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Schroder European Real Estate Investment Trust PLC (GB:SERE)
LSE:SERE
UK Market

Schroder European Real Estate ate ate Investment (SERE) AI Stock Analysis

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GB:SERE

Schroder European Real Estate ate ate Investment

(LSE:SERE)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
64.00p
▲(5.61% Upside)
The score is driven primarily by improved FY2025 financial performance and manageable leverage, but tempered by historically volatile earnings/cash flows and low ROE. Weak technical trend (below key moving averages, negative MACD) and event risk from the KPN lease termination and French tax claim further constrain the rating, while the high dividend yield provides partial support despite a high P/E.
Positive Factors
Strong Balance Sheet
A strong balance sheet with no debt provides financial flexibility and stability, allowing the company to invest in growth opportunities without the burden of interest payments.
Industrial Sector Growth
Growth in the industrial sector indicates strong demand and potential for increased rental income, supporting long-term revenue stability and expansion.
Shareholder Value Enhancement
Share buybacks and asset sales reflect management's confidence in the company's value, potentially enhancing shareholder returns and optimizing capital allocation.
Negative Factors
Declining Cash Flow
A decline in cash flow can strain the company's ability to fund operations and investments, potentially affecting its financial health and growth prospects.
Operational Inefficiencies
Operational inefficiencies, as indicated by a negative EBIT margin, can erode profitability and hinder the company's ability to capitalize on its revenue streams.
Revenue Decline
A substantial revenue decline suggests challenges in maintaining income levels, which could impact profitability and limit future growth potential.

Schroder European Real Estate ate ate Investment (SERE) vs. iShares MSCI United Kingdom ETF (EWC)

Schroder European Real Estate ate ate Investment Business Overview & Revenue Model

Company DescriptionSchroder European Real Estate Investment Trust plc is a UK closed-ended real estate investment company incorporated on 9 January 2015. Its investment manager is Schroder Real Estate Investment Management Limited. It invests in European growth cities, specifically institutional quality, income-producing commercial real estate in major Continental European cities and regions. Target markets are mature and liquid and have growth prospects exceeding those of their domestic economy. It invests in a portfolio of institutional grade income-producing properties with low vacancy and creditworthy tenants. The portfolio is diversified by location, use, size, lease duration and tenant concentration.
How the Company Makes MoneySERE makes money primarily through rental income generated from its property portfolio, which includes office buildings, retail locations, and industrial sites across Europe. The company leases these properties to tenants, providing a steady stream of rental revenue. Additionally, SERE may engage in property sales and acquisitions to optimize its portfolio and realize capital gains. The company also benefits from strategic partnerships with local property managers and real estate experts, which help in increasing occupancy rates and enhancing property value. Management fees from joint ventures and potential development projects are additional sources of revenue.

Schroder European Real Estate ate ate Investment Financial Statement Overview

Summary
Schroder European Real Estate Investment shows a mixed financial performance. The company maintains a strong balance sheet with no debt, but faces challenges in revenue generation and operational efficiency. Cash flow remains positive, but with declining trends that may impact future liquidity. Continued focus on revenue growth and cost management is crucial for financial stability.
Income Statement
58
Neutral
The income statement shows a significant decline in total revenue from the previous year, resulting in a negative EBIT and net profit. The company has faced a revenue decrease of approximately 78.6% year-over-year, indicating a potential struggle in generating income. Despite a gross profit margin of 100%, the negative EBIT margin highlights operational inefficiencies.
Balance Sheet
70
Positive
The balance sheet reflects a strong financial position with zero total debt and a high equity ratio of 67.23%. The return on equity is positive at 0.35%, suggesting the company is efficiently using its equity. However, the decreased total assets and stockholders' equity over the past year might be a concern for future growth.
Cash Flow
62
Positive
The cash flow statement indicates a positive operating cash flow, although it has decreased significantly from the previous year. The free cash flow is positive, supporting operational sustainability. However, the decline in free cash flow growth rate and the operating cash flow to net income ratio of 13.73 suggest potential cash flow challenges.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue18.73M6.77M4.47M20.94M21.14M9.92M
Gross Profit10.05M6.77M4.47M20.94M21.14M9.92M
EBITDA4.36M8.06M0.000.005.75M9.22M
Net Income1.89M1.88M575.00K-9.38M13.99M6.24M
Balance Sheet
Total Assets202.28M202.28M244.15M255.11M269.39M280.10M
Cash, Cash Equivalents and Short-Term Investments24.75M24.75M27.36M32.45M34.32M45.72M
Total Debt55.88M55.88M70.47M73.62M41.79M68.59M
Total Liabilities65.55M75.10M80.05M83.67M81.15M80.57M
Stockholders Equity156.66M156.66M164.10M171.44M188.24M199.53M
Cash Flow
Free Cash Flow5.99M5.31M7.89M15.90M10.27M-3.75M
Operating Cash Flow5.99M5.31M7.89M15.90M10.27M-3.75M
Investing Cash Flow9.57M9.27M-1.68M-15.15M5.38M38.13M
Financing Cash Flow-14.78M-13.73M-11.29M-2.61M-27.05M-6.69M

Schroder European Real Estate ate ate Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price60.60
Price Trends
50DMA
61.59
Positive
100DMA
61.86
Positive
200DMA
62.78
Positive
Market Momentum
MACD
0.80
Negative
RSI
63.04
Neutral
STOCH
69.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SERE, the sentiment is Positive. The current price of 60.6 is below the 20-day moving average (MA) of 61.39, below the 50-day MA of 61.59, and below the 200-day MA of 62.78, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 69.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SERE.

Schroder European Real Estate ate ate Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£61.10M8.4110.96%8.23%8.48%207.85%
66
Neutral
£279.77M6.64%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
60
Neutral
£111.70M16.132.31%65.05%0.54%
58
Neutral
£83.05M44.201.40%8.31%-8.97%326.47%
53
Neutral
£108.73M6.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SERE
Schroder European Real Estate ate ate Investment
65.00
7.38
12.81%
GB:SREI
Schroder Real Estate ate ate Investment
57.60
12.04
26.43%
GB:RESI
Residential Secure Income
57.20
4.28
8.09%
GB:ASLI
abrdn European Logistics Income PLC
27.25
6.27
29.89%
GB:AIRE
Alternative Income REIT Plc
76.10
11.81
18.37%
GB:HOME
Home REIT PLC
9.53
1.53
19.12%

Schroder European Real Estate ate ate Investment Corporate Events

Dividends
Schroder European Real Estate Sets Sterling Rate for Fourth Interim Dividend
Neutral
Jan 13, 2026

Schroder European Real Estate Investment Trust has confirmed the sterling equivalent for its previously declared fourth interim dividend for the year ended 30 September 2025, originally set at 1.48 euro cents per share. Shareholders on the UK register who did not elect to receive their dividend in euros before the 9 January 2026 deadline will instead receive 1.28020 pence per share, based on an exchange rate of 0.86500, with the dividend payable on 6 February 2026 to shareholders on the register as of 9 January 2026.

The most recent analyst rating on (GB:SERE) stock is a Hold with a £65.00 price target. To see the full list of analyst forecasts on Schroder European Real Estate ate ate Investment stock, see the GB:SERE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Schroder European REIT Holds Portfolio Value Steady at €194m Amid Active Asset Management
Positive
Jan 8, 2026

Schroder European Real Estate Investment Trust reported that the independent valuation of its property portfolio remained unchanged at €194.0 million as at 31 December 2025, reflecting a resilient position across its diversified holdings in key European growth markets. Performance was supported by asset-specific moves: the Berlin DIY asset achieved a third straight quarter of valuation growth following rent-free periods expiring under a new 12-year lease extension; office values in Paris, Hamburg and Stuttgart were stable; and industrial assets in Houten and Utrecht saw valuation gains driven by rental growth, offsetting a discount-rate driven decline at Alkmaar linked to higher tenant covenant risk. The mixed-use data centre in Apeldoorn recorded a modest valuation drop due to its shortening lease term, with the expected 2026 tenant departure already factored in, underscoring the company’s ongoing focus on active management and protecting long-term value and liquidity for shareholders.

The most recent analyst rating on (GB:SERE) stock is a Hold with a £64.00 price target. To see the full list of analyst forecasts on Schroder European Real Estate ate ate Investment stock, see the GB:SERE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Schroder European Real Estate Faces Lease Termination by KPN
Negative
Dec 16, 2025

Schroder European Real Estate Investment Trust plc has announced that Koninklijke KPN N.V. will terminate its lease on a property in Apeldoorn, Netherlands, which constitutes a significant portion of the company’s portfolio income and value. The company is exploring various strategies to mitigate the impact of this loss, including seeking new tenants, considering alternative property uses, or selling the asset. The termination is expected to affect the company’s income profile and potentially impact future dividends or earnings cover.

Financial DisclosuresRegulatory Filings and Compliance
Schroder European Real Estate Investment Trust Submits Annual Report
Neutral
Dec 10, 2025

Schroder European Real Estate Investment Trust plc has submitted its Annual Report and Consolidated Financial Statements for the year ending 30 September 2025 to the National Storage Mechanism. The report will soon be available for public inspection, reflecting the company’s commitment to transparency and regulatory compliance.

Dividends
Schroder European Real Estate Trust Announces Dividend Currency Exchange Rate
Neutral
Dec 10, 2025

Schroder European Real Estate Investment Trust plc announced the currency exchange rate for its fourth interim dividend for the year ending 30 September 2025. The dividend, initially declared at 1.48 euro cents per share, will be paid in South African cents to shareholders on the South African register, with an exchange rate of 19.81500, resulting in a gross dividend of 29.32620 South African cents per share. After a 20% dividend tax, the net dividend will be 23.46096 South African cents per share. This announcement impacts shareholders on the South African register, highlighting the company’s operational focus on maintaining shareholder value across different markets.

Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Schroder European Real Estate Faces Tenant and Tax Challenges Amidst Market Recovery
Negative
Dec 9, 2025

Schroder European Real Estate (SERE) reported a NAV total return of 2.0% for the year ending September 2025, with dividends maintained at 5.92 cps. The company faces challenges with its largest tenant, KPN, planning to vacate a significant asset, and a €14.2 million tax claim from the French Tax Authority, which SERE is appealing. Despite these issues, the company notes improving economic sentiment and liquidity in the European real estate market, although it continues to trade at a significant discount.

Dividends
Schroder European Real Estate Investment Trust Announces Fourth Interim Dividend
Positive
Dec 5, 2025

Schroder European Real Estate Investment Trust plc has announced its fourth interim dividend for the year ending 30 September 2025, set at 1.48 euro cents per share. This dividend will be distributed to shareholders on 6 February 2026, with specific trading and ex-dividend dates outlined for both UK and South African shareholders. The announcement highlights the company’s commitment to providing consistent returns to its investors, while also detailing the tax implications and currency options for the dividend payments.

Shareholder Meetings
Schroder European Real Estate Investment Trust Announces AGM Details
Neutral
Dec 5, 2025

Schroder European Real Estate Investment Trust plc has announced the scheduling of its Annual General Meeting (AGM) for 17 March 2026 in London. The announcement outlines important dates for shareholders, including the record dates for South African shareholders and the deadline for proxy submissions. This meeting is a key event for stakeholders to discuss and vote on company matters, reflecting the company’s ongoing commitment to shareholder engagement and governance.

Business Operations and StrategyDividendsFinancial Disclosures
Schroder European Real Estate Investment Trust Reports Positive Full-Year Results Amid Market Recovery
Positive
Dec 5, 2025

Schroder European Real Estate Investment Trust plc announced its full-year results for the year ended 30 September 2025, highlighting a positive NAV total return supported by a robust balance sheet and strategic asset management. Despite a slight decline in net asset value due to unrealized revaluation losses, the company maintained a strong dividend yield and high occupancy rates. The company is addressing challenges such as the anticipated lease termination by KPN and a tax claim from the French Tax Authority, while continuing to focus on asset management initiatives to enhance portfolio performance. The announcement reflects a cautious recovery in the European real estate market, with improved economic sentiment and investor confidence.

Business Operations and StrategyExecutive/Board Changes
Schroder European Real Estate Appoints Phil Redding as New Chairman
Positive
Nov 26, 2025

Schroder European Real Estate Investment Trust plc has announced the appointment of Phil Redding as an Independent Non-Executive Director, effective January 1, 2026. Redding, with over 35 years of experience in the UK and pan-European property sector, will succeed Sir Julian Berney Bt. as Chairman following the AGM in March 2026. His extensive experience and recent corporate finance activities position him well to lead the company forward, reflecting a strategic move to strengthen the company’s leadership and potentially enhance its market positioning.

Financial Disclosures
Schroder European Real Estate Investment Trust to Announce Full Year Results
Neutral
Nov 7, 2025

Schroder European Real Estate Investment Trust plc has announced that it will release its Full Year Results for the period ending 30 September 2025 on 5 December 2025. This announcement is significant for investors and analysts as it provides insights into the company’s financial performance and strategic positioning in the European real estate market.

Business Operations and Strategy
Schroder European Real Estate Trust Offers 8% Yield on European Property
Positive
Oct 16, 2025

Schroder European Real Estate Investment Trust PLC offers an 8% yield on European commercial property, positioning itself as a significant player in the European real estate market. A new research report by Kepler Trust Intelligence provides a comprehensive analysis for long-term investors, highlighting the trust’s potential impact on stakeholders and its strategic market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025