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Schroder Real Estate Investment Trust Limited (SREI) Fair Value & Analysis

Real Estate · GB · Market cap 227M GBX

SR Schroder Real Estate Investment Trust Limited SREI · LSE
Price£0.4600
Fair Value£0.4400
Upside-4.3%
Quality60/100
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Mixed Growth
Highly profitable · 95.0% net margin
Moderate debt · generates free cash flow
7.79% dividend yield
Ranks above peers (10/14)
Wide moat 67/100
Evidence: High Range £0.3100 – £0.6100 Share as image

Fair value as of: Jul 13, 2026

From 13 valuation models · updated 28 days ago

Fair value updated Jul 13, 2026, revised from £0.5600 to £0.4400 (−21.4%) since Jun 26, 2026. Share price −2.6% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (£0.3100 to £0.6100) leaves room in how you read the outcome.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

£0.5703 £0.3168 Fair Value £0.4400 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range £0.3168 – £0.5703 · fair‑value band £0.3100 – £0.6100 · the £0.4600 price screens above the £0.4400 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Schroder Real Estate Investment Trust Limited (SREI) currently trades at £0.4600, while our model-based Fair Value estimate is £0.4400, implying the stock looks roughly 4.3% fairly valued today. The Quality Score stands at 60/100 (solid quality), in the Real Estate sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Schroder Real Estate Investment Trust Limited generated revenue of £31.2M at a net margin of 95.0%. Revenue grew 3.9% year over year. It earns a return on equity of 10.0%. Net debt stands at £176M. Fundamentals as of Jul 13, 2026

Our scenario range runs from £0.3100 (bear case) to £0.6100 (bull case); at £0.4600, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Real Estate peers we cover trades at -22% fair-value upside, at -4%, SREI screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £0.0900 £0.3200 £0.6800 80
Residual Income £0.4200 £0.4200 £0.3600 76
Rev-Margin DCF £0.0900 £0.3700 £0.9400 74
All 13 models by family
DCF Models
FCF DCF £0.1100 £0.2700 £0.7500 38
5Y Revenue Exit £0.0600 £0.2900 £0.7800 39
10Y Revenue Exit £0.0700 £0.4300 £0.6500 36
Dividend Discount
Gordon GGM £0.2500 £0.4200 £0.5400 70
DDM Multi-Stage £0.2500 £0.4000 £0.4500 61
Multiples
P/S Multiple £0.3000 £0.3900 £0.4900 58
P/B Multiple £0.3700 £0.4900 £0.6100 55
EV/EBIT £0.3800 £0.6100 £0.8300 53
EV/Revenue £0.0100 £0.1300 £0.2600 43
Asset-Based
NCAV (Graham) £0.3000 £0.4100 £0.6100 50
Growth DCF
Growth DCF £0.0900 £0.3200 £0.6800 80
Rev-Margin DCF £0.0900 £0.3700 £0.9400 74
Economic Profit
Residual Income £0.4200 £0.4200 £0.3600 76

Widest divergence: Economic Profit (£0.4200) versus DCF Models (£0.2900). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 31.2M GBX
Revenue growth (YoY) +3.9%
Net margin 95.0%
Return on equity 10.0%
Free cash flow 16.6M GBX FY2026
P/E ratio 8.0
More key figures
Operating margin 75.4%
EPS (TTM) £0.0600
Dividend yield 7.6%
EPS growth (YoY) -12.1%
Net debt 176M GBX FY2026

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 57 · Market factors (momentum, volatility) 44

Profitability 34
Margins and returns on capital today
Quality Growth 12
Are margins and returns improving?
Cashflow 86
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Schroder Real Estate Investment Trust Limited as of 30 June 2025, the underlying portfolio comprised 37 properties valued at 481.6 million pounds. It generated annual rent of 29.0 million pounds, reflecting a net initial yield of 5.6% (MSCI Benchmark: 5.1%).

Full company description

Schroder Real Estate Investment Trust Limited as of 30 June 2025, the underlying portfolio comprised 37 properties valued at 481.6 million pounds. It generated annual rent of 29.0 million pounds, reflecting a net initial yield of 5.6% (MSCI Benchmark: 5.1%). Note that the University of Law, the 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, being 2,359,885 pounds would result in a net initial yield of 6.1%. The portfolio's ERV is 40.2 pounds million, reflecting a reversionary yield of 8.3% (MSCI Benchmark: 6.2%). Including the impact of the exchange of unconditional contracts to sell Pacific House in Marlow with vacant possession, the portfolio void rate has improved to 12.2% as at today (31 March 2025 12.3%), calculated as a percentage of ERV. In addition a further 2.3% of this void is currently under offer and in advanced legal negotiations; a further 2.9% is undergoing refurbishment including major sustainability improvement works at Millshaw Park Industrial Estate in Leeds (representing 1.7%) and St Ann's House in Manchester (representing 0.6%), both visited by shareholders and analysts on the Asset Tour in June and expected to generate material increases in rent compared to the previous passing level on completion. The weighted average unexpired lease term, assuming all tenants vacate at the earliest opportunity, is 5.2 years. Schroder Real Estate Investment Trust Limited was incorporated in United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Schroder Real Estate Investment Trust Limited reported revenue of £29.6M in FY2026 versus £93.7M in FY2022, a compound −25.0%/yr. Reported net income was £14.1M in FY2026, compounding −37.0%/yr from FY2022.

Growth Quality 79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
£29.6M
Latest YoY
−19.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+24.3%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.8%
Revenue −25.0%/yr
FY22 £93.7M
FY23 −£49.6M
FY24 £8.2M
FY25 £36.6M
FY26 £29.6M
Net income −37.0%/yr
FY22 £89.4M
FY23 −£54.7M
FY24 £3.0M
FY25 £31.1M
FY26 £14.1M
Character of growth · EPS growth decomposed (2014-2024) +0.7 % p.a.
Revenue per share +0.2 pp

of which total revenue +1.9 pp · buybacks/dilution −1.7 pp

EBIT margin −1.9 pp
Tax rate −8.6 pp
Residual (interest, one-offs) +11.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Schroder Real Estate Investment Trust Limited Fair Value". https://www.fairvalue-calculator.com/stock/SREI

Peer Group

REIT - Diversified · 165 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Above median
Fair Value upside −4% · Above median
Return on equity (TTM) 10% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 95% · Top 25%
Operating margin (TTM) 75% · Top 25%
Revenue growth 4% · Above median
Dividend yield (TTM) 7.8% · Top 25%
Debt / equity 0.52× · Lower than median

Valuation Multiples vs REIT - Diversified median · lower = cheaper

P/E (TTM) 7.8× · Cheaper than 75% of peers
P/B 1.03× · Pricier than median
P/S (TTM) 9.84× · Pricier than 75% of peers
P/FCF 18.4× · Pricier than median
EV/EBITDA 21.7× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 28 · sector 13
FUTURE 20 · sector 13
PAST 40 · sector 20
HEALTH 74 · sector 72
DIVIDEND 100 · sector 97

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more REIT - Diversified stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
Goodman Group GMG A$29.11 A$7.37 -75%
VICI Properties Inc VICI $26.73 $41.74 +56%
W. P. Carey Inc WPC $76.69 $35.59 -54%
Charter Hall Group CHC A$21.90 A$11.46 -48%
Fibra Uno FUNO11 31.10 MXN 63.56 MXN +104%
COV COV €52.55 €62.39 +19%
The GPT Group GPT A$4.89 A$3.49 -29%
Mirvac Group MGR A$1.70 A$0.5700 -66%
KLCC Property Holdings 5235SS 8.85 MYR 6.91 MYR -22%
CRRUN CRRUN C$17.65 C$17.89 +1%

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Frequently asked questions

Is Schroder Real Estate Investment Trust Limited (SREI) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of £0.4400 versus a price of £0.4600, about −4% (fairly valued).
What is the fair value of SREI?
Our model-based fair value for Schroder Real Estate Investment Trust Limited is £0.4400 (as of Jul 13, 2026), built from audited fundamentals. The current price is £0.4600.
What is the quality score of SREI?
Schroder Real Estate Investment Trust Limited has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Schroder Real Estate Investment Trust Limited (SREI)?
Schroder Real Estate Investment Trust Limited reported trailing-twelve-month revenue of about £31.2M (latest available figure, as of Jul 13, 2026).
What is the net profit margin of SREI?
The net profit margin of Schroder Real Estate Investment Trust Limited is about 95.0%, meaning it keeps roughly 95.0% of revenue as net income. Based on the latest reported figures.
Does Schroder Real Estate Investment Trust Limited pay a dividend?
Schroder Real Estate Investment Trust Limited currently shows a dividend yield of about 7.59% relative to its recent price (as of Jul 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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