Stoneweg European Stapled Trust's 1H FY25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI have improved slightly YoY mainly due to higher income from Nervesa21 and Via dell'Industria 18 following the completion of the redevelopment, as well as a benefit reversal of bad debt provisions. However, distributable income and DPS have declined YoY due to higher interest costs, lower interest income and higher tax expenses. 

Rental Reversion

Portfolio rental reversion stood at +11.9% for 1H FY25. The logistics and light industrial segment saw a +8.3% uplift, while the office segment recorded a +13.6% reversion.

Development

In late June, SERT invested €50 million in Sponsor’s European data centre development fund AiOnX. There are 5 early-stage development sites in Denmark, Ireland, Italy, Spain and the UK with land area of 310 hectares.

Asset Enhancement Initiative & Redevelopment

AEI for Nove Mesto ONE Industrial I DC8 is completed in June 2025. There is a committed AEI for Spennyoor, focusing on space expansion and solar panel installation. Additionally, De Ruijterkade 5 is in early planning stages. For Haagse Poort (Netherlands), a major €60 million upgrade has been confirmed and is expected to commence in 2026 and be completed in 2030. Meanwhile, Maxima, and certain units in Kolumbusstraße 16 are under redevelopment.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable
• REIT Manager's Shareholding: Less Favorable
• Directors of REIT Manager's Shareholding: Favorable

Lease Profile

• Committed Occupancy: Moderate
• Income Received in SGD/Major Currencies: Less Favorable
• Highest Annual Lease Expiry in 4 Years: Favorable
• WALE: Moderate
• Weighted Average Land Lease Expiry: Favorable

Debt Profile

• Adjusted Interest Coverage Ratio: Moderate
• Cost of Debt: Moderate
• Gearing Ratio: Moderate
• Fixed Rate Debt Proportion: Favorable
• Unsecured Debt Proportion: Moderate
• Highest Annual Debt Maturity in 4 Years: Favorable
• WADM: Favorable

Diversification Profile

• Major Sector Weightage: Favorable
• Top Geographical Weightage: Favorable
• Top Property Weightage: Moderate
• Top 5 Properties' Weightage: Favorable
• Top Tenant Weightage: Moderate
• Top 10 Tenants' Weightage: Favorable

Key Financial Metrics

• Property Yield: Moderate
• Manager's Fees over Operating Distributable Income: Favorable
• Operating Distributable Income on Capital: Favorable
• Operating Distributable Income Margin: Moderate
• Operating Distribution Proportion: Favorable

DPU Breakdown

• TTM Distribution Breakdown:
• 100% from Operation

Trends (Up to 10 Years)

• Uptrend: Operating Distribution Proportion
• Slight Uptrend: Committed Occupancy
• Flat: Property Yield
• Slight Downtrend: None
• Downtrend: DPU from Operations, NAV per Unit, Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Top 10 Tenants' Weightage, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y & 5y & 10y; Below -1SD for 3y
• P/NAV: Average for 1y & 5y & 10y; Above +1SD for 3y

Author's Opinion

Compared to the previous half-year, gross revenue NPI have improved. However, distributable income and DPU have declined due to higher interest expenses, lower interest income, and higher tax expenses. On the debt front, no refinancing is required until late 2026.

For more information, check out:

S-REITs Dashboard - Detailed information on individual Singapore REIT

S-REITs Data - Overview and detail of Singapore REITs

S-REIT Comparison - Comparison among Singapore REITs

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.