Stoneweg European REIT (CWBU) Investor Day 2025 Presentation summary

Strategic repositioning and portfolio transformation

• Transitioned to a stapled trust structure, combining a REIT and business trust, approved by 99.77% of securityholders, optimizing tax and investment flexibility while maintaining a stable distribution policy and gearing targets.

• Strategic pivot to increase logistics, light industrial, and data centre exposure from 59% to 70% by 2027, with selective divestment of non-core office assets and reinvestment into higher-growth sectors.

• €50 million invested in AiOnX data centre fund, yielding a 49.6% immediate valuation gain and providing early exposure to hyperscale data centres across five European markets.

• Active capital recycling, including €500 million green bond issuance and further asset sales, supports balance sheet strength and growth investments.

• Sponsor alignment through SWI Group’s 28% stake and €10bn platform, offering proprietary deal flow and strategic synergies.

Financial performance and guidance

• Portfolio valued at €2.25 billion as of June 2025, with 86% weighted to Western Europe and the Nordics, and 93% freehold properties.

• Net gearing at 41.8%, below board and regulatory ceilings, with pro forma gearing expected to fall below 40% after pending divestments.

• Interest coverage ratio at 3.2x, well above regulatory minimums, and all-in interest rate at 3.97% as of June 2025.

• DPU stabilizing post interest rate normalization and asset sales, with income growth from acquisitions and rent indexation offsetting higher finance costs.

• SERT trades at an 8% annualized yield and ~25% discount to NAV, with potential for valuation uplift from data centre investments.

Portfolio and operational highlights

• Highly diversified tenant base, with no single industry exceeding 16% of rent and 90% of tenants being large MNCs or government entities.

• Logistics/light industrial sector occupancy at 94.4%, with 8.1% rent reversion and 5.1-year WALE; office portfolio shows 13.6% rent reversion and 89.2% tenant retention.

• Recent leasing activity includes a 20-year renewal with NN Group NV at Haagse Poort, The Hague, with a 52.2% rent reversion and planned €60 million ESG-focused redevelopment.

• Portfolio yield remains resilient, with logistics/light industrial valuations up 1.5% in six months and overall portfolio up 1.1%.

• Debt profile is de-risked with 85% hedged and no major expiries until late 2026.