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Schroder Real Estate Investment Trust (SREI) Fundamentals

Interim Management Statement

ACQUISITION OF CITY TOWER, MANCHESTER

On 17 April 2014 Schroder Real Estate Investment Trust (the 'Company') completed a Placing and Offer for Subscription (the 'Placing') that raised £40.2 million from the issuance of 80 million shares at an issue price of 50.25 pence per share. The Placing was completed at a premium to the last reported Net Asset Value.

Following completion of the Placing the Company announces that it has exchanged contracts to acquire a 25% interest in City Tower, a landmark, mixed use investment in Central Manchester, for £33 million. The Company is acquiring the property alongside Schroder UK Property Fund and Immobilien Europa Direkt, both managed by Schroder Property Investment Management, for a total price of £132 million. The price reflects a headline net initial yield of 7%.

City Tower provides 615,429 sq ft of office, retail, leisure and hotel accommodation on a three acre island site including 456 car parking spaces. It is located in a prime location within the Central Business District of Manchester with frontage to both Piccadilly Gardens and New York Street. The property is held on a long leasehold basis from Manchester City Council with 218 years unexpired at nil rent.

Completion of the acquisition is subject to freeholder and other consents that the Company expects to be cleared within four to six weeks. The acquisition satisfies the Company's investment criteria by offering:

· An above average income return with the Company receiving an initial rent of £2.4 million per annum on expiry of rent free periods and after non-recoverable property expenses;
· 115 tenancies and mix of uses provides significant diversification with offices representing 61% of rental income, retail and leisure 14%, hotel 15% and ancillary uses 10%. UK Government institutions represent 18% of current rental income;
· A spread of lease expiries with an average unexpired lease term, to the earlier of lease expiry or break, of 10.8 years;
· The offices are let at a low initial rent of £17 per sq ft with key tenants including the National Institute for Health and Care Excellence ('NICE'), the Ministry of Justice, The University of Law Limited and Aegis Outsourcing (UK) Limited;
· Simple co-ownership structure enables the Company to invest in a property it would otherwise not be able to access;
· The potential to add significant value through asset management; and
· Central to Manchester's public transport infrastructure, with the subject property adjacent to Manchester's central tram interchange and close to Manchester's main line rail station.

Following completion of the acquisition the Company will have total cash approximately £15 million and a net loan to value, based on the independent valuation as at 31 March 2014, of approximately 34%.

The Company is progressing further acquisition opportunities and continues to believe that there is potential to enhance future returns to shareholders through a further increase in the size of the Company.

Commenting on the acquisition, Duncan Owen, Head of Property at Schroder Property Investment Management said:

"This transaction demonstrates the effectiveness of our recent share placing, enabling us to quickly deploy capital into an accretive acquisition, whilst minimising cash drag.

"The purchase is consistent with our investment strategy of targeting assets offering good underlying fundamentals where we can add value through a variety of measures supported by a strong and convenient location. The vendor has already made significant improvements via an extensive refurbishment programme and we believe there is further opportunity to deliver rental growth for this element of the asset in the future, underpinned by improving occupational demand. There is also the potential to generate value from asset management of the property."

Wembley planning update

Wembley planning update

On 18 September 2013 the Company announced it had exchanged contracts to sell a one acre plot, comprising part of its two acre Wembley site, to a wholly owned subsidiary of The Unite Group plc ('Unite') for a base price of £7.4 million. Completion of the disposal was subject to Unite securing detailed planning consent for 200,000 sq ft of student accommodation comprising approximately 684 rooms without onerous conditions.

The Company now announces that Unite have secured resolution to grant detailed planning consent for 200,000 sq ft of student accommodation comprising 699 rooms, without onerous conditions. This increases the sale price to £7.56 million including overage, compared with a valuation as at 31 March 2014 of £6.25 million.

The only remaining condition outside of the Company's control is expiry of the planning Judicial Review period 22 May 2014. The contract with Unite has a fixed completion date of 1 August 2014.

The Company will provide a further update in due course.

-ENDS-

A new high @54.75p

Interim Management Statement

Year End Results

Financial highlights for the 12 months ended 31 March 2014

· Profit before tax of £20.897 million (31 March 2013: loss of -£10.774 million)
· Underlying earnings of 5.7 pence per share ('pps') (31 March 2013: loss of -3 pps)
· 7.8% increase in NAV per share for the year 31 March 2014 to 48.6 pps, principally due to a 6.3% increase in the capital value of the underlying portfolio
· Dividend of 2.74 pps paid for the 12 months to 31 March 2014
· NAV total return 14.4% (31 March 2013: -4.0%)
· Underlying property portfolio delivered total return of 13.7%, outperforming Investment Property Databank ('IPD') Benchmark Index of 12.5%
· Loan to value ('LTV'), net of all cash, of 37.8% (31 March 2013: 39% immediately after re-financing on 17 April 2013)


Unaudited NAV as at 30 June 2014
· As announced separately today, the Company reported a NAV of 50.7 pps as at 30 June 2014, representing a quarterly increase of 4.3%, principally due to a 3.4% increase in the capital value of the underlying portfolio
· Quarterly dividend cover of 94%
· Further reduction in the LTV, net of cash, to 31%


Operational highlights
· £17.2 million of new equity raised in January 2014, followed by an additional £40.2 million via a further placing and offer for subscription post the period end, to take advantage of improving sentiment towards UK commercial property and enhance shareholder returns through disciplined and accretive growth
· Good progress deploying capital through £61.8 million of acquisitions during the year and since the period end at an average income return of approximately 8%
· Shareholders approved placing programme to issue up to a further 120 million shares as acquisitions are identified in order that the Manager can act opportunistically by making accretive acquisitions and mitigate the risk of cash drag on Shareholder returns
· High level of asset management activity with a reduction in the portfolio void rate as a percentage of rental value from 14.4% to 10.7% as at 30 June 2014

Appointment of AIFM

Placing Programme Update

The Company's announcement of its results for the year ended 31 March 2014 and its Interim Management Statement as at 30 June 2014 highlighted the attractive operating environment that has provided the opportunity for disciplined and accretive growth. This has involved the issuance of 115.6 million shares to raise £57.4 million of equity and the completion of five acquisitions totalling £61.8 million at an average income yield of approximately 8%.

A Placing Programme, established through the Company's prospectus dated 20 March 2014 and approved by shareholders in April 2014, enables the Company to issue up to a further 120 million shares over the period to 19 March 2015, with such shares being issued at a premium to the prevailing net asset value ('NAV') in order to cover the costs associated with the issue. The Company's Investment Manager is actively considering a pipeline of potential acquisitions that satisfy the investment criteria.

It is intended that these potential acquisitions are funded through a combination of (i) the proceeds from property disposals; (ii) the use of a short term revolving credit facility that is under negotiation; and (iii) further equity issuance under the Placing Programme.

The Company, through its Investment Manager and brokers, will continue to engage and consult with existing and prospective new shareholders in connection with achieving accretive and disciplined growth via the Placing Programme over the period to March 2015.

Hinckley disposal

The Company announces that it has exchanged contracts to sell its site at Coventry Road, Hinckley for £4.525 million, on a subject to planning basis, to Redrow Homes Limited ('Redrow'). The price compares with the independent valuation as at 30 June 2014 of £3.85 million.

The property comprises a 9.1 acre former industrial site close to Hinckley town centre and is currently vacant and non-income producing. The disposal of this asset is consistent with the Company's strategy to maximise value from low or non-income producing property.

In August 2013 the Company secured an outline planning consent for 122 residential units. Under the terms of the transaction, Redrow is obliged to make a detailed residential planning application within three months of exchange of contracts at its own cost. This application must be consistent with the outline consent already secured by the Company.

Subject to Redrow securing detailed planning consent and satisfaction of other ancillary conditions, the Company will receive 50% of the purchase price at completion with the balance nine months later. The deferred consideration is secured by a charge over the land and the Company also has potential to receive additional consideration under an overage agreement which is linked to the residential sales values achieved by Redrow in due course.


-ENDS-

Wembley Completion

The Company announces that it has completed the disposal of a one acre site
(the `subject site'), comprising part of its two acre Wembley site, to a wholly
owned subsidiary of The Unite Group plc (`Unite Students') for £7.56 million.
This compares to the independent valuation as at 30 June 2014 of £7.3 million.

Disposal of Wembley site

The Company announces that it has exchanged unconditional contracts with a
wholly owned subsidiary of Barratt Developments PLC (`Barratt') to dispose of
its remaining, non-income producing site at the Olympic Office Centre in
Wembley for £15.25 million. Barratt have paid a 10% deposit and completion is
due on 23 September 2014.

The Company estimates that completion of the disposal will increase the
underlying pro-forma Net Asset Value (`NAV') of the Company, assuming no other
changes following the last reported NAV as at 30 June 2014, by approximately
3.5%.

The disposal is the successful conclusion of a strategy for the subject site
involving securing outline planning consent for change of use from a car park
to 227,000 sq ft of residential and ancillary uses. Proceeds will be redeployed
into income producing investments that are currently under consideration.

Following completion of the disposal of the subject site the Company continues
to own the 74,000 sq ft Olympic Office Centre which as at 30 June 2014 was
independently valued at £10.75 million.

-ENDS-

Disposal of Olympic Office Centre, Wembley

The Company announces that it has exchanged unconditional contracts with
Network Stadium Housing Association Limited (`Network') to dispose of the
Olympic Office Centre in Wembley for £15.4 million, reflecting a net initial
yield of 6.7%. The price compares to the independent valuation as at 30 June
2014 of £10.75 million.

Network, a tenant in the building, has paid a 10% deposit and completion is due
on 19 December 2014 to coincide with expiry of its lease. The Company will
continue to receive Network's rent equating to £514,000 per annum during the
period between exchange and completion. Network is a leading provider of
affordable housing to Brent Council and intends to pursue a mixed use office
and residential redevelopment scheme on the site.

Schroder Real Estate Investment Trust Limited will announce half year results
for the six months ended 30 September 2014 on Monday 17 November 2014.

New high today @58.75p

Interim Management Statement

Net Asset Value

Schroder Real Estate Investment Trust Limited announces an unaudited net asset value ('NAV') of £260 million or 55.1 pence per share ('pps') as at 30 September 2014. This reflects an increase of 8.7% per share compared with the NAV as at 30 June 2014, or a NAV total return, including the dividend of 0.62 pps, of 10%.

Half Yearly Report

Financial highlights for the six months ended 30 September 2014

· Profit before tax of £36 million (six months to 30 September 2013: £4.2m)

· Earnings per share of 7.7p (six months to 30 September 2013: 1.2p)

· 13.4% increase in Net Asset Value ('NAV') per share to 55.1p (31 March 2014: 48.6p)

· Fully covered dividend of 1.24 pence per share declared for the six months to 30 September 2014

· NAV total return 16.2% (six months to 30 September 2013: 4.1%)

· Underlying property portfolio delivered total return of 12.7%, outperforming the Investment Property Databank ('IPD') Benchmark Index of 9.2%

· Loan to value ('LTV'), net of cash, of 26.8%

Operational highlights

· Disciplined growth strategy has made a positive contribution to shareholder total returns resulting in a fully covered dividend, a further reduction in leverage and improved economies of scale

· £40.2 million of new equity raised through placing programme in April 2014 has been invested into three attractive acquisitions totalling £43.7 million at an average initial yield of 7.2%

· Disposal of three assets at Olympic Office Centre in Wembley resulted in a realised gain after disposals costs of £15.1 million or 3.2 pps

· Further non-income producing disposals on track including Reynards Trading Estate, Brentford for a base price of £20 million, following receipt of planning, and Coventry Road, Hinckley for £4.525 million, providing further opportunities to recycle capital into accretive investments

Proposed placing

The Board of Schroder Real Estate Investment Trust Limited (the 'Company'), today announces a proposal to issue up to 43.5 million New Shares at 57.5 pence per New Share to raise gross proceeds of up to approximately £25 million by way of a placing (the 'Placing') pursuant to the terms and conditions of the Placing Programme established under the prospectus issued by the Company dated 20 March 2014 (as amended).

Result of Placing

The Directors have exercised the right, in consultation with Numis and J.P.
Morgan Cazenove, to increase the number of New Shares offered pursuant to the
Placing to 47.0 million New Shares.

A total of 47,000,000ordinary shares (the "New Shares") have therefore been
placed, subject to Admission, by J.P. Morgan Cazenove ("JPMC") and Numis
Securities Limited ("Numis") at a price of 57.50p per share, raising gross
proceeds of approximately £27.0 million. The New Shares represent approximately
10.0% of the issued ordinary share capital of the Company prior to the Placing.

.

CENTRAL LONDON ACQUISITION

NAV AND DIVIDEND

Schroder Real Estate Investment Trust Limited announces an unaudited net asset
value ('NAV') of £290.7 million or 56.1 pence per share ('pps') as at
31 December 2014. This reflects an increase of 1.8% per share compared with the
NAV as at 30 September 2014, or a NAV total return, including the dividend of
0.62 pps, of 3%.The NAV total return over the 12 months to 31 December 2014 was
24.5%

Dividend payment

The Company announces an interim dividend of 0.62 pps for the period 1 October
2014 to 31 December 2014. Following the issuance of 47 million shares on 20
November 2014 the quarterly dividend payment increases from £2.9 million to £
3.2 million. The dividend payment will be made on 27 February 2015 to
shareholders on the register as at 6 February 2015. The ex-dividend date will
be 5 February 2015.

Over the quarter to 31December 2014 dividend cover was101% excluding
exceptional items and non-recurring expenses.

REIT Proposal

Schroder Real Estate Investment Trust Limited (the "Company") has today
published a circular (the "Circular") to shareholders setting out proposals to
become resident in the United Kingdom for tax purposes, to apply for entry to
the REIT Regime, to adopt New Articles and setting out a Notice of
Extraordinary General Meeting.

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