgement. — TheNominationCommitteeconsideredeachDirector’s contributions,andnotedthatinadditiontoextensiveexperience asprofessionalsandnon-executiveDirectors,eachDirectorhad valuableskillsandexperience,asdetailedintheirbiographieson page49. — Basedonitsassessment,theNominationCommitteeprovided individualrecommendationsforeachDirector’sre-election. Succession — Duringtheyear,theNominationCommitteeconsideredtheneed fororderlysuccessionplanningandasuitableplanwasagreed. — FollowingareviewattheNominationCommitteemeetingpostyear end,theBoardandManagerareimplementingsuccessionplanning forAlastairHughesasChairoftheCompany. Alastair Hughes Chair of the Nomination Committee 10June2025 59 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Directors’ remuneration report Governance report Introduction Thebelowremunerationreportissubjecttoanannualadvisory vote.Anordinaryresolutiontoapprovethisreportwillbeput toshareholdersattheforthcomingAGM. AttheAGMheldon16September2024,99.81%ofthevotes cast(includingvotescastattheChair’sdiscretion)inrespect ofapprovaloftheremunerationreportfortheyearended31 March2024wereinfavour,while0.19%wereagainst.129,427 voteswerewithheld. Thebelowremunerationpolicyisinforceandissubjectto anadvisoryvoteeverythreeyears.AttheAGMheldon16 September2024,theremunerationpolicywasapprovedby shareholders,with99.80%ofvotesfor,0.20%ofvotesagainst, and129,427voteswithheld. TheBoardbelieves,inlinewiththeUKListingRules,that section5oftheUKCorporateGovernanceCoderelating toremunerationdoesnotapplytotheCompany,exceptas outlinedabove,astheCompanyhasnoexecutiveDirectors. Directors’ remuneration policy TheCompany’sArticlescurrentlylimittheaggregatefees payabletotheBoardofDirectorstoatotalof£250,000per annum.Subjecttothisoveralllimit,itistheBoard’spolicyto determinethelevelofDirectors’feeshavingregardtothefees payabletonon-executiveDirectorsintheindustrygenerally, theimpactofinflation,therolethatindividualDirectorsfulfil inrespectofBoardandCommitteeresponsibilities,andtime committedtotheCompany’saffairs.Generally,theBoard seekstoincreasefeesinlinewiththerateofinflation,withthe levelofDirectors’remunerationreviewedannuallytoensure competitivenesswithinthepeergroupandattractivenessto potentialcandidatesforDirectorappointments. Forthefinancialyearended31March2025,Directorsreceivea basefeeof£37,000perannum,andtheChairreceives£58,500 perannum.ThechairoftheAuditCommittee,thechairof theManagementEngagementCommitteeandtheSenior IndependentDirectoreachreceiveanadditionalfeeof£5,500 respectively. NoDirectorpastorpresenthasanyentitlementtopensions andtheCompanyhasnotawardedanyshareoptionsorlong- termperformanceincentivestoanyofthem.Noelementof Directors’remunerationisperformancerelated. TheBoarddidnotseektheviewsofshareholdersinsetting thisremunerationpolicy.Anycommentsonthepolicyreceived fromshareholderswouldbeconsideredonacase-by-case basis. Directors’feesarereviewedperiodicallyandtakeintoaccount researchfromthirdpartiesonthefeelevelsofDirectorsof peergroupcompanies,aswellasindustrynormsandfactors affectingthetimecommitmentexpectedoftheDirectors. NewDirectorsaresubjecttotheprovisionssetoutinthis remunerationpolicy. NoDirectorhasaservicecontractwiththeCompany.However, eachoftheDirectorshasaletterofappointmentwiththe Company.TheDirectors’lettersofappointment,whichsetout thetermsoftheirappointment,areavailableforinspection attheCompany’sregisteredofficeaddressduringnormal businesshoursandwillbeavailableforinspectionattheAGM. AllDirectorsareappointedforaninitialtermcoveringthe periodfromthedateoftheirappointmentuntilthefirstAGM thereafter,atwhichtheyarerequiredtostandforre-electionin accordancewiththeArticles.Whenrecommendingwhetheran individualDirectorshouldseekre-election,theBoardwilltake intoaccounttheprovisionsoftheUKCorporateGovernance Code,includingthemeritsofrefreshingtheBoardandits Committees. TheBoardhasapprovedapolicythatallDirectorswillstandfor re-electionannually. Directors’ remuneration report ThisReportsetsouthowtheDirectors’remunerationpolicy wasimplementedduringtheyearended31March2025. Fees paid to Directors ThefollowingamountswerepaidbytheCompanyforservices asnon-executiveDirectors: Director 31 March 2025 (£) 31 March 2024 (£) AlastairHughes(Chair) 58,500 55,000 PriscillaDavies 1 42,500 40,000 AlexandraInnes 2 42,500 40,000 SanjayPatel 3 41,125 8,750 StephenBligh(retired on30June2024) 4 10,625 40,000 Total 195,250 183,750 1 SeniorIndependentDirector 2 ChairoftheManagementEngagementCommittee 3 AppointmentasaDirectoreffectiveon1January2024andsucceededStephen BlighaschairoftheAuditCommitteeon30June2024 4 DirectorandchairoftheAuditCommitteeuntil30June2024 TheBoardcarriedoutareviewofDirectors’annualfees followingtheyearend,consideringthefeespayabletonon- executivedirectorsintheindustryandthepeergroup,the rateofinflation,andthecommitmentrequiredofDirectors oftheCompanytoadequatelydischargetheirrolesand responsibilities. 60 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Directors’ remuneration report continued Thisreviewsupportedanincreaseofthefeepayabletothe chairoftheAuditCommittee,reflectingthemoreonerous responsibilitiesofthechairoftheAuditCommittee,and anadditionalfeepayabletothechairoftheNomination Committeeeffective19May2025. TheBoardagreedtoanincreaseofthebasefeepayabletoa Director,andanincreaseoftheadditionalfeepayabletoeach committeechair,of3.5%roundeduptothenearest£100. Followingthisreview,Directorsreceiveabasefeeof £38,300,withtheChairreceiving£60,000.TheManagement EngagementCommitteechairreceivesanadditionalfeeof £5,700(anincreasefrom£5,500),withthechairoftheAudit Committeereceivinganadditionalfeeof£8,200(anincrease from£5,500).TheSeniorIndependentDirectorreceives anadditionalfeeof£5,700(anincreasefrom£5,500).The feespayabletoDirectorseffectivefrom1April2025areset outbelow: Director From 1 April 2025 (£) AlastairHughes(Chair) 60,000 PriscillaDavies 1 44,000 AlexandraInnes 2 44,000 SanjayPatel 3 46,500 Total 199,442 1 SeniorIndependentDirector 2 ChairoftheManagementEngagementCommittee 3 ChairoftheAuditCommittee Performance TheperformanceoftheCompanyisdescribedunder ‘PerformanceSummary’onpage4ofthisdocument. Alastair Hughes Chair 10June2025 61 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Statement of Directors’ responsibilities Governance report TheDirectorsareresponsibleforpreparingtheAnnualReport andConsolidatedFinancialStatementsinaccordancewith applicablelawandregulations. TheCompaniesLawrequirestheDirectorstopreparethe AnnualReportandConsolidatedFinancialStatementsfor eachfinancialyear.UndertheCompaniesLawtheDirectors haveelectedtopreparetheAnnualReportandConsolidated FinancialStatementsinaccordancewithInternationalFinancial ReportingStandardsandapplicablelaw. TheAnnualReportandConsolidatedFinancialStatementsare requiredbylawtogiveatrueandfairviewofthestateofaffairs oftheGroupandoftheprofitorlossoftheGroupforthe relevantperiod. InpreparingtheAnnualReportandConsolidatedFinancial Statements,theDirectorsarerequiredto: ― Selectsuitableaccountingpoliciesandthenapplythem consistently; ― Makejudgementsandestimatesthatarereasonableand prudent; ― Statewhetherapplicableaccountingstandardshavebeen followed,subjecttoanymaterialdeparturesdisclosedand explainedinthefinancialstatements; ― AssesstheCompany’sabilitytocontinueasagoing concern,disclosingasapplicablemattersrelatingtogoing concern;and ― Usethegoingconcernbasisofpreparationunlessthey intendtoeitherliquidatetheCompanyorceaseoperations orhavenorealisticalternativetodoso. TheDirectorsareresponsibleforkeepingproperaccounting recordswhichdisclosewithreasonableaccuracyatanytime thefinancialpositionoftheGroupandenablethemtoensure thattheAnnualReportandConsolidatedFinancialStatements complywiththeCompaniesLaw.Theyalsohavegeneral responsibilityfortakingsuchstepsasarereasonablyopento themtosafeguardtheassetsoftheCompanyandtoprevent anddetectfraud,errorandnon-compliancewithlawand regulations. AspartofthepreparationoftheAnnualReportand ConsolidatedFinancialStatements,theDirectorshavereceived reportsandinformationfromtheCompany’sAdministratorand InvestmentManager.TheDirectorshaveconsidered,reviewed andcommentedupontheAnnualReportandConsolidated FinancialStatementsthroughoutthedraftingprocessinorder tosatisfythemselvesinrespectofthecontent. TheDirectorsareresponsibleforthemaintenanceandintegrity ofthecorporateandfinancialinformationincludedonthe Company’swebsiteandforthepreparationanddissemination oftheAnnualReportandConsolidatedFinancialStatements. LegislationinGuernseygoverningthepreparationand disseminationoftheConsolidatedFinancialStatementsmay differfromlegislationinotherjurisdictions. Responsibility Statement of the Directors in respect of the Annual Report Weconfirmtothebestofourknowledge: ― TheConsolidatedFinancialStatements,preparedin accordancewithInternationalFinancialReporting Standards,giveatrueandfairviewoftheassets, liabilities,financialpositionandprofitoftheGroupand theundertakingsincludedintheconsolidationtakenasa wholeandcomplywiththeCompaniesLaw;and ― TheStrategicReportonpages5to47andGovernance Reportonpages48to58includeafairreviewofthe developmentandperformanceofthebusinessandthe positionoftheGroupandtheundertakingsincluded intheconsolidationtakenasawhole,togetherwitha descriptionoftheprincipalrisksanduncertaintiesit faces.TheDirectorsconsiderthattheAnnualReportand ConsolidatedFinancialStatements,takenasawhole, arefair,balancedandunderstandableandprovidesthe informationnecessaryforshareholderstoassessthe Company’spositionandperformance,businessmodel andstrategy. Alastair Hughes Chair 10June2025 62 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report Independent Auditor’s report to the members of Schroder Real Estate Investment Trust Limited Opinion Wehaveauditedtheconsolidatedfinancialstatements(the ‘FinancialStatements’)ofSchroderRealEstateInvestment TrustLimited(the“Company”)anditssubsidiaries(togetherthe “Group”)fortheyearended31March2025whichcomprise theConsolidatedStatementofComprehensiveIncome,the ConsolidatedStatementofFinancialPosition,theConsolidated StatementofChangesinEquity,theConsolidatedStatement ofCashFlowsandtherelatednotes1to24,including materialaccountingpolicyinformation.Thefinancialreporting frameworkthathasbeenappliedintheirpreparationis applicablelawandInternationalFinancialReportingStandards. Inouropinion,thefinancialstatements: ― giveatrueandfairviewofthestateoftheGroup’saffairs asat31March2025andofitsprofitfortheyearthen ended; ― havebeenproperlypreparedinaccordancewith InternationalFinancialReportingStandards;and ― havebeenproperlypreparedinaccordancewiththe requirementsofTheCompanies(Guernsey)Law,2008. Basis for opinion WeconductedourauditinaccordancewithInternational StandardsonAuditing(UK)(ISAs(UK))andapplicablelaw.Our responsibilitiesunderthosestandardsarefurtherdescribed intheAuditor’sresponsibilitiesfortheauditofthefinancial statementssectionofourreport.Webelievethattheaudit evidencewehaveobtainedissufficientandappropriateto provideabasisforouropinion. Independence WeareindependentoftheGroupinaccordancewiththe ethicalrequirementsthatarerelevanttoourauditofthe financialstatements,includingtheUKFRC’sEthicalStandard asappliedtolistedpublicinterestentities,andwehavefulfilled ourotherethicalresponsibilitiesinaccordancewiththese requirements. Thenon-auditservicesprohibitedbytheFRC’sEthicalStandard werenotprovidedtotheGroupandweremainindependent oftheGroupinconductingtheaudit. Conclusions relating to going concern Inauditingthefinancialstatements,wehaveconcludedthat thedirectors’useofthegoingconcernbasisofaccountingin thepreparationofthefinancialstatementsisappropriate.Our evaluationofthedirectors’assessmentoftheGroup’sability tocontinuetoadoptthegoingconcernbasisofaccounting included: ― consideredeventsbeyondtheperiodofassessment andwhethersucheventsshouldbeconsideredby managementintheirgoingconcernassessment,in theeventthatsucheventsmayimpacttheconclusions reached; ― obtainedanunderstandingoftheDirector’sgoing concernassessmentprocessincludingengagingwith theInvestmentManagertounderstandtheprocessthey followedinsupportingthegoingconcernassessment; ― helddiscussionswiththeAuditandRiskCommitteeand theInvestmentManagertodeterminewhether,intheir opinion,thereisanymaterialuncertaintyregardingthe Group’sabilitytopayliabilitiesandcommitmentsasthey falldueandchallengethisassessmentthroughouraudit proceduresinrelationtotheliquidityassessment; ― assessedthedisclosuresintheAnnualReportand consolidatedfinancialstatementsrelatingtogoing concernandviabilitytoensuretheyarefair,balancedand understandableandincompliancewithIAS1; ― reviewedthecashflowforecastswhichsupportthe Directors’assessmentofgoingconcernandchallenge thesensitivitiesandassumptionsusedintheforecasts andevaluatetheimpactoftheseforecastsontheGroup’s abilitytocontinuetomeetfinancialcovenantsand financialcommitmentsastheyfalldue; ― challengedthestresstestingperformedandvalidated thestaticdataassumptionsusedbymanagementto supportingdocumentation;and ― recalculatedthedebtcovenantsonexternalloansto validatecompliancewithinthegoingconcernperiod. Basedontheworkwehaveperformed,wehavenotidentified anymaterialuncertaintiesrelatingtoeventsorconditionsthat, individuallyorcollectively,maycastsignificantdoubtonthe Group’sabilitytocontinueasagoingconcernforaperiodto 30June2026. InrelationtotheGroup’sreportingonhowtheyhaveapplied theUKCorporateGovernanceCode,wehavenothingmaterial toaddordrawattentiontoinrelationtothedirectors’ statementinthefinancialstatementsaboutwhetherthe directorsconsidereditappropriatetoadoptthegoingconcern basisofaccounting. Ourresponsibilitiesandtheresponsibilitiesofthedirectors withrespecttogoingconcernaredescribedintherelevant sectionsofthisreport.However,becausenotallfuture eventsorconditionscanbepredicted,thisstatementisnot aguaranteeastotheGroup’sabilitytocontinueasagoing concern. Overview of our audit approach Keyauditmatters – Riskofincorrectvaluationofdirectlyand indirectlyheldinvestmentpropertyportfolio – Riskofrevenuerecognition,includingthetiming ofrevenuerecognition,thetreatmentofrents andleaseincentives Materiality – Overallgroupmaterialityof£3.01mwhich represents1%ofequity. 63 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Independent Auditor’s report continued An overview of the scope of our audit Tailoring the scope Ourassessmentofauditrisk,ourevaluationofmaterialityand ourallocationofperformancematerialitydetermineouraudit scopefortheGroup.Thisenablesustoformanopinionon thefinancialstatements.Wetakeintoaccountsize,riskprofile, theorganisationofthegroupandeffectivenessofcontrols, changesinthebusinessenvironmentandthepotentialimpact ofclimatechangewhenassessingthelevelofworktobe performed.Allauditworkwasperformeddirectlybytheaudit engagementteamwhichincludesourrealestatevaluation specialists. Changes from the prior year Therehavebeennosignificantchangesinscopefromthe prioryearaudit. Climate change Therehasbeenincreasinginterestfromstakeholdersas tohowclimatechangewillimpacttheGroup.TheGroup hasdeterminedthatthemostsignificantfutureimpacts fromclimatechangeontheiroperationsareexplainedon page47intheprincipalrisksanduncertainties.Theyhave alsoexplainedtheirclimatecommitmentsonpage35.Allof thesedisclosuresformpartofthe“Otherinformation,”rather thantheauditedfinancialstatements.Ourprocedureson theseunauditeddisclosuresthereforeconsistedsolelyof consideringwhethertheyaremateriallyinconsistentwiththe financialstatementsorourknowledgeobtainedinthecourse oftheauditorotherwiseappeartobemateriallymisstated,in linewithourresponsibilitieson“Otherinformation”. Inplanningandperformingourauditweassessedthe potentialimpactsofclimatechangeontheGroup’sbusiness andanyconsequentialmaterialimpactonitsfinancial statements. TheGrouphasexplainedinnotes1and10howtheyhave reflectedtheimpactofclimatechangeintheirfinancial statements. Ourauditeffortinconsideringtheimpactofclimatechangeon thefinancialstatementswasfocusedontheadequacyofthe disclosuresintheFinancialStatementsandtheconclusionthat therewasnofurtherimpactofclimatechangetobetakeninto accountastheinvestmentpropertiesarevaluedatfairvalue basedonopenmarketvaluationsasdescribedinNote10. Theopenmarketvaluationassessmentincludesconsideration ofenvironmentalmattersandtheconditionofeachproperty withdetailonthefairvalueofpropertiesprovidedwithinthe notestothefinancialstatements.Aspartofthisevaluation,we performedourownriskassessmenttodeterminetherisksof materialmisstatementinthefinancialstatementsfromclimate changewhichneededtobeconsideredinouraudit. WealsochallengedtheDirectors’considerationsofclimate changerisksintheirassessmentofgoingconcernandviability andassociateddisclosures.Whereconsiderationsofclimate changewererelevanttoourassessmentofgoingconcern, thesearedescribedabove. Basedonourwork,whilstwehavenotidentifiedtheimpact ofclimatechangeonthefinancialstatementstobea standalonekeyauditmatter,wehaveconsideredtheimpact onthefollowingkeyauditmatters:riskofincorrectvaluation ofdirectlyandindirectlyheldinvestmentpropertyportfolio. Detailsoftheimpact,ourproceduresandfindingsareincluded inourexplanationofkeyauditmattersbelow. Key audit matters Keyauditmattersarethosemattersthat,inourprofessional judgement,wereofmostsignificanceinourauditofthe financialstatementsofthecurrentperiodandincludethe mostsignificantassessedrisksofmaterialmisstatement (whetherornotduetofraud)thatweidentified.Thesematters includedthosewhichhadthegreatesteffecton:theoverall auditstrategy,theallocationofresourcesintheaudit;and directingtheeffortsoftheengagementteam.Thesematters wereaddressedinthecontextofourauditofthefinancial statementsasawhole,andinouropinionthereon,andwedo notprovideaseparateopiniononthesematters. 64 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Independent Auditor’s report continued Risk Our response to the risk Key observations communicated to the Audit and Risk Committee Risk of incorrect valuation of directly and indirectly held investment property portfolio (Fraud risk) TheGroup’sinvestmentpropertyportfolio consistsofUKpropertieshelddirectly, withacarryingvalueof£404.8m(2024: £384.6m)andthroughinvestmentinjoint ventures,withabalanceof£65.7m(2024: £67.4m). Investmentproperties TheGroup’saccountingpolicyisforthe fairvalueoftheinvestmentproperties tobedeterminedbyindependentreal estatevaluationexpertsusingrecognised valuationtechniques.Thefairvaluesare basedonrecentrealestatetransactions withsimilarcharacteristicsandlocations tothoseoftheGroup’sassets.The Group’saccountingpolicyisforthe valuationofinvestmentpropertiestobe reducedbythetotaloftheunamortised leaseincentivebalancesincludedwithin tradeandotherreceivables. Thereisariskofincorrectvaluationofthe propertyportfoliowhichcouldresultin theConsolidatedStatementofFinancial PositionandtheConsolidatedStatement ofComprehensiveIncomebeing materiallymisstated. We have performed the following procedures: — obtainedanunderstandingoftheprocessandcontrolssurroundingproperty valuationbyperformingourwalkthroughproceduresandevaluatingthe implementationanddesigneffectivenessofcontrols; — assessedtheindependenceandcompetenceoftheGroup’sindependent valuersasrequiredbyauditingstandards; — readthevaluationreportsprovidedbytheGroup’sindependentvaluersto agreetheappropriatenessandsuitabilityofthereportedvaluesandthe changesinvaluefromthepreviousaccountingperiod; — performedenquiriesoftheGroup’sindependentvaluerstoobtainan understandingoftheirvaluationprocessandthemethodsandassumptions usedintheiranalysis,includingdiscussingthelevelofmarketactivityto supportthevaluationandtheextenttowhichtheirvaluationhasconsidered theimpactofclimatechange; — performedasitevisitofCityTower,Manchestertounderstandthecondition oftheasset,occupancyandfutureplansfortheproperty; — engagedourEYpropertyvaluationspecialiststoperformareviewofa sampleofpropertyvaluations(79%ofthetotalvalue,16properties(2024: 58%ofthetotalvalue,16properties)toassesswhetherthereportedvalue fallswithinarangeofreasonableoutcomes,whichincluded: – validatingtheassumptionsusedbytheindependentvaluersand assessmentofthevaluationmethodologiesadopted; – challengingthekeyinputsandassumptionsrelatingtoequivalentyield andrentalrateswithreferencetopublishedmarketdataandcomparable transactionevidencethroughmarketactivity;and – assessingtheappropriatenessofmarketrelatedinputsand reasonablenessofvaluationmethods,bycomparingagainstourown marketdataandunderstandingofthepropertymarket. — performedanalyticalreviewproceduresacrosstheportfolioofinvestments, focusingoncorrelationswithmarketdataandanysignificantmovements; — onasamplebasis,agreedkeyinputstothevaluation,suchaspassingrent andlengthofleaseandplannedlevelsofcapitalexpendituretosupporting documentationsuchasleaseagreementsandcontracts; — verifiedthatthefairvaluesderivedbytheGroup’sindependentvaluersfor theentireportfoliowerecorrectlyincludedintheconsolidatedfinancial statements;and — assessedtheadequacyoftheadditionaldisclosuresofestimatesand valuationassumptionsdisclosedinthenotesweremadeinaccordancewith IFRS13–FairValueMeasurement. Basedonthework performed,wehadno matterstoreporttotheAudit andRiskCommittee. 65 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Independent Auditor’s report continued Risk Our response to the risk Key observations communicated to the Audit and Risk Committee Risk of revenue recognition, including the timing of revenue recognition, the treatment of rents and lease incentives Revenueisearnedintheformofrental incomefromtheinvestmentproperties andisrecognisedonanaccrualbasis. Duringtheyear,theGrouprecognised £27.2mofrentalincome(2024:£25.6m), rentreceivableof£4.7m(2024:£3.2m) andleaseincentivesof£8.9m(2024: £8.9m) Thereisariskofoverstatementof revenueinordertomeetcurrentorfuture targetsormarketexpectations.Therisk isfocussedonrevenuebeingoverstated throughfictitiousleases,manipulation ofjournalentriesthroughtop-side adjustmentsandincorrectcut-off. We have performed the following procedures: — obtainedanunderstandingoftheprocessandcontrolsforeachrevenue streambyperformingourwalkthroughproceduresandevaluatingthe implementationanddesigneffectivenessofcontrols; — performedsubstantiveanalyticalreviewproceduresoverrentalrevenue foreachproperty.Weformedanexpectationoftherentalincomeforeach property,andcomparedthisexpectationtotheactualrevenuerecognised duringtheyear; — agreedasampleofrentalratestotenancyagreementsandrecalculated rentalrevenueearnedbythepropertyfortheyear; — recalculatedasampleofleaseincentivesbasedonthetermswithinthelease agreementtoassesstheappropriatenessoftheamountrecorded;including, onasamplebasis,verifyingleasemodificationsthroughagreementofthe updatedtermstoamendedandrestatedleaseagreementsandperforming anindependentassessmentastowhethertheyhavebeenappropriately treatedinaccordancewithIFRS16—Leases(‘IFRS16’); — reviewedthereportpreparedbySchroderRealEstateInvestment ManagementLimited(the“AssetManager”)assessingtherecoverability oftheoverduerentreceivables,andchallengedthejudgmentsinvolved includingexpectedcreditlossontherentreceivablebalanceasawhole.For asampleoftenants,wehaveinspectedthecashreceiptsubsequenttothe year-enddate;and — testedasampleofrentalrevenuejournalstoidentifyunauthorisedor inappropriatejournalstoaddresstheriskofmanagementoverride.We enquiredastothenatureofeachtransactionsampledandreviewed corroboratingevidencetoconcludeonwhetherthejournalswerereasonable andinlinewithourexpectations.Weselectedjournalsbyapplyingcriteria andthresholdsbasedonourprofessionaljudgment. Basedonthework performed,wehadno matterstoreporttothe AuditandRiskCommittee. 66 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Independent Auditor’s report continued Our application of materiality Weapplytheconceptofmaterialityinplanningand performingtheaudit,inevaluatingtheeffectofidentified misstatementsontheauditandinformingourauditopinion. 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. WedeterminedmaterialityfortheGrouptobe£3.01million (2024:£2.87million),whichis1%(2024:1%)ofequity.We believethatequityprovidesuswithamaterialityalignedtothe keymeasurementoftheGroup’sperformance. Duringthecourseofouraudit,wereassessedinitialmateriality andadjustedourauditproceduresaccordingly. 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. Onthebasisofourriskassessments,togetherwithour assessmentoftheGroup’soverallcontrolenvironment, ourjudgementwasthatperformancematerialitywas75% (2024:75%)ofourplanningmateriality,namely£2.26m (2024:£2.16m).Wehavesetperformancematerialityatthis percentageduetothisbeingarecurringauditwithalow incidenceofhistoricalerrors. Reporting threshold An amount below which identified misstatements are considered as being clearly trivial. WeagreedwiththeAuditandRiskCommitteethatwewould reporttothemalluncorrectedauditdifferencesinexcess of£0.15m(2024:£0.14m),whichissetat5%ofplanning materiality,aswellasdifferencesbelowthatthresholdthat,in ourview,warrantedreportingonqualitativegrounds. Weevaluateanyuncorrectedmisstatementsagainstboththe quantitativemeasuresofmaterialitydiscussedaboveandin lightofotherrelevantqualitativeconsiderationsinformingour opinion. Other information Theotherinformationcomprisestheinformationincluded intheannualreportsetoutonpages2to61andpages91 to140otherthanthefinancialstatementsandourauditor’s reportthereon.Thedirectorsareresponsiblefortheother informationcontainedwithintheannualreport. Ouropiniononthefinancialstatementsdoesnotcoverthe otherinformationand,excepttotheextentotherwiseexplicitly statedinthisreport,wedonotexpressanyformofassurance conclusionthereon. Ourresponsibilityistoreadtheotherinformationand,in doingso,considerwhethertheotherinformationismaterially inconsistentwiththefinancialstatementsorourknowledge obtainedinthecourseoftheauditorotherwiseappears tobemateriallymisstated.Ifweidentifysuchmaterial inconsistenciesorapparentmaterialmisstatements,weare requiredtodeterminewhetherthisgivesrisetoamaterial misstatementinthefinancialstatementsthemselves.If,based ontheworkwehaveperformed,weconcludethatthereis amaterialmisstatementoftheotherinformation,weare requiredtoreportthatfact. Wehavenothingtoreportinthisregard. Matters on which we are required to report by exception Wehavenothingtoreportinrespectofthefollowingmatters inrelationtowhichtheCompanies(Guernsey)Law2008 requiresustoreporttoyouif,inouropinion: ― properaccountingrecordshavenotbeenkeptbythe company,orproperreturnsadequateforouraudithave notbeenreceivedfrombranchesnotvisitedbyus;or ― thefinancialstatementsarenotinagreementwiththe company’saccountingrecordsandreturns;or ― wehavenotreceivedalltheinformationandexplanations werequireforouraudit. Corporate Governance Statement Wehavereviewedthedirectors’statementinrelationtogoing concern,longer-termviabilityandthatpartoftheCorporate GovernanceStatementrelatingtotheGroup’scompliancewith theprovisionsoftheUKCorporateGovernanceCodespecified forourreviewbytheListingRules. Basedontheworkundertakenaspartofouraudit,we haveconcludedthateachofthefollowingelementsofthe CorporateGovernanceStatementismateriallyconsistentwith thefinancialstatementsorourknowledgeobtainedduringthe audit: ― Directors’statementwithregardstotheappropriateness ofadoptingthegoingconcernbasisofaccountingand anymaterialuncertaintiesidentifiedsetoutonpages46 to47; ― Directors’explanationastoitsassessmentofthe company’sprospects,theperiodthisassessmentcovers andwhytheperiodisappropriatesetoutonpages46to 47; ― Director’sstatementonwhetherithasareasonable expectationthattheGroupwillbeabletocontinuein 67 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Independent Auditor’s report continued operationandmeetsitsliabilitiessetoutonpages46to 47; ― Directors’statementonfair,balancedandunderstandable setoutonpage61; ― Board’sconfirmationthatithascarriedoutarobust assessmentoftheemergingandprincipalriskssetouton page43; ― Thesectionoftheannualreportthatdescribesthereview ofeffectivenessofriskmanagementandinternalcontrol systemssetoutonpage55;and; ― ThesectiondescribingtheworkoftheAuditandRisk Committeesetoutonpages55to56. Responsibilities of directors AsexplainedmorefullyintheStatementofDirectors’ Responsibilitiessetoutonpage61,thedirectorsare responsibleforthepreparationofthefinancialstatementsand forbeingsatisfiedthattheygiveatrueandfairview,andfor suchinternalcontrolasthedirectorsdetermineisnecessary toenablethepreparationoffinancialstatementsthatarefree frommaterialmisstatement,whetherduetofraudorerror. Inpreparingthefinancialstatements,thedirectorsare responsibleforassessingtheGroup’sabilitytocontinueas agoingconcern,disclosing,asapplicable,mattersrelated togoingconcernandusingthegoingconcernbasisof accountingunlessthedirectorseitherintendtoliquidatethe Grouportoceaseoperations,orhavenorealisticalternative buttodoso. Auditor’s responsibilities for the audit of the financial statements Ourobjectivesaretoobtainreasonableassuranceabout whetherthefinancialstatementsasawholearefreefrom materialmisstatement,whetherduetofraudorerror, andtoissueanauditor’sreportthatincludesouropinion. Reasonableassuranceisahighlevelofassurance,butis notaguaranteethatanauditconductedinaccordancewith ISAs(UK)willalwaysdetectamaterialmisstatementwhenit exists.Misstatementscanarisefromfraudorerrorandare consideredmaterialif,individuallyorintheaggregate,they couldreasonablybeexpectedtoinfluencetheeconomic decisionsofuserstakenonthebasisofthesefinancial statements. Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud Irregularities,includingfraud,areinstancesofnon- compliancewithlawsandregulations.Wedesignprocedures inlinewithourresponsibilities,outlinedabove,todetect irregularities,includingfraud.Theriskofnotdetectinga materialmisstatementduetofraudishigherthantheriskof notdetectingoneresultingfromerror,asfraudmayinvolve deliberateconcealmentby,forexample,forgeryorintentional misrepresentations,orthroughcollusion.Theextentto whichourproceduresarecapableofdetectingirregularities, includingfraudisdetailedbelow. However,theprimaryresponsibilityfortheprevention anddetectionoffraudrestswithboththosechargedwith governanceofthecompanyandmanagement. ― Weobtainedanunderstandingofthelegalandregulatory frameworksthatareapplicabletotheGroupand determinedthatthemostsignificantaretheCompanies (Guernsey)Law,2008,theUKCorporateGovernance Code,The2019AICCodeofCorporateGovernance,REIT requirementssetoutinpart12oftheCorporationTax Act(CTA)2010(‘REITrules’)andtheListingRulesoftheUK ListingAuthority; ― WeunderstoodhowtheGroupiscomplyingwiththose frameworksbymakingenquiriesoftheInvestment Manager,theAdministratorandtheBoardregarding: – theirknowledgeofanynon-complianceorpotential non-compliancewithlawsandregulationsthatcould affectthefinancialstatements; – theGroup’smethodsofenforcingandmonitoring non-compliancewithsuchpolicies – theInvestmentManager’sprocessforidentifyingand respondingtofraudrisks,includingprogramsand controlstheGrouphasestablishedtoaddressrisks identifiedbytheGroup,orthatotherwiseprevent, deteranddetectfraud;and – howtheGroupmonitorsthoseprogramsand controls. ― WeassessedthesusceptibilityoftheGroup’sfinancial statementstomaterialmisstatement,includinghowfraud mightoccurby: – obtaininganunderstandingofentity-levelcontrols andconsideringtheinfluenceofthecontrol environment; – obtainingtheGroup’sassessmentoffraudrisks includinganunderstandingofthenature,extentand frequencyofsuchassessmentdocumentedinthe Group’sRiskMatrix; – makinginquirieswiththosechargedwithgovernance, theInvestmentManager,theCompanySecretary andAdministratorastohowtheyexerciseoversight ofidentifyingandrespondingtofraudrisksandthe controlsestablishedtomitigatespecificallythoserisks theentityhasidentified,orthatotherwisehelpto prevent,deteranddetectfraud; – makinginquiriesoftheInvestmentManagerandthe Boardregardinghowtheyidentifyrelatedparties includingcircumstancesrelatedtotheexistenceofa relatedpartywithdominantinfluence;and – makinginquiriesoftheInvestmentManager,the CompanySecretary,AdministratorandtheBoard regardingtheirknowledgeofanyactualorsuspected 68 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Governance report — Independent Auditor’s report continued fraudorallegationsoffraudulentfinancialreporting affectingtheGroup. ― Basedonthisunderstandingwedesignedouraudit procedurestoidentifynon-compliancewithsuchlawsand regulations.Ourproceduresinvolved: – Throughdiscussion,gaininganunderstandingofhow theBoard,theCompanySecretaryandAdministrator andtheInvestmentManageridentifyinstancesof non-compliancebytheGroupwithrelevantlawsand regulations; – Inspectingtherelevantpolicies,processesand procedurestofurtherourunderstanding; – ReviewingBoardminutesandinternalcompliance reporting; – Inspectedmanagement’sspecialist’sassessmentof theGroup’scompliancewiththeREITrules.Wehave testedthroughrecalculatingandcorroborating,to supportinginformation,theGroup’scompliancewith eachoftheREITrules,includingtheproportionof dividenddistributedintheformofpropertyincome distributions; – Inspectingcorrespondencewithregulators;and – Obtainingrelevantwrittenrepresentationsfromthe Board. ― Weobtaineddatafromthegeneralledgerandperformed journalentrytesting. Afurtherdescriptionofourresponsibilitiesfortheaudit ofthefinancialstatementsislocatedontheFinancial ReportingCouncil’swebsiteathttps://www.frc.org.uk/ auditorsresponsibilities.Thisdescriptionformspartofour auditor’sreport. Other matters we are required to address ― FollowingtherecommendationfromtheAuditandRisk committeewewereappointedbythecompanyon5 November2019toauditthefinancialstatementsforthe yearending31March2020andsubsequentfinancial periods. ― Theperiodoftotaluninterruptedengagementincluding previousrenewalsandreappointmentsis6years, coveringtheyearsending31March2020to31March 2025. ― Theauditopinionisconsistentwiththeadditionalreport totheAuditandRiskcommittee. Use of our report Thisreportismadesolelytothecompany’smembers,as abody,inaccordancewithSection262oftheCompanies (Guernsey)Law,2008.Ourauditworkhasbeenundertakenso thatwemightstatetothecompany’smembersthosematters wearerequiredtostatetotheminanauditor’sreportandfor nootherpurpose.Tothefullestextentpermittedbylaw,wedo notacceptorassumeresponsibilitytoanyoneotherthanthe companyandthecompany’smembersasabody,forouraudit work,forthisreport,orfortheopinionswehaveformed. Daniel Saunders forandonbehalfofErnst&YoungLLP Guernsey,ChannelIslands 10June2025 69 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements 70 Consolidatedstatementofcomprehensiveincome 71 Consolidatedstatementoffinancialposition 72 Consolidatedstatementofchangesinequity 73 Consolidatedstatementofcashflows 74 Notestothefinancialstatements Financial statements 70 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements Consolidated statement of comprehensive income for the year ended 31 March 2025 31/03/2025 31/03/2024 Notes £000 £000 Rental income 27 ,192 25,638 Otherincome 3 484 1,504 Propertyoperatingexpenses 4 (2,657) (2,154) Net rental and related income 25,019 24,988 Profit on the disposal of investment property 10 469 199 Net unrealised valuation gain/(loss) on investment property 10 16,232 (8,044) Gain on disposal of financial instruments 20 - 189 Net change in fair value of financial instrument at fair value 20 (153) (547) Expenses Investmentmanagementfee 2 (2,458) (2,350) Valuers’andotherprofessionalfees (2,215) (2,347) Administrators’fees 2 (6 8) (64) Auditor’s remuneration 5 (209 ) (197) Directors’fees 6 (186) (184) Otherexpenses 6 (229) (276) Total expenses (5,365 ) (5,418) Operating profit 36,202 11,367 Finance costs (6,234) (6,349) Net finance costs (6,234) (6,349) Shareofprofit(excludingvaluationmovement)injointventures 11 3,579 3,057 Shareofvaluationlossinjointventures 11 (2,489) (5,058) Share of profit/(loss) in joint ventures 1,090 (2,001) Profit before taxation 31,058 3,017 Taxation 7 – – Profit and total comprehensive income for the year attributable to the equity holders of the parent 31,058 3,017 Basic and diluted earnings per share 8 6.3p 0.6p Allitemsintheabovestatementarederivedfromcontinuingoperations.Theaccompanyingnotes1to24formanintegralpartof thefinancialstatements. 71 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements 31/03/2025 31/03/2024 Notes £000 £000 Investmentproperty 10 404, 798 384,606 Investmentinjointventures 11 65,722 67,366 Interestratederivativecontracts 20 66 219 Non-current assets 470 ,586 452,191 Tradeandotherreceivables 12 21,463 19,837 Cashandcashequivalents 13 3,720 6,005 Current assets 25, 183 25,842 Investmentpropertyheldforsale 10 1, 100 - Total assets 496,869 478,033 Issuedcapitalandreserves 14 338,478 324,451 Treasurysharereserve 14 (37 , 101) (37,101) Equity 301,377 287,350 Interest-bearingloansandborrowings 15 180,611 175,866 Leaseliability 10 1,508 1,562 Non-current liabilities 182, 119 177,428 Tradeandotherpayables 16 13,373 13,255 Current liabilities 13,373 13,255 Total liabilities 195,492 190,683 Total equity and liabilities 496,869 478,033 Netassetvalueperordinaryshare 17 61.6p 58.8p The financial statements on pages 70 to 90 were approved at a meeting of the Board of Directors held on 10 June 2025 and signed on its behalf by: Alastair Hughes Chair and Director Sanjay Patel Director Theaccompanyingnotes1to24formanintegralpartofthefinancialstatements. GuernseyCompanyRegNo:CMP41959 Consolidated statement of financial position as at 31 March 2025 72 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements Share Revenue Treasury share premium reserve Issued capital reserve Total Notes £000 £000 and reserves £000 £000 Balance as at31March 2023 219, 090 118, 700 337 , 790 (37 , 101) 300, 689 Profitfortheyear – 3,017 3, 017 – 3,017 Dividendspaid 9 – (16,356) (16,356) – (16,356) Balance as at31March 2024 219, 090 105,361 324,451 (37 , 101) 287 ,350 Profitfortheyear – 31,058 31,058 – 31,058 Dividendspaid 9 – (17,031) (17 ,031) – (17,031 ) Balance as at31March 2025 219,090 119,388 338,478 (37 ,101) 301,377 Theaccompanyingnotes1to24formanintegralpartofthefinancialstatements. Consolidated statement of changes in equity for the year ended 31 March 2025 73 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements 31/03/2025 31/03/2024 Notes £000 £000 Operating activities Profitfortheyear 31,058 3,017 Adjustmentsfor: Profitonthedisposalofinvestmentproperty (469) (199) Netvaluation(gain)/lossoninvestmentproperty (16,232) 8,044 Profitondisposaloffinancialinstruments 20 - (189) Netchangeinfairvalueoffinancialinstrumentatfairvalue 20 153 547 Shareof(gain)/lossonjointventures (1, 090) 2,001 Netfinancecost 6,234 6,349 Operating cash generated before changes in working capital 19,654 19,570 (Increase)/decreaseintradeandotherreceivables (1, 138) 2,022 Increase/(decrease)intradeandotherpayables 63 2,283 Cash generated from operations 18,579 23,875 Investing activities Proceedsfromthesaleofinvestmentproperty 1,439 3,763 Additionstoinvestmentproperty 10 (6, 089) (8,290) Additionstojointventures 11 (845) (237) Netincomedistributedfromjointventures 3,569 2,761 Cash flows used in investing activities (1,926) (2,003) Financing activities Repaymentofdebt 15 - (2,300) Additionstodebt 15 4,500 1,000 Disposaloffinancialinstrument 20 - 189 Purchaseoffinancialinstrument 20 - (766) Finance costs paid (6,407) (6,053) Dividendspaid 9 (17 ,031) (16,356) Cash flows used in financing activities (18,938) (24,286) Net decrease in cash and cash equivalents for the year (2,285) (2,414) Opening cash and cash equivalents 6,005 8,419 Closing cash and cash equivalents 13 3,720 6,005 Theaccompanyingnotes1to24formanintegralpartofthefinancialstatements. Consolidated statement of cash flows for the year ended 31 March 2025 74 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements 1 Material accounting policy information Schroder Real Estate Investment Trust Limited (the ‘Company’) is a closed-ended investment company registered in Guernsey. The consolidated financial statements of the Company for the year ended 31 March 2025 comprise the Company and its subsidiaries (together referred to as the ‘Group’). New standard and interpretations The Company is satisfied that there are no standards that are published, and not yet effective, that will have a material effect on the accounts. Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (‘IFRS’) issued by the International Accounting Standards Board (the ‘IASB’), and interpretations issued by the International Financial Reporting Interpretations Committee. The financial statements give a true and fair view and are in compliance with The Companies (Guernsey) Law, 2008, applicable legal and regulatory requirements and the Listing Rules of the UK Listing Authority. Basis of preparation The financial statements are presented in pound sterling, which is the Company’s functional currency, rounded to the nearest thousand. They are prepared on the historical cost basis except that investment properties and derivative financial instruments are stated at their fair value. The accounting policies have been consistently applied to the results, assets, liabilities and cash flows of the entities included in the consolidated financial statements and are consistent with those of the previous year. Going concern The Directors have examined significant areas of possible financial risk including liquidity (with a view to both cash held and undrawn debt facilities); the rates of both rent and service charge collections from tenants; have considered potential falls in property valuations; have reviewed cash flow forecasts; have analysed forward-looking compliance with third-party debt covenants and in particular the Loan to Value covenant and interest cover ratios; and have considered the Group’s ongoing tax compliance with the REIT regime. Overall, after utilising available cash, excluding the cash undrawn against the RBSI facility and uncharged properties and units in Joint Ventures, and based on the reporting period to 31 March 2025, property valuations would have to fall by 28% before the relevant Canada Life Loan to Value covenants were breached, and actual net rental income would need to fall by 64% before the interest cover covenants were breached. The Directors are of the opinion that neither of the aforementioned loan covenants are likely to be breached. Furthermore, the properties charged to RBSI could fall in value by 52%, prior to the 65% LTV covenant being breached, and based on projected net rents for the quarter to March 2025, a 22% fall in net income could be sustained prior to the RBS projected interest loan cover covenant of 200% being breached. These stress testing scenarios of 28%/52% declines in property valuations and 64%/22% declines in net income are deemed to be extremely unlikely. Should these scenarios occur, management have various actions avaliable which include, but are not limited to, adding additional assets or excess cash into the security pool and selling assets to reduce LTV. As at the financial year end, the undrawn capacity of the £75.0 million RBSI facility was £23.5 million. This facility is an efficient and flexible source of funding due to its ability to be repaid and redrawn as often as required and matures in June 2027. Regarding the Canada Life loan of £129.6 million, fifty per cent matures in 2032 and fifty per cent matures in 2039 respectively. The Board and Investment Manager also continue to closely monitor ongoing changing macroeconomic and geopolitical environments on the Group. The Board and Investment Manager have considered the impact of sustainability risk as a principal risk as set out on page 43. In line with IFRS, investment properties are valued at fair value based on open market valuations as described in Note 10. The assessment of the open market valuation includes consideration of environmental matters and the condition of each property. The investment properties continue to be monitored by the Investment Manager and key considerations include EPC ratings and their impact on the properties’ forecast compliance with minimum energy efficiency standard regulation. Having assessed the impact of climate change on the Group, the Directors concluded that it is not expected to have a significant impact on the Group’s going concern or viability assessment as described on page 46. The Directors have not identified any matters which would cast significant doubt on the Group’s ability to continue as a going concern for the period to 30 June 2026 and have satisfied themselves that the Group has adequate resources to continue in operational existence for this period to 30 June 2026. After due consideration, the Board believes that it is appropriate to adopt the going concern basis in preparing the financial statements. Use of estimates and judgements The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and Notes to the financial statements 75 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 1 Material accounting policy information (continued) Use of estimates and judgements the reported amounts of assets and liabilities, income and expenses. These estimates, and associated assumptions, are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Under its lease agreements with tenants, the Company is required to provide or procure the provision of certain services (such as cleaning, maintenance of common areas and landscaping) for its investment property. The Company engages a property manager who is responsible for instructing, overseeing and invoicing these services to tenants and the Company does not exercise control over these services prior to them being provided to tenants. As such, the Company considers itself to be an agent in these arrangements and recognises the income and expense on a net basis within property operating expenses. Further estimates made in preparing these financial statements relate to the carrying value of investment properties, including those within joint ventures, which are stated at fair value. The Group uses external professional valuers to determine the relevant amounts. Judgements made by management in the application of IFRS that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are disclosed in note 18. Another estimate is the amount of expected credit losses as per IFRS 9 from rent demanded during the period which has not yet been collected. On initial recognition the Group calculates the expected credit loss for debtors based on the lifetime expected credit losses under the IFRS 9 simplified approach. Management considers aged debtors’ analyses, the strength of tenant covenants, macroeconomic factors and any rental deposits held. Management has considered rental debtors on a quarterly basis and made provisions and write offs where it has been deemed that these amounts are potentially irrecoverable. Basis of consolidation Subsidiaries The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries drawn up to 31 March each year. Subsidiaries are those entities controlled by the Company. Control exists where the investor has the following; ― power over the investee; ― exposure, or rights, to variable returns from its involvement with the investee; and ― the ability to use its power over the entity to affect the amount of the investor’s returns. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Where properties are acquired by the Group through corporate acquisitions, but the acquisition does not meet the definition of a business combination, the acquisition has been treated as an asset acquisition. Joint ventures Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement. The consolidated financial statements include the Group’s share of profit or loss of jointly controlled entities on an equity accounted basis. When the Group’s share of losses exceeds its interest in an entity, the Group’s carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or is making payments on behalf of an entity. Transactions eliminated on consolidation Intra-group balances, and any gains and losses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Gains arising from transactions with joint ventures are eliminated to the extent of the Group’s interest in the entity. Losses are eliminated in the same way as gains but only to the extent that there is no evidence of impairment. Investment property Investment property is land and buildings held to earn rental income together with the potential for capital growth. Acquisitions and disposals are recognised on the unconditional exchange of contracts. Acquisitions are initially recognised at cost, being the fair value of the consideration given, including transaction costs associated with the investment property. After initial recognition, investment properties are measured at fair value, with unrealised gains and losses recognised in the Statement of Comprehensive Income. Realised gains and losses on the disposal of properties are recognised in the Statement of Comprehensive Income in relation to their sale price, sale costs and the carrying value brought forward from the prior financial year. Fair value is based on the market valuations of the properties as provided by a firm of independent chartered surveyors at the reporting date. Market valuations are carried out on a quarterly basis. 76 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 1 Material accounting policy information (continued) Investment property (continued) As disclosed in note 19, the Group leases out all owned properties on operating leases. A property held under an operating lease is classified and accounted for as an investment property where the Group holds it to earn rentals, capital appreciation, or both. Any such property leased under an operating lease is classified as an investment property and carried at fair value. Leases For any material leases for which the Group is a lessee, the leasehold interest is measured at fair value and included in investment properties with the corresponding liability being shown as a non-current liability. The fair value is calculated as the present value of the future lease payments. Financial instruments Derivative financial instruments This comprises the interest rate collar which is recognised at a fair value assessed by an independent third party. Non-derivative financial instruments Financial assets Non-derivative financial instruments comprise trade and other receivables and cash and cash equivalents. These are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest rate method less any impairment losses. Cash and cash equivalents Cash at bank, and short-term deposits that are held to maturity, are carried at cost. Cash and cash equivalents are defined as cash in hand, demand deposits and short-term, highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value. For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash in hand and short- term deposits at banks with an initial term of no more than three months. Financial liabilities Non-derivative financial liabilities comprise loans and borrowings and trade and other payables. Loans and borrowings Borrowings are recognised initially at fair value of the consideration received, less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the Statement of Comprehensive Income over the period of the borrowings on an effective interest basis. Trade and other payables Trade and other payables are stated at amortised cost. Share capital Ordinary shares, including treasury shares, are classified as equity. Dividends Dividends are recognised in the period in which they are paid. A final dividend will be paid following the period end. Rental income Rental income from investment properties is recognised on a straight-line basis over the term of ongoing leases and is shown gross of any UK income tax. Lease incentives are spread evenly over the lease term. Surrender premiums and dilapidations are recognised in line with individual lease agreements when cash inflows are certain. Impairment Financial assets Financial assets at amortised cost are subject to impairment. The Group’s significant financial assets that are subject to IFRS 9’s expected credit loss model are trade receivables from the leasing of investment properties. The credit risk associated with unpaid rent has increased in recent years due to macroeconomic factors and the Company has undertaken a detailed analysis over the recoverability of expected rents. Deferred income has been closely monitored and any rents deemed irrecoverable discussed by management. Non-financial assets The carrying amounts of the Group’s non-financial assets, being the investment in joint ventures, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to that asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the ‘cash- generating unit’). An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of comprehensive income. Provisions A provision is recognised in the Consolidated Statement of Financial Position when the Group has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. 77 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 1 Material accounting policy information (continued) Finance costs Finance costs comprise interest expenses on borrowings that are recognised in the Statement of Comprehensive Income. Attributable transaction costs incurred in establishing the Group’s credit facilities are deducted from the fair value of borrowings on initial recognition and are amortised over the lifetime of the facilities through the Statement of Comprehensive Income. Finance costs are accounted for on an effective interest basis. Expenses All expenses are accounted for on an accruals basis and the Company does not capitalise overheads and operating expenses. The costs recharged to occupiers of the properties are presented net of the service charge income as management consider that the property agent acts as principal in this respect. Taxation SREIT elected to be treated as a UK real estate investment trust (‘REIT’). The UK REIT rules exempt the profits of SREIT and its subsidiaries’ (the ‘Group’) UK property rental business from corporation tax. Gains on UK properties are also exempt from tax, provided they are not held for trading or sold in the three years after completion of development. The Group is otherwise subject to corporation tax. As a REIT, SREIT is required to pay Property Income Distributions equal to at least 90% of the Group’s exempted net income. To retain UK REIT status there are a number of conditions to be met in respect of the principal company of the Group, the Group’s qualifying activity and its balance of business. The Group continues to meet these conditions. Segmental reporting The Directors are of the opinion that the Group is engaged in a single segment of business, being property investment, and in one geographical area, the United Kingdom. There is no one tenant that represents more than 10% of group revenues. SREIM acts as advisor to the Board, who then may make management decisions following their recommendations. As such the Board of Directors are considered to be the chief operating decision maker. A set of consolidated IFRS financial information is provided to the Board on a quarterly basis. 2 Material agreements SREIM is the Investment Manager to the Company. The Investment Manager is entitled to a fee, together with reasonable expenses incurred in the performance of its duties. The current fee is payable monthly in arrears at one twelfth of the aggregate of 0.9% of the NAV of the Company (where NAV is less than £500 million). The Investment Management Agreement can be terminated by either party on not less than twelve months written notice or on immediate notice in the event of certain breaches of its terms or the insolvency of either party. The tiered fee structure is as follows: Tiered fee structure Management fee percentage per annum NAV of NAV <£500 million 0.9% £500 million - £1 billion 0.8% £1 billion+ 0.7% The fee covers all of the appointed services of the Investment Manager and there are standard provisions for the reimbursement of expenses. Additional fees can be agreed for out-of-scope services on an ad hoc basis. With effect from the financial year ending 31 March 2025, the Company shall pay to the Investment Manager an additional management fee equal to 0.05 per cent of Net Asset Value per annum if: a the Manager has delivered the sustainability-related key performance indicators contained within the Investment Policy, as may be amended from time to time, to the satisfaction of the Board (acting reasonably); and b the 12-month income return from the underlying Property Portfolio, to be calculated by MSCI, is ahead of the MSCI Benchmark. In respect of the above additional management fee, a total of £151,000 has been accrued for the year to 31 March 2025. The total charge to the Consolidated Statement of Comprehensive Income during the year was £2,458,000 (2024: £2,350,000). At the year end £149,000 (2024: £500,000) was outstanding. Langham Hall (Guernsey) Limited and Langham Hall UK Depositary LLP provide Administration, Designated Manager and Depositary services to the Group respectively. Administration fees during the year were £122,000 (2024: £116,000). Schroder Investment Management Limited provides company secretarial services to the Company with an annual fee equal to £50,000 (net of VAT). Company secretarial fees for the period 1 April 2024 to 31 March 2025 were £50,000 (2024: £50,000) net of VAT. 78 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 3 Other income 31/03/2025 31/03/2024 Notes: £000 £000 Dilapidations, surrender premiums and all other miscellaneous income 484 1,504 484 1,504 4 Property operating expenses 31/03/2025 31/03/2024 Notes: £000 £000 Agents’ fees 329 147 Repairs and maintenance 78 67 Advertising 68 38 Rates 648 290 Service charge, insurance and utilities on vacant units 1,434 1,492 Ground rent 68 113 Bad debt write offs, provisions and write backs 32 7 2,657 2,154 5 Auditor’s remuneration Fees payable to the Ernst and Young LLP for the audit of the Group and subsidiary annual accounts: £209,000 (2024: £197,000). Fees payable to the Ernst and Young LLP for a non-audit service: £20,000 (2024: Nil). 6 Other expenses 31/03/2025 31/03/2024 Notes: £000 £000 Professional fees 159 204 Other expenses 70 72 229 276 Directors’ fees Directors are the only officers of the Company and there are no other key personnel. The Directors’ annual remuneration for services to the Group was £186,000 (2024: £183,750), as set out in the Directors’ Remuneration Report on pages 59 and 60. 7 Taxation 31/03/2025 31/03/2024 Notes: £000 £000 Tax expense in the year – – Reconciliation of effective tax rate Profit before tax 31,058 3,017 Effect of: Tax using the UK corporation tax rate of 25% (2024:25%) 7,764 754 Revaluation (gain)/loss on investment property non-(taxable)/deductible (4,058) 2,011 Revaluation loss on financial instrument non-deductible 38 137 Share of capital loss of associates and joint ventures non-deductible 622 1,265 Profit on the disposal of investment property non-taxable (117) (50) Profit on disposal of financial instrument non-taxable - (47) UK REIT exemption (4,249 ) (4,070) Current tax expense in the year – – 79 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 7 Taxation (continued) SREIT elected to be treated as a UK real estate investment trust (‘REIT’). The UK REIT rules exempt the profits of SREIT and its subsidiaries’ (the ‘Group’) UK property rental business from corporation tax. Gains on UK properties are also exempt from tax, provided they are not held for trading or sold in the three years after completion of development. The Group is otherwise subject to corporation tax. As a REIT, SREIT is required to pay Property Income Distributions equal to at least 90% of the Group’s exempted net income. To retain UK REIT status there are a number of conditions to be met in respect of the principal company of the Group, the Group’s qualifying activity and its balance of business. The Group continues to meet these conditions. 8 Basic and diluted earnings per share The basic and diluted earnings per share for the Group are based on the profit for the year of £31,058,000 (2024: profit of £3,017,000) and the weighted average number of ordinary shares in issue during the year of 489,110,576 shares (2024: 489,110,576). 9 Dividends paid Rate 31/03/2025 In respect of: Ordinary shares (pence) £000 Q/e 31 March 2024 (dividendpaid28June2024) 489.11 million 0.853 4,172 Q/e 30 June 2024 (dividendpaid25August2024) 489.11 million 0.853 4,172 Q/e 30 Sept 2024 (dividendpaid20December2024) 489.11 million 0.879 4,299 Q/e 31 Dec 2024 (dividendpaid28March2025) 489.11 million 0.897 4,388 3.482 17,031 Rate 31/03/2024 In respect of: Ordinary shares (pence) £000 Q/e 31 March 2023 (dividendpaid30June2023) 489.11 million 0.836 4,089 Q/e 30 June 2023 (dividendpaid25August2023) 489.11 million 0.836 4,089 Q/e 30 Sept 2023 (dividendpaid22December2023) 489.11 million 0.836 4,089 Q/e 31 Dec 2023 (dividendpaid28March2024) 489.11 million 0.836 4,089 3.344 16,356 A dividend for the quarter ended 31 March 2025 of 0.897 pence per share was approved and will be paid on the 30 June 2025. 80 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 10 Investment property Leasehold Freehold Total £000 £000 £000 Carrying value as at 31 March 2023 35,413 352,617 388,030 Additions 720 7,570 8,290 Disposal of assets held at fair value – (3,763) (3,763) Gain on the sale of assets – 199 199 Fair value leasehold movement (106) – (106) Net unrealised valuation loss on investment property (2,949) (5,095) (8,044) Carrying value as at 31 March 2024 33,078 351,528 384,606 Additions 136 5,953 6,089 Reclassification of property from leasehold to freehold 1 (8,792) 8,792 – Reclassification to held for sale – (1,100) (1,100) Disposal of assets held at fair value – (1,444) (1,444) Gain on the sale of assets - 469 469 Fair value leasehold movement (54) – (54) Net unrealised valuation gain on investment property 1,600 14,632 16,232 Carrying value as at 31 March 2025 25,968 378,830 404,798 The balance above includes Leasehold Freehold Total £000 £000 £000 Investment property 31,516 351,528 383,044 Fair value leasehold adjustment 1,562 – 1,562 Carrying value as at 31 March 2024 33,078 351,528 384,606 Investment property 24,460 379,930 404,390 Reclassification to held for sale - (1,100) (1,100) Fair value leasehold adjustment 1,508 – 1,508 Carrying value as at 31 March 2025 25,968 378,830 404,798 1 A reclassification was made in the year to correct for properties previously disclosed as leasehold in error. The prior year comparative figures have not been restated as the reclassification was not deemed qualitatively material. 31/03/2025 31/03/2024 £000 £000 Fair value as estimated by the external valuer 413,310 391,475 Less: properties reclassified as held for sale (1,100) – Add: lease liabilities recognised separately 1,508 1,562 Less: lease incentive balance included in trade and other receivables (8,920) (8,431) Carrying value for financial reporting purposes 404,798 384,606 The fair value of investment property has been determined by CBRE, a firm of independent chartered surveyors, who are registered independent appraisers (note 18). The valuation has been undertaken in accordance with the current RICS Valuation – Global Standards, which incorporates the International Valuation Standards, issued by the Royal Institution of Chartered Surveyors (the ‘Red Book’). The properties have been valued on the basis of “Fair Value” in accordance with the RICS Valuation – Professional Standards VPS4(7.1) Fair Value and VPGA1 Valuations for Inclusion in Financial Statements which adopt the definition of Fair Value used by the International Accounting Standards Board. The valuation has been undertaken using appropriate valuation methodology and the Valuer’s professional judgement. The Valuer’s opinion of Fair Value was primarily derived using recent comparable market transactions on arm’s length terms, where available, and appropriate valuation techniques (The Investment Method). The properties have been valued individually and not as part of a portfolio. 81 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 10 Investment property (continued) The investment property at Truro has been transferred to investment properties held for sale and is held within current assets at the carrying value of £1.1 million. The sale completed on 12 May 2025 at an agreed sale price of £1.2 million. As highlighted within the Group’s investment strategy on page 10, developments and refurbishments form a key element of the Group’s commitment to sustainability. During the year the Group has spent £6.1 million on capital expenditure. This sum included both capital works which, in some cases, enhanced the environmental performance of the assets amongst other key strategies. The primary focus has been on optimising earnings across the existing portfolio through an extensive asset management and targeted capital expenditure programme, targeting growth areas and sustainability improvements. All investment properties are categorised as Level 3 fair values as they use significant unobservable inputs. There have not been any transfers between Levels during the year. Investment properties have been classed according to their real estate sector. Information on these significant unobservable inputs per class of investment property is disclosed below: Quantitative information about fair value measurement using unobservable inputs (Level 3) as at 31 March 2025 Retail (incl. retail 31 March 2025 Industrial 1 warehouse) Office Other Total Fair value (£’000) 243,310 92,625 58,900 18,475 413,310 Area (‘000sqft) 2,372 421 343 198 3,334 Net passing rent psf per annum Range £2.36 – £19.46 £4.27 – £86.11 £8.47 – £32.93 £1.05 – £21.66 £1.05 – £86.11 Weighted average £5.71 £13.40 £17.29 £7.91 £7.81 Gross ERV psf per annum Range £2.50 – £19.50 £4.00 – £86.11 £8.47 – £34.00 £2.00 – £21.50 £2.00 – £86.11 Weighted average £7.68 £17.60 £22.52 £8.48 £11.43 Net initial yield 1 Range 1.91% – 8.60% 0.00% – 12.08% 0.00% – 15.25% 6.55% – 9.69% 0.00% – 15.25% Weighted average 5.26% 5.49% 7.95% 7.75% 5.77% Equivalent yield Range 5.77% – 9.39% 5.56% – 12.23% 8.16% – 12.05% 6.81% – 10.13% 5.56% – 12.23% Weighted average 6.61% 6.99% 10.04% 8.38% 7.33% 1 Yields based on rents receivable after deduction of head rents but gross of non-recoverables. Quantitative information about fair value measurement using unobservable inputs (Level 3) as at 31 March 2024 Retail (incl. retail 31 March 2024 Industrial 1 warehouse) Office Other Total Fair value (£’000) 229,750 83,775 59,225 18,725 391,475 Area (‘000sqft) 2,400 446 358 198 3,402 Net passing rent per square foot per annum Range £2.36 – £19.46 £2.99 – £76.75 £6.99 – £32.93 £1.05 – £26.70 £1.05 – £76.75 Weighted average £5.22 £13.86 £15.37 £7.95 £7.58 Gross ERV per square foot per annum Range £2.50 – £19.25 £4.00 – £80.50 £8.47 – £34.00 £2.00 – £25.00 £2.00 – £80.50 Weighted average £7.25 £15.66 £20.58 £8.51 £9.83 Net initial yield 1 Range 0.00% – 8.18% 0.00% – 11.87% 0.00% – 13.19% 6.55% – 9.45% 0.00% – 13.19% Weighted average 4.99% 6.73% 7.71% 7.68% 5.93% Equivalentyield Range 5.98% – 9.35% 6.43% – 12.24% 8.03% – 14.00% 6.80% – 9.94% 5.95% – 14.00% Weighted average 6.93% 7.73% 10.19% 8.78% 7.75% 1 Yields based on rents receivable after deduction of head rents but gross of non-recoverables. 82 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 10 Investment property (continued) Sensitivity of measurement to variations in the significant unobservable inputs The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of the Group’s property portfolio, together with the impact of significant movements in these inputs on the fair value measurement, are shown below: Impact on fair value measurement of Impact on fair value measurement of Unobservable input significant increase in input significant decrease in input Passing rent Increase Decrease Gross ERV Increase Decrease Net initial yield Decrease Increase Equivalent yield Decrease Increase There are interrelationships between the yields and rental values as they are partially determined by market rate conditions. The sensitivity of the valuation to changes in the most significant inputs per class of investment property are shown below: Estimated movement in fair value of investment properties at 31 March 2025 Industrial Retail Office Other All sectors £000 £000 £000 £000 £000 Increase in ERV by 5% 10,476 3,421 2,659 403 16,959 Decrease in ERV by 5% (10,432 ) (3,291) (2,661) (403) (16,787) Increase in net initial yield by 0.25% (9,503) (3,490) (1,665) (548) (15,206) Decrease in net initial yield by 0.25% 10,278 3,772 1,957 585 16,592 Estimated movement in fair value of investment properties at 31 March 2024 Industrial Retail Office Other All sectors £000 £000 £000 £000 £000 Increase in ERV by 5% 10,122 2,788 2,726 183 15,819 Decrease in ERV by 5% (10,101) (2,603) (2,720) (189) (15,613) Increase in net initial yield by 0.25% (8,886) (2,950) (1,828) (604) (14,268) Decrease in net initial yield by 0.25% 9,773 3,209 2,367 645 15,994 11 Investment in joint ventures £000 Closing balance as at 31 March 2023 72,187 Purchase of further units in City Tower Unit Trust 187 Purchase of further units in Store Unit Trust 50 Share of operating profit of joint venture 3,057 Distributions received from joint venture (3,057) Valuation loss on joint venture (5,058) Closing balance as at 31 March 2024 67,366 Purchase of further units in City Tower Unit Trust 388 Purchase of further units in Store Unit Trust 457 Share of operating profit of joint venture 3,579 Distributions received from joint venture (3,579) Valuation loss on joint venture (2,489) Closing balance as at 31 March 2025 65,722 83 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 11 Investment in joint ventures (continued) Summarised joint venture financial information not adjusted for the Group’s share for the year ended 31 March 2025 Store Street Unit City Tower Unit Trust Trust Total 31/03/2025 31/03/2025 31/03/2025 £000 £000 £000 Non-current assets - Investment property 113,100 76,750 189,850 Current assets 660 1,065 1,725 Total liabilities 1 (2,775) (1,864) (4,639) Revenues for the year 10,425 4,233 14,658 Total profit (excludingvaluationmovement) 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)iniointventures 1,697 1,882 3,579 Summarised joint venture financial information not adjusted for the Group’s share for the year ended 31 March 2024 Store Street Unit City Tower Unit Trust Trust Total 31/03/2024 31/03/2024 31/03/2024 £000 £000 £000 Non-current assets - Investment property 117,600 76,750 194,350 Current assets 1,069 404 1,473 Total liabilities 1 (2,524) (494) (3,018) Revenues for the year 10,182 3,870 14,052 Total profit (excludingvaluationmovement) 5,814 3,206 9,020 Net asset value attributable to the Group 29,036 38,330 67,366 Share of profit (excluding valuation movement)iniointventures 1,454 1,603 3,057 1 Liabilities are non-recourse to the Group. The Company owns 25% of City Tower Unit Trust and 50% of Store Unit Trust. The remaining units in the City Tower and Store Unit Trusts are owned by other Schroders’ funds. The fair value of investment property owned by the two Joint Ventures has been determined by CBRE, who are registered independent appraisers. The two valuations were undertaken on the same basis as that described under Note 10: Investment Property. 12 Trade and other receivables 31/03/2025 31/03/2024 £000 £000 Rent receivable 4,727 3,172 Sundry debtors and prepayments 7,816 8,234 Lease incentives 8,920 8,431 21,463 19,837 As at 31 March 2025, total bad debt provisions of £0.3 million (2024: £0.4 million) had been recognised against rent receivable. 13 Cash and cash equivalents As at 31 March 2025 the Group held £3.7 million (2024: £6.0 million) in cash. 84 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 14 Issued capital and reserves Share capital The share capital of the Company is represented by an unlimited number of ordinary shares of no par value. As at the date of this Report, the Company has 565,664,749 ordinary shares in issue (2024: 565,664,749) of which 76,554,173 Ordinary shares are held in treasury (2024: 76,554,173). The total number of voting rights of the Company was 489,110,576 (2024: 489,110,576) as at the financial year end. Treasury share reserve 76,554,173 (2024: 76,554,173) ordinary shares, which represent 13.5% (2024: 13.5%) of the Company’s total issued share capital, were held in treasury as at the financial year end. Revenue reserve This reserve represents an accumulated amount of the Group’s prior earnings net of dividends. 15 Interest-bearing loans and borrowings This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings. For more information about the Group’s exposure to interest rate risk, see note 18. 31/03/2025 31/03/2024 £000 £000 Non-current liabilities Loan facilities 181,085 176,585 Unamortised arrangement fees ( 4 7 4 ) (719) 180,611 175,866 The Group has in place a £129.6 million loan facility with Canada Life. This has been in place since 16 April 2013 and has been refinanced several times, most recently in October 2019. The loan is split into two equal tranches of £64.8 million as follows: ― Facility A matures in October 2032 and attracts an interest rate of 2.36%; and ― Facility B matures in October 2039 and attracts an interest rate of 2.62%. As at the April 2025 Interest Payment Date, the Canada Life interest cover ratio was 510% (2024: 497%) against a covenant of 185%; the forecast interest cover ratio was 484% (2024: 482%) against a covenant of 185%; and the Loan to Value ratio was 47.0% (2024: 49.4%) against a covenant of 65%. The Canada Life facility has a first charge of security over all the property assets in the ring-fenced security pool which at 31 March 2025 contained properties valued at £275.54 million (2024: £262.24 million). Various restraints apply during the term of the loan although the facility has been designed to provide significant operational flexibility. The Group also has a revolving credit facility with RBSI most recently refinanced in June 2022, with a five-year term which runs to June 2027, and the maximum amount able to be drawn is £75.0m. The facility carries an interest rate of a 1.65% margin, plus three-month SONIA rate, with a 0.64% non-utilisation fee. As at 31 March 2025, a sum of £51.5m was drawn down (31 March 2024: £47.0m). In June 2023 the Group also completed on the acquisition of an interest rate collar from RBSI, which has a floor of 3.25% and a cap of 4.25%; which will expire on 6 June 2027; and which is attributable to £30.5 million of the loan drawn sum of the RBSI revolving credit facility. Further details are disclosed in note 20. As at the April 2025 Interest Payment Date, the RBSI projected interest cover ratio was 255% (2024: 231%) against a covenant of 200% and the Loan to Value ratio was 31.2% (2024: 29.8%) against a covenant of 65%. The RBSI facility has a first charge security over certain property assets which at 31 March 2025 contained properties valued at £165.0 million (2024: £157.6 million). 85 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 15 Interest-bearing loans and borrowings (continued) A reconciliation of financing movements for the year is presented below split into cash and non-cash items: 31/03/2025 £000 Loan balance brought forward 175,866 Drawdown on RBSI RCF (cash) 4,500 Repayment of RBSI RCF (cash) – Non-cash amortisation of arrangement fees 245 Loan balance carried forward 180,611 31/03/2024 £000 Loan balance brought forward 176,933 Drawdown on RBSI RCF (cash) 1,000 Repayment of RBSI RCF (cash) (2,300) Non-cash amortisation of arrangement fees 233 Loan balance carried forward 175,866 16 Trade and other payables 31/03/2025 31/03/2024 £000 £000 Deferred income 5,814 4,952 Rental deposits 2,551 2,442 Interest payable 1,358 1,328 Other trade payables and accruals 3,650 4,533 13,373 13,255 17 NAV per Ordinary Share The number of ordinary shares in issue was 489,110,576 as at 31 March 2025 (2024: 489,110,576). The NAV per Ordinary Share is based on the net assets of £301,377,000 (2024: £287,350,000) and 489,110,576 (2024: 489,110,576) ordinary shares in issue as at the reporting date. 18 Financial instruments, properties and associated risks Financial risk factors The Group holds cash and liquid resources as well as having debtors and creditors that arise directly from its operations. The Group uses interest rate derivative contracts, the details of which are in note 20, when required to limit exposure to interest rate risks, but does not have any other derivative instruments. The main risks arising from the Group’s financial instruments and properties are market price risk, credit risk, liquidity risk and interest rate risk. The Group has no exposure to foreign currency exchange risk. The Board regularly reviews and agrees policies for managing each of these risks and these are summarised below: Market price risk Rental income, and the market value for properties, are generally affected by overall conditions in the economy, such as changes in gross domestic product, employment trends, inflation and changes in interest rates. Changes in gross domestic product may also impact employment levels, which in turn may impact the demand for premises. Furthermore, movements in interest rates may also affect the cost of financing for real estate companies. Both rental income and property values may also be affected by other factors specific to the real estate market such as competition from other property owners; the perceptions of prospective tenants of the attractiveness, convenience and safety of properties; the inability to collect rents because of bankruptcy or the insolvency of tenants; the periodic need to renovate, repair and re-lease space and the costs thereof; and the costs of maintenance and insurance, and increased operating costs. 86 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 18 Financial instruments, properties and associated risks (continued) Market price risk (continued) In April 2025, the United States of America (USA) initiated sweeping tariff arrangements against their global trading partners. This has heightened macroeconomic uncertainty, with potential for escalating trade policy responses from USA trade counterpart countries, and significant impact to global trade. As at the date of approval of the financial statements, the Manager is closely monitoring these changes in global trade policy, however, the Group’s primary exposure to the UK commercial property sector means it is anticipated to have low impact to key fundamentals and valuations. The Directors monitor the market value of investment properties by having independent valuations carried out quarterly by a firm of independent chartered surveyors. Note 10 sets out the sensitivity analysis on the market price risk. Concentration risk, based on industry and geography, is set out in the tables on page 15. Included in market price risk is interest rate risk which is discussed further below. Credit risk Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has entered into with the Group. In the event of default by an occupational tenant, the Group will suffer a rental income shortfall and incur additional costs, including legal expenses, in maintaining, insuring and re-letting the property. The Investment Manager reviews reports prepared by Dun & Bradstreet, or other sources, to assess the credit quality of the Group’s tenants and aims to ensure there is no excessive concentration of risk and that the impact of any default by a tenant is minimised. In respect of credit risk arising from other financial assets, which comprise cash and cash equivalents, exposure to credit risk arises from default of the counterparty with a maximum exposure equal to the carrying amounts of these instruments. In order to mitigate such risks, cash is maintained with major international financial institutions with high quality credit ratings. During the year, and at the reporting date, the Group maintained a relationship with branches and subsidiaries of HSBC. HSBC has a credit rating of A- (provided by Standard and Poor). The maximum exposure to credit risk for rent receivables at the reporting date by type of sector was: 31/03/2025 31/03/2024 Carrying Carrying amount £000 amount £000 Office 375 279 Industrial 3,193 2,190 Retail, leisure and other 925 779 4,493 1 3,248 1 Rental receivable of £4.7m per note 12 excluding bad debt provisions of £0.3m and other tenant receivables of £0.5m. 2024: Rental receivable of £3.2m per note 12 excluding bad debt provisions of £0.4m and other tenant receivables of £0.4m. Rent receivables which are past their due date were: 31/03/2025 31/03/2024 Carrying Carrying amount £000 amount £000 0-30 days 2,893 1,916 31-60 days 59 143 61-90 days 90 122 91 days plus 1,451 1,067 4,493 1 3,248 1 Rental receivable of £4.7m per note 12 excluding bad debt provisions of £0.3m and other tenant receivables of £0.5m. 2024: Rental receivable of £3.2m per note 12 excluding bad debt provisions of £0.4m and other tenant receivables of £0.4m. Management has considered rental debtors on a quarterly basis and made provisions where it has been deemed that these amounts may be unrecoverable. As at 31 March 2025 total provisions of £0.33 million (2024: £0.36 million) were recognised and rental debtors are shown net of this provision in the Consolidated Statement of Financial Position. On initial recognition the Group calculates the expected credit loss for debtors based on the lifetime expected credit losses under the IFRS 9 simplified approach. Management considers aged debtors’ analyses, the strength of tenant covenants, macroeconomic factors and any rental deposits held. 87 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 18 Financial instruments, properties and associated risks (continued) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulties in meeting obligations associated with its financial obligations. The Group’s investments comprise UK commercial property. Property and property-related assets are inherently difficult to value due to the individual nature of each property. As a result, valuations are subject to substantial uncertainty. There is no assurance that the estimates resulting from the valuation process will reflect the actual sale price even where such sales occur shortly after the valuation date. Investments in property are relatively illiquid. However, the Group has tried to mitigate this risk by investing in properties that it considers to be of good quality. In certain circumstances, the terms of the Group’s debt facilities entitle the lender to require early repayment and in such circumstances the Group’s ability to maintain dividend levels and the net asset value could be adversely affected. The Investment Manager prepares cash flows on a rolling basis to ensure the Group can meet future liabilities as and when they fall due. The following table indicates the maturity analysis of the financial liabilities 1 Carrying Expected 6 months 6 months – 2 – 5 More than amount cash flows or less 2 years years 5 years As at 31 March 2025 £000 £000 £000 £000 £000 £000 Financial liabilities Interest-bearing loans and borrowings and interest 2 180,611 224,024 3,198 3,198 65,143 152,485 Leasehold liability 1,508 11,369 51 51 306 10,961 Trade and other payables 7,178 7,178 4,627 – – 2,551 Total financial liabilities 189,297 242,571 7,876 3,249 65,449 165,997 Carrying Expected 6 months 6 months – 2 – 5 More than amount cash flows or less 2 years years 5 years As at 31 March 2024 £000 £000 £000 £000 £000 £000 Financial liabilities Interest-bearing loans and borrowings and interest 1 175,866 226,102 3,226 9,679 60,713 152,484 Leasehold liability 1,562 11,533 51 154 307 11,021 Trade and other payables 7,729 7,729 5,594 – – 2,135 Total financial liabilities 185,157 245,364 8,871 9,833 61,020 165,640 1 The maturity analysis of financial liabilities are based on undiscounted contractual cashflows. 2 Assumes that the £51.5 million RBS revolving credit facility is repaid in 2027. Interest rate risk Exposure to market risk for changes in interest rates relates primarily to the Group’s long-term debt obligations and to interest earned on cash balances. As interest on the Group’s long-term debt obligations is payable on a fixed-rate basis, the Group is not exposed to near-term interest rate risk in relation to its Canada Life loan facility. As at 31 March 2025 the fair value of the Group’s £129.6 million loan with Canada Life was £111.1 million (2024: £111.1 million). The RBSI revolving credit facility is a low-margin and flexible source of funding with a margin of 1.65%, plus 3-month SONIA rate and it is considered by management that the carrying value of the loan is equal to its fair value (sum of £51.5m (2024: £47.0 million) drawn as at the year end). In order to assist with mitigating interest rate risk on the RBSI facility, in June 2023 the Group acquired an interest rate collar from RBSI, which has a floor of 3.25% and a cap of 4.25%; which will expire on 6 June 2027; and which is attributable to £30.5 million of the loan drawn sum. A 1% increase or decrease in short-term interest rates would increase or decrease the bank interest annual income, and equity by £37,000 based on the cash balance as at 31 March 2025. The Canada Life loan is fixed-rate, as above, and thus a 1% increase or decrease in interest rates would not impact the loan interest payable by the Fund. The RBS revolving credit facility had a drawn balance of £51.5 million as at the year end and an interest rate collar in place for £30.5 million of the drawn sum. A 1% increase in interest rates would thereby increase the finance costs payable by £210,000 (assuming that the loan principal drawn remained the same). 88 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 18 Financial instruments, properties and associated risks (continued) Fair values The fair values of financial assets and liabilities are not materially different from their carrying values, unless disclosed below, in the financial statements. The fair value hierarchy levels are as follows: ― Level 1 – quoted prices (unadjusted) in active markets for identical assets and liabilities; ― Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and ― Level 3 – inputs for the assets or liability that are not based on observable market data (unobservable inputs). There have been no transfers between Levels 1, 2 and 3 during the year (2024: none). The following summarises the main methods and assumptions used in estimating the fair values of financial instruments and investment property: Investment property – level 3 Fair value is based on valuations provided by an independent firm of chartered surveyors and registered appraisers. These values were determined after having taken into consideration recent market transactions for similar properties in similar locations to the investment properties held by the Group. The fair value hierarchy of investment property is level 3. See Note 10 for further details. Interest-bearing loans and borrowings – level 2 Fair values are based on the present value of future cash flows discounted at a market rate of interest. Issue costs are amortised over the period of the borrowings. As at 31 March 2025, the fair value of the Group’s £129.6 million loan with Canada Life was £111.1 million (2024: £111.1 million). Financial Instruments - Level 2 The Group’s interest rate collar is recognised at its fair value via valuations provided by an independent firm, Chatham Financial. Fair values of derivatives are based on current market conditions such as the current SONIA rate compared to the terms of the derivative agreements. Capital management The Board’s policy is to maintain a strong capital base to maintain investor, creditor and market confidence and to sustain future development of the business. The objective is to ensure that it will continue as a going concern and to maximise the return to its equity shareholders through an appropriate level of gearing. The Company’s capital management process ensures it meets its financial covenants in its borrowing arrangements. Breaches in meeting the financial covenants could permit the lenders to immediately accelerate the repayment of loans and borrowings. The Company monitors as part of its quarterly board meetings that it will adhere to specific leverage, interest cover and rental cover ratios. There have been no breaches in the financial covenants of any loans and borrowings during the financial year. The Company’s debt and capital structure comprises the following 31/03/2025 31/03/2024 £000 £000 Debt Fixed-rate loan facility 129,585 129,585 Floating rate loan facility 1 51,500 47,000 181,085 176,585 Equity Called-up share capital 181,989 181,989 Reserves 119,388 105,361 301,377 287,350 Total debt and equity 482,462 463,935 There were no changes in the Group’s approach to capital management during the year. 1 This amount refers to the amount drawn. The total facility as at 31 March 2025 was £75.0 million (2024: £75.0 million) 89 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 19 Operating leases The Group leases out its investment property under operating leases. At 31 March 2025 the future minimum lease receipts under non-cancellable leases are as follows: 31/03/2025 31/03/2024 £000 £000 Less than one year 25,356 23,400 Between one and five years 72,621 68,798 More than five years 59,156 54,918 157,134 147,116 The total above comprises the total contracted rent receivable as at 31 March 2025. The Group has entered into leases on its property portfolio. The commercial property leases typically have lease terms between 5 and 15 years and include clauses to enable periodic upward revision of the rental charge according to prevailing market conditions. Some leases contain options to break before the end of the lease term. 20 Interest rate derivative contracts In June 2023 the Group disposed of its interest cap, which had been due to expire in July 2023, and which was attributable to £30.5 million of the drawn loan sum of the RBSI revolving credit facility, for a sum of £0.19 million. This had previously been carried at a nil fair value and thus there was a gain on disposal of £0.19 million recognised in the financial year. In June 2023 the Group completed on the acquisition of an interest rate collar from RBSI, which has a floor of 3.25% and a cap of 4.25%; which will expire on 6 June 2027; and which is attributable to £30.5 million of the drawn loan sum of the RBSI revolving credit facility. The cost to acquire this financial instrument was £0.77 million, including fees, and as at the 31 March 2025 it had a deemed fair value of £0.07 million (2024: £0.2 million) with an unrealised loss of £0.15 million (2024: £0.57 million) being recognised in the financial year. 21 List of subsidiary and joint venture undertakings The companies listed below are those which were part of the Group as at 31 March 2025: Country of Principal Ultimate Undertaking Category incorporation Activities ownership SREIT No.2 Limited Subsidiary Guernsey Property ownership with external finance 100% SREIT Holding (No.2)Limited Subsidiary Guernsey Holding Company 100% SREIT Holding Company Limited Subsidiary Guernsey Holding Company with external finance 100% SREIT Property Limited Subsidiary Guernsey Property ownership 100% SREIT (Portergate)Limited Subsidiary Guernsey Property ownership 100% SREIT (Uxbridge)Limited Subsidiary Guernsey Property ownership 100% SREIT (CityTower)Limited Subsidiary Guernsey Joint ownership of an underlying property unit trust 100% SREIT (Store)Limited Subsidiary Guernsey Joint ownership of an underlying property unit trust 100% SREIT (Bedford)Limited Subsidiary Guernsey Property ownership 100% City Tower Unit Trust Joint Venture Jersey Property ownership 25% Store Unit Trust Joint Venture Jersey Property ownership 50% The registered addresses for all wholly-owned entities are the same as that of the parent company and can be found on page 141. The registered address for both Joint Venture entities is 47 Esplanade, St Helier, Jersey, JE1 0BD, Channel Islands. 22 Related party transactions Material agreements and transactions with the Investment Manager are disclosed in note 2. Transactions with regard to joint ventures are disclosed in note 11. Transactions with the directors are shown in the directors’ remuneration report. 90 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Financial statements — Notes to the financial statements continued 23 Capital commitments As at 31 March 2025 the Group had capital commitments of £8.3 million (2024: £8.4 million). 24 Post balance sheet events On 12 May 2025, the Group sold its Truro asset for a sales price of £1.2 million. Other information (unaudited) 91 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 92 EPRAperformancemeasures(unaudited) 95 Alternativeperformancemeasures(unaudited) 96 AIFMDdisclosures(unaudited) 97 Sustainabilityperformancemeasures(environmental) (unaudited) 128 Sustainabilityperformancemeasures(social)(unaudited) 130 Sustainabilityperformancemeasures(governance) (unaudited) 131 Streamlinedenergyandcarbonreporting 134 Assetlist 135 ReportoftheDepositarytotheshareholders 136 Glossary 137 ResolutionsattheAnnualGeneralMeeting 139 NoticeofAnnualGeneralMeeting 141 Corporateinformation Other information (unaudited) 92 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) EPRA performance measures (unaudited) AsrecommendedbytheEuropeanPublicRealEstate Association,EPRAperformancemeasuresaredisclosedinthe sectionbelow. EPRA performance measures:summary table 31/03/2025 31/03/2024 EPRAearnings £17,034,000 £16,278,000 EPRAearningspershare 3.5pps 3.3pps EPRANetReinstatement Value £333,948,000 £318,360,000 EPRANetReinstatement Valuepershare 68.3p 65.1p EPRANetTangibleAssets £301,311,000 £287,131,000 EPRANetTangibleAssets pershare 61.6p 58.7p EPRANetDisposalValue £319,860,000 £305,808,000 EPRANetDisposalValue pershare 65.4p 62.5p EPRANetInitialYield 5.1% 5.6% EPRA“topped-up”Net InitialYield 6.0% 6.1% EPRAvacancyrate 12.4% 10.9% EPRAcostratios–including directvacancycosts 28.6% 29.6% EPRAcostratios–excluding directvacancycosts 22.0% 23.7% EPRALTV 36.9% 37.1% a EPRA earnings and earnings per share Earningsexcludingallcapitalcomponentsnotrelevanttothe underlyingnetincomeperformanceoftheCompany,such astheunrealisedfairvaluegainsorlossesoninvestment propertiesandanygainsorlossesfromthesalesofproperties. 31/03/2025 £000 31/03/2024 £000 ProfitperIFRSincomestatement 31,058 3,017 Adjustments to calculate EPRA Earnings: Profitonthedisposalofinvestment property (469) (199) Netunrealisedvaluation(gain)/losson investmentproperty (16,232) 8,044 Netchangeinthefairvalueoffinancial instruments 153 547 Gainonthedisposaloffinancial instruments - (189) Shareofvaluationloss inassociatesandjointventures 2,489 5,058 Adjustmentsrelatedtonon-operating andexceptionalitems 35 – EPRA earnings 17,034 16,278 Weightedaveragenumberofordinary shares 489,110,576 489,110,576 IFRS earnings pershare (pence) 6.3 0.6 EPRA earnings pershare (pence) 3.5 3.3 b EPRA Net Reinstatement Value IFRSequityattributabletoshareholdersadjustedtorepresent thevaluerequiredtorebuildtheentityandassumesthatno sellingofassetstakesplace. 31/03/2025 £000 31/03/2024 £000 IFRSequityattributableto shareholders 301,377 287,350 Adjustmentinrespectofrealestate transfertaxesandcosts 32,637 31,229 Adjustmentinrespectofthefairvalue offinancialinstruments (66) (219) EPRA net reinstatement value 333,948 318,360 Sharesinissueattheendoftheperiod 489,110,576 489,110,576 EPRA NRV pershare (pence pershare) 68.3p 65.1p 93 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — EPRA performance measures (unaudited) continued c EPRA Net Tangible Assets per share IFRSequityattributabletoshareholdersadjustedtorepresent thevaluerequiredtorebuildtheentityandassumesthatno sellingofassetstakesplace. 31/03/2025 £000 31/03/2024 £000 IFRSequityattributableto shareholders 301,377 287,350 Fairvalueoffinancialinstruments (66) (219) EPRANetTangibleAssets 301,311 287,131 Sharesinissueattheendoftheyear 489,110,576 489,110,576 IFRS NAV pershare (pence) 61.6p 58.8p EPRA net tangible assets pershare (pence) 61.6p 58.7p d EPRA Net Disposal Value per share TheIFRSequityattributabletoshareholdersadjustedtoreflect theNAVunderanorderlysaleofbusiness,whereanydeferred tax,financialinstrumentsandcertainotheradjustmentsare calculatedtothefullextentoftheirliability. 31/03/2025 £000 31/03/2024 £000 IFRSequityattributableto shareholders 301,377 287,350 Adjustments to calculate EPRA Net Disposal Value: Thefairvalueoffixed-interestratedebt 18,483 18,458 EPRA net disposal value 319,860 305,808 Sharesinissueattheendoftheyear 489,110,576 489,110,576 EPRA net disposal value pershare (pence) 65.4p 62.5p e EPRA Net Initial Yield Annualisedrentalincomebasedonthecashrentspassingat theBalanceSheetdate(butadjustedassetoutbelow),less non-recoverablepropertyoperatingexpenses,dividedbythe grossmarketvalueoftheproperty. TheEPRA“toppedup”NIYistheEPRANIYinrespectofthe expirationofrentfreeperiods. 31/03/2025 £000 31/03/2024 £000 Investmentproperty–wholly-owned 413,310 391,475 Investmentproperty– shareofjointventuresandfunds 66,650 67,775 Complete property portfolio 479,960 459,250 Allowanceforestimatedpurchasers’ costs 32,637 31,229 Gross up completed property portfolio valuation 512,597 490,479 Annualisedcashpassingrentalincome 28,845 29,796 Propertyoutgoings (2,657) (2,154) Annualised net rents 26,188 27,642 Notionalrentexpirationofrent-free periods 1 4,321 2,462 Topped-up net annualised rent 30,509 30,104 EPRA NIY 5.1% 5.6% EPRA “topped-up” NIY 6.0% 6.1% 1. Theperiodoverwhichrentfreeperiodsexpireisoneyearfor2025 (2024:1year). 94 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — EPRA performance measures (unaudited) continued f EPRA cost ratios Administrativeandoperatingcosts(includingandexcluding costsofdirectvacancy)dividedbygrossrentalincome. 31/03/2025 £000 31/03/2024 £000 Administrative/operatingexpenseline perIFRSincomestatement 8,022 7,572 ShareofJointVentureexpenses 1,145 1,423 Less:Groundrentcosts ( 6 8 ) (113) Costs (including direct vacancy costs) 9,099 8,882 Directvacancycosts (2,081) (1,782) Costs (excluding direct vacancy costs) 7,018 7,100 Grossrentalincomelessgroundrent costs–perIFRS 27,124 25,525 AddshareofJointVentures(Gross RentalIncomelessgroundrentcosts) 4,723 4,480 Gross rental income 31,847 30,005 EPRAcostratio(includingdirect vacancycosts) 28.6% 29.6% EPRAcostratio(excludingdirect vacancycosts) 22.0% 23.7% Therewerenodirectlyattributableoverheadandoperating costscapitalisedduringtheyear(2024:nil).TheCompanydoes nothaveapolicytocapitalisesuchexpenses(aspernote1). g EPRA vacancy rate Estimatedmarketrentalvalue(ERV)ofvacantspacedividedby theERVofthewholeportfolio. 31/03/2025 £000 31/03/2024 £000 Estimatedrentalvalueofvacantspace 4,958 4,242 Estimatedrentalvalueofthewhole portfolio 40,134 38,770 EPRA vacancy rate 12.4% 10.9% Therewerenosignificantordistortingfactorsintheabove. ExcludesERVrelatingtoassetsheldforsaleatthebalance sheetdate. h EPRA LTV ThegearingoftheshareholderequitywithintheCompany. 31/03/2025 £000 31/03/2024 £000 BorrowingsfromFinancialInstitutions 181,085 176,585 Cashandcashequivalents (3,720) (6,005) Cashandcashequivalents–shareof jointventures (134) (229) Net debt 177,231 170,351 Investmentpropertiesatfairvalue– directportfolio 413,310 391,475 Investmentpropertiesatfairvalue– shareofjointventures 66,650 67,775 Total property value 479,960 459,250 LTV 36.9% 37.1% i EPRA capital expenditure InaccordancewithEPRA’scorerecommendations,theGroup’s capitalexpenditureinvestedintheyearcanbebrokendownas follows: Group (excluding Joint Ventures) £m Joint Ventures (proportionate share) £m Total Group £m Acquisitions (including transactioncosts) – – – Developmentsand accretiveworks 6.1 0.6 6.7 Investment properties Tenantincentives – – – Othermaterial non–allocated typesof expenditure – – – Total capital expenditure 6.1 0.6 6.7 Aspernote10,theFundmadenonewacquisitions,and thusalsoincurrednoadditionaltransactioncosts,duringthe financialyear. Thecapitalexpenditureinvestedintheyearamountedto £6.1milliononthedirectlyheldportfolio(alsoaspernote10). Thethreelargestcapitalexpenditureinvestmentsmadeinthe financialyearwereasfollows:a)£0.5millionatStanleyGreen TradingEstate,Cheadleb)£0.3millionatStAnns,Manchester, andc)£0.2millionatTheTun,Edinburgh. The£0.6millioninvestedacrossjointventuresrelatedsolelyto theGroup’s25%shareofunderlyingcapitalexpenditureworks undertakenatCityTower. 95 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Alternative Performance Measures (unaudited) Other information (unaudited) TheCompanyusesthefollowingAlternativeperformance measures(‘APMs’)initsAnnualReportandConsolidated FinancialStatements.TheBoardbelievesthateachoftheAPMs providesadditionalusefulinformationtotheshareholdersin ordertoassesstheCompany’sperformance. Dividend CoverTheratioofEPRAEarnings(page92)to dividendspaid(note9)intheperiod. Dividend YieldThedividendspaid,expressedasapercentage relativetotheCompany’sshareprice. EPRA EarningsEarningsexcludingallcapitalcomponents notrelevanttotheunderlyingnetincomeperformanceofthe Company,suchastheunrealisedfairvaluegainsorlosseson investmentpropertiesandanygainsorlossesfromthesalesof properties.Seepage92forareconciliationofthisfigure. EPRA Net Tangible AssetsTheIFRSequityattributableto shareholdersadjustedtoreflectaCompany’stangibleassets andassumesthatnosellingofassetstakesplace. EPRA Net Disposal ValueTheIFRSequityattributableto shareholdersadjustedtoreflecttheNAVunderanorderlysale ofbusiness,whereanydeferredtax,financialinstrumentsand certainotheradjustmentsarecalculatedtothefullextentof theirliability. EPRA Net Reinstatement ValueTheIFRSequityattributable toshareholdersadjustedtorepresentthevaluerequired torebuildtheentityandassumesthatnosellingofassets takesplace. Gross LTVThevalueoftheexternalloansunadjustedfor unamortisedarrangementcosts(note15)expressedasa percentageofthemarketvalueofpropertyinvestments asattheBalanceSheetdate.Themarketvalueofproperty investmentsincludesjointventureinvestmentsandareasper externalvaluationsandhavenotbeenadjustedforIFRSlease incentivedebtorsnorthefairvalueoftheheadleaseatLuton. LTV net of cashThevalueoftheexternalloansunadjusted forunamortisedarrangementcosts(note15)lesscashheld (note13)expressedasapercentageofthemarketvalueof thepropertyinvestmentsasattheBalanceSheetdate.The marketvalueofpropertyinvestmentsincludesjointventure investmentsandareasperexternalvaluationsandhavenot beenadjustedforIFRSleaseincentivedebtorsorthefairvalue oftheheadleaseatLuton. Ongoing charges (including Fund expenses)Alloperating costsexpectedtoberegularlyincurredandthatarepayable bytheCompanyexpressedasapercentageoftheaverage quarterlyNAVsoftheCompanyforthefinancialperiod.No capitalcosts,includingcapitalexpenditureoracquisition/ disposalfees,areincludedascosts. Ongoing charges (including Fund and property expenses) Alloperatingcostsexpectedtoberegularlyincurredandthat arepayablebytheCompanyexpressedasapercentageof theaveragequarterlyNAVsoftheCompanyforthefinancial period.Anycapitalcosts,includingcapitalexpenditureand acquisition/disposalfees,areexcludedascosts,aswellas interestcostsandanyothercostsconsideredtobenon- recurring.Inthecurrentperiodthematerialnon-recurring costsincludenon-cashbaddebtexpensesof£32,000. Share price discount/premiumThesharepriceofan InvestmentTrustisderivedfrombuyersandsellerstrading theirsharesonthestockmarket.Thispriceisnotidenticalto theNAVpershareoftheunderlyingassetslessliabilitiesofthe Company.IfthesharepriceislowerthantheNAVpershare, thesharesaretradingatadiscount.Sharestradingabove theNAVpersharearesaidtobeatapremium.Thediscount/ premiumiscalculatedasthevariancebetweentheshareprice asattheBalanceSheetdateandtheNAVpershare(page71) expressedasapercentage. NAV total returnThereturntoshareholderscalculatedona persharebasisbyaddingdividendspaid(note9)intheperiod onatime-weightedbasistotheincreaseordecreaseinthe NAVpershare(page85). 96 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 AIFMD disclosures (unaudited) Other information (unaudited) Thesedisclosuresformpartofthenon-auditedsectionof thisAnnualReportandConsolidatedFinancialStatements andshouldbereadinconjunctionwiththeSchrodersplc RemunerationReportonpages62to83ofthe2024Annual Report&Accounts(availableontheGroup’swebsite– www.schroders.com/ir)whichprovidesmoreinformation ontheactivitiesofourRemunerationCommitteeandour remunerationprinciplesandpolicies. TheAIFMaterialRiskTakers(‘AIFMRTs’)ofSREIMare individualswhoseroleswithintheSchrodersGroupcan materiallyaffecttheriskofSREIMoranyAIFfundthat itmanages.Theserolesareidentifiedinlinewiththe requirementsoftheAIFMDirectiveandguidanceissued bytheEuropeanSecuritiesandMarketsAuthority. TheRemunerationCommitteeofSchrodersplchasestablished aremunerationpolicytoensuretherequirementsofthe AIFMDirectivearemetforallAIFMRTs.TheRemuneration CommitteeandtheBoardofSchrodersplcreview remunerationstrategyatleastannually.ThedirectorsofSREIM areresponsiblefortheadoptionoftheremunerationpolicy andperiodicallyreviewingitsimplementationinrelationto SREIM.During2024theRemunerationPolicywasreviewed toensurecompliancewiththeUCITS/AIFMDremuneration requirementsandnosignificantchangesweremade. Theimplementationoftheremunerationpolicyis,atleast annually,subjecttoindependentinternalreviewforcompliance withthepoliciesandproceduresforremunerationadopted bytheBoardofSREIMandtheRemunerationCommittee.The mostrecentreviewfoundnofundamentalissuesbutresulted inminorrecommendationsrelatingtopolicydocumentation. Ourratioofoperatingcompensationcoststonetoperating incomeguidesthetotalspendonremunerationeachyear. ThisisrecommendedbytheRemunerationCommitteetothe BoardofSchrodersplc.Thisapproachalignsremuneration withSchrodersfinancialperformance.Indeterminingthe remunerationspendeachyear,theunderlyingstrengthand sustainabilityofthebusinessistakenintoaccount,alongwith reportsonrisk&compliance,legalandinternalauditmatters fromtheheadsofthoseareas. Theremunerationdatathatfollowsreflectsamountspaidin respectofperformanceduring2024. — ThetotalamountofremunerationpaidbySREIMtoits staffisnilasSREIMhasnoemployees.Employeesof SREIMorotherSchrodersGroupentitieswhoserveas DirectorsofSREIMreceivenoadditionalfeesinrespectof theirroleontheBoardofSREIM. — ThefollowingdisclosuresrelatetoAIFMRTsofSREIM. ThoseAIFMRTswereemployedbyandprovidedservices tootherSchrodersgroupcompaniesandclients.Inthe interestsoftransparency,theaggregateremuneration figuresthatfollowreflectthefullremunerationforeach SREIMAIFMRT.Theaggregatetotalremunerationpaid tothe72AIFMRTsofSREIMinrespectofthefinancial yearended31December2024is£50.16million,ofwhich £41.76millionwaspaidtoseniormanagement,£5.62 millionwaspaidtoMRTsdeemedtobetakingriskon behalfofSREIMortheAIFfundsthatitmanagesand£2.78 millionwaspaidtocontrolfunctionMRTs. Foradditionalqualitativeinformationonremunerationpolicies andpracticesseewww.schroders.com/rem-disclosures Leverage disclosure InaccordancewithAIFMDtheCompanyisrequiredtomake availabletoinvestorsinformationinrelationtoleverage. UnderAIFMD,leverageisanymethodbywhichtheexposure oftheCompanyisincreasedthroughtheborrowingofcash orsecurities,leverageembeddedinderivativepositionsor byanothermeans.Itisexpressedasaratiobetweenthe totalexposureoftheCompanyanditsnetassetvalueand iscalculatedinaccordancewiththe“Grossmethod”and the“Commitmentmethod”asdescribedintheAIFMD.The GrossmethodrepresentstheaggregateofalltheCompany’s exposuresotherthancashbalancesheldinthebasecurrency, whiletheCommitmentmethod,whichiscalculatedonasimilar basis,mayalsotakeintoaccountcashandcashequivalents, nettingandhedgingarrangements,asapplicable. TheInvestmentManagerhassettheexpectedmaximum leveragepercentagesfortheCompanyandcalculatedthe actualleveragesasat31December2024asshownbelow:(the Companycalculatesandexternallyreportsitsleverageone quarterinarrears): Maximum limit set Actual as at 31.12.2024 Grossleverage 195 163 Commitmentleverage 220 165 Therehavebeennochangestothemaximumlevelsof leverageemployedbytheCompanyduringthefinancialyear noranybreachesofthemaximumlevelsduringthefinancial reportingperiod. 97 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Sustainability performance measures (environmental) (unaudited) Other information (unaudited) TheCompanyreportssustainabilityinformationinaccordance withEPRABestPracticeRecommendationsonSustainability Reporting(sBPR)2024,4thEditionforthe12months 1stJanuary2024–31stDecember2024,presentedwith comparisonagainst2023.AspermittedbytheEPRA SustainabilityReportingGuidelines,environmentaldatahas beendevelopedandpresentedinlinewiththeGlobalReal EstateSustainabilityBenchmark(GRESB). Thereportingboundaryhasbeenscopedtowherethe Companyhasoperationalcontrolbeingmanagedproperties wheretheCompanyisresponsibleforthepaymentofutility invoicesand/orthearrangementofwastedisposalcontracts. ‘Operationalcontrol’hasbeenselectedasthereporting boundary(asopposedto‘financialcontrol’or‘equityshare’)as thisreflectstheportionoftheportfoliowheretheCompany caninfluenceoperationalproceduresand,ultimately, sustainabilityperformance.Theoperationalcontrolapproachis themostcommonlyappliedwithintheindustry. At31December2024,39assetswereheldbytheCompany, duringthereportingyear,followingthesaleofBedford, HowardHouseinDecember2024.Intotal,22assetswere withintheoperationalcontrolreportingboundaryofthe Companyduringthe2024calendaryear(i.e.‘managed’),which includesHowardHouse.Inthe2023calendaryear,therewere 23suchmanagedassetswithintheportfolioincludingLeeds, CoverdaleHousewhichwassoldinDecember2023. Wheredatacoverageislessthan100%,asupporting explanationisprovidedwithinthedatanotesimmediately belowtherelevanttable.Energyandwaterconsumption dataisreportedaccordingtoautomaticmeterreads,manual meterreadsorinvoiceestimates.Whererequired,missing consumptiondatahasbeenestimatedbyproratingdatafrom otherperiodsusingrecognisedtechniques.Theproportionof datathatisestimatedispresentedinthedatatables.Historic consumptiondatahasbeenrestatedwheremorecomplete and/oraccuraterecordshavebecomeavailable. TheCompanydoesnotholdanymanagedassetsthat consumeenergyfromdistrictheatingorcoolingsources. Therefore,theEPRAsBPRDH&C-AbsandDH&C-LfL indicatorsarenotapplicableandnotpresentedinthis report.Furthermore,theCompanydoesnothaveanydirect employees;itisservedbytheemployeesoftheInvestment Manager(SchroderRealEstateInvestmentManagement Limited). Accordingly,theEPRAOverarchingRecommendationfor companiestoreportontheenvironmentalimpactoftheirown officesisnotrelevant/materialandnotpresentedinthisreport. ThisreporthasbeenpreparedbytheInvestmentManagerto theCompany.Thesustainabilityperformancemeasureshave beenassuredinaccordancewithAA1000toprovideaType 2ModerateAssuranceunqualifiedauditofthesustainability contentwithintheSREITannualreportfortheyearended 31March2025.ThefullAssuranceStatementisavailableon request. 98 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Total energy consumption (Elec-Abs; Fuels-Abs, Energy-Int) ThetablebelowsetsouttotallandlordobtainedenergyconsumptionfromtheCompany’smanagedportfoliobysector. AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels AbsoluteEnergy AbsoluteElectricity AbsoluteFuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs TotalPortfolio Landlord-Actual kWh 6,586,971 6,006,730 -9% 5,132,341 4,711,505 -8% 1,454,630 1,295,225 -11% Landlord- Estimated kWh 906 5,013 453% 497 5,013 909% 409 - -100% Landlord-Total kWh 6,587,877 6,011,743 -9% 5,132,838 4,716,518 -8% 1,455,039 1,295,225 -11% Landlord-Total Estimated % 0.01% 0.08% 506.04% 0.01% 0.11% 997.78% 0.03% 0.00% -100.00% Coverage (landlord- procured consumption) % 98.47% 98.47% 0% 98.47% 98.47% 0% 98.47% 98.47% 0% Generated off-siteand purchasedby landlord kWh 5,018,904 4,631,307 -8% 5,018,904 4,631,307 -8% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 76.18% 77.04% 1.12% 97.78% 98.19% 0.42% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 28.71 26.20 -9% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Office: Corporate:Low- RiseOffice Landlord-Actual kWh 1,066,430 898,565 -16% 561,034 515,604 -8% 505,396 382,961 -24% Landlord- Estimated kWh 673 6,999 941% 263 6,999 2560% 409 - -100% Landlord-Total kWh 1,067,103 905,564 -15% 561,297 522,603 -7% 505,805 382,961 -24% Landlord-Total Estimated % 0.06% 0.77% 1126.13% 0.05% 1.34% 2756.79% 0.08% 0.00% -100.00% Coverage (landlord- procured consumption) % 83.27% 83.27% 0% 83.27% 83.27% 0% 83.27% 83.27% 0% Generated off-siteand purchasedby landlord kWh 555,105 464,549 -16% 555,105 464,549 -16% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 52.02% 51.30% -1.38% 98.90% 88.89% -10.12% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 25.95 21.72 -16% - - - - - - 99 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels AbsoluteEnergy AbsoluteElectricity AbsoluteFuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, District Heating& Cooling-Abs Retail:High Street Landlord-Actual kWh 12,441 11,367 -9% 12,441 11,367 -9% - - - Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 12,441 11,367 -9% 12,441 11,367 -9% - - - Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% - - - Generated off-siteand purchasedby landlord kWh 12,441 11,367 -9% 12,441 11,367 -9% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity kWh/m2 /year 64.01 58.49 -9% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, District Heating& Cooling-Abs Industrial: Refrigerated Warehouse Landlord-Actual kWh 1,691 7,607 350% 1,691 7,607 350% - - - Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 1,691 7,607 350% 1,691 7,607 350% - - - Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% - - - Generated off-siteand purchasedby landlord kWh 1,687 6,416 280% 1,687 6,416 280% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 99.76% 84.35% -15.44% 99.76% 84.35% -15.44% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity kWh/m2 /year 0.09 0.35 280% - - - - - - 100 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels AbsoluteEnergy AbsoluteElectricity AbsoluteFuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, District Heating& Cooling-Abs Mixeduse: Other Landlord-Actual kWh 1,943,287 1,770,655 -9% 1,943,287 1,770,655 -9% - - - Landlord- Estimated kWh 83 77 -6% 83 77 -6% - - - Landlord-Total kWh 1,943,370 1,770,733 -9% 1,943,370 1,770,733 -9% - - - Landlord-Total Estimated % 0.00% 0.00% 2.87% 0.00% 0.00% 2.87% - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% - - - Generated off-siteand purchasedby landlord kWh 1,943,114 1,770,512 -9% 1,943,114 1,770,512 -9% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 99.99% 99.99% 0.00% 99.99% 99.99% 0.00% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity kWh/m2 /year 96.65 88.06 -9% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, District Heating& Cooling-Abs Industrial: Manufacturing Landlord-Actual kWh 1,442,378 1,466,040 2% 1,006,809 1,052,187 5% 435,570 413,853 -5% Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 1,442,378 1,466,040 2% 1,006,809 1,052,187 5% 435,570 413,853 -5% Landlord-Total Estimated % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100% 0.00% 100.00% 100.00% 0% Generated off-siteand purchasedby landlord kWh 1,006,809 1,052,187 5% 1,006,809 1,052,187 5% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 69.80% 71.77% 2.82% 100.00% 100.00% 0.00% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 26.04 27.22 5% - - - - - - 101 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels AbsoluteEnergy AbsoluteElectricity AbsoluteFuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Lodging, Leisure& Recreation: Other Landlord-Actual kWh 208,528 233,649 12% 208,528 233,649 12% - - - Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 208,528 233,649 12% 208,528 233,649 12% - - - Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% - - - Generated off-siteand purchasedby landlord kWh 208,528 233,649 12% 208,528 233,649 12% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - Generated off-siteand purchasedby landlord % 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity Landlord- Intensity kWh/m2 /year 60.23 67.49 12% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, District Heating& Cooling-Abs Office: Corporate:Mid- RiseOffice Landlord-Actual kWh 678,958 640,232 -6% 281,994 259,791 -8% 396,963 380,442 -4% Landlord- Estimated kWh 151 - -100% 151 - -100% - - Landlord-Total kWh 679,109 640,232 -6% 282,145 259,791 -8% 396,963 380,442 -4% Landlord-Total Estimated % 0.02% 0.00% -100.00% 0.05% 0.00% -100.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0% Generated off-siteand purchasedby landlord kWh 277,276 259,791 -6% 277,276 259,791 -6% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - Generated off-siteand purchasedby landlord % 40.83% 40.58% -0.62% 98.27% 100.00% 1.76% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 52.30 49.01 -6% - - - - - - 102 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels AbsoluteEnergy AbsoluteElectricity AbsoluteFuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, District Heating& Cooling-Abs Industrial:Non- refrigerated Warehouse Landlord-Actual kWh 617,722 466,322 -25% 613,449 466,252 -24% 4,273 70 -98% Landlord- Estimated kWh - -2,063 - -2,063 - - Landlord-Total kWh 617,722 464,259 -25% 613,449 464,189 -24% 4,273 70 -98% Landlord-Total Estimated % 0.00% -0.44% 0.00% -0.44% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0% Generated off-siteand purchasedby landlord kWh 512,732 438,443 -14% 512,732 438,443 -14% - - Generated on-siteand purchasedby landlord kWh - - - - - - Generated off-siteand purchasedby landlord % 83.00% 94.44% 13.78% 83.58% 94.45% 13.01% 0.00% 0.00% Generated on-siteand purchasedby landlord % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Energy-Int Landlord- Intensity kWh/m2 /year 5.02 4.29 -14% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, District Heating& Cooling-Abs Mixeduse: Office/Retail Landlord-Actual kWh 592,043 496,376 -16% 479,615 378,478 -21% 112,428 117,898 5% Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 592,043 496,376 -16% 479,615 378,478 -21% 112,428 117,898 5% Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0% Generated off-siteand purchasedby landlord kWh 479,615 378,478 -21% 479,615 378,478 -21% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 81.01% 76.25% -5.88% 100.00% 100.00% 0.00% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 57.20 45.13 -21% - - - - - - 103 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued AbsoluteEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels AbsoluteEnergy AbsoluteElectricity AbsoluteFuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, District Heating& Cooling-Abs Retail:Retail Centers: Warehouse Landlord-Actual kWh 23,492 15,915 -32% 23,492 15,915 -32% - - - Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 23,492 15,915 -32% 23,492 15,915 -32% - - - Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% 0.00% 0.00% - Generated off-siteand purchasedby landlord kWh 21,596 15,915 -26% 21,596 15,915 -26% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 91.93% 100.00% 8.78% 91.93% 100.00% 8.78% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity kWh/m2 /year 1.88 1.39 -26% - - - - - - 104 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued — Consumption-Consumptiondatarelatestothemanaged portfolioonlyfor: — Industrial:RefrigeratedWarehouse,Industrial: Manufacturing,Retail:RetailCenters:Warehouse,Mixed Use:Other,Retail:HighStreet,MixedUse:Other,Lodging, Leisure&Recreation;wholebuilding,whereprocuredby thelandlord. – Office:Corporate:Low-RiseOffice,Office:Corporate: Mid-RiseOffice,Industrial:Non-refrigerated Warehouse,MixedUse:Office/Retail;wholebuilding, commonparts&tenantspaces,whereprocuredby thelandlord. – Energyprocureddirectlybytenantsisnotreported. – Percentageofdataestimatedprorataacross2023 and2024:0.01%and0.08%respectively. — Renewableelectricity(%)iscalculatedaccordingtothe attributesofenergysupplycontractsasat31December 2024andonlyreflectsrenewableelectricityprocured undera100%‘greentariff‘(i.e.wheregenerationisfrom a100%renewablesource).Therenewablespercentage ofstandard(non-‘greentariff’)energysuppliesarenot currentlyknownandthereforehasnotbeenincluded withinthisnumber. — Intensity:Numerators/denominatorsarealignedatthe sectorlevelasfollows: – Lodging,Leisure,&Recreation:Other,Retail:High Street&MixedUse:OtherCommonareasenergy consumption(kWh)dividedbycommonpartsarea (CPAm2); – Allothersectors–Commonareasandsharedservice orwholebuildingenergyconsumption(kWh)divided bygrossinternalarea(GIAm2) — Allenergywasprocuredfromathird-partysupplier.No ‘self-generated’renewableenergywasconsumedduring thereportingperiodandthereforeisnotpresentedhere. — Coverage(landlord-procuredconsumption)relatestothe proportionofassetsforwhichlandlordobtaineddatahas beenreported: – Anassetinthe‘Office:Corporate:Low-RiseOffice’ sectorhasbeenremovedduetodataqualityissues whichareunderinvestigationwiththesupplier. — Whereappropriate(forrelevantassets),consumption dataandassetNLA/GIAhasbeenadjustedtoreflectthe Company’sshareofownership. 105 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Total energy consumption (Elec-LfL; Fuels-LfL; Energy-Int) ThetablebelowsetsouttotallandlordobtainedenergyconsumptionfromtheCompany’smanagedlike-for-like(L4L)portfolio bysector: L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels L4L-Energy L4L-Electricity L4L-Fuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs TotalPortfolio Landlord-Actual kWh 6,080,015 5,797,357 -5% 4,887,888 4,577,681 -6% 1,192,127 1,219,677 2% Landlord- Estimated kWh 906 388 -57% 497 388 -22% 409 - -100% Landlord-Total kWh 6,080,922 5,797,746 -5% 4,888,385 4,578,069 -6% 1,192,537 1,219,677 2% Landlord-Total Estimated % 0.01% 0.01% -55.05% 0.01% 0.01% -16.53% 0.03% 0.00% -100.00% Coverage (landlord- procured consumption) % 98.44% 98.44% 0% 98.44% 98.44% 0% 98.44% 98.44% 0% Generated off-siteand purchasedby landlord kWh 4,774,451 4,492,858 -6% 4,774,451 4,492,858 -6% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 78.52% 77.49% -1.30% 97.67% 98.14% 0.48% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 27.10 25.84 -5% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Office: Corporate: Low-Rise Office Landlord-Actual kWh 559,474 689,193 23% 316,582 381,780 21% 242,893 307,413 27% Landlord- Estimated kWh 673 2,374 253% 263 2,374 802% 409 - -100% Landlord-Total kWh 560,147 691,567 23% 316,845 384,154 21% 243,302 307,413 26% Landlord-Total Estimated % 0.12% 0.34% 185.89% 0.08% 0.62% 644.18% 0.17% 0.00% -100.00% Coverage (landlord- procured consumption) % 78.76% 78.76% 0% 78.76% 78.76% 0% 78.76% 78.76% 0% Generated off-siteand purchasedby landlord kWh 310,653 326,100 5% 310,653 326,100 5% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 55.46% 47.15% -14.98% 98.05% 84.89% -13.42% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 19.09 20.04 5% - - - - - - 106 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels L4L-Energy L4L-Electricity L4L-Fuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Retail:High Street Landlord-Actual kWh 12,441 11,367 -9% 12,441 11,367 -9% - - - Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 12,441 11,367 -9% 12,441 11,367 -9% - - - Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% - - - Generated off-siteand purchasedby landlord kWh 12,441 11,367 -9% 12,441 11,367 -9% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity kWh/m2 /year 64.01 58.49 -9% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Industrial: Refrigerated Warehouse Landlord-Actual kWh 1,691 7,607 350% 1,691 7,607 350% - - - Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 1,691 7,607 350% 1,691 7,607 350% - - - Landlord-Total Estimated % 0.00% 0.00% 0.00% 0.00% - - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% 18,392 18,392 0% Generated off-siteand purchasedby landlord kWh 1,687 6,416 280% 1,687 6,416 280% - - - Generated on-siteand purchasedby landlord kWh - - - - - - 0.00% 0.00% 0.00% Generated off-siteand purchasedby landlord % 99.76% 84.35% -15.44% 99.76% 84.35% -15.44% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity kWh/m2 /year 0.09 0.35 280% - - - - - - 107 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels L4L-Energy L4L-Electricity L4L-Fuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Mixeduse: Other Landlord-Actual kWh 1,943,287 1,770,655 -9% 1,943,287 1,770,655 -9% - - - Landlord- Estimated kWh 83 77 -6% 83 77 -6% - - - Landlord-Total kWh 1,943,370 1,770,733 -9% 1,943,370 1,770,733 -9% - - - Landlord-Total Estimated % 0.00% 0.00% 2.87% 0.00% 0.00% 2.87% - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% - - - Generated off-siteand purchasedby landlord kWh 1,943,114 1,770,512 -9% 1,943,114 1,770,512 -9% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 99.99% 99.99% 0.00% 99.99% 99.99% 0.00% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity kWh/m2 /year 96.65 88.06 -9% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Industrial: Manufacturing Landlord-Actual kWh 1,442,378 1,466,040 2% 1,006,809 1,052,187 5% 435,570 413,853 -5% Landlord- Estimated kWh - - - - - - - - Landlord-Total kWh 1,442,378 1,466,040 2% 1,006,809 1,052,187 5% 435,570 413,853 -5% Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0% Generated off-siteand purchasedby landlord kWh 1,006,809 1,052,187 5% 1,006,809 1,052,187 5% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 69.80% 71.77% 2.82% 100.00% 100.00% 0.00% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 26.04 27.22 5% - - - - - - 108 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels L4L-Energy L4L-Electricity L4L-Fuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Lodging, Leisure& Recreation: Other Landlord-Actual kWh 208,528 233,649 12% 208,528 233,649 12% - - - Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 208,528 233,649 12% 208,528 233,649 12% - - - Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% - - - Generated off-siteand purchasedby landlord kWh 208,528 233,649 12% 208,528 233,649 12% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 100.00% 100.00% 0.00% 100.00% 100.00% 0.00% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity kWh/m2 /year 60.23 67.49 12% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Office: Corporate: Mid-Rise Office Landlord-Actual kWh 678,958 640,232 -6% 281,994 259,791 -8% 396,963 380,442 -4% Landlord- Estimated kWh 151 - -100% 151 - -100% - - - Landlord-Total kWh 679,109 640,232 -6% 282,145 259,791 -8% 396,963 380,442 -4% Landlord-Total Estimated % 0.02% 0.00% -100.00% 0.05% 0.00% -100.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0% Generated off-siteand purchasedby landlord kWh 277,276 259,791 -6% 277,276 259,791 -6% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 40.83% 40.58% -0.62% 98.27% 100.00% 1.76% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 52.30 49.01 -6% - - - - - - 109 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels L4L-Energy L4L-Electricity L4L-Fuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Industrial: Non- refrigerated Warehouse Landlord-Actual kWh 617,722 466,322 -25% 613,449 466,252 -24% 4,273 70 -98% Landlord- Estimated kWh - -2,063 - - -2,063 - - - - Landlord-Total kWh 617,722 464,259 -25% 613,449 464,189 -24% 4,273 70 -98% Landlord-Total Estimated % 0.00% -0.44% - 0.00% -0.44% - 0.00% 0.00% - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0% Generated off-siteand purchasedby landlord kWh 512,732 438,443 -14% 512,732 438,443 -14% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 83.00% 94.44% 13.78% 83.58% 94.45% 13.01% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 5.02 4.29 -14% - - - - - - Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Mixeduse: Office/Retail Landlord-Actual kWh 592,043 496,376 -16% 479,615 378,478 -21% 112,428 117,898 5% Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 592,043 496,376 -16% 479,615 378,478 -21% 112,428 117,898 5% Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% 100.00% 100.00% 0% Generated off-siteand purchasedby landlord kWh 479,615 378,478 -21% 479,615 378,478 -21% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 81.01% 76.25% -5.88% 100.00% 100.00% 0.00% 0.00% 0.00% - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - 0.00% 0.00% - Energy-Int Landlord- Intensity kWh/m2 /year 57.20 45.13 -21% - - - - - - 110 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued L4LEnergy/Electricity/DistrictHeating&DistrictCooling/Fuels L4L-Energy L4L-Electricity L4L-Fuel EPRACode Sector EPRACategory Unitsof Measure 2023 2024 %Change 2023 2024 %Change 2023 2024 %Change Energy-Abs, Electricity-Abs, Fuels-Abs, DistrictHeating &Cooling-Abs Retail:Retail Centers: Warehouse Landlord-Actual kWh 23,492 15,915 -32% 23,492 15,915 -32% - - - Landlord- Estimated kWh - - - - - - - - - Landlord-Total kWh 23,492 15,915 -32% 23,492 15,915 -32% - - - Landlord-Total Estimated % 0.00% 0.00% - 0.00% 0.00% - - - - Coverage (landlord- procured consumption) % 100.00% 100.00% 0% 100.00% 100.00% 0% - - - Generated off-siteand purchasedby landlord kWh 21,596 15,915 -26% 21,596 15,915 -26% - - - Generated on-siteand purchasedby landlord kWh - - - - - - - - - Generated off-siteand purchasedby landlord % 91.93% 100.00% 8.78% 91.93% 100.00% 8.78% - - - Generated on-siteand purchasedby landlord % 0.00% 0.00% - 0.00% 0.00% - - - - Energy-Int Landlord- Intensity kWh/m2 /year 1.88 1.39 -26% - - - - - - 111 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued — Like-for-likeexcludesassetsthatwerepurchased,sold, undermajorrefurbishmentorsubjecttoasignificant changeinthescopeofreporteddataduringthetwo yearsreported. — Consumptiondatarelatestothemanagedportfolioonly for: – Industrial:RefrigeratedWarehouse,Industrial: Manufacturing,Retail:RetailCenters:Warehouse, MixedUse:Other,Retail:HighStreet,MixedUse: Other,Lodging,Leisure&Recreation;wholebuilding, whereprocuredbythelandlord. – Office:Corporate:Low-RiseOffice,Office:Corporate: Mid-RiseOffice,Industrial:Non-refrigerated Warehouse,MixedUse:Office/Retail;wholebuilding, commonparts&tenantspaces,whereprocuredby thelandlord. – Energyprocureddirectlybytenantsisnotreported. — Percentageofdataestimatedpro-rataacross2023and 2024:0.01%and0.01%respectively. — Renewableelectricity(%)iscalculatedaccordingtothe attributesofenergysupplycontractsasat31December 2024andonlyreflectsrenewableelectricityprocured undera100%‘greentariff‘(i.e.wheregenerationisfrom a100%renewablesource).Therenewablespercentage ofstandard(non-‘greentariff’)energysuppliesarenot currentlyknownandthereforehasnotbeenincluded withinthisnumber. – Lodging,LeisureandRecreation:Other,Retail:High Street&MixedUse:Other–Commonareasenergy consumption(kWh)dividedbycommonpartsarea (CPAm2) – Allothersectors–Commonareasandsharedservice orwholebuildingenergyconsumption(kWh)divided bygrossinternalarea(GIAm2) — Allenergywasprocuredfromathird-partysupplier.No ‘self-generated’renewableenergywasconsumedduring thereportingperiodandthereforeisnotpresentedhere. — Coverage(landlord-procuredconsumption)relatestothe proportionofassetsforwhichlandlordobtaineddatahas beenreported. – Anassetinthe‘Office:Corporate:Low-RiseOffice’ sectorhasbeenremovedduetodataqualityissues whichareunderinvestigationwiththesupplier. — Whereappropriate(forrelevantassets),consumption dataandassetNLA/GIAhasbeenadjustedtoreflectthe Company’sshareofownership. — VarianceCommentary: – The350%increaseinlike-for-likeenergyconsumption fortheIndustrial:RefrigeratedWarehousesector isinfluencedbyanincreaseinvoidunitsin2024 wherebythelandlordtakesbackresponsibilityfor utilities. – The25%reductioninlike-for-likeenergyconsumption fortheIndustrial:Non-refrigeratedWarehousesector isinfluencedbyoccupancychangesacrossStanley GreenTradingEstate. – The32%reductioninlike-for-likeenergyconsumption fortheRetail:RetailCenters:Warehousesectoris influencedbycarparklightingupgradesatStJohn’s RetailPark. 112 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Greenhouse gas emissions (GHG-Dir-Abs; GHG-Indir-Abs; GHG-Int) ThetablebelowsetsouttheCompany’smanagedportfoliogreenhousegasemissionsbysector. GHG EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change GHG-Dir-Abs, GHG-Dir-L4L TotalPortfolio Scope1-Actual tCO2e 266.1 236.9 218.1 223.1 2% Scope1-Estimated tCO2e 0.1 - 0.1 - -100% Scope2-Actual tCO2e 1062.8 975.5 1012.2 947.8 -6% Scope2-Estimated tCO2e 0.1 1.0 0.1 0.1 -22% Scope1&2-Total tCO2e 1329.0 1213.5 1230.4 1171.0 -5% Scope1&2-Estimated % 0.01% 0.09% 0.01% 0.01% -0.01% Coverage(landlord-procured consumption) % 98.47% 98.47% 98.44% 98.44% -% GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 5.8 5.3 5.5 5.2 -5% GHG-Dir-Abs, GHG-Dir-L4L Office: Corporate:Low- RiseOffice Scope1-Actual tCO2e 92.5 70.0 44.4 56.2 27% Scope1-Estimated tCO2e 0.1 - 0.1 - -100% Scope2-Actual tCO2e 116.2 106.8 65.6 79.0 21% Scope2-Estimated tCO2e 0.1 1.4 0.1 0.5 802% Scope1&2-Total tCO2e 208.8 178.2 110.1 135.8 23% Scope1&2-Estimated % 0.06% 0.81% 0.12% 0.36% 0.24% Coverage(landlord-procured consumption) % 83.27% 83.27% 78.76% 78.76% 0% GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 9.8 8.3 6.8 8.3 23% GHG-Dir-Abs, GHG-Dir-L4L Retail:High Street Scope1-Actual tCO2e - - - - - Scope1-Estimated tCO2e - - - - - Scope2-Actual tCO2e 2.6 2.4 2.6 2.4 -9% Scope2-Estimated tCO2e - - - - - Scope1&2-Total tCO2e 2.6 2.4 2.6 2.4 -9% Scope1&2-Estimated % -% -% -% -% -% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% -% GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 13.3 12.1 13.3 12.1 -9% GHG-Dir-Abs, GHG-Dir-L4L Industrial: Refrigerated Warehouse Scope1-Actual tCO2e 0.0 0.0 0.0 0.0 - Scope1-Estimated tCO2e 0.0 0.0 0.0 0.0 - Scope2-Actual tCO2e 0.4 1.6 0.4 1.6 350% Scope2-Estimated tCO2e 0.0 0.0 0.0 0.0 - Scope1&2-Total tCO2e 0.4 1.6 0.4 1.6 350% Scope1&2-Estimated % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% -% GHG-Int Scope1&2-Intensity kgCO2e/m2 /year - 0.1 - 0.1 350% GHG-Dir-Abs, GHG-Dir-L4L Mixeduse: Other Scope1-Actual tCO2e - - - - - Scope1-Estimated tCO2e - - - - - Scope2-Actual tCO2e 402.4 366.6 402.4 366.6 -9% Scope2-Estimated tCO2e - - - - -6% Scope1&2-Total tCO2e 402.4 366.6 402.4 366.6 -9% Scope1&2-Estimated % -% -% -% -% -% Coverage(landlord-procured consumption) % 1000% 100.00% 100.00% 100.00% -% 113 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued GHG EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 20.0 18.2 20.0 18.2 -9% GHG-Dir-Abs, GHG-Dir-L4L Industrial: Manufacturing Scope1-Actual tCO2e 79.7 75.7 79.7 75.7 -5% Scope1-Estimated tCO2e - - - - - Scope2-Actual tCO2e 208.5 217.9 208.5 217.9 4% Scope2-Estimated tCO2e - - - - - Scope1&2-Total tCO2e 288.2 293.5 288.2 293.5 2% Scope1&2-Estimated % -% -% -% -% -% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0% GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 7.5 7.6 7.5 7.6 2% GHG-Dir-Abs, GHG-Dir-L4L Lodging,Leisure &Recreation: Other Scope1-Actual tCO2e - - - - - Scope1-Estimated tCO2e - - - - - Scope2-Actual tCO2e 43.2 48.4 43.2 48.4 12% Scope2-Estimated tCO2e - - - - - Scope1&2-Total tCO2e 43.2 48.4 43.2 48.4 12% Scope1&2-Estimated % -% -% -% -% 0.00% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0% GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 12.5 14.0 12.5 14.0 12% GHG-Dir-Abs, GHG-Dir-L4L Office: Corporate:Mid- RiseOffice Scope1-Actual tCO2e 72.6 69.6 72.6 69.6 -4% Scope1-Estimated tCO2e - - - - - Scope2-Actual tCO2e 58.4 53.8 58.4 53.8 -8% Scope2-Estimated tCO2e - - - - -100% Scope1&2-Total tCO2e 131.0 123.4 131.0 123.4 -6% Scope1&2-Estimated % 0.02% -% 0.02% -% -0.02% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0% GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 24.7 23.3 24.7 23.3 -6% GHG-Dir-Abs, GHG-Dir-L4L Industrial: Non-refrigerated Warehouse Scope1-Actual tCO2e 0.8 - 0.8 - -98% Scope1-Estimated tCO2e - - - - - Scope2-Actual tCO2e 127.0 96.5 127.0 96.5 -24% Scope2-Estimated tCO2e - -0.4 - -0.4 - Scope1&2-Total tCO2e 127.8 96.1 127.8 96.1 -25% Scope1&2-Estimated % 0.00% -0.44% -% -0.44% -0.44% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% -% 114 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued GHG EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 1.3 0.9 1.3 0.9 -25% GHG-Dir-Abs, GHG-Dir-L4L Mixeduse: Office/Retail Scope1-Actual tCO2e 20.6 21.6 20.6 21.6 5% Scope1-Estimated tCO2e - - - - - Scope2-Actual tCO2e 99.3 78.4 99.3 78.4 -21% Scope2-Estimated tCO2e - - - - - Scope1&2-Total tCO2e 119.9 99.9 119.9 99.9 -17% Scope1&2-Estimated % -% -% -% -% -% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% -% GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 14.3 11.9 14.3 11.9 -17% GHG-Dir-Abs, GHG-Dir-L4L Retail:Retail Centers: Warehouse Scope1-Actual tCO2e - - - - - Scope1-Estimated tCO2e - - - - - Scope2-Actual tCO2e 4.9 3.3 4.9 3.3 -32% Scope2-Estimated tCO2e - - - - - Scope1&2-Total tCO2e 4.9 3.3 4.9 3.3 -32% Scope1&2-Estimated % -% -% -% -% -% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% -% GHG-Int Scope1&2-Intensity kgCO2e/m2 /year 0.4 0.3 0.4 0.3 -32% 115 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued — Like-for-likeexcludesassetsthatwerepurchased,sold, undermajorrefurbishmentorsubjecttoasignificant changeinthescopeofreporteddataduringthetwo yearsreported. — TheCompany’sgreenhousegas(GHG)inventoryhasbeen developedasfollows: – Scope1GHGemissionsrelatetotheuseofonsite naturalgas;and – Scope2GHGemissionsrelatetotheuseofelectricity. — UKGovernmentconversionfactorsforgreenhousegas (GHG)reportingadoptedasfollows: – NaturalGas(fuels)(Scope1):2023=0.182900kWh/ kgCO2e;2024=0.182900kWh/kgCO2e – Gridsuppliedelectricity(Scope2):2023=0.207074 kWh/kgCO2e;2024=0.207050kWh/kgCO2e — GHGemissionsfromelectricity(Scope2)arereported accordingtothe‘location-based’approach. — GHGemissionsarepresentedastonnesofcarbondioxide equivalent(tCO2e)andGHGintensityispresentedas kilogramsofcarbondioxideequivalent(kgCO2e),where availablegreenhousegasemissionsconversionfactors allow. — Fuels/electricityGHGemissionsfactorshavebeentaken fromtheUKgovernment’sGreenhouseGasReporting FactorsforCompanyReporting(2023and2024). — Emissiondatarelatestothemanagedportfolioonlyfor: — Industrial:RefrigeratedWarehouse,Industrial: Manufacturing,Retail:RetailCenters:Warehouse,Mixed Use:Other,Retail:HighStreet,MixedUse:Other,Lodging, Leisure&Recreation;wholebuilding,whereprocuredby thelandlord. — Office:Corporate:Low-RiseOffice,Office:Corporate:Mid- RiseOffice,Industrial:Non-refrigeratedWarehouse,Mixed Use:Office/Retail;wholebuilding,commonparts&tenant spaces,whereprocuredbythelandlord. — Emissionsassociatedwithenergyprocureddirectlyby tenantsisnotreported. — Percentageofdataestimatedpro-rataacross2023and 2024:0.01%and0.09%forelectricityandgas,respectively. — Intensity:Numerators/denominatorsarealignedatthe sectorlevelasfollows: — Lodging,Leisure,&Recreation:Other,Retail:HighStreet &Retail:MIxedUse:Other–Commonareasenergy consumption(kWh)dividedbycommonpartsarea(CPA m2); — Allothersectors–Commonareasandsharedserviceor wholebuildingenergyconsumption(kWh)dividedbygross internalarea(GIAm2) — Coverage(landlord-procuredconsumption)relatestothe proportionofassetsforwhichlandlord-obtaineddatahas beenreported. — Anassetinthe‘Office:Corporate:Low-RiseOffice’sector hasbeenremovedduetodataqualityissueswhichare underinvestigationwiththesupplier. — Whereappropriate(forrelevantassets),consumption dataandassetNLA/GIAhasbeenadjustedtoreflectthe Company’sshareofownership. — VarianceCommentary: – GiventheinsignificantdifferencesinUKGreenhouse Gas(GHG)emissionsfactorsforbothelectricityand naturalgasbetween2023and2024,GHGemissions presentedinthisreportcanbereadinconjunction withthelike-for-likeenergyconsumptionvariance commentarypresentedabove. 116 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Water (Water-Abs; Water-LfL; Water-Int) ThetablebelowsetsoutwaterconsumptionfromtheCompany’smanagedportfoliobysector. Water EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change Water-Abs,Water- L4L Totallandlord-obtainedwater- Actual m3 18,563 17,472 17,671 17,076 -3% Totallandlord-obtainedwater- Estimated m3 7 211 7 200 2908% Totallandlord-obtainedwater -Total m3 18,570 17,683 17,677 17,276 -2% Totallandlord-obtainedwater- Estimated % 0.04% 1.19% 0.04% 1.16% 1.12% Coverage(landlord-procured consumption) % 84.15% 84.15% 83.65% 83.65% 0% Water-Int TotalPortfolio TotalWaterIntensity(Landlord) m3/m2/year 0.08 0.08 0.08 0.08 -2% Water-Abs,Water- L4L Office:Corporate: Low-RiseOffice Totallandlord-obtainedwater- Actual m3 5,881 5,512 4,988 5,116 3% Totallandlord-obtainedwater- Estimated m3 2 25 2 14 764% Totallandlord-obtainedwater -Total m3 5,882 5,537 4,990 5,130 3% Totallandlord-obtainedwater- Estimated % 0.03% 0.46% 0.03% 0.28% 0.25% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0% Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.27 0.26 0.31 0.32 3% Water-Abs,Water- L4L Retail:HighStreet Totallandlord-obtainedwater- Actual m3 2,960 3,142 2,960 3,142 6% Totallandlord-obtainedwater- Estimated m3 - 24 - 24 - Totallandlord-obtainedwater -Total m3 2,960 3,166 2,960 3,166 7% Totallandlord-obtainedwater- Estimated % 0.00% 0.75% 0.00% 0.75% 0.75% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0.00% Water-Int TotalWaterIntensity(Landlord) m3/m2/year 15.23 16.29 15.23 16.29 7% Water-Abs,Water- L4L Industrial: Refrigerated Warehouse Totallandlord-obtainedwater- Actual m3 - - - - - Totallandlord-obtainedwater- Estimated m3 - - - - - Totallandlord-obtainedwater -Total m3 - - - - - Totallandlord-obtainedwater- Estimated % - - - - - Coverage(landlord-procured consumption) % - - - - - Water-Int TotalWaterIntensity(Landlord) m3/m2/year - - - - - 117 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Water EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change Water-Abs,Water- L4L Mixeduse:Other Totallandlord-obtainedwater- Actual m3 3,029 3,629 3,029 3,629 20% Totallandlord-obtainedwater- Estimated m3 5 3 5 3 -50% Totallandlord-obtainedwater -Total m3 3,034 3,632 3,034 3,632 20% Totallandlord-obtainedwater- Estimated % 0.16% 0.07% 0.16% 0.07% -0.10% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0.00% Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.15 0.18 0.15 0.18 20% Water-Abs,Water- L4L Industrial: Manufacturing Totallandlord-obtainedwater- Actual m3 - - - - - Totallandlord-obtainedwater- Estimated m3 - - - - - Totallandlord-obtainedwater -Total m3 - - - - - Totallandlord-obtainedwater- Estimated % - - - - - Coverage(landlord-procured consumption) % 0.00% 0.00% 0.00% 0.00% 0.00% Water-Int TotalWaterIntensity(Landlord) m3/m2/year - - - - - Water-Abs,Water- L4L Lodging,Leisure &Recreation: Other Totallandlord-obtainedwater- Actual m3 143 80 143 80 -44% Totallandlord-obtainedwater- Estimated m3 - - - - - Totallandlord-obtainedwater -Total m3 143 80 143 80 -44% Totallandlord-obtainedwater- Estimated % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0% Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.04 0.02 0.04 0.02 -44% Water-Abs,Water- L4L Office:Corporate: Mid-RiseOffice Totallandlord-obtainedwater- Actual m3/m2/year - - - - - Totallandlord-obtainedwater- Estimated m3 - - - - - Totallandlord-obtainedwater -Total m3 - - - - - Totallandlord-obtainedwater- Estimated m3 - - - - - Coverage(landlord-procured consumption) % 0.00% 0.00% 0.00% 0.00% 0% Water-Int TotalWaterIntensity(Landlord) m3/m2/year - - - - - Water-Abs,Water- L4L Industrial: Non-refrigerated Warehouse Totallandlord-obtainedwater- Actual m3 452 152 452 152 -66% Totallandlord-obtainedwater- Estimated m3 - 159 - 159 Totallandlord-obtainedwater -Total m3 452 311 452 311 -31% Totallandlord-obtainedwater- Estimated % 0.00% 51.24% 0.00% 51.24% 51.24% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0% Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.00 0.00 0.00 0.00 -31% 118 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Water EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change Water-Abs,Water- L4L Mixeduse:Office/ Retail Totallandlord-obtainedwater- Actual m3 5,797 4,629 5,797 4,629 -20% Totallandlord-obtainedwater- Estimated m3 - - - - Totallandlord-obtainedwater -Total m3 5,797 4,629 5,797 4,629 -20% Totallandlord-obtainedwater- Estimated % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0.00% Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.69 0.55 0.69 0.55 -20% Water-Abs,Water- L4L Retail:Retail Centers: Warehouse Totallandlord-obtainedwater- Actual m3 301 328 301 328 9% Totallandlord-obtainedwater- Estimated m3 - - - - Totallandlord-obtainedwater -Total m3 301 328 301 328 9% Totallandlord-obtainedwater- Estimated % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage(landlord-procured consumption) % 100.00% 100.00% 100.00% 100.00% 0.00% Water-Int TotalWaterIntensity(Landlord) m3/m2/year 0.03 0.03 0.03 0.03 9% 119 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued — Like-for-likeexcludesassetsthatwerepurchased,sold, undermajorrefurbishmentorsubjecttoasignificant changeinthescopeofreporteddataduringthetwo yearsreported. — Like-for-likeexcludesassetsthatwerepurchased,sold, undermajorrefurbishmentorsubjecttoasignificant changeinthescopeofreporteddataduringthetwoyears reported. — Consumptiondatarelatestothemanagedportfolio onlyfor: – Industrial:RefrigeratedWarehouse,Industrial: Manufacturing,Retail:RetailCenters:Warehouse, MixedUse:Other,Retail:HighStreet,MixedUse: Other,Lodging,Leisure&Recreation;wholebuilding, whereprocuredbythelandlord. – Office:Corporate:Low-RiseOffice,Office:Corporate: Mid-RiseOffice,Industrial:Non-refrigerated Warehouse,MixedUse:Office/Retail;wholebuilding, commonparts&tenantspaces,whereprocuredby thelandlord. – Waterprocureddirectlybytenantsisnotreported. — Allwaterwasprocuredfromamunicipalsupply.Asfaras weareaware,nosurface,ground,rainwaterorwastewater fromanotherorganisationwasconsumedduringthe reportingperiodandthereforeisnotpresentedhere. — Percentageofdataabsoluteestimatedpro-rataacross both2023and2024:0.4%and1.18%. — Intensity:Numerators/denominatorsarealignedas follows: – Lodging,LeisureandRecreation:Other,Retail:High Street&MixedUse:Other–Commonareasenergy consumption(kWh)dividedbycommonpartsarea (CPAm2); – Allothersectors–Commonareasandsharedservice orwholebuildingenergyconsumption(kWh)divided bygrossinternalarea(GIAm2). — Coverage(landlord-procuredconsumption)relatestothe proportionofassetsforwhichlandlord-obtaineddatahas beenreported. – Anassetinthe‘Office:Corporate:Mid-RiseOffice’ sectorhasbeenremovedduetodataqualityissues whichareunderinvestigationwiththesupplierand propertymanager. — Whereappropriate(forrelevantassets),consumption dataandassetNLA/GIAhasbeenadjustedtoreflectthe Company’sshareofownership. — Variancecommentary: – The20%increaseinlike-for-likewaterconsumption fortheMixedUse:Othersectorisinfluencedby fit-outactivityandincreasedstudentoccupancyon educationalfloors. – The20%reductioninlike-for-likewaterconsumption fortheMixedUse:Office/Retailsectorisinfluenced byoccupancychangesaswellastheresolutionofa waterleak. – The31%reductioninlike-for-likewaterconsumption fortheIndustrial:Non-refrigeratedWarehousesector isinfluencedbyoccupancychanges. – The44%reductioninlike-for-likewaterconsumption fortheLodging,Leisure&Recreation:Othersector isinfluencedbythesiteteamhavingreducedjet washing. 120 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Waste (Waste-Abs; Waste-LfL) ThetablebelowsetsoutwastefromtheCompany’smanagedPortfoliobydisposalrouteandsector. Waste EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change Waste-Abs, Waste-L4L TotalPortfolio Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes 552 427 544 424 -22% Reuse Tonnes - - - - - EnergyRecovery Tonnes 142 350 126 347 175% Other Tonnes - - - - - Total Tonnes 694 777 670 771 15% Landfill % 0.00% 0.00% 0.00% 0.00% 0.00% Incineration % 0.00% 0.00% 0.00% 0.00% 0.00% Recycling % 79.58% 54.98% 81.20% 55.02% -26.17% Reuse % 0.00% 0.00% 0.00% 0.00% 0.00% EnergyRecovery % 20.42% 45.02% 18.80% 44.98% 26.17% Other % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage (landlord- procured consumption) -% 100.00% 100.00% 100.00% 100.00% -% Waste-Abs, Waste-L4L Office:Corporate: Low-RiseOffice Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes 29 24 20 21 7% Reuse Tonnes - - - - - EnergyRecovery Tonnes 43 31 28 28 -% Other Tonnes - - - - - Total Tonnes 72 55 47 49 3% Landfill % 0.00% 0.00% 0.00% 0.00% 0.00% Incineration % 0.00% 0.00% 0.00% 0.00% 0.00% Recycling % 39.64% 44.08% 41.62% 43.26% 1.63% Reuse % 0.00% 0.00% 0.00% 0.00% 0.00% EnergyRecovery % 60.36% 55.92% 58.38% 56.74% -1.63% Other % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 100.00% 100.00% -% 121 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Waste EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change Waste-Abs, Waste-L4L Retail:HighStreet Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes 25 45 25 45 83% Reuse Tonnes - - - - - EnergyRecovery Tonnes 20 20 20 20 1% Other Tonnes - - - - - Total Tonnes 45 66 45 66 46% Landfill % 0.00% 0.00% 0.00% 0.00% 0.00% Incineration % 0.00% 0.00% 0.00% 0.00% 0.00% Recycling % 54.99% 68.91% 54.99% 68.91% 13.92% Reuse % 0.00% 0.00% 0.00% 0.00% 0.00% EnergyRecovery % 45.01% 31.09% 45.01% 31.09% -13.92% Other % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 100.00% 100.00% -% Waste-Abs, Waste-L4L Industrial: Refrigerated Warehouse Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes - - - - - Reuse Tonnes - - - - - EnergyRecovery Tonnes - - - - - Other Tonnes - - - - - Total Tonnes - - - - - Landfill % - - - - - Incineration % - - - - - Recycling % - - - - - Reuse % - - - - - EnergyRecovery % - - - - - Other % - - - - - Coverage (landlord- procured consumption) % - - - - - 122 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Waste EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change Waste-Abs, Waste-L4L Mixeduse:Other Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes 46 46 46 46 1% Reuse Tonnes - - - - - EnergyRecovery Tonnes 48 38 48 38 -22% Other Tonnes - - - - - Total Tonnes 94 84 94 84 -11% Landfill % 0.00% 0.00% 0.00% 0.00% 0.00% Incineration % 0.00% 0.00% 0.00% 0.00% 0.00% Recycling % 48.81% 55.14% 48.81% 55.14% 6.33% Reuse % 0.00% 0.00% 0.00% 0.00% 0.00% EnergyRecovery % 51.19% 44.86% 51.19% 44.86% -6.33% Other % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 100.00% 100.00% 0% Waste-Abs, Waste-L4L Industrial: Manufacturing Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes - - - - - Reuse Tonnes - - - - - EnergyRecovery Tonnes - - - - - Other Tonnes - - - - - Total Tonnes - - - - - Landfill % - - - - - Incineration % - - - - - Recycling % - - - - - Reuse % - - - - - EnergyRecovery % - - - - - Other % - - - - - Coverage (landlord- procured consumption) % - - - - - 123 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Waste EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change Waste-Abs, Waste-L4L Lodging,Leisure &Recreation: Other Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes 425 277 425 277 -35% Reuse Tonnes - - - - - EnergyRecovery Tonnes 1 220 1 220 19056% Other Tonnes - - - - - Total Tonnes 426 498 426 498 17% Landfill % 0.00% 0.00% 0.00% 0.00% 0.00% Incineration % 0.00% 0.00% 0.00% 0.00% 0.00% Recycling % 99.73% 55.74% 99.73% 55.74% -43.99% Reuse % 0.00% 0.00% 0.00% 0.00% 0.00% EnergyRecovery % 0.27% 44.26% 0.27% 44.26% 43.99% Other % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 100.00% 100.00% -% Waste-Abs, Waste-L4L Office:Corporate: Mid-RiseOffice Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes 14 15 14 15 5% Reuse Tonnes - - - - - EnergyRecovery Tonnes 4 4 4 4 -5% Other Tonnes - - - - - Total Tonnes 18 19 18 19 3% Landfill % 0.00% 0.00% 0.00% 0.00% 0.00% Incineration % 0.00% 0.00% 0.00% 0.00% 0.00% Recycling % 76.32% 78.21% 76.32% 78.21% 1.88% Reuse % 0.00% 0.00% 0.00% 0.00% 0.00% EnergyRecovery % 23.68% 21.79% 23.68% 21.79% -1.88% Other % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 100.00% 100.00% -% 124 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Waste EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change Waste-Abs, Waste-L4L Industrial: Non-refrigerated Warehouse Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes - - - - - Reuse Tonnes - - - - - EnergyRecovery Tonnes - - - - - Other Tonnes - - - - - Total Tonnes - - - - - Landfill % - - - - - Incineration % - - - - - Recycling % - - - - - Reuse % - - - - - EnergyRecovery % - - - - - Other % - - - - - Coverage (landlord- procured consumption) % - - - - - Waste-Abs, Waste-L4L Mixeduse:Office/ Retail Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes 15 19 15 19 29% Reuse Tonnes - - - - - EnergyRecovery Tonnes 22 32 22 32 45% Other Tonnes - - - - - Total Tonnes 37 51 37 51 39% Landfill % 0.00% 0.00% 0.00% 0.00% 0.00% Incineration % 0.00% 0.00% 0.00% 0.00% 0.00% Recycling % 40.82% 38.11% 40.82% 38.11% -2.70% Reuse % 0.00% 0.00% 0.00% 0.00% 0.00% EnergyRecovery % 59.18% 61.89% 59.18% 61.89% 2.70% Other % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 100.00% 100.00% -% 125 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Waste EPRACode Sector EPRACategory UnitsofMeasure Absolute L4L 2023 2024 2023 2024 %Change Waste-Abs, Waste-L4L Retail:Retail Centers: Warehouse Landfill Tonnes - - - - - Incineration Tonnes - - - - - Recycling Tonnes - - - - - Reuse Tonnes - - - - - EnergyRecovery Tonnes 3 5 3 5 79% Other Tonnes - - - - - Total Tonnes 3 5 3 5 79% Landfill % 0.00% 0.00% 0.00% 0.00% 0.00% Incineration % 0.00% 0.00% 0.00% 0.00% 0.00% Recycling % 0.00% 0.00% 0.00% 0.00% 0.00% Reuse % 0.00% 0.00% 0.00% 0.00% 0.00% EnergyRecovery % 100.00% 100.00% 100.00% 100.00% 0.00% Other % 0.00% 0.00% 0.00% 0.00% 0.00% Coverage (landlord- procured consumption) % 100.00% 100.00% 100.00% 100.00% -% 126 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued — Whilstzerowasteissentdirectlytolandfill,aresidual componentofthe‘recycled’and‘incinerationwithenergy recovery’wastestreamsmayendupinlandfill; — Like-for-likeexcludesassetsthatwerepurchased,sold, undermajorrefurbishmentorsubjecttoasignificant changeinthescopeofreporteddataduringthetwoyears reported; — Wastedatarelatestothemanagedportfolioonly; — Wastemanagementprocureddirectlybytenantsisnot reported; — Reporteddatarelatestonon-hazardouswasteonly,robust tonnagedataonthesmallquantitiesofhazardouswaste producedisnotavailable; — Coverage(landlord-procuredconsumption)relatestothe proportionofassetsforwhichlandlordobtaineddatahas beenreported; — Whereappropriate(forrelevantassets),consumption dataandassetNLA/GIAhasbeenadjustedtoreflectthe Company’sshareofownership;and — VarianceCommentary: – The46%increaseintotalwastegenerationforthe Retail:HighStreetsectorisinfluencedbyincreased cardboardcollectionsonbehalfofoccupiers. – The39%increaseintotalwastegenerationforthe MixedUse:Office/Retailsectorisinfluencedbyfit- outandrefurbishmentactivitiesatStAnn’sHouse, Manchester. – The79%increaseintotalwastegenerationforthe Retail:RetailCenters:Warehouseisinfluencedbythe developmentofthenewStarbucksunitatStJohn’s RetailPark. Sustainability certification:Green building certificates (Cert-Tot) ThetablebelowsetsouttheproportionoftheCompany’stotal portfoliowithaGreenBuildingCertificatebyfloorarea: Rating Portfolio by floor area (%) BREEAM/NewConstruction|Excellent 2.74% BREEAM/New Construction Coverage 2.7% BREEAM/RefurbishmentandFit-out|VeryGood 0.31% BREEAM/Refurbishment and Fit-out Coverage 0.3% BREEAMInUse|VeryGood 2.14% BREEAMInUse|Good 2.57% BREEAMInUse|Pass 0.15% BREEAM/In Use Coverage 4.9% WiredScore|Platinum 2.49% WiredScore|Certified 0.89% WiredScore/Coverage 3.4% Total Portfolio Coverage (excluding duplicates) 8.9% — GreenbuildingcertificaterecordsfortheCompanyare providedasat31March2025byportfolionetlettablefloor area(NLA); — Dataprovidedincludesmanagedandnon-managed assets(i.e.thewholeportfolio); — Whereappropriate(forrelevantassets),assetGIA hasbeenadjustedtoreflecttheCompany’sshareof ownership; — Toavoiddoublecounting,theTotalPortfolioCoverage excludesthefloorareafortheBREEAM/Refurbishment andFit-outcertificateandtheBREEAMInUseatCityTower astheseareasarealreadycoveredbytheWiredScore certificate; 127 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (environmental) continued Sustainability certification:Energy Performance Certificates (Cert-Tot) ThetablebelowsetsouttheproportionoftheCompany’stotal portfoliowithanEnergyPerformanceCertificatebyfloorarea. EPC Rating % floor area (ownership adjusted) A+ 2.74% A 3.34% B 18.38% C 34.67% D 26.50% E 12.81% F 0.00% G 0.00% N/A 0.43% NoEPC 1.13% Coverage 100% — EnergyPerformanceCertificate(EPC)recordsforthe Companyareprovidedfortheportfolioasat31March 2025byportfolioNetLettableArea(NLA); — OneEPC,forUnit33MiltonKeynesStaceyBushes,was receivedafterthe31March2025(25April2025).However, theassessmentwasundertakenonthe31October2024. — Dataprovidedincludesthewholeportfolioi.e.managed andnon-managedassets; — Whereappropriate(forrelevantassets)assetNLA hasbeenadjustedtoreflecttheCompany’sshareof ownership;and — Whererequired,EPCsareknownfor99%oftheportfolio byNLA.TheremainingNLAwithoutEPCsrelatestoassets whereimprovementworkshavebeenscheduledandEPCs willbeprocuredoncompletionoftheseworks.Please notethattheCompanyremainscompliantwithMEES regulations.Ingeneralterms,sincetheintroductionofthe EPCRegulationsin2008,EPCsarerequiredfortheletting ofunitsorbuildingsorthesaleofbuildings.Inaddition, theUKMinimumEnergyEfficiencyStandardsregulations (‘MEES’)cameintoforceforcommercialbuildingson1 April2018andrequireaminimumEPCratingof‘E’fornew lettings;therulesapplytoallleasesfrom1April2023.The EPCsfortheportfolioaremanagedtoensurecompliance withtheMEESregulations. 128 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Sustainability performance measures (social) (unaudited) Other information (unaudited) TheEPRASustainabilityBestPracticesRecommendations GuidelinesFourthedition(EPRAGuidelines)includeSocialand Governancereportingmeasurestobedisclosedfortheentity i.e.theCompany.TheCompanyisanexternallymanaged realestateinvestmenttrustandhasnodirectemployees.A numberoftheseSocialPerformancemeasuresrelatetoentity employeesandthereforethesemeasuresarenotrelevantfor reportingattheentitylevel. TheInvestmentManagertotheCompany,SchroderReal EstateInvestmentManagementLimited,ispartofSchroders plcwhichhasresponsibilityfortheemployeesthatsupport theCompany.TheCompanyaimstocomplywiththeEPRA GuidelinesandthereforehasincludedSocialandGovernance PerformanceMeasuredisclosuresinthisreport.However, thesearepresentedasappropriatefortheactivitiesand responsibilitiesoftheSchroderRealEstateInvestmentTrust Limited(the‘Company’),SchrodersplcortheInvestment Manager,SchroderRealEstateInvestmentManagement Limited. Schroders(plc)AnnualReportandAccountsforthe12months to31December2024supportstheperformancemeasures inrelationtotheInvestmentManagerassetoutbelow. Schrodersplc’sprinciplesinrelationtopeopleincluding diversity,genderpaygap,values,employeesatisfactionsurvey, wellbeingandretentioncanbefoundat: • SchrodersAnnualReportandAccounts2024;and • 2024SchrodersInclusionReport Employee gender diversity (Diversity-Emp) Asat31March2025theCompany’sBoardcomprisedfour members:2(50%)female;2(50%)male. ForfurtherinformationonSchrodersplc’semployeegender anddiversity,coveringmoreemployeecategories,pleaserefer tothe2024SchrodersInclusionReport. Gender pay ratio (Diversity-Pay) TheremunerationoftheCompany’sBoardissetoutonpages 59to60ofthisReportandAccountsdocument. TheSchrodersplcfemalerepresentationandgenderpay reportcanbefoundinthe2024SchrodersInclusionReport. FurtherinformationonDiversityandInclusionatSchroderscan befoundinthe2024SchrodersInclusionReport. ThefollowingarereportedforSchrodersinrelationtothe InvestmentManagementoftheCompany: Training and development (Emp-Training) Schrodersrequiresemployeestocompletemandatoryinternal training.Schrodersencouragesallstaffwithprofessional qualificationstomaintainthetrainingrequirementsoftheir respectiveprofessionalbody. 129 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Sustainability performance measures (social) continued Employee performance appraisals (Emp-Dev) Schrodersperformancemanagementprocessrequiresannual performanceobjectivesettingandannualperformance reviewsforallstaff.TheInvestmentManagerconfirms thatperformanceappraisalswerecompletedfor100%of investmentstaffrelevanttotheCompanyinthe12monthsto 31March2025. ThefollowingarereportedforSchrodersplc: ForcommentaryonSchrodersPLC’sturnoverandretention ratespleaserefertoSchrodersAnnualReportandAccounts 2024(pages16and17). Employee health and safety (H&S-Emp) Schrodersplcdoesnotincludeemployeehealthandsafety performancemeasuresinitsAnnualReportandAccounts. Thefollowingarereportedinrelationtotheassetsheldinthe Company’sportfoliooverthereportingperiodto31March 2025: Asset health and safety assessments (H&S-Asset) ThetablebelowsetsouttheproportionoftheCompany’s portfoliowhereoperationalcontrolisretained,andwhere healthandsafetyimpactswereassessedorreviewedfor complianceorimprovement: Portfolio by floor area (%) FY24 FY25 All sectors 100% 100% Asset health and safety compliance (H&S-Comp) Thetablebelowsetsoutthenumberofincidentsof non-compliancewithregulations/andorvoluntary codesidentified: Number of incidents FY24 FY25 All sectors 0 0 Community engagement, impact assessments and development programmes (Comty-Eng) ThetablebelowsetsouttheproportionoftheCompany’s totalportfoliowhichcompletedlocalcommunityengagement, impactassessmentsand/ordevelopmentprograms: Portfolio by number assets (%) FY24 FY25 Total 43% 23% Communityengagementinitiativesarecarriedoutwhere deemedrelevanttoindividualassets,incollaborationwiththe relevantsiteteam. Overthecourseofthereportingyear,theCompanyhas continueditsengagementeffortswithbothoccupiersand communities.Receptionspaceacrossseveralofficesin theportfoliohavebeenusedtosupportcharitycollection initiativesincludingfoodbankcollections,Christmasgift collectionsforchildrenfromdeprivedfamilies,andbook collections.AtCityTower,Manchester,thethird-partyProperty Manager,supportedbytheInvestmentManager,operatean extensiveengagementcalendarincludingworkshopswith thesitebeekeeperwhereoccupierscanmeetthebees,anda 45-minutemindfulnessChineseTeaCeremonythatblendstea tastingwithmeditation. 130 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) Sustainability performance measures (governance) (unaudited) Composition of the highest governance body (Gov-Board) TheBoardoftheCompanycomprisedfournon-executive independentDirectors(0executiveboardmembers)asat 31March2025and: — Theaveragetenureofthefourdirectorsto31March2025 is3yearsand7months;and — ThenumberofDirectorswithcompetenciesrelatingto environmentalandsocialtopicsistwo,AlexandraInnes andPriscillaDavies,andtheirexperiencecanbeseenin theirbiographies. Nominating and selecting the highest governance body (Gov-Select) TheroleoftheNominationCommitteeistoconsiderand makerecommendationstotheBoardonitscompositionso astomaintainanappropriatebalanceofskills,experience anddiversity,includinggender,andtoensureaprogressive refreshingoftheBoard.Onindividualappointments,the NominationCommitteeleadstheprocessandmakes recommendationstotheBoard. BeforetheappointmentofanewDirector,theNomination Committeepreparesadescriptionoftheroleandcapabilities requiredforaparticularappointment.WhiletheNomination Committeeisdedicatedtoselectingthebestpersonfor therole,itaimstopromotediversificationandtheBoard recognisestheimportanceofdiversity.TheBoardagreesthat itsmembersshouldpossessarangeofexperience,knowledge, professionalskillsandpersonalqualitiesaswellasthe independencenecessarytoprovideeffectiveoversightofthe affairsoftheCompany. Process for managing conflicts of interest (Gov-Col) TheCompany’sConflictsofInterestPolicysetsoutthepolicy andproceduresoftheBoardandtheCompanySecretaryfor themanagementofconflictsofinterest. 131 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Streamlined energy and carbon reporting (unaudited) Other information (unaudited) SchroderRealEstateInvestmentTrustLimited(the‘Company’) isarealestateinvestmentcompanywithapremiumlistingon theOfficialListoftheUKListingAuthorityandwhoseshares aretradedontheMainMarketoftheLondonStockExchange (ticker:SREI). TheCompanyisarealestateinvestmenttrust(‘REIT’)and benefitsfromthevarioustaxadvantagesofferedbythe UKREITregime.TheCompanycontinuestobedeclared asanauthorisedclosed-endedinvestmentschemebythe GuernseyFinancialServicesCommissionundersection8of theProtectionofInvestors(BailiwickofGuernsey)Law,2020 andAuthorisedClosed-EndedInvestmentSchemesRulesand Guidance,2021. TheBoardandInvestmentManagerinrecognitionofthe importanceitplacesonsustainabilityhasincludedareport fortheCompanyalignedwiththeUKCompanies(Directors’ Report)andLimitedLiabilityPartnerships(EnergyandCarbon Report)Regulations2018,(theRegulations)onitsUKenergy use,associatedScope1and2greenhousegas(‘GHG’) emissions,anintensitymetricand,whereapplicable,global energyuse.ThisreportingisalsoreferredtoasStreamlined EnergyandCarbonReporting(‘SECR’). ThisEnergyandCarbonReportappliesfortheCompany’s annualreportforthe12monthsto31March2025.The statementhashoweverbeenpreparedforthecalendaryear, the12monthsto31December2024,toreportannualfigures foremissionsandenergyusetheavailableperiodforwhich suchinformationisavailable.Inaddition,theRegulations adviseprovidinganarrativeonenergyefficiencyactionstaken inthepreviousfinancialyear. Asarealestateinvestmentcompany,energyconsumptionand emissionsresultfromtheoperationofbuildings.Thereporting boundaryhasbeenscopedtothoseheldpropertieswherethe Companyretainedoperationalcontrol:wheretheCompanyis responsibleforoperatingtheentirebuilding,sharedservices (e.g.commonpartslighting,heating,andairconditioning), externallightingand/orvoidspaces.‘Operationalcontrol’ hasbeenselectedasthereportingboundary(asopposedto ‘financialcontrol’or‘equityshare’)asthisreflectstheportion oftheportfoliowheretheCompanycaninfluenceoperational proceduresand,ultimately,sustainabilityperformance. Thisincorporatesconsumptionintenantareas,wherethe landlordprocuresenergyforthewholebuildingandwhere rechargesarenotmadedirectly(i.e.basedonsub-metered kWhconsumption).In2024,withintheportfolio,there were22propertieswithintheoperationalcontrolreporting boundaryandin2023therewere23suchproperties.All CompanyassetsarelocatedintheUK. TheCompanyisnotdirectlyresponsibleforanyGHG emissions/energyusageatsinglelet/FRIassetsnoratmulti-let assetswherethetenantisresponsibleforprocuringtheirown energy.Theseemissionsformpartofthewidervaluechain(i.e. ‘Scope3’)emissions,whicharenotmonitoredatpresent.As arealestatecompanywithnodirectemployeesorcompany ownedvehiclesasat31December2022,thereisnoenergy consumptionoremissionsassociatedwithtraveloroccupation ofcorporateofficestoreport.Fugitiveemissionsassociated withrefrigerantlossesfromairconditioningequipmentare widelyunderstoodbytheindustrytobelessmaterialthan othersourcesofemissionsanddataisoftennotcollected. TheCompanyreceivedfugitiveemissionsdatainprevious reportingyears,andthisconfirmedthattheyweredeminimis andconsequentlyhavenotbeencapturedincurrentreporting. Inadditiontoreportingabsoluteenergyconsumptionand GHGemissions,theCompanyhasreportedseparatelyon performancewithinthe‘like-for-like’portfolio,aswellas providingintensityratios,whereappropriate.Thelike-for- likeportfolioincludesbuildingswhereeachofthefollowing conditionsismet: — Ownedforthefull24-monthperiod(sales/acquisitions areexcluded) — Nomajorrenovationorrefurbishmenthastakenplace — Atleast24monthsdataisavailable Fortheintensityratios,thedenominatordeterminedtobe relevanttothebusinessissquaremetresofnetlettablearea formostsectors,includingIndustrialDistributionWarehouses (RefrigeratedandNon-Refrigerated),Leisure,Mixed-Use, OfficesandRetailWarehouses.ForRetail:HighStreet,themost relevantdenominatoriscommonpartsarea.Theintensityratio isexpressedas: — Energy:kilowatthourspermetresquare(netlettablearea orcommonpartsarea)peryear,or,kWh/m2/yr. — GHG:kilogramscarbondioxideequivalentpermetre square(netlettableareaorcommonpartsarea)peryear, or,kgCO2e/m2/yr. 132 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Streamlined energy and carbon reporting continued ThetablebelowsetsouttheCompany’senergyconsumption. Absolute Energy (kWh) Like-for-Like Energy (kWh) 2023 2024 2023 2024 % Change Gas 1,455,039 1,295,225 1,192,537 1,219,677 2% Electricity 5,132,838 4,716,518 4,888,385 4,578,069 -6% Total 6,587,877 6,011,743 6,080,922 5,797,746 -5% ThetablebelowsetsouttheCompany’sgreenhousegasemissions. Absolute Emissions (tCO2e) Like-for-like Emissions (tCO2e) 2023 2024 2023 2024 %Change Scope1(Directemissionsfromgas consumption) 266.17 236.90 218.15 223.08 2% Scope2(Indirectemissionsfrom electricity) 1062.88 976.56 1012.26 947.89 -6% Total 1329.05 1213.45 1230.41 1170.97 -5% Thelike-for-likeenergyconsumptionandGreenhouseGas(GHG)emissionsforthe2024calendaryearforthemanagedassets heldwithintheCompanyhasreducedby5%,whencomparedtothe2023calendaryear.AtStJohn’sRetailPark,Bedford,carpark lightingupgradeshavecontributedtoareductioninelectricityconsumption. ThetablebelowsetsouttheCompany’senergyandgreenhousegasemissionsintensitiesbysectoronalike-for-likebasis: Energy Intensities (kWh per m2) GHG Emission Intensities (kgCO2e per m2) 2023 2024 2023 2024 Office: Corporate: Low-Rise Office 25.95 21.72 9.76 8.33 Retail: High Street 64.01 58.49 13.26 12.11 Industrial: Refrigerated Warehouse 0.09 0.35 0.02 0.09 Mixed use: Other 96.65 88.06 20.02 18.24 Industrial: Manufacturing 26.04 27.22 7.45 7.59 Lodging, Leisure & Recreation: Other 60.23 67.49 12.47 13.97 Office: Corporate: Mid-Rise Office 52.30 49.01 24.72 23.27 Industrial: Non-refrigerated Warehouse 5.02 4.29 1.25 0.94 Mixed use: Office/Retail 57.20 45.13 14.30 11.92 Retail: Retail Centers: Warehouse 1.88 1.39 0.42 0.29 Methodology — AllenergyconsumptionandGHGemissionsreported occurredattheCompanyassetsallofwhicharelocatedin theUK. — Energyconsumptiondataisreportedaccordingto automaticmeterreads,manualmeterreadsorinvoice estimates.Historicenergyandconsumptiondatahave beenrestatedwheremorecompleteandoraccurate recordshavebecomeavailable.Whererequired,missing consumptiondatahasbeenestimatedthroughpro- rataextrapolation.Datahasbeenadjustedtoreflectthe Company’sshareofassetownership,whererelevant. — Thesustainabilitycontentlocatedonpages97to130of theSREITannualreportfortheyearending31March 2025hasbeenassuredinaccordancewithAA1000.The samedatasethasbeenusedtocompilethisdatareport. ThefullAssuranceStatementisavailableonrequest. — TheCompany’sGHGemissionsarecalculatedaccording totheprinciplesoftheGreenhouseGas(GHG)Protocol CorporateStandard. — TheCompany’sGreenhouseGasEmissionsarereported astonnesofcarbondioxideequivalent(tCO2e),which includesthefollowingemissionscoveredbytheGHG Protocol(whererelevantandavailablegreenhousegas emissionsfactorsallow):carbondioxide(CO2),methane (CH4),hydrofluorocarbons(HFCs),nitrousoxide(N20), perfluorocarbons(PFCs),sulphurhexafluoride(SF6)and nitrogentrifluoride(NF3). — GHGemissionsfromelectricity(Scope2)arereported accordingtothe‘location-based’approach. — Thefollowinggreenhousegasemissionsconversion factorsandsourceshavebeenapplied: 133 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Streamlined energy and carbon reporting continued Country Emissions Source Year GHG Emissions Factor Emissions Factor Data Source United Kingdom Electricity 2023 0.207074 UKGovernmentconversionfactorsfor greenhousegas(ghg)reporting,2023and2024 Electricity 2024 0.207050 Gas 2023 0.1829 UKGovernmentconversionfactorsfor greenhousegas(ghg)reporting,2023and2024 Gas 2024 0.1829 Energy Efficiency Actions Environmental data management system and quarterly reporting EnvironmentaldatafortheCompanyiscollatedbythird-partyPropertyManagersandsustainabilityconsultantsDeepki,supported bytheirproprietarycommercialrealestateESGdataintelligenceplatform,DeepkiReady.Energy,water,waste,andgreenhouse gasemissiondataarecollectedandvalidatedforallassetswheretheportfoliohasoperationalcontrolonatleastaquarterlybasis. Energy target, improvement programme and net zero carbon In2019theManagersignedtheBetterBuildingPartnership’s(‘BBP’)ClimateCommitmentwhichincludesanetzeroambition alignedtotheParisAgreementaimtolimitwarmingto1.5°C.TheManager’scommitmentwasfurtherunderlinedbytheCompany whoin2022announcedits‘PathwaytoNetZeroCarbon’committingto: — Operationalwholebuildingsemissionstobealignedtoa1.5°Cpathwayby2030. — Embodiedemissionsforallnewdevelopmentsandmajorrenovationstobenetzeroby2030. — OperationalScope1and2(landlord)emissionstobenetzeroby2030. — Operationalandembodiedwholebuilding(scope1,2and3–landlordandtenant)emissionstobenetzeroby2040. TheInvestmentManagertogetherwiththird-partypropertymanagerslooktoidentifyanddeliverenergyandgreenhousegas emissionsreductionsonacost-effectivebasis.TheprogrammeinvolvesreviewingallmanagedassetswithintheCompanyand identifyingandimplementingimprovementinitiatives,whereviable.Theprocessisofcontinualreviewandimprovement. OverthereportingyeartheManagerhascompletedassetmanagementinitiativessuchastheinstallationofarooftopsolar photovoltaic(PV)arrayatStAnn’sHouse,Manchester.ThePVarrayisforecasttogenerate36,170kWhofelectricalenergyinits firstyear,foruseon-site,helpingtoreducetheasset’srelianceonthenationalelectricitygrid,reducingexposuretovolatileenergy costs,andreducinggreenhousegas(GHG)emissions.Aspartofthelettingofthe4thfloorSouthtoSLRConsultingatTheTun, Edinburgh,CATAfit-outworksincludedtheinstallationofnewLEDlightingsupportedbyPassiveInfrared(PIR)sensors,tocontrol demandandreduceelectricityconsumption,aswellasanewheatpumpair-conditioningsystem,bothhelpingtoachievean EPC‘A’rating.CarparklightingupgradeswerealsocarriedoutatStJohn’sRetailPark,Bedford,carparklightingupgradeshave contributedtoareductioninelectricityconsumption. Renewable electricity tariffs and carbon offsets TheInvestmentManagerhasanobjectivetoprocure100%renewableelectricityforalllandlord-controlledsuppliesforwhichit hasresponsibility,whichincludestheassetsoftheCompany,by2025.Asat31December2024,98.2%oftheCompany’slandlord- controlledelectricitywasonrenewabletariffs.Nocarbonoffsetswerepurchasedduringthereportingperiod. 134 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Asset list Other information (unaudited) Thetablebelowsummarisestheportfolioinformationasat31March2025,excludingpostyearendactivity.Thepropertyvalues presentedrepresenttheyearendvaluationsasdeterminedbytheindependentvaluersasat31March2025: Property Sector Region Value Range (£m) 28 StaceyBushesIndustrialEstate,MILTONKEYNES Industrial SouthEast 50-60 MillshawParkIndustrialEstate,LEEDS Industrial Yorkshire&Humberside 40-50 StanleyGreenTradingEstate,STOCKPORT Industrial NorthWest 40-50 TheUniversityofLaw,BLOOMSBURY(50%Share) Office WestEnd 30-40 StJohn'sRetailPark,BEDFORD RetailWarehouse Eastern 30-40 CityTower,MANCHESTER(25%Share) MixedUse NorthWest 20-30 LangleyParkWay,CHIPPENHAM Industrial SouthWest 20-30 UnionParkIndustrialEstate,NORWICH Industrial Eastern 20-30 HeadingleyCentral,HEADINGLEY MixedUse Yorkshire&Humberside 20-30 HortonParkIndustrialPark,TELFORD Industrial WestMidlands 10-20 ValleyBusinessPark,BIRKENHEAD Industrial NorthWest 10-20 StAnn'sHouse,MANCHESTER MixedUse NorthWest 10-20 TheTun,EDINBURGH Offices Scotland 10-20 ChurchillWayWest,SALISBURY RetailWarehouse SouthWest 10-20 Matalan,BLETCHLEY RetailWarehouse SouthEast 10-20 21/27StirlingCourt,SWINDON Industrial SouthWest 0-10 106OxfordRoad,UXBRIDGE Offices SouthEast 0-10 TheGalaxyCentre,LUTON Leisure Eastern 0-10 RoyscotHouse,CHELTENHAM Offices SouthWest 0-10 Wickes,CHESTER RetailWarehouse NorthWest 0-10 DelmePlace,FAREHAM Offices SouthEast 0-10 88/94ChurchStreet,LIVERPOOL Retail NorthWest 0-10 HeathcoteIndustrialEstate,WARWICK Industrial WestMidlands 0-10 HaydockIndustrialEstate,HAYDOCK Industrial NorthWest 0-10 HaywoodHouse,CARDIFF Offices Wales 0-10 TheLakes,NORTHAMPTON Offices EastMidlands 0-10 ImperialHouse,SHEFFIELD Retail Yorkshire&Humberside 0-10 HallLane,SANDBACH Industrial NorthWest 0-10 CliftonPark,YORK Offices Yorkshire&Humberside 0-10 TheAlbionCentre,ILKESTON Other EastMidlands 0-10 24/25HighStreet,CHELMSFORD Retail SouthEast 0-10 67/68HighStreet,CHELMSFORD Retail SouthEast 0-10 SetonHouse,WARWICK Offices WestMidlands 0-10 PacificHouse,MARLOW Offices SouthEast 0-10 15/16KingStreet,TRURO Retail SouthWest 0-10 TheOrangery,Old&NewStables,FAREHAM Offices SouthEast 0-10 12/14EastGates,LEICESTER Retail EastMidlands 0-10 MostonRoad,SANDBACH Industrial NorthWest 0-10 28 AsperthirdpartyvaluationreportsunadjustedforIFRSleaseincentiveamounts. 135 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Report of the Depositary to the Shareholders Other information (unaudited) Establishedin2013,LanghamHallUKDepositaryLLPisan FCAregulatedfirmthatworksinconjunctionwiththeManager andtheCompanytoactasdepositary.Consistingexclusively ofqualifiedandtraineeaccountantsandalternativespecialists, theentityrepresentsnetassetsofUS$129billionandwe deployourservicestoover175alternativeinvestmentfunds acrossvariousjurisdictionsworldwide.Ourroleasdepositary primarilyinvolvesoversightofthecontrolenvironmentof theCompany,inlinewiththerequirementsoftheAlternative InvestmentFundManagersDirective(AIFMD). Ourcashmonitoringactivityprovidesoversightofallthe Companyheldbankaccountswithspecifictestingofbank transactionstriggeredbyshareissues,propertyincome distributionsviadividendpayments,acquisitions,and third-partyfinancing.Wereviewwhethercashtransactionsare appropriatelyauthorisedandtimely.Theobjectiveofourasset verificationprocessistoperformareviewofthelegaltitleofall propertiesheldbytheCompany,andshareholdingofspecial purposevehiclesbeneaththeCompany. WetestwhetheronanongoingbasistheCompanyis beingoperatedbytheManagerinlinewiththeCompany’s prospectus,andtheinternalcontrolenvironmentofthe Manager.ThisincludesareviewoftheCompany’sandits subsidiaries’decisionpapersandminutes. WeworkwiththeManagerindischargingourduties,holding formalmeetingswithseniorstaffonaquarterlybasisand submitquarterlyreportstotheManagerandtheCompany, whicharethenpresentedtotheBoardofDirectors,settingout ourworkperformedandthecorrespondingfindingsforthe period. Forthefinancialyearended31March2025,ourworkincluded thereviewofoneinvestmentpropertydisposalandfour interimdividends.Basedontheworkperformedduringthis period,weconfirmthatnoissuescametoourattentionto indicatethatcontrolsarenotoperatingappropriately. Joe Hime HeadofDepositary Forandonbehalfof: LanghamHallUKDepositaryLLP,London,UK LanghamHallUKDepositaryLLPisalimitedliability partnershipregisteredinEnglandandWales (withregisterednumberOC388007). 136 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Glossary Other information (unaudited) Alternative performance measure (‘APM’) pleaseseepage95forfulldetailsofthekeyAPMsusedbytheCompany. Annualised dividend yield beingthedividendpaidduringtheperiodannualisedandexpressedasapercentageoftheperiodendshareprice. Articles meanstheCompany’sarticlesofincorporation,asamendedfromtimetotime. Companies Law meansTheCompanies(Guernsey)Law,2008. Company isSchroderRealEstateInvestmentTrustLimited. Directors meansthedirectorsoftheCompanyasatthedateofthisdocumentwhosenamesaresetoutonpage49ofthis documentand‘Director’meansanyoneofthem. Disclosure Guidance and Transparency Rules meansthedisclosureguidanceandtransparencyrulescontainedwithintheFCA’sHandbookofRulesandGuidance. Earnings per share (‘EPS’) istheprofitaftertaxationdividedbytheweightedaveragenumberofsharesinissueduringtheperiod.Dilutedand adjustedEPSpersharearederivedassetoutunderNAV. Estimated rental value (‘ERV’) IstheGroup’sexternalvaluers’reasonableopinionastotheopenmarketrentwhich,onthedateofthevaluation, couldreasonablybeexpectedtobeobtainedonanewlettingorrentreviewofaproperty. EPRA istheEuropeanPublicRealEstateAssociation. EPRA Net Tangible Assets istheIFRSequityattributabletoshareholdersadjustedforitemsincludingdeferredtax,thefairvalueoffinancial instrumentsandintangibleassets. EPRA Net Disposal Value istheIFRSequityattributabletoshareholdersadjustedforitemsincludinggoodwillasaresultofdeferredtaxand thefairvalueofinterestratedebt FCA istheUKFinancialConductAuthority. Gearing istheGroup’snetdebtasapercentageofadjustednetassets. Group istheCompanyanditssubsidiaries. GFSC istheGuernseyFinancialServicesCommission. Initial yield istheannualisednetrentsgeneratedbytheportfolioexpressedasapercentageoftheportfoliovaluation. Interest cover isthenumberoftimesGroupnetinterestpayableiscoveredbyGroupnetrentalincome. Market Abuse Regulation meansregulation(EU)No.596/2014oftheEuropeanParliamentandoftheCouncilof16April2014onmarketabuse, asamendedbytheMarketAbuse(Amendment)(EUExit)Regulations2019. MSCI (formerlyInvestmentPropertyDatabankor‘IPD’)isaCompanythatproducesanindependentbenchmarkofproperty returns. Manager/Investment Manager meansSchroderRealEstateInvestmentManagementLimited Net asset value and NAV per share isshareholders’fundsdividedbythenumberofsharesinissueatthefinancialyearend. NAV total return iscalculatedtakingintoaccountbothcapitalreturnsandincomereturnsintheformofdividendspaidto shareholders. Net rental income istherentalincomereceivableintheperiodafterpaymentofgroundrentsandnetpropertyoutgoings. REIT isaRealEstateInvestmentTrust. Reversionary yield istheanticipatedyieldwhichtheinitialyieldwillrisetooncetherentreachestheestimatedrentalvalue. SONIA SterlingOvernightIndexedAverage–anovernightrate,setinarrears,andbasedonactualtransactionsinovernight indexedswapsforunsecuredtransactionsintheSterlingmarket. Weighted average unexpired lease term (‘WAULT’) Weightedaverageunexpiredleasetermassumingearlierofleasebreakorleaseexpiry. UK Listing Rules meansthelistingrulesmadebytheFCAunderPartVIIoftheUKFinancialServicesandMarketsAct2000,as amendedfromtimetotime. 137 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Resolutions at the Annual General Meeting Other information (unaudited) This sectionis important and requires your immediate attention. Ifyouareinanydoubtaboutthecontentsofthissection ofthedocumentortheactionyoushouldtake,youare recommendedtoseekimmediatelyyourownpersonalfinancial advicefromanappropriatelyqualifiedindependentadvisor authorisedpursuanttotheFinancialServicesandMarkets Act2000(asamended). Ifyouhavesoldorotherwisetransferredallyoursharesinthe Company,pleasesendthisdocument(includingtheNotice ofAGM)andtheaccompanyingdocumentsatoncetothe purchaser,transferee,ortothestockbroker,bankorother personthroughwhomthesaleortransferwaseffectedfor onwardtransmissiontothepurchaserortransferee.However, suchdocumentsshouldnotbedistributed,forwardedor transmittedinorintotheUnitedStates,Canada,Australiaor Japanorintoanyotherjurisdictionastodosowouldconstitute aviolationofapplicablelawsandregulationsinsuchother jurisdiction. TheNoticeoftheAnnualGeneralMeetingofShareholdersis setoutonpages139to140.Thefollowingparagraphsexplain theresolutionstobeputtotheAGM. Resolutions1–8 (Ordinary Resolutions) Resolutions1-8arebeingproposedtoapprovetheordinary businessoftheCompanyto:(i)considerandapprovethe AnnualReportoftheCompanyfortheyearended31March 2025;(ii)considerandapprovetheDirectors’Remuneration Report,(iii)electorre-electtheDirectors;and(iv)appointthe AuditorsandauthorisetheDirectorstodeterminetheAuditor’s remuneration. Resolution9Approval of the Company’s dividend policy (Ordinary Resolution) TheCompany’sdividendpolicyistopayasustainablelevelof quarterlydividendstoshareholders(inarrears).Itisintended thatsuccessfulexecutionoftheCompany’sstrategywillenable aprogressivedividendpolicy. TheCompany’sobjectiveandstrategy,outlinedintheChair’s StatementandInvestmentManager’sReport,istodeliver sustainablenetincomegrowthinduecoursethroughactive managementoftheunderlyingportfolio.Anyfuturedecision toincreasethedividendwillbedeterminedbyfactorsincluding whetheritissustainableoverthelongterm,currentand anticipatedfuturemarketconditions,rentalvaluesandthe potentialimpactofanyfuturedebtrefinancing. AstheCompanyisaREIT,theBoardmustalsoensurethat dividendsarepaidinaccordancewiththerequirementsofthe UKREITregime(pursuanttopart12oftheUKCorporation TaxAct2010)inordertomaintaintheCompany’sREITstatus. Shareholdersshouldnotethatthedividendpolicyisnota profitforecastanddividendswillonlybepaidtotheextent permittedinaccordancewiththeCompaniesLawandtheUK REITregime. TheBoardacknowledgesthatthedividendpolicyis fundamentaltoshareholders’incomerequirementsaswellas theCompany’sinvestmentandfinancialplanning.Therefore,in accordancewiththeprinciplesofgoodcorporategovernance andbestpracticerelatingtothepaymentofinterimdividends withouttheapprovalofafinaldividendbyacompany’s shareholders,aresolutiontoapprovetheCompany’sdividend policywillbeproposedannuallyforapproval. Resolution10Authority to disapply pre-emption rights (Special Resolution) TheDirectorsrequirespecificauthorityfromshareholders beforeallottingnewordinarysharesforcash(orsellingshares outoftreasuryforcash)withoutfirstofferingthemtoexisting shareholdersinproportiontotheirholdings.Resolution10 empowerstheDirectorstoallotnewordinarysharesforcash ortosellordinarysharesheldbytheCompanyintreasuryfor cash,otherwisethantoexistingshareholdersona pro rata basis,uptosuchnumberofordinarysharesasisequalto 10%oftheordinarysharesinissue(includingtreasuryshares) onthedatetheresolutionispassed.Noordinaryshareswill beissuedwithoutpre-emptionrightsforcash(orsoldoutof treasuryforcash)atapricelessthantheprevailingnetasset valueperordinaryshareatthetimeofissueorsalefrom treasury. TheDirectorsdonotintendtoallotorsellordinaryshares otherthantotakeadvantageofopportunitiesinthemarket astheyariseandwillonlydosoiftheybelieveittobe advantageoustotheCompany’sexistingshareholdersand whenitwouldnotresultinanydilutionofthenetassetvalue perordinaryshare(owingtothefactthatnoordinaryshares willbeissuedorsoldoutoftreasuryforapricelessthanthe prevailingnetassetvalueperordinaryshare). Thisauthoritywillexpireontheearlieroftheconclusionofthe annualgeneralmeetingoftheCompanytobeheldin2026or ontheexpiryof15monthsfromthepassingofResolution10. 138 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) — Resolutions at the Annual General Meeting continued Resolution11Authority to repurchase shares (Special Resolution) TheBoardrecognisesthatmovementsintheordinaryshare price,premiumordiscount,aredrivenbynumerousfactors, includinginvestmentperformance,gearingandmarket sentiment.Accordingly,itfocusesitseffortsprincipallyon addressingsourcesofriskandreturnasthemosteffectiveway ofproducinglong-termvalueforshareholders. However,theDirectorsmayconsiderrepurchasingordinary sharesiftheybelieveittobeinshareholders’interestsasa wholeandasameansofcorrectinganyimbalancebetween supplyanddemandfortheordinaryshares.Themakingand timingofanyrepurchaseofordinaryshareswillbeatthe absolutediscretionoftheBoard,althoughtheBoardwillhave regardtotheeffectsofanysuchrepurchaseonlong-term shareholdersinexercisingitsdiscretion.Anyrepurchase ofordinaryshareswillbesubjecttocompliancewiththe CompaniesLawandwithinanyguidelinesestablishedfrom timetotimebytheBoard. AnnuallytheCompanypassesaresolutiongrantingthe Directorsgeneralauthoritytopurchaseinthemarketupto 14.99%ofthenumberofsharesinissue.TheDirectorsintend toseekarenewalofthisauthorityfromtheshareholdersatthe AGM.Noshareswererepurchasedunderthisauthority. IntheeventthattheBoarddecidestorepurchaseordinary shares,purchaseswillonlybemadethroughthemarketfor cashatpricesnotexceedingtheprevailingNAVoftheordinary shares(aslastcalculated)wheretheDirectorsbelievesuch purchaseswillenhanceshareholdervalue.Suchpurchaseswill alsoonlybemadeinaccordancewiththeUKListingRulesand theDisclosureGuidanceandTransparencyRuleswhich providethatthemaximumpricetobepaidforeachordinary sharemustnotbemorethanthehigherof:(i)fivepercent abovetheaveragemid-marketvalueoftheordinaryshares forthefivebusinessdaysbeforethepurchaseismade;and (ii)anamountequaltothehigherof(a)thepriceofthelast independenttrade;and(b)thehighestcurrentindependent bidforanordinaryshareonthetradingvenueswherethe marketpurchasesbytheCompanypursuanttotheauthority conferredbythatresolutionwillbecarriedout.TheCompanies Lawalsoprovides,amongotherthings,thatanysuchpurchase issubjecttotheCompanypassingthesolvencytestcontained intheCompaniesLawattherelevanttime.Anyordinaryshares purchasedunderthisauthoritymaybecancelledorheldin treasury. Thisauthoritywillexpireattheconclusionoftheannual generalmeetingoftheCompanytobeheldin2026unless varied,revokedorrenewedpriortosuchdatebyordinary resolutionoftheCompany. TheBoardconsidersthattheresolutionstobeproposedatthe AGMareinthebestinterestsoftheCompany’sshareholders asawhole.TheBoardthereforerecommendsunanimouslyto shareholdersthattheyvoteinfavourofeachoftheresolutions, astheyintendtodoinrespectoftheirownbeneficialholdings. Alastair Hughes Chair 10June2025 139 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Notice of Annual General Meeting Other information (unaudited) NoticeisherebygiventhattheAnnualGeneralMeetingoftheCompanywillbeheldat1LondonWallPlace,EC2Y5AUon 16September2025at12.00pm. Resolution To consider and, if thought fit, pass the following Ordinary Resolutions: Resolution1(OrdinaryResolution) Toreceive,considerandapprovetheAnnualReportandConsolidatedFinancialStatementsoftheCompanyforthe yearended31March2025. Resolution2(OrdinaryResolution) ToapprovetheRemunerationReportfortheyearended31March2025. Resolution3(OrdinaryResolution) Tore-electPriscillaDaviesasaDirectoroftheCompany. Resolution4(OrdinaryResolution) Tore-electAlastairHughesasaDirectoroftheCompany. Resolution5(OrdinaryResolution) Tore-electAlexandraInnesasaDirectoroftheCompany. Resolution6(OrdinaryResolution) Tore-electSanjayPatelasaDirectoroftheCompany. Resolution7(OrdinaryResolution) ToappointErnstandYoungLLPasAuditoroftheCompanyuntiltheconclusionofthenextAnnualGeneralMeeting. Resolution8(OrdinaryResolution) ToauthorisetheBoardofDirectorstodeterminetheAuditor’sremuneration. Resolution9(OrdinaryResolution) ToreceiveandapprovetheCompany’sDividendPolicywhichappearsonpage137oftheAnnualReport. To consider and, if thought fit, pass the following Special Resolutions: Resolution10(SpecialResolution) ThattheDirectorsoftheCompanybeandareherebyempoweredtoallotordinarysharesoftheCompanyforcash asifthepre-emptionprovisionscontainedunderArticle13oftheArticlesofIncorporationdidnotapplytoanysuch allotmentsandtosellordinaryshareswhichareheldbytheCompanyintreasuryforcashonanon-pre-emptivebasis providedthatthispowershallbelimitedtotheallotmentandsalesofordinaryshares: a. uptosuchnumberofordinarysharesasisequalto10%oftheordinarysharesinissue(includingtreasuryshares) onthedateonwhichthisresolutionispassed; b. atapriceofnotlessthanthenetassetvaluepershareascloseaspracticabletotheallotmentorsale; providedthatsuchpowershallexpireontheearlieroftheconclusionoftheannualgeneralmeetingoftheCompany tobeheldin2026orontheexpiryof15monthsfromthepassingofthisSpecialResolution,exceptthattheCompany maybeforesuchexpirymakeoffersoragreementswhichwouldormightrequireordinarysharestobeallottedor soldaftersuchexpiryandnotwithstandingsuchexpirytheDirectorsmayallotorsellordinarysharesinpursuanceof suchoffersoragreementsasifthepowerconferredherebyhadnotexpired. Resolution11(SpecialResolution) ThattheCompanybeauthorised,inaccordancewithsection315ofTheCompanies(Guernsey)Law,2008,as amended(the‘CompaniesLaw’),tomakemarketacquisitions(withinthemeaningofsection316oftheCompanies Law)ofordinarysharesinthecapitaloftheCompanyeitherforretentionastreasuryshares,insofaraspermittedby theCompaniesLaworcancellation,providedthat: a. themaximumnumberofordinarysharesherebyauthorisedtobepurchasedshallbe14.99%oftheissued ordinarysharesonthedateonwhichthisresolutionispassed; b. theminimumpricewhichmaybepaidforanordinaryshareshallbe£0.01; c. themaximumprice(exclusiveofexpenses)whichmaybepaidforanordinaryshareshallbeanamountequal tothehigherof(i)5%abovetheaverageofthemid-marketvalueoftheordinaryshares(asderivedfromthe regulatedmarketonwhichtherepurchaseiscarriedout)forthefivebusinessdaysimmediatelyprecedingthe dateofthepurchase;and(ii)thehigherof(a)thepriceofthelastindependenttrade;and(b)thehighestcurrent independentbidatthetimeofpurchase,ineachcaseontheregulatedmarketwherethepurchaseiscarriedout; d. suchauthorityshallexpireattheconclusionoftheannualgeneralmeetingoftheCompanytobeheldin2026 unlesssuchauthorityisvaried,revokedorrenewedpriortosuchdateofthegeneralmeeting;and e. theCompanymaymakeacontracttopurchaseordinarysharesundersuchauthoritypriortoitsexpirywhichwill ormaybeexecutedwhollyorpartlyafteritsexpirationandtheCompanymaymakeapurchaseofordinaryshares pursuanttoanysuchcontract. ByOrderoftheBoard Forandonbehalfof Schroder Investment Management Limited Company Secretary 10June2025 140 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Notes Other information (unaudited) 1 Tobepassed,anOrdinaryResolutionrequiresasimple majorityofthevotescastbythoseshareholdersvotingin personorbyproxyattheAGM(excludinganyvoteswhich arewithheld)tobevotedinfavouroftheresolution. 2 Tobepassed,aSpecialResolutionrequiresamajorityofat least75%ofthevotescastbythoseshareholdersvotingin personorbyproxyattheAGM(excludinganyvoteswhich arewithheld)tobevotedinfavouroftheresolution. 3 Amemberwhoisentitledtoattendandvoteatthe meetingisentitledtoappointoneormoreproxiesto exercisealloranyoftheirrightstoattend,speakandvote insteadofhimorher.Aproxyneednotbeamemberof theCompany.Morethanoneproxymaybeappointed providedthateachproxyisappointedtoexercisethe rightsattachedtodifferentsharesheldbythemember. 4 Ifreturnedwithoutanindicationastohowtheproxy shallvoteonanyparticularmatter,theproxywillexercise discretionastowhether,andifsohow,tovote. 5 Aformofproxyisenclosedforuseatthemeetingand anyadjournmentthereof.Theformofproxyshouldbe completedandsent,togetherwiththepowerofattorney orotherauthority(ifany)underwhichitissigned,ora notarialcertifiedcopyofsuchpowerorauthority,soasto reachtheCompany’sRegistrars,ComputershareInvestor Services(Guernsey)Limited,c/oThePavilions,Bridgwater Road,Bristol,BS996ZYatleast48hoursbeforethetimeof theAGM(excludinganypartofadaythatisnotaworking day). 6 Completingandreturningaformofproxywillnotprevent amemberfromattendinginpersonatthemeetingand votingshouldheorshesowish. 7 Tohavetherighttoattendandvoteatthemeetingor anyadjournmentthereof(andalsoforthepurposeof calculatinghowmanyvotesamembermaycastonapoll) amembermusthavehisorhernameenteredonthe registerofmembersnotlaterthanatcloseofbusinessof 12September2025. 8 PursuanttoRegulation41oftheUncertificatedSecurities (Guernsey)Regulations2009,entitlementtoattendand voteatthemeetingandthenumberofvoteswhichmay becastthereatwillbedeterminedbyreferencetothe registerofmembersoftheCompanyat12.00p.m.on 14September2025.Changestoentriesintheregister ofmembersoftheCompanyafterthattimeshallbe disregardedindeterminingtherightsofanymemberto attendandvoteatsuchmeeting. 9 Ifalltheshareshavebeensoldortransferredbythe addressee,theNoticeofAnnualGeneralMeetingand anyotherrelevantdocumentsshouldbepassedtothe personthroughwhomthesaleortransferwaseffectedfor transmissiontothepurchaserortransferee. 141 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Other information (unaudited) Corporate information Registered Address 2ndFloor,DoreyCourt ElizabethAvenue StPeterPort GuernseyGY12HT Directors (all non-executive) AlastairHughes(Chair) PriscillaDavies AlexandraInnes SanjayPatel Investment Manager and Accounting Agent SchroderRealEstateInvestmentManagementLimited 1LondonWallPlace LondonEC2Y5AU Company Secretary SchroderInvestmentManagementLimited 1LondonWallPlace LondonEC2Y5AU Depositary LanghamHallUKDepositaryLLP 8thFloor 1FleetPlace LondonEC4M7RA Solicitors to the Company as to English Law: StephensonHarwoodLLP 1FinsburyCircus LondonEC2M7SH Independent Auditor Ernst&YoungLLP POBox9 RoyalChambers St.Julian’sAvenue St.PeterPort GuernseyGY14AF Property Valuer CBRELimited Henrietta House HenriettaPlace LondonW1G0NB Corporate Brokers J.P.MorganSecuritiesplc 25BankStreet CanaryWharf LondonE145JP Tax Advisors DeloitteLLP 2NewStreetSquare LondonEC4A3BZ Receiving Agent and UK Transfer/Paying Agent ComputershareInvestorServices(Guernsey)Limited 13 Castle Street St Helier JerseyJE11ES Advocates to the Company as to Guernsey Law: MourantOzannes(Guernsey)LLP RoyalChambers StJulian’sAvenue St.PeterPort GuernseyGY14HP The Company’s privacy notice is available on its webpages. FATCA GIIN 5BM7YG.99999.SL.826 Other information (unaudited) 142 Schroder Real Estate Investment Trust Limited Annual Report and Consolidated Financial Statements 2025 Notes Other information (unaudited) Schroder Real Estate Investment Management Limited 1 London Wall Place, London EC2Y 5AU, United Kingdom T +44 (0) 20 7658 6000 @schroders schroders.com
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