Stoneweg European REIT (CWBU) Q1 2025 earnings summary

Executive summary

• Portfolio now comprises 56% logistics, light industrial, and data center assets, targeting over 60% weighting, with €2.24bn value and 93% freehold properties; 86% in core Western Europe and Nordics.

• Achieved three major office lease renewals totaling 60,000 sq m at higher rents, with 8 of top 10 tenants secured beyond 2030, resulting in the longest WALE and WADE in history.

• Integration with new sponsor Stoneweg Icona is complete, enhancing capital access and investor confidence; €500m green bond issued and unit buyback program well received.

• Unit buyback program repurchased over 1.5 million units, signaling board confidence during market volatility.

• Operational and capital management resilience led to a 0.3% sequential increase in indicative DPU and 7.4% like-for-like NPI growth.

Financial highlights

• 1Q 2025 gross revenue was €53.6 million, up 0.5% year-over-year; net property income (NPI) €33.5 million, up 2.4% year-over-year.

• Like-for-like NPI up 7.4% year-over-year; logistics/light industrial +9.6%, office +4.2%.

• Distributable income €18.9 million, down 4.0% year-over-year due to higher interest costs.

• Indicative DPU 3.374 €cents, down 3.7% year-over-year but up 0.3% sequentially.

• NAV per unit €1.98; EPRA NAV at €2.12 per unit, down 2.5% after 2H 2024 distribution.

Outlook and guidance

• Leasing pipeline is strong, with expectations to improve occupancy and drive NPI growth; no debt maturities until late 2026 and 73% of debt fixed/hedged to end 2027.

• Strategic focus on logistics and data centres, with ongoing assessment of sponsor pipeline and asset recycling.

• Key 2025 priorities: maintain high occupancy, execute positive rent reversions, progress AEIs/redevelopments, and keep net gearing within 35–40%.

• Portfolio well-positioned to benefit from European onshoring, defense/infrastructure investment, and rental growth in logistics expected to outpace inflation.

• Manager preparing to adopt a stapled REIT-BT structure for tax efficiency and flexibility.