Schroder European Real Estate Investment Trust

Schroder European Real Estate Investment Trust Interim results presentation Tony Smedley, Head of Continental European Real Estate Investment Andrew MacDonald, Head of Real Estate Finance 25 May 2017 Jeff O Dwyer, Investment Manager For professional investors only. This material is not suitable for retail clients

Agenda 01 Highlights 02 Portfolio, asset management and markets 03 Financial review 04 Summary and outlook 1

Highlights

The European growth city strategy Nearing full investment and growing income Investment Finance European Markets Growth strategy Acquisitions: 56.2m invested in Paris and Seville Portfolio: 209m 1 in nine retail/office assets with high occupancy, 4.8yr lease length Income: portfolio yield 6.1%; over 8% post debt (pre costs) Value growth: 2.5% increase in portfolio value over the period 1 NAV: 175.9m NAV as at 31 Mar ( 1.315 p.s.), representing NAV total return of 2.5% since 30 Sept EPRA Earnings: 2.6m for 6 months, compared to 1.0m for 10 months to Sept 2016 Dividends: 2.2 Euro cents p.s. declared for half-year period, 29% increase over the prior half year Debt: Post Seville LTV now 26% at interest cost of 1.30%, 7.3 years duration Growth cities: Portfolio located in fastest growing cities in Europe Megatrends: urbanisation, infrastructure, demographic change Markets: rents rising, voids falling, asset price growth continues; premium to fixed income supportive Market presence: deep local market knowledge and access of Schroder teams Dividend: On track for target 5.5% once fully invested 2 Pipeline: Active negotiations to deploy 30m remaining capacity Accretive growth: raise equity to grow portfolio Scale benefits: improves diversification, liquidity and cost economies Capital: 16.7m equity raised in October Source: Schroders, May 2017/Data: 1 Portfolio market value is based on 31 March 2017 independent valuation, includes 50% share of 52.5m Seville asset acquired post period end. 2 Dividend is only a target and yield based on IPO issue price in Euro. Past performance is not a guide to future performance and may not be repeated. 3

Portfolio, asset management and markets

Portfolio evolution Invested 209m 1, 9 assets in France, Germany and Spain Berlin, Germany Stuttgart, Germany Frankfurt, Germany Rennes, France Seville, Spain Retail Warehouse Office Retail Retail Retail Jan 2016 2017 0 209m 1 Paris, France Office Hamburg, Germany Office Biarritz, France Retail St. Cloud, Paris, France Office Source: Schroders, May 2017. For illustrative purposes only and should not be viewed as a recommendation to buy or sell. 1 Portfolio market value is based on 31 March 2017 independent valuation, includes 50% share of 52.5m Seville asset committed post period end. 5

Recent acquisitions Paris and Seville St. Cloud, Paris, France Purchase Price Location Description Asset Management c. 30m / c. 2,000 psm / 9.5% NIY Saint-Cloud, an upscale mixed use suburb in West Paris 15,800 sqm office premises; the best quality space in a larger 65,000 sqm office complex; fully leased; multi-tenanted; modest rents of 215/sqm. Next to future Grand Paris train station Refurbish lift lobbies; re-gear leases to maintain attractive NIY and extend WAULT Strategy Re-gear leases Light refurbishment Metromar Shopping Centre, Seville, Spain 50% share Purchase Price Location Description Asset Management c. 52.5m (100%) / c. 2,200 psm / 6.2% NIY Mairena del Aljarafe, a growing suburb of Seville 23,500 sqm urban shopping centre servicing a catchment of 250,000 people within 15 minutes drive. Strong tenant mix Zara, Mango, Pull & Bear, Mercadona supermaket with a leisure point of difference (cinemas / restaurants) Lease vacancy, improve leisure offer, improve brand / signage / wayfaring / lighting and general vibrancy Strategy Lease vacancy Place making 6

Portfolio Overview Nine institutional grade assets in growth cities City Acquired Country Sector Valuation m No. Tenants Contracted rents m WAULT to break yrs Paris (Boulogne) Q1 2016 France Office 41.5 1 2.4 4.0 0.0 Paris (Saint-Cloud) Q1 2017 France Office 33.0 12 3.1 2.5 0.0 Biarritz Q2 2016 France Retail 21.6 8 1.3 4.4 1.0 Rennes Q2 2016 France Retail 18.8 1 0.9 5.2 0.0 France Subtotal 115.0 23 8.4 3.6 0.1 Berlin Q1 2016 Germany Retail 25.3 1 1.6 8.8 0.0 Hamburg Q2 2016 Germany Office 16.1 16 1.2 7.0 0.4 Stuttgart Q2 2016 Germany Office 14.9 4 0.8 8.3 0.4 Frankfurt Q2 2016 Germany Retail 11.4 6 0.7 6.8 0.0 Germany Subtotal 67.7 27 4.3 7.8 0.2 Subtotal 31/03/2017 182.7 50 12.0 5.1 0.2 Seville, Metromar Q2 2017 Spain Retail 26.3 (1) 53 2.1 3.0 2.5 Total including post quarter completion 208.9 103 14.1 4.8 0.5 Property allocation Sector allocation Country allocation Void % 13% 20% 13% 16% 10% 8% 9% 5% 7% 12% 49% 51% 32% 55% Paris (B-B) Berlin Hamburg Stuttgart Frankfurt Rennes Biarritz Paris (SC) Seville Office Retail France Germany Spain Source: Schroders, May 2017. 7

Tenant overview Over 100 tenants and weighted average lease term of 4.8 years Top 10 tenants Sector City Rent p.a. m % of total WAULT to earliest expiry years Credit risk assessment 1 ALTEN Technology Paris (Boulonge) 2.3 19% 4.0 Low 2 Casino Grocery Retail Rennes & Biarritz 1.9 15% 5.2 Low 3 Hornbach Retail Berlin 1.6 13% 8.8 Low 4 City BKK Insurance Hamburg 0.8 7% 7.9 High* 5 Land Baden-Württemberg Government Stuttgart 0.7 5% 8.9 Low 6 Thesee (Leyton) Consultancy Paris (Saint Cloud) 0.6 5% 2.4 Medium 7 Ethypharm Pharmaceutical Paris (Saint Cloud) 0.6 5% 0.8 Low 8 Filassistance Insurance Paris (Saint Cloud) 0.5 4% 2.2 Low 9 Garantie assistance Insurance Paris (Saint Cloud) 0.4 3% 5.2 Low 10 Moody's Analytics Financial Paris (Saint Cloud) 0.4 3% 2.3 Low Subtotal 9.6 68% 5.1 Remaining Tenants 4.4 32% 3.7 Total 14.1 100% 4.8 Lease expiry to earliest termination WAULT Portfolio weighted average unexpired lease term of 4.8 years Seville: c.3 years due to rolling breaks prevalent with the larger retailers (e.g. Inditex Group and cinema). This is mitigated by the fact that these retailers are trading well (sustainable effort ratios) and are long term occupiers (since 2007) Paris (St.Cloud): nature of tenant profile (SME s) results in shorter term leases. Good progress being made with lease regears/extensions Source: Schroders, May 2017. *City BKK is part of a national insurance co-operative which mitigates their risk assessment as the co-operative must cover the liabilities of all members. 8

Exposure to higher GDP growth, winning centres SEREIT portfolio located in highest growth regions of Western Europe SEREIT s Investment Universe SEREIT s portfolio vs. Investment Universe Outer ring shows SEREITs direct exposure as a % of value 20% 5% 19% Inner ring shows average for investment universe 47% 29% 80% Fastest Growing Regions Second Quartile Third Quartile Slowest Growing Regions Source: Oxford Economics, Schroders. May 2017 Total of 9 assets as at last valuation. Investment universe consisting of 1043 NUTS3 regions in countries shown on map. Data based on Oxford Economics GDP growth forecasts end-2016 end 2021 as at April 2017. 9

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 European economies continue to grow GDP growth forecasts GDP growth and forecast GDP growth forecast 2017 2021 2008 = 100 (% p.a.) 125 Forecast Sweden Spain 120 UK Sweden 115 Germany Norway France Denmark 110 Netherlands Belgium Spain France 105 Netherlands Finland Finland 100 Italy Portugal Austria 95 Germany Italy 90 0.0 0.5 1.0 1.5 2.0 2.5 Source: Oxford Economics, Schroders. April 2017. The forecast should be regarded as illustrative of trends. Actual figures will differ from forecasts. Please refer to Important Information regarding forecasts. Countries mentioned are for illustrative purposes only and not a recommendation to buy or sell. 10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Labour markets continue to recover Unemployment falling strong growth in office employment Office employment: Forecast growth in absolute employment between end-2016 to end-2021 ILO-Unemployment rates (%) Luxembourg Stockholm Berlin Madrid Amsterdam Oslo Cologne Frankfurt Lyon Hamburg Munich Stuttgart Lisbon Barcelona Paris Vienna Copenhagen Rotterdam Dusseldorf Brussels Helsinki Milan 0.0% 2.5% 5.0% 7.5% 10.0% 12.5% 15.0% 17.5% 20.0% 14.0 12.0 10.0 8.0 6.0 4.0 2.0 Germany France Italy Netherlands Sweden Source: PMA, Oxford Economics, April 2017. The forecast should be regarded as illustrative of trends. Actual figures will differ from forecasts. Please see the information slide at the end of this presentation. Countries mentioned are for illustrative purposes only and not a recommendation to buy or sell. 11

Madrid Seville Barcelona Spain Stockholm Sweden Oslo Norway Copenhagen Denmark Zurich Switzerland Brussels Belgium Paris France Amsterdam Netherlands Helsinki Finland Berlin Hamburg Stuttgart Dusseldorf Munich Frankfurt Germany Milan Rome Italy Focus on growth Cities not countries Major cities and regions enjoy faster economic growth Average GDP Growth 2017 2021 % p.a. 3.0 2.5 2.0 1.5 1.0 0.5 Source: Oxford Economics, Schroders. April 2017. The forecast should be regarded as illustrative of trends. Actual figures will differ from forecasts. Please refer to Important Information regarding forecasts. Countries mentioned are for illustrative purposes only and not a recommendation to buy or sell. 12

Q2 2006 Q4 2006 Q2 2007 Q4 2007 Q2 2008 Q4 2008 Q2 2009 Q4 2009 Q2 2010 Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016 Q4 2016 European occupier activity remains high Broad based recovery in occupier demand 12m tolling Totals 000 sq m 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Germany France UK and Ireland Italy BeNeLux Iberia Sweden Source: JLL, Schroders. April 2017. Country figures based on major markets. Countries mentioned are for illustrative purposes only and not a recommendation to buy or sell. 13

Q4 '07 Q2 '08 Q4 '08 Q2 '09 Q4 '09 Q2 '10 Q4 '10 Q2 '11 Q4 '11 Q2 '12 Q4 '12 Q2 '13 Q4 '13 Q2 '14 Q4 '14 Q2 '15 Q4 '15 Q2 '16 Q4 '16 Office vacancy is falling Current vacancy in some markets just above 1 2y worth of take-up Vacancy rate % 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 Madrid Frankfurt Amsterdam Stockholm Paris London Berlin 2.0 0.0 Source: JLL, Schroders. April 2017. 14

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 European real estate and bond yields Real estate yield spread over bonds remains attractive Office yields and 10 year government bonds Initial yields % 7 6 Forecast 5 4 3 2 1 0 Prime Office vs Bond Yield Gap Prime European Office Yield Avg European 10Y Bonds* Source: Bloomberg, DTZ, PPR, Datastream, Schroders, February 2017. Note *10 Year Bonds are unweighted average of French and German government bonds. The forecast should be regarded as illustrative of trends. Actual figures will differ from forecasts. Please refer to Important Information regarding forecasts. 15

Growth markets Investing through the cycle Focus on occupier requirements and long-term trends/value Office Retail Competing uses and good or improving infrastructure Others Real estate which stands to gain from new technology, demographic change, urbanisation Adaptable to changing occupier needs Potential for change of use Modern offices in improving areas Re-positioning offices in city centres Modern, central in smaller growth cities Grocery and convenience Flagship stores city centres / tourist centres Shopping centres dominating catchment DIY + big boxes Logistics: med + small Data centres Hotels Leisure properties Care homes Competing uses Types which are internet immune Understand occupiers business models Source: Schroders, November 2016. 16

The European growth city strategy Pipeline to deploy remaining capital ( 30m) Opportunity Country Sector Pricing Yield Profile Comment 1 Urban Logistics Portfolio Spain Logistics 31m 6.0% Core 5 parcel delivery assets in the 3 largest cities of Spain - Madrid (3), Barcelona and Valencia. c.6 year WAULB, good spec 2 Petrol Station Portfolio Spain Alternative 51m 7.5% Core+ Portfolio of 19 fuel stations in high growth areas of Northern Spain, located beside dominant grocery stores. Scope for alternate use subject to planning 3 Brussels Logistics Belgium Industrial 20m 6.3% Core+ 4 Utrecht Netherlands Office 13m 5.8% Core Logistics asset southern edge of Brussels, close to major ring road City centre, close to central station and main high street. 15 year lease to strong covenant let at discount to market rent Total 115m 6.5% Source: Schroders, May 2017. Countries mentioned are for illustrative purposes only and not a recommendation to buy or sell. 17

Financial review

Financial Highlights NAV of 175.9m (131.5 cents per share ( cps ) / 111.7 pence per share ( PPS )) Increase of 11.4% over the period, including gross equity raise of 16.7m NAV total return over the half-year of 2.5%, despite incurring acquisition and equity issue costs EPRA earnings of 2.6m for 6 month period (2.0 cps / 1.7 pps) compared to 1.0m (0.9 cps) for 10 months to 30 September 2016 Annualised gross rental income grown to 14.1m post Seville, from 8.7m for the portfolio as at 30 September 2016 Second interim dividend declared of 1.2 cents per share 20% increase in dividend over the quarter 99% covered from net income over the quarter Represents annualised dividend yield of 3.5% Total dividends declared relating to half year of 2.2 cents per share New accretive loan drawn post period end against Seville asset; overall LTV is 26% at a weighted average interest rate of 1.30% and a weighted duration of 7.3 years Approximately 30m of remaining investment capacity (including debt) post Seville acquisition Source: Schroders, May 2017. Past performance is not a guide to future performance and may not be repeated. 19

NAV movement over interim period 2.5% NAV total return underpinned by valuation growth NAV as at 30 September 2016* 157.8 130.2 m cps Comments Net Equity raise 16.4 0.1 Placing in October 2016 NAV post equity raise 174.2 130.3 Transaction costs of investments made during the period Unrealised gain in valuation of the property portfolio (3.0) (2.2) Mainly acquisition costs for the Saint Cloud acquisition 4.6 3.4 Post tax net revenue 2.6 1.9 Dividends paid (2.5) (1.9) NAV as at 31 March 2017 175.9 131.5 Paris (St. Cloud) 3.0m, Berlin 0.4m, Hamburg 0.7m, Stuttgart 0.2m and all other assets 0.3m Rental income net of operating expenses and finance costs. Breakdown on slide 21 Dividend for Jul Sept (0.9 cents ps) and Oct-Dec (1.0 cents ps) paid during period Post period end: Acquisition of 50% share in a shopping centre in Seville for a price c. 26.3m (SEREIT share) New loan of 11.7m (SEREIT share) drawn against Seville acquisition Source: Schroders *NAV as at 30 Sept 2016 based on number of shares pre Oct 2016 equity raise (121.2m shares). All other numbers based on number of shares post equity raise (133.7m shares). Numbers based on proportionally consolidated basis and therefore represent SEREITs share of joint ventures. 20

Summary balance sheet and investment capacity Building a 200m+ investment portfolio with low leverage As at 31 Mar 2017 ( m) As at 30 Sept 2016 ( m) Investment properties 182.5 148.0 Cash 42.6 58.4 External third-party loans (48.0) (48.1) Net current liabilities (1.2) (0.5) NAV 175.9 157.8 NAV per share / * 1.315 / 1.12 1.301 / 1.13 During the period 16.7m of gross equity was raised in October equity placing Post period end: Acquisition of 50% share in a shopping centre in Seville for a price c. 26.3m (SEREIT share) New loan of 11.7m (SEREIT share) drawn against Seville acquisition Remaining investment capacity is c. 30m, including additional leverage Numbers based on proportionally consolidated basis and therefore represent SEREITs share of joint ventures. *FX rate of 1 : 1.1778 as at 31 Mar 2017 (FX Rate: 31 Dec 2016 1 : 1.17310, 30 Sept 2016 : 1.1543). Total funds including debt 12% 88% Invested Available 21

Income statement for interim period Property acquisitions generating income growth 6 mths to 31 Mar 2017 ( m) 10 mths to 30 Sept 2016 ( m) Net rental and related income 4.9 3.6 Total Fees and Expenses (1.9) (2.5) Net finance costs (0.4) (0.1) Underlying EPRA* earnings 2.6 1.0 Growth in annualised gross rental income million 15 12.0m 14.1m 10 8.7m 8.7m 5 0 30-Sep-16 31-Dec-16 31-Mar-17 Post Seville Paris - Boulogne Berlin Hamburg Stuttgart Frankfurt Rennes / Biarritz Paris - St. Cloud Seville Source: Schroders, May 2017. Past performance is not a guide to future performance and may not be repeated. *European Public Real Estate Association ( EPRA ). 22

Further progress on delivering dividend target Dividend yield target of 5.5% 1 p.a. Growth in dividend per share cents p.s. 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Once fully invested, targeting annualised euro dividend yield of 5.5% 1 Dividend of 1.2 Euro cents per share declared in respect of period January March, payable in July 2017 Represents annualised dividend yield of 3.5% 23 Increase from 1.0 Euro cents per share for Oct Dec, equating to quarterly increase of 20% 99% covered from net income Will grow towards target yield as deployment completed e.g. receipt of Metromar income from May 2017 1 Yield based on the Euro equivalent of the issue price as at admission. This is a target only, based on a number of assumptions that may not materialise. There can be no guarantee that this target will be met. Source: Schroders, May 2017. 0.8 0.9 Q3 2016 Q4 2016 Q1 2017 Q2 2017 1.0 1.2

Debt financing Current borrowing rates accretive to income returns Loans Summary as at 31 March 2017 Post Period End Loan Loan Amount Maturity Interest Rate Hamburg/Stuttgart 14.0m June 2023 0.85% Frankfurt / Berlin 16.5m June 2026 1.31% Casino 18.2m July 2023 1.35% Total 48.7m 7.3 Years 1.19% Seville Acquisition MetroMar Shopping Centre JV Completed post period end Loan Term 7 years LTV 45% Loan 11.7m Margin 1.31% Fixed Base Rate 0.45% Total Interest Rate 1.76% Fund level post Seville Weighted average Loan Term 7.3 years LTV (vs. Company GAV) 26% Total Loans 60.4m Blended margin 1.14% Blended Base Rate 0.16% Total Blended Interest Rate 1.30% Debt Strategy Portfolio gearing capped at 35% LTV; loans targeted against assets where most accretive and may be up to 50% LTV Seven of the nine portfolio assets have gearing secured against them; the two Paris offices are currently ungeared Property level income returns from existing portfolio increased from 6.1% to over 8% post gearing (pre costs and expenses) Different loan maturities to spread refinance risk; interest only to maximise income distribution 100% of interest rate exposure either fixed or capped Likely to put debt finance against future acquisitions, taking gearing to around 35% Source: Schroders, May 2017. 24

Summary and outlook

The Company investing in European growth cities Nearing full investment with potential for further growth Acquisitions in Seville and Paris take the Company close to full investment and grow net income High quality portfolio of over 200m located in growth cities across France, Germany and Spain Strong income profile with c. 100% occupancy and 4.8 year average lease length Low cost, long duration debt financing at 26% LTV accretive to income return Dividend increased by 20% over the quarter to 3.5% p.a.; further progress made on delivering target dividend yield of 5.5% when fully invested 1 Investor and occupier activity in target markets remains strong post Brexit vote; rents continue to rise Megatrends (e.g. urbanisation, infrastructure investment) support long-term focus on growth cities Identified pipeline of attractive investment opportunities to deploy remaining capital 2017 targeting further accretive investments and equity issuances to fulfil growth ambitions; scale will improve share liquidity and cost economies 1 Yield based on the Euro equivalent of the issue price as at admission. This is a target only, based on a number of assumptions that may not materialise. There can be no guarantee that this target will be met. Source: Schroders, May 2017. 26

Important information For professional investors or advisers only. This material is not suitable for retail clients. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. The views and opinions contained herein are those of Tony Smedley, Head of Continental European Real Estate Investment, and Andrew MacDonald, Head of Real Estate Finance, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This presentation is for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument Information herein is believed to be reliable but Schroder Real Estate Investment Management Ltd ( SREIM ) does not warrant its completeness or accuracy. This does not exclude or restrict any duty or liability that SIM has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system The forecasts included in this presentation should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. We accept no responsibility for any errors of fact or opinion and assume no obligation to provide you with any changes to our assumptions or forecasts. Forecasts and assumptions may be affected by external economic or other factors. Schroder European Real Estate Investment Trust risk factors: Companies which invest in a smaller number of assets carry more risk than those spread across a larger number of assets. The Company may invest solely in property located in one country or region. This can carry more risk than investments spread over a number of countries or regions. The Company may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the assets purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so. The fund holds investments denominated in currencies other than sterling, changes in exchange rates will cause the value of these investments, and the income from them, to rise or fall. The dividend yield is an estimate and is not guaranteed. Use of IPD data and indices: and database right Investment Property Databank Limited and its Licensors 2013. All rights reserved. IPD has no liability to any person for any losses, damages, costs or expenses suffered as a result of any use of or reliance on any of the information which may be attributed to it Issued in May 2017 by Schroder Real Estate Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Schroder Real Estate Investment Management Limited is authorised and regulated by the Financial Conduct Authority. Registration number 1188240 England. UK11874 27

Contact Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. schroders.com