Stoneweg Europe Stapled Trust has reported gross revenue of EUR163.5 million ($245.5 million) for the 9MFY2025 ended Sept 30.
Net property income (NPI) for the period was up by 3% y-o-y to EUR102.9 million. The higher gross revenue was attributed to positive leasing activity while the increase in NPI was due mainly to higher income from Nervesa21 and Via dell’Industria 18 after their redevelopments. The higher NPI was also attributed to lower doubtful debt expense, and growth in the trust’s logistics and light Industrial and ‘others’ portfolios.
However, distributable income for the nine months fell by 4.6% y-o-y to EUR57.6 million due to the full impact of asset divestments and higher interest expense, which SERT’s manager says has peaked.
Distributable income for the 3QFY2025 rose by 17.2% q-o-q to EUR20.9 million due to rising rents and one-off income of EUR2 million.
Total portfolio rent reversion for the quarter stood at 7.6%.
As at Sept 30, SERT’s portfolio occupancy rate stood at 93.5%, up from 92.4% a quarter ago, but down from 94% as at Sept 30, 2024.
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Weighted average lease to expiry (WALE) stood at 5.1 years, unchanged from the period ended June 30, and higher than the 4.7 years reported as at Sept 30, 2024.
As at Sept 30, SERT’s net gearing stood at 42.1% with an interest coverage ratio of 3.1 times.
The REIT has no debt maturing till 2030 after issuing the EUR300 million green bond in October and the secured green development loan for Haagse Poort.
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Its annualised weighted average cost of debt fell q-o-q to 3.88% from 3.97% as at June 30.
“SERT delivered resilient results year-to-date in 2025, underpinned by higher occupancy, stronger rent growth and proactive capital management,” says Simon Garing, CEO of the managers.
He adds that the REIT is expected to return to “selective, modest acquisitions” in 2026 as it continues to pivot toward more than 70% exposure to the logistics, light industrial and data centre sectors, and over 90% exposure to Western Europe.
“Looking ahead, we see potential NPI growth driven by occupancy, under-renting, and indexation, and SERT’s three-year AEI and development pipeline and benefits from increasing our exposure to data centres,” says Garing.
Units in SERT closed 1 cent lower or 0.44% down to $2.28 while units in its European-denominated counter closed 1 Euro cent lower or 0.65% down to EUR1.53 on Nov 5.
