Stoneweg European REIT (CWBU) Morgan Stanley European Real Estate Capital Markets Conference summary

Key strategic themes and portfolio overview

• Focus on rebalancing for sustainable growth, with a diversified pan-European logistics and office portfolio valued at €2.2 billion and a 93%+ occupancy rate as of March 2024.

• Portfolio spans 10 countries, with 53% exposure to logistics/light industrial and 45% to office, and a strong investment-grade credit rating.

• Consistent track record of uninterrupted DPU payouts, even during challenging periods, and a clear link between business performance and sustainability goals.

Investment strengths and asset management

• Active asset management with a diversified tenant base; no single industry exceeds 16.5% of portfolio, and top 10 tenants account for less than 23% of headline rent.

• High occupancy rates across key markets, with ongoing asset enhancement initiatives and capital recycling to maintain gearing within a 35-40% policy range.

• Significant value creation from acquisitions and redevelopments, such as Parc des Docks in Paris and Nervesa21 in Milan.

Structural trends and market positioning

• Portfolio positioned to benefit from structural trends in logistics, including nearshoring, e-commerce growth, and the European Chips Act, which is expected to drive 11 million sqm of new demand by 2028.

• Office strategy focuses on ESG-certified, well-located assets, with high tenant retention and the longest WALE since 4Q 2020.

• Sustainability premium evident in yield spreads for certified office assets, and ongoing efforts to future-proof the portfolio.