Stoneweg European REIT's 2H FY24 Result Review

$Cromwell Reit SGD(CWCU.SI)$ $Stoneweg Reit EUR(CWBU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Despite a slight YoY decline in gross revenue, NPI remained stable. However, income available for distribution and DPU saw a significant drop, primarily due to lower interest income and higher tax expenses.

Rental Reversion

Rental reversion for 2H 2024 and FY 2024 came in at 1.3% and 2.8%, respectively.

Asset Enhancement Initiative and Development

Two AEIs/developments are committed for Nove Mesto One Industrial Park 1 and Durham, focusing on space expansion and solar panel installation. Additionally, two projects are in the planning stage for Haagse Poort and Parc des Docks, Saint Ouen. Meanwhile, Via Dell’Industria 18 and Billstedt are under redevelopment, and Maxima is undergoing strip-out works.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Moderate

• REIT Manager's Shareholding: Less Favorable

• Directors of REIT Manager's Shareholding: Favorable

Lease Profile

• Committed Occupancy: Moderate

• Income Received in SGD/Major Currencies: Less Favorable

• Highest Annual Lease Expiry in 4 Years: Favorable

• WALE: Favorable

• Weighted Average Land Lease Expiry: Favorable

Debt Profile

• Adjusted Interest Coverage Ratio: Moderate

• Cost of Debt: Favorable

• Gearing Ratio: Moderate

• Fixed Rate Debt Proportion: Favorable

• Unsecured Debt Proportion: Moderate

• Highest Annual Debt Maturity in 4 Years: Less Favorable

• WADM: Less Favorable

Diversification Profile

• Major Sector Weightage: Favorable

• Top Geographical Weightage: Favorable

• Top Property Weightage: Moderate

• Top 5 Properties' Weightage: Favorable

• Top Tenant Weightage: Moderate

• Top 10 Tenants' Weightage: Favorable

Key Financial Metrics

• Property Yield: Moderate

• Operating Distributable Income over Manager's Fees: Favorable

• Operating Distributable Income on Capital: Favorable

• Operating Distributable Income Margin: Moderate

• Operating Distribution Proportion: Favorable

DPU Breakdown

• TTM Distribution Breakdown:100% from Operation

Trends (Up to 10 Years)

• Uptrend: Committed Occupancy, Operating Distribution Proportion

• Slight Uptrend: None

• Flat: None

• Slight Downtrend: Property Yield

• Downtrend: DPU from Operations, NAV per Unit, Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Top 10 Tenants' Weightage, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y, 3y, 5y & 10y

• P/NAV: Average for 1y, 3y & 5y; Below -1SD for 10y

Author's Opinion

Compared to the previous half-year, performance has remained stable. On the debt front, there is no refinancing requirement in 2025.

For more information, check out REIT-TIREMENT

*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decision.