Stoneweg European REIT (CWBU) Q2 2025 earnings summary

Executive summary

• Completed transformation into a stapled trust, enhancing tax efficiency, strategic flexibility, and future-proofing the business, with approval from over 99.7% of unitholders.

• Portfolio comprises 104 properties valued at €2.25 billion, weighted 59% to logistics, light industrial, and data centers, with office now less than 40% and 86% exposure to Western Europe and Nordics.

• Strategic €50 million investment in AiOnX data centre fund/platform delivered a 49.6% immediate valuation uplift, boosting NAV and portfolio diversification.

• Major lease renewals, including a 20-year lease with Nationale-Nederlanden/NN Group NV, secured a 50% rent uplift.

• Raised €500 million via a six-year green bond, strengthening liquidity and extending debt maturity.

Financial highlights

• Gross revenue for 1H 2025 rose 1.1% year-over-year to €107.4 million; net property income (NPI) increased 2.2% to €66.9 million.

• NAV per (stapled) security increased by €0.07 to €2.05, marking a 3.5% uplift and the third consecutive half-year of asset value growth.

• Distribution per (stapled) security/DPS was 6.553 euro cents, down 7% year-over-year, mainly due to higher interest costs.

• Like-for-like NPI up 4.9% year-over-year, with logistics/light industrial NPI up 7.4%.

• Total return attributable to securityholders surged 65.7% to €50.7 million, driven by fair value gains on AiOnX and investment properties.

Outlook and guidance

• Focus on resilient, income-generating European real estate, with greater flexibility and wider investment scope post-stapling.

• Targeting high occupancy (95% in logistics/light industrial), positive rent reversion, and inflation-linked leases to drive DPU growth.

• Disciplined capital management to keep net gearing within 35-40% and reinvest divestment proceeds into higher-yielding core assets.

• Continue ESG initiatives aiming for zero carbon emissions by 2040 and maintain high sustainability ratings.

• Eurozone GDP growth forecast at 1.1% for 2025, with further ECB rate cuts anticipated.