Stoneweg European REIT (CWBU) Q4 2024 earnings summary

Executive summary

• Transitioned to new sponsor Stoneweg, which now holds 28% of units, bringing €10 billion AUM and supporting a logistics-focused strategy.

• Strategic pivot to logistics and light industrial assets, now at 55% of the portfolio and targeting over 60%, with strong rent reversion and high occupancy.

• FY2024 DPU declined 10.1% year-over-year due to asset sales and higher interest costs, but stabilized in 2H 2024.

• Outperformed Singapore REIT peers and European property stocks in 2023, with a 23.9% total return in 2024 and a 36% increase in institutional investor base.

• Portfolio occupancy at 93.5% and WALE at 5.1 years, with 105 properties valued at €2.2bn and 98.1% exposure to logistics/light industrial and office assets.

Financial highlights

• FY2024 gross revenue was €212.9m (down 1.6%), NPI €131.1m (down 2.3%), and distributable income €79.3m (down 10.1%).

• Like-for-like NPI grew 2.8% year-over-year, with office NPI up 5% and logistics/light industrial up 1.5%.

• NAV per unit at year-end: €2.03 (EPRA: €2.16), with aggregate leverage at 41.2% and net gearing at 40.2%.

• Finance costs rose 18% year-over-year as average interest rate increased from 2.6% to 3.2%.

• DPU for FY2024 was 14.106 euro cents, with an 8.9% yield on year-end price.

Outlook and guidance

• Positioned for organic and inorganic growth with €236–537 million in undrawn credit facilities and cash.

• Targeting logistics and light industrial weighting above 60% and net gearing within 35-40%.

• Focus on maintaining high occupancy, long WALE, and positive rent reversions, with progress on ESG initiatives and net zero by 2040.

• Expecting asset values to increase and gearing to reduce, supporting future AEI projects.

• No formal DPU guidance, but management focused on offsetting higher interest costs with income growth.