Stoneweg European REIT (CWBU) Q3 2025 earnings summary

Executive summary

• Portfolio value reached €2.25 billion across 103 assets, with 93% freehold and a strategic pivot toward logistics, light industrial, and data centers, targeting 70% sector exposure by 2027, mainly in Western Europe and the Nordics.

• Tenant base is highly diversified: 800 tenants, 1,000+ leases, no single industry over 16% of rent, top 10 tenants only 20%, and over 90% are large MNCs or government entities.

• Investment-grade credit ratings maintained/upgraded, with strong ESG credentials, top governance rankings, and recent awards.

• Active asset recycling and divestments, with €400 million sales program nearly complete, achieving 11% premium to valuations and €41 million in gains.

• Investment in AiOnX data centre fund progressing, with 1,446MW secured and first Dublin project fully pre-leased.

Financial highlights

• 9M 2025 gross revenue was €163.5 million, up 2.0% year-over-year; net property income (NPI) up 3.0% to €102.9 million, with like-for-like NPI growth of 5.3% for 9M 2025 and 5.9% for 3Q 2025.

• Distributable income for 9M 2025 was €57.6 million, down 4.6% year-over-year due to higher interest costs and asset sales, but 3Q 2025 distributable income rose 17.2% quarter-on-quarter, including €2 million one-off income.

• Portfolio occupancy increased to 93.5% (+110 bps), with logistics/light industrial occupancy at 95.2%.

• Share buyback of 3,756,500 securities conducted YTD, expected to positively impact full-year DPS.

• Interest coverage ratio at 3.1x, above covenants and regulatory limits.

Outlook and guidance

• Portfolio reconstitution to 70% logistics, light industrial, and data centers by 2027, with further divestments and reinvestments planned.

• No debt maturities until 2030; €200 million undrawn revolving credit facilities provide flexibility.

• Net gearing expected to drop to 39.1% after imminent asset sales, with management comfortable maintaining gearing at 40% given strong ICR and asset quality.

• Ongoing asset enhancement initiatives and development pipeline to drive future growth.

• Market fundamentals for logistics and prime office remain supportive, with rental growth expected in both sectors.