Stoneweg European REIT (CWBU) Investor presentation summary

Portfolio overview and performance

• €2.2 billion diversified portfolio with 107 predominantly freehold properties across Europe, 54% weighted to logistics/light industrial and 44% to office assets, and a 93.6% occupancy rate as of June 2024.

• Net property income rose 2.3% like-for-like in 1H 2024, but overall NPI and DPU declined due to asset sales and higher interest costs; annualised distribution yield stands at 10.1%.

• Portfolio WALE is 4.8 years, with 68.6% tenant retention and positive rent reversions of 5.2% in 1H 2024.

• Logistics/light industrial sector occupancy is 94.8% with 4.0% rent reversion; office sector occupancy is 90.7% with 5.7% rent reversion.

• Top 10 tenants account for less than 23% of headline rent, with no single industry over 17% of the portfolio.

Capital and financial management

• Net gearing at 38.9%, within the 35-40% policy range; €63 million in cash and €200 million undrawn RCF provide ample liquidity.

• 88% of debt is fixed or hedged until end-2025, mitigating interest rate risk; all-in interest rate at 3.16% as of June 2024.

• €261 million in divestments since 2022 at a 14% premium to valuation, supporting capital recycling and development funding.

• NAV per unit stabilised at €2.09, with a 33% discount to NAV reflected in the unit price.

Strategic initiatives and developments

• Major ESG-focused redevelopment projects underway, including Nervesa21 in Milan (LEED Platinum, WELL Gold, 6.6% yield on cost) and a €200+ million pipeline across The Hague, Rome, Amsterdam, and Paris.

• High ESG standards: 82% of office assets are BREEAM or LEED certified, MSCI ESG rating of AA, and GRESB 4 stars.

• Asset recycling continues, with a focus on increasing logistics weighting and progressing sustainability initiatives.