Stoneweg European REIT (CWBU) Q4 2024 earnings summary

Executive summary

• Transitioned to new sponsor Stoneweg, holding 28% of units and bringing €10 billion AUM, supporting a logistics-focused strategy.

• Strategic pivot to logistics and light industrial assets, now over 55% of the portfolio, targeting above 60%, with strong rent reversion and high occupancy.

• Like-for-like NPI grew 2.8% year-over-year, with office NPI up 5% and logistics/light industrial up 1.5%.

• FY24 DPU declined 10.1% year-over-year due to asset sales and higher interest costs, but stabilized sequentially in 2H 2024.

• Outperformed S-REITs and European property stocks in 2023/2024, delivering up to 24% total shareholder return.

Financial highlights

• FY24 gross revenue was €212.9 million, down 1.6% year-over-year; NPI was €131.1 million, down 2.3%.

• Distributable income was €79.3 million, down 10.1% year-over-year; DPU 14.106 euro cents, 8.9% yield on YE2024 price.

• Like-for-like NPI up 2.8%: office +5.0%, logistics/light industrial +1.5%.

• NAV per unit at year-end: €2.03 (EPRA: €2.16), with REIT trading at ~25% discount to NAV.

• Net gearing at 40.2%, within policy range; aggregate leverage 41.2%.

Outlook and guidance

• Positioned for organic and inorganic growth with €236 million to €537 million in undrawn credit facilities and cash.

• Targeting logistics and light industrial weighting above 60% and maintaining investment grade ratings.

• Easing asset sales after €284.5 million divestments at 13.1% premium since 2022; focus on rental growth and selective acquisitions.

• Progressing ESG initiatives to achieve net zero by 2040 and maintain high ESG ratings.

• No formal DPU guidance, but management focused on offsetting higher interest costs with income growth.