Stoneweg Europe Stapled Trust 9M distributable income falls 4.6% to 57.6 million euros
Net property income for the period rises 3% to 102.9 million euros
[SINGAPORE] The distributable income of Stoneweg Europe Stapled Trust (Sert) declined 4.6 per cent to 57.6 million euros (S$86.5 million) for the nine months ended Sep 30, from 60.4 million euros in the year-ago period.
This was despite a 3 per cent increase in net property income to 102.9 million euros from 100 million euros previously, supported by higher income from redeveloped assets and “strong leasing activity” across Sert’s portfolio.
Revenue for the nine months was up 2 per cent year on year at 163.5 million euros from 160.2 million euros previously, with “positive leasing activity supporting income levels”, said the managers on Thursday (Nov 6).
They attributed the fall in distributable income largely to the full impact of strategic asset divestments and a higher interest expense, which it said has now peaked. The average all-in interest rate for 9M 2025 was 3.9 per cent, compared to 3.2 per cent in 9M 2024.
The Reit’s securityholders’ net asset value per stapled security dipped slightly, from 2.03 euros in December 2024 to 2.01 euros in September 2025, after its September distribution.
Its net gearing inched up to 42.1 per cent as at Sep 30 and is expected to drop to 39.1 per cent after accounting for 105 million euros of divestments, while its interest coverage ratio is 3.1 times.
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Its weighted average debt to maturity stood at 5.7 years, and weighted average lease expiry in Q3 was 5.1 years – the same as Q2.
Sert’s portfolio had a positive rental reversion of 11.1 per cent in the first nine months of 2025, while leasing momentum “accelerated” with 71.2 per cent of lease breaks and expiries de-risked through March 2026.
Its managers said the quarter’s performance was led by the logistics and light industrial sector, with occupancy rising to 95.2 per cent. This was driven by “substantial leasing activity” in France, Germany and Denmark.
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The sector’s assets accounted for 96 per cent of the 97,000 square metres of new and renewed leases during the third quarter. Year-to-date rental reversion for the first nine months of 2025 reached 9 per cent on the back of two “major renewals” in Germany.
“Sert now has no debt maturing until 2030, following the successful 300 million euros green bond issuance in October and the newly secured green development loan for Haagse Poort (in the Netherlands),” said Simon Garing, chief executive of the managers. “Cost of debt is down to 3.9 per cent, supported by a five-year fixed-to-floating swap.”
He added that total portfolio occupancy rose 110 basis points to 93.5 per cent, while about 6 per cent of the portfolio was leased in the third quarter.
Hyperscale data centre platform AiOnX, in which Sert has invested 50 million euros, is “progressing well” with its developments, added Garing.
He shared that more than 1,446 megawatts of capacity across five projects has already been secured, with total power capacity expected to cross 2,000 MW. Construction of the first 32 MW facility in Dublin has also begun and has been pre-leased to a “major US hyperscaler”.
Stapled securities of Sert fell 0.7 per cent or 0.01 euro to close at 1.53 euros on Wednesday.
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