Stoneweg European REIT (CWBU) DBS Vickers Pulse of Asia Conference summary

Key conference announcements

• Official rebranding to Stoneweg European REIT (SERT) effective 2 January 2025, with new trading names on SGX and unchanged trading codes.

• Stoneweg, now the sponsor and 28% unitholder, brings €8bn AUM, 300+ professionals, and a pan-European presence, aligning with SERT’s existing strategy and governance.

• Fitch revised SERT’s outlook to Positive in October 2024, affirming BBB- rating, citing improved portfolio quality and stable financial metrics.

• No changes anticipated to investment strategy, governance, or management team following the sponsor transition.

• SERT’s Board remains experienced and independent, with strong governance and management continuity.

Portfolio and operational highlights

• €2.24bn diversified portfolio across 105 properties in gateway European cities, with 55% logistics/light industrial and 43% office exposure.

• 93.9% occupancy rate and 4.7 years WALE as of September 2024; tenant base is highly diversified with no single sector over 16% of rent.

• Portfolio weighted ~86% to Western Europe and Nordics, with strong presence in the Netherlands, France, and Italy.

• Consistent positive rent reversions and high tenant retention, with 64% of 2025 lease breaks/expiries de-risked by September 2024.

• Redevelopment pipeline includes major projects in Rome, The Hague, Amsterdam, and Paris, targeting sustainability and value creation.

Financial and capital management

• Net gearing maintained within 35–40% Board policy; €422m new facilities in 2H 2024 and €200m RCF ensure ample liquidity.

• €285m in divestments since 2022 at a 13% premium to valuation; disciplined capital recycling supports development and asset enhancement.

• Debt profile transformed to mostly unsecured, with diversified funding partners and proactive management of maturities.

• Interest coverage ratio at 3.6x and over 80% of debt hedged or fixed.