Stoneweg Europe Stapled Trust (SGX:SET
) (SERT) has reported a distribution per stapled security (DPS) of 13.39 Euro cents for FY2025 ended Dec 31, 5.1% lower y-o-y.
Gross revenue for FY2025 was up by 0.8% y-o-y to EUR214.6 million while net property income (NPI) rose 2.5% y-o-y to EUR134.4 million.
The growth was mainly attributed to higher income from redevelopments, growth in the logistics/light industrial and other sectors, and lower doubtful debt expense.
Distributable income declined 5.7% y-o-y to EUR74.8 million in FY2025 due to an increase in net interest costs, predominantly from the higher coupon of the EUR500 million green bonds issued back in Jan 2025.
However, it was partially offset by reduced interest expense on the unhedged portion of the floating-rate borrowings, as the three-month Euribor and the Euro short-term rate decreased.
Portfolio occupancy was at 92.6% as at Dec 31, 2025, supported by the occupancy figure in its Western Europe portfolio and the higher y-o-y occupancy in the logistics and light industrial portfolio.
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Occupancy for SERT’s Central Europe portfolio was lower at 85.4%, largely due to the sale of the Slovakia portfolio.
Portfolio WALE was at 4.9 years and SERT secured approximately 300,000 sq m of new leases and re-leasing, which represent around 20% of the portfolio.
Portfolio rental reversion came in at 9.8%, significantly higher than the five-year average of 4.3%.
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SERT’s portfolio valuation as at Dec 31, 2025 was up 1% to EUR2.16 billion, recording the fourth consecutive half-year valuation increase.
On the capital management front, SERT has no debt maturities until 2030 and has access to EUR325 million of cash held and undrawn committed working capital facilities. Net gearing stood at 38.0% and interest coverage ratio was 2.6 times.
“We continue to see good momentum across the board, especially in our Western European logistics portfolio, driven by resilient tenant demand and positive operating fundamentals,” states Simon Garing, CEO of the manager.
“We have repositioned the stapled trust for long-term growth with SERT’s exposure to high growth data centre developments and the AI ecosystem through our early investment in AiOnX. Our sponsor SWI Group has just announced that it has acquired a majority stake in Polarise, a European NVIDIA Preferred Partner, valued at €500 million. Together, SWI Group, AiOnX and Polarise GmbH are building an integrated European AI infrastructure platform spanning power, compute and delivery,” he adds.
Units in SERT’s European counter closed at EUR1.67, up 1 Euro cent or 0.67% higher at EUR1.67 on Feb 24. Units in SERT was down 1 cent or 0.4% lower at $2.48 on Feb 24.
