Stoneweg Europe Stapled Trust’s portfolio value rises 1.1% in H1 2025
This is due to positive economic and market factors such as inflation and easing monetary policy
[SINGAPORE] Stoneweg Europe Stapled Trust ’s (Sert) portfolio valuations increased by 1.1 per cent or 24.9 million euros (S$37.3 million) for the first half of the year compared to December 2024, to about 2.3 billion euros.
This was attributed to positive economic and market factors, such as inflation, easing monetary policy and strong demand prospects, causing an increase in market rents and compression in terminal cap rate across the portfolio.
The independent valuations were carried out by JLL and Savills Advisory Services for 104 properties in Sert’s portfolio as at Jun 30.
In particular, Sert’s logistics or light industrial portfolio initial yield remained at 6 per cent, due to support from a long weighted average lease expiry (Wale) of 5.2 years and a higher reversionary yield of 6.8 per cent. The manager said this reflects the valuers’ expectation for further market rent growth.
Simon Garing, chief executive of the manager, said: “Our strategy to pivot the portfolio to majority exposure to the European logistics and light industrial sectors continued to benefit Sert. These sectors now represent 56 per cent of the total portfolio. The sector recorded a valuation gain of 18.7 million euros, up 1.5 per cent compared to the Dec 31, 2024, valuations, and 48.3 million euros, up 4 per cent compared to H1 2024 valuations.”
According to JLL, a 45 per cent increase in European real estate transaction volumes was recorded in the first quarter of 2025, as compared to the same period last year.
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Moreover, its office portfolio initial yield is now at 6.5 per cent, supported by a long Wale of 5.1 years, with a higher reversionary yield of 7.7 per cent.
This is an improvement from its performance in H2 2024, where the office portfolio saw valuation declines recorded in Italy (-0.6 per cent), Poland (-1.3 per cent) and the Netherlands (-2.5 per cent), due to upcoming potential refurbishment and redevelopment projects at the time.
With regard to the office portfolio, Sert has a 20-year lease agreement with its largest tenant NN Group at Haagse Poort and the cooperation agreement to refurbish over 28,000 square metres at the site.
The project will create a prime office asset for energy efficiency in the Netherlands, offering high-quality amenities for NN Group employees, while working on sustainable, future-proof real estate.
The managers noted that Sert is trading at an approximate 24 per cent discount to the pro forma unaudited June net asset value, of around two euros per stapled security.
The counter closed flat at 1.52 euros on Tuesday.
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