- Stoneweg Europe Stapled Trust's DPU of 6.553 cents for 1H25 was in line with our estimates, representing 49% of our FY25e forecast. It declined 7% y-o-y mainly due to a 23.9% rise in interest expense from the new €500mil six-year green bond issued in Jan 25.
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- In 2Q25, Stoneweg Europe Stapled Trust's portfolio occupancy rose 0.4 ppt q-o-q to 92.4%, with strong rent reversion of +15.5% (1H25: +11.9%), driven by a 20-year, 26k sqm lease with its largest customer, NN Group NV, at Haagse Poort, which delivered a 52.2% rent reversion.
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- The current Stoneweg Europe Stapled Trust's share price implies an FY25e/26e DPU yield of 8.5%/8.6%.
The Positives
Strong rental reversions (1H25: +11.9%; 2Q25: +15.5%) with robust leasing activity.
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