Stoneweg European REIT (CWBU) Q1 2026 earnings summary

Executive summary

• Portfolio focused on Western European logistics and light industrial assets, valued at €2.2 billion across 97 assets, with nearly 800 tenants and a five-year WALE; Netherlands is the largest exposure at 30%.

• 1Q 2026 saw resilient income growth, with a 1.5% increase in DPS to 3.423 euro cents and 2.3% like-for-like NPI growth, supported by capital recycling and securities buybacks.

• Portfolio repositioned to focus on logistics/light industrial (53.7% of value), with data centre exposure targeted to reach 15–25% by FY 2028.

• High ESG standards, investment-grade credit ratings, and top ESG awards.

• SERT trades at a 22% discount to NAV and offers an 8.6% distribution yield, among the highest in its peer group.

Financial highlights

• Like-for-like NPI increased 2.3% year-over-year, driven by logistics/light industrial (+3.7%) and other sectors (+26.1%), offset by office (-1%).

• NPI margin maintained at 62.5%; distributable income stable at €18.99 million, with DPS up 1.5% due to buybacks.

• Gross revenue for 1Q 2026 was €52.9 million, down 1.3% year-over-year due to asset divestments.

• NAV per security stable at €1.99; EPRA NRV at €2.14; security price at €1.55, representing a 22% discount to NAV.

• Total assets €2.4 billion; cash position €47 million.

Outlook and guidance

• FY 2026 DPS expected to be broadly in line with FY 2025, implying an 8.6% yield at current prices.

• Data centre exposure expected to grow to 15–25% of portfolio by FY 2028, with dual-track strategy via asset conversions and AiOnX investments.

• Focus remains on Western European logistics and data centres for long-term growth.

• Expect to operate at the upper end of 35%-40% net gearing while reducing non-core office exposure.

• Board remains cautious of macroeconomic and geopolitical risks but sees constructive long-term outlook.