Stoneweg European Stapled Trust (SERT) (SGX:SET
) has reported an indicative distribution per stapled security of 3.423 Euro cents for 1QFY2026 ended March 31, 2026, 1.5% higher y-o-y.
Both gross revenue and net property income (NPI) were down 1.3% y-o-y to EUR52.8 million and EUR33.1 million respectively. The lower figures were due to the impact of asset divestments completed in FY2025.
On a like-for-like basis, NPI increased 2.3% y-o-y, driven by the resilient sector such as logistics and light industrial.
Distributable income gained 0.4% y-o-y to EUR19.0 million, reflecting stable earnings following several years of portfolio optimisation. Net asset value (NAV) stood at EUR1.99 per stapled security as at March 31, 2026.
Average all-in interest cost for 1QFY2026 was at 3.84% and SERT extended EUR160 million interest rate hedge from Nov 30, 2026 to Nov 30, 2028, which will see 87% of the trust’s interest rate exposure fixed till 2027.
Net gearing stood at 42.7%, which is below both SERT’s board policy ceiling of 45% and loan covenants. Gearing is expected to reduce to the upper end of the 35-40% range given projected valuation gains and further planned asset sales.
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Meanwhile, overall portfolio occupancy rate stood at 92.8% with a weighted average lease expiry of 5.0 years. SERT sees minimal lease expiring in the next two years, providing investors with good income visibility.
Occupancy rate for its logistics and light industrial portfolio was at 95.1% with a positive rental reversion of 7.6%. SERT shares that it continues to manage leasing at selected assets ahead of the planned data centre conversion.
Occupancy rate for the office portfolio was at 86.8%, with a negative rental reversion of 2.8%, mainly driven by the three small leases totalling 1,095 sqm at identified non-core assets in Poznan, Helsinki and Paris.
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“SERT’s first quarter 2026 performance reflects the strength of our repositioned portfolio and the experienced local Stoneweg asset managers with excellent transaction execution capabilities across our European platform, despite a mixed macroeconomic backdrop,” says Simon Garing, CEO of the manager.
As at 9.22am, Units in SERT were trading flat at EUR1.55.
