Stoneweg Europe Stapled Trust Delivers Strong Logistics Performance with 8.6% Yield, Maintains Buy Rating August 21, 2026
Stoneweg Europe Stapled Trust (SERT) is a European real estate investment trust focused on logistics and office properties across key markets. The trust has demonstrated resilient performance in its latest results, with particular strength in its logistics portfolio driving operational improvements.
Strong Half-Year Performance
SERT delivered a solid first-half performance with distributable income per security of 6.642 euro cents, representing a 1.4% year-on-year increase and meeting analyst estimates. This figure comprises 50% of the full-year forecast, indicating steady progress towards annual targets. The trust’s distributable income rose 0.3% year-on-year, as the positive impact from acquisitions and strong logistics income growth successfully offset challenges from divestments and higher finance costs.
A notable contributor to performance was SERT’s investment in AiOnX, which generated €2 million in income during the half-year period, equivalent to 0.369 euro cents per security and representing approximately 5.6% of the total distributable income per security.
Operational Strengths Drive Value Creation
The trust’s operational performance was anchored by robust results from its logistics and light industrial portfolio. Portfolio occupancy improved meaningfully, rising 0.9 percentage points quarter-on-quarter to reach 93.7%. During the second quarter, SERT secured 69,000 square metres of new leases, representing 4.3% of the total portfolio, at an impressive 8% positive rent reversion.
The logistics segment particularly excelled, with occupancy rates reaching 95.2% and delivering exceptional rent reversions of 10.4% in the second quarter and 9.6% for the half-year period. Significant lease agreements at Herstedvang 2-4 and Parc des Docks achieved rent reversions exceeding 40%, demonstrating strong market demand for quality logistics assets.
The office portfolio also showed improvement, with occupancy rising from 86.8% to 90.3%, though this segment experienced negative rent reversion of 4.1% as management prioritised occupancy over rental growth at underperforming Finnish assets designated for sale.
Financial Position and Outlook
SERT maintains a strong financial foundation with 90% of debt hedged or fixed until late 2027, providing protection against interest rate volatility. Net gearing improved to 41.9% from 42.7% quarter-on-quarter, moving towards management’s target range of 35%-40%.
Phillip Securities Research maintains a Buy recommendation with an unchanged target price of €1.89, highlighting the trust’s attractive 8.6% dividend yield and re-rating potential.
Frequently Asked Questions
Q: What was SERT's dividend performance in the first half?
A: SERT delivered a distributable income per security of 6.642 euro cents, which increased 1.4% year-on-year and was in line with estimates, forming 50% of the full-year forecast.
Q: How did the logistics portfolio perform?
A: The logistics and light industrial portfolio delivered exceptional performance with occupancy at 95.2% and strong rent reversion of 9.6% in the first half, including 10.4% positive rent reversion in the second quarter alone.
Q: What is Phillip Securities Research's recommendation and target price?
A: Phillip Securities Research maintains a Buy recommendation with an unchanged target price of €1.89, with no changes to their forecasts.
Q: What was the impact of AiOnX investments?
A: AiOnX investments contributed €2 million in income during the half-year, equivalent to 0.369 euro cents per security and representing approximately 5.6% of the total distributable income per security.
Q: How strong is SERT's financial position?
A: SERT maintains a robust financial position with 90% of debt hedged or fixed until late 2027, an all-in interest rate of 3.9%, and improved net gearing of 41.9% compared to 42.7% in the previous quarter.
Q: What is the expected dividend yield?
A: The trust offers an attractive 8.6% dividend yield based on the expected full-year distributable income per security remaining in line with the previous year.
Q: What drove the portfolio valuation increases?
A: Portfolio valuations rose for the fifth consecutive half-year, increasing 1.1% on a like-for-like basis, driven by higher passing and market rents across the portfolio.
This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.
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About the author
Darren Chan
Darren has over seven years of experience across both the buy-side and sell-side. During his tenure as a fund manager, he managed multiple funds and mandates, including dividend income, growth, customised, Singapore-focused, and regionally focused strategies. He holds a First-Class Honours degree in Banking and Finance from the University of London..
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