Stoneweg European REIT (CWBU) Q2 2025 earnings summary

Executive summary

• Completed transformation into a stapled trust, enhancing tax efficiency and strategic flexibility, with trading of stapled securities commencing on 16 June 2025.

• Portfolio comprises 104 properties valued at €2.25 billion, weighted 59% to logistics, light industrial, and data centers, with office now less than 40%, and 86% exposure to Western Europe and Nordics.

• €50 million invested in AiOnX data centre fund, immediately accretive to NAV with a 49.6% valuation gain.

• Raised €500 million via a 6-year green bond, strengthening liquidity and extending debt maturity.

• Active capital recycling and asset management, including major lease renewals and asset enhancements.

Financial highlights

• Gross revenue for 1H 2025 rose 1.1% year-over-year to €107.4 million; net property income (NPI) increased 2.2% to €66.9 million.

• NAV per (stapled) security increased by €0.07 to €2.05, marking the third consecutive half-year of asset value growth.

• Distribution per (stapled) security (DPS) fell 7.0% to 6.553 euro cents due to higher finance costs.

• Like-for-like NPI growth: logistics/light industrial +7.4%, office +1.0%.

• Total return attributable to Stapled Securityholders surged 65.7% to €50.7 million, driven by fair value gains on AiOnX and investment properties.

Outlook and guidance

• Focus remains on resilient, income-generating European real estate, with greater flexibility and wider investment scope post-stapling.

• SERT aims to maintain net gearing within 35-40% and continue active asset management, opportunistic divestments, and ESG initiatives.

• Expecting further occupancy improvements, targeting 95% in logistics and light industrial by year-end.

• Positive rent reversion and inflation-linked leases expected to drive DPU growth.

• Continue ESG initiatives aiming for zero carbon emissions by 2040 and maintain high sustainability ratings.