- Stoneweg REIT's DPU of 3.374 € cents for 1Q25 was in line with our estimates, making up 25% of our FY25e forecast. It declined 3.7% y-o-y due to higher interest expense from the new bond issuance.
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- Portfolio occupancy declined q-o-q from 93.5% to 92%, though management remains confident and is engaged in active discussions to relet the vacated space. 1Q25 portfolio rent reversion was +1.7%, led by logistics/light industrial at +4.9%.
- Stoneweg REIT has no debt maturing until 4Q26 and entered into €150mil of new hedges during the quarter using a cap/collar structure, allowing it to benefit from further declines in the 3-month Euribor.
The Positives
Maintained positive rent reversion of +1.7% (FY24: +2.8%) with long WALE of 5.2 years.
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- The portfolio remains under-rented by ~7% compared to market rents, suggesting further upside in rental reversions. 2Q25 rent reversion is expected to be strong, boosted by NN Group’s 20-year lease renewal of 28k sqm at Haagse Poort, with no downtime and a substantial rent uplift already in effect. Although NN Group reduced its footprint by 6.6k sqm, Stoneweg REIT is in advanced negotiation with a new tenant to backfill the vacated space in 3Q25.
Strong capital management with no loans due till 4Q26.
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