Highlights

• The trust declares a quarterly Dividend of 1.48 euro cents, which has recently translated to roughly 1.25p to 1.29p.

• Four dividends carry ex-dates inside the past year, totalling about 5.10p and a trailing Yield near 9.0%.

• Net asset value was 116.7 euro cents per share at 31 December 2025, with a property valuation of €194.0m.

• Vacancy rose to 7% after a tenant departure, and the trust is appealing a €14.2m French tax adjustment notice.

Here is a UK-listed share that earns in euros, pays in sterling and declares its dividend in cents. Schroder European Real Estate Investment Trust (LSE:SERE) announces a quarterly payout of 1.48 euro cents, and the sterling cheque has recently been 1.25p to 1.29p. Across four ex-dividend dates in the past year, holders received about 5.10p, a yield near 9.0% on a 56.6p share price. Currency and tax matters complicate the picture.

The four payments

Ex-dividend dates fell on 8 January 2026 (1.28p, paid on 6 February), 9 April (1.29p, paid on 15 May), 16 July (declared in euros at 1.48 cents, paid on 14 August) and 8 October (1.25p, payable on 13 November). The July sterling figure is estimated at about 1.28p from the conversion implied by the other quarters. The total of roughly 5.10p equals about 9.0% of 56.6p. No Special Dividend was found. One payment remains to be paid.

What the trust owns

The latest net asset value announced, for 31 December 2025, was 116.7 euro cents per share, about €153.3m in total, with a quarterly NAV total return of 0.8%. The property portfolio was valued at €194.0m and stable over the quarter. That announcement declared a first Interim Dividend of 1.48 euro cents. Earlier NAV figures are not a guide to the current position, so the next announcement is needed to update the picture.

Vacancy and a tax dispute

Vacancy rose to 7% after a tenant left, which reduces rental income that supports the dividend. The trust is also appealing a €14.2m French tax adjustment notice. Should the appeal fail, the cost would be significant relative to a net asset value of about €153m and could affect distributions. The size of any potential Liability is a reminder that a high yield can reflect perceived risk.

Currency and sustainability

Because the trust reports in euros but the shares are priced in pence, the dividend received by a sterling holder moves with the exchange rate. A weaker euro against sterling lowers the pence amount even when the euro rate is unchanged, which may explain why the October figure of 1.25p sits below the 1.29p paid in April. Investors should check dividend cover in the latest report.

What to watch next

The next net asset value announcement will update the €116.7 cent figure and show whether vacancy has recovered from 7%. Developments in the French tax appeal deserve close attention, as does the euro to sterling exchange rate. The 13 November payment date for the October dividend will confirm the sterling amount received, giving a fourth data point for the conversion.

Why euro dividends look different in sterling

The trust earns rent in euros and declares dividends in euro cents. Its shares are quoted in pence, so the sterling amount paid depends on the Exchange Rate at the time. A quarterly declaration of 1.48 euro cents may convert to 1.25p in one quarter and 1.29p in another. For holders of Schroder European Real Estate Investment Trust (LSE:SERE), this means the sterling income can vary even when the underlying dividend is unchanged.

What a tax dispute can mean

A tax adjustment notice is a claim by a tax authority that a company owes additional tax. The trust is appealing the French notice, and the outcome is uncertain. If the appeal succeeded, there would be no cost, but if it failed, the amount could be large relative to net assets. Investors in LSE:SERE should follow updates, since a payment would reduce cash available for dividends or require other action.

Vacancy and income

A Vacancy Rate of 7% means that some space is not producing rent. Vacant space can be re-let over time, but until then the trust must carry costs such as service charges and property taxes. Rising vacancy is one reason a yield can appear high: the market may expect lower income ahead. The next update will show whether leasing has improved.

Tax on dividend income

In the UK, dividends outside an ISA or pension may be subject to tax above the annual dividend allowance, with rates that depend on the investor's income band. Shares held in a tax-advantaged account may shelter the income. Allowances and rates can change from one tax year to the next, so investors should check the current rules and consider their own circumstances.