Rent Collection and Asset Management Update

For release 29 January 2021

Schroder Real Estate Investment Trust Limited
("SREIT"/ the "Company" / "Group")

RENT COLLECTION AND ASSET MANAGEMENT UPDATE

Schroder Real Estate Investment Trust, the actively managed UK-focused REIT, provides an update on rent collection and recent asset management activity across its industrial portfolio.

Rent collection

Rent collected for the quarter ending 31 March 2021 currently totals 85% of contracted rents, which is in-line with the equivalent date in the previous quarter.  The breakdown between sectors is 94% of office rent collected, 97% of industrial rent collected and 54% relating to retail, leisure and ancillary uses collected. The Company remains in active dialogue with its tenants for all rents due to be paid and expects to recover a significant portion of the outstanding amount.

The Company will provide a further update when it announces its dividend and unaudited net asset value as at 31 December 2020 during the week commencing 15 February 2021.

Asset management

Multi-let industrial portfolio activity

Continued good progress is being made with the asset management of the industrial portfolio which, following the acquisitions announced in December of two multi-let estates in Cheadle (Greater Manchester) and Chippenham for £36.5 million, represents 36% of the total portfolio value (adopting the portfolio value as at 30 September 2020).  The two estates generate initial rental income of £2.7 million per annum and are expected to offer significant potential to grow net income through asset management and development.

Examples of letting activity completed during January 2021 are set out below, with further lettings under offer and due to complete shortly: 

Leeds, Millshaw Industrial Estate

A five year lease renewal completed with Alliance Healthcare for 57,152 sq ft at a rent of £271,472 per annum, or £4.75 per sq ft.  This compares with the previous passing rent of £3.52 per sq ft and therefore represents an uplift of £70,222 per annum, or 34.9%. 

A new ten year lease completed with City Sprint for 13,769 sq ft at a rent of £90,000 per annum, or £6.54 per sq ft.  This compares with the previous passing rent of £5.50 per sq ft and is in-line with ERV.  The tenant will receive six months’ rent free and a break option in year five.

Telford, Hortonwood Industrial Park

A new six year lease completed with Midway Contract Electronics for 8,878 sq ft at a rent of £46,000 per annum, or £5.18 per sq ft.  This compares with the previous passing rent of £4.39 per sq ft and an ERV of £4.75 per sq ft.  The tenant will receive six months’ rent free and a break option in year three.

Net Zero Carbon Pathway

The Company together with Schroder Real Estate as Investment Manager are focussed on delivering continued improvements in the sustainability performance of the portfolio. In December 2020, Schroders issued its Net Zero Carbon Pathway, a commitment made in September 2019 as part of the UK Better Buildings Partnership Climate Commitment. This outlines a trajectory for achieving net zero carbon by 2050 and addresses both operational carbon, covering whole building performance; and embodied carbon, covering development and refurbishment activities.

Please follow the below link for more information:

https://www.schroders.com/en/sysglobalassets/email/uk/realestate/2020/schroder-real-estate-net-zero-carbon-pathway-december-2020_1621372_v1.pdf

-ENDS-

For further information:

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