Schroder European Real Estate plans wind-down; interim profit robust

Schroder European Real Estate Investment Trust PLC announced on Wednesday it planned to wind down the business after posting strong interim profit.

Shares in Schroder European rose 7.6% to 64.33 pence in London on Wednesday morning, and were up 9.6% to R 14.50 in Johannesburg.

The London and Johannesburg-listed property investor said its board and investment manager had reviewed various options to maximise shareholder value and had concluded that a ‘managed’ wind-down and return of capital was in the best interest of shareholders.

This proposed plan is subject to investor approval, and aims to address the persistent discount that the company’s shares trade at relative to its net asset value, the company said.

Schroder European said its portfolio can be realised in the direct property market at a value in excess of what is implied by the prevailing share price.

Given the market backdrop and heightened geopolitical risks, the ‘managed’ wind-down process is expected to take about two to three years to complete.

For the six months that ended March 31, Schroder European reported on Wednesday its pretax profit or ‘gain’ was €1.5 million, up from €544,000 a year earlier.

Net rental income was €7.3 million, up 6.7% from €6.8 million.

Schroder European maintained quarterly dividend at 1.48 euro cents, also leaving the total payout for the first half at 2.96 cents.

Basic earnings per hare was 0.8 cents, swung from loss per share of 0.1 cent.

As at March 31, net asset value per share was 115.1 euro cents, down 2.6% from 118.2 cents at March 31, 2025, and was down 1.9% from 117.3 cents at September 30, 2025.

‘During the period, the board has actively explored a broad range of strategies, including a continuation of the existing business, a corporate sale and a transition towards thematic or sector-specific investments,’ Schroder European Chair Phil Redding said.

‘However, primarily as a result of the structural shift in investor sentiment towards larger, more liquid UK equities and ongoing uncertain economic and property market backdrop, it does not expect these strategies to significantly close the discount or support long-term growth,’ Redding said.

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