Stoneweg European REIT (CWBU) investor relations material

Strategic direction

• Logistics/light industrial represented 55.7% of the €2.2bn property portfolio; targets for 2028 are up to 70% logistics/light industrial and 15–25% each for data centres and offices.

• Three growth pillars: scale higher-quality logistics, build fee-generating private capital and asset management, and grow data centre exposure through investment, development and conversions.

• The strategy progresses from portfolio repositioning and data centre investment to a proposed internalisation and an integrated growth platform.

Proposed internalisation

• Internalisation would bring a pan-European operating platform in-house, replacing €28.0m of FY25 external management fees with €13.3m of pro forma NTM EBIT retained internally.

• Proposed effective consideration is €94.0m, 29.4% below independent valuation; funding is predominantly through 40m stapled securities issued at €2.00 each.

• Pro forma DPS is 14.18 cents, representing 5.9% accretion; the illustration uses FY25 distributable income adjusted for the current 555m securities and assumes the platform acquisition on 1 January 2027.

• Cooperation agreements provide exclusive European logistics/light-industrial investment rights and preferred access to data centre capabilities; fees are capped and subject to independent director approval.

Growth engines and capital allocation

• Funding sources include asset recycling, platform earnings, third-party capital and disciplined leverage targeted at 40%; equity issuance is conditional on expected returns materially exceeding the cost of equity.

• Target returns are 6–7% IRR for €400m of non-core asset recycling, 7–9% for logistics/light industrial, 20–30% illustrative project IRR for data centres, and 12–18% for third-party mandates.

• More than 10 portfolio sites are being assessed for potential data centre conversion, which could be fast-tracked in 2–4 years; 4–6 assets are seeking conversion approvals.

• A €50m AiOnX investment bought a 6.6% stake in June 2025, revalued 41% higher in H1 2026; a further €50m mandatory convertible loan earns a 7.25% cash coupon and is stated to add 2% to indicative DPS.