Stoneweg Europe Stapled Trust (SERT) reported distributable income of €36.87 million for the six months ended Jun 30, up 0.3 per cent year-on-year, as contributions from new data-centre investments and higher logistics rents offset income lost from asset divestments and higher interest costs. Gross revenue slipped 2.2 per cent to €105.12 million, while distribution per stapled security (DPS) rose 1.4 per cent to 6.642 euro cents.

Earnings per stapled security were not disclosed, but net property income (NPI) eased 2.3 per cent to €65.43 million. The interim DPS, equivalent to 9.800 Singapore cents, will be paid on a date to be announced, maintaining the board’s guidance for full-year 2026 payouts to match the previous year. Net asset value stood unchanged at €2.02 per stapled security after adjusting for distributions.

Like-for-like NPI expanded 1.3 per cent, led by a 2.7 per cent increase in the logistics and light-industrial segment and a 10.2 per cent rebound in the “other” category following lower doubtful-debt provisions. Office NPI softened 0.9 per cent as occupancy weakened in Finland, Poland and France. Portfolio occupancy closed the half at 93.7 per cent, with the logistics and light-industrial assets 95.2 per cent let and achieving a 9.6 per cent positive rent reversion. Average interest cost rose to 3.9 per cent, though 90 per cent of debt is fixed or hedged through late-2027.

Performance was held back by €2.3 million of lost income from 2025 and 2026 asset disposals and the drag from softer office markets, where rent reversion was ‑4.1 per cent. Net gearing finished the period at 41.9 per cent, below the 45 per cent internal ceiling but at the top end of the 35-40 per cent target range; the manager expects gearing to moderate as further divestments complete.

Management is accelerating a pivot that aims to lift exposure to logistics, light industrial and data-centre assets to more than 80 per cent of the portfolio by 2028, up from roughly 60 per cent today. Data-centre weightings are projected to reach 15-25 per cent over the same horizon, aided by an additional €50 million mandatory convertible loan to AiOnX, the sponsor’s hyperscale data-centre platform. About €205 million of value-add and redevelopment projects are slated for permitting within 6-12 months, each targeting a yield-on-cost of 6.3-6.6 per cent.

Chief executive officer Simon Garing attributed the DPS growth to resilient logistics demand and initial income from the AiOnX investment, noting that like-for-like NPI rose despite asset sales and higher financing costs. He said discussions with parent SWI Group on potential changes to management arrangements, fee structures and a possible manager internalisation are progressing, with the aim of enhancing alignment and long-term value for stapled securityholders. The board reaffirmed its expectation that full-year 2026 DPS will be broadly in line with 2025, citing the trust’s hedged interest rates, five-year average debt maturity and continued asset-recycling plans.

Looking ahead, the manager pointed to Oxford Economics’ forecast of 0.7 per cent Eurozone GDP growth in 2026 and to resilient logistics leasing fundamentals, although it cautioned that higher energy-driven inflation could prompt further European Central Bank rate hikes. SERT believes its focus on Western European logistics and data-centre assets positions the portfolio to weather macroeconomic uncertainty while supporting sustainable distributions.