Three European-focused S-REITs
| Trust Name | Stock Code | Market Cap S$M | PB Ratio | Distribution yield (%) |
| Stoneweg European REIT | CWBU/CWCU | 1,173 | 0.68 | 9.7% |
| IREIT Global | UD1U/ 8U7U | 336 | 0.45 | 10.9% |
| Elite UK REIT | MXNU | 308 | 0.75 | 9.4% |
Source: Company announcements, Bloomberg (data as of 6 Mar 2025).
European commercial property deals rebounded in 2024 after two years of contraction, with MSCI data showing a busy fourth quarter with transaction volume totalling 55.6 billion euros, an 11 per cent increase year-on-year. While the UK, Sweden, and the Netherlands showed positive trends, France and Germany had mixed results.
This recovery is supported by a significant inward shift in prime yields across various sectors, particularly logistics and offices, indicating strong demand and investor confidence. INREV’s survey also indicates that real estate investors’ top preferences for 2025 are residential, industrial, and student accommodation, reflecting a continued focus on sectors with robust fundamentals and growth potential.
Singapore lists three European-focused S-REITs – Elite UK REIT, IREIT Global, and Stoneweg European REIT.
Elite UK REIT’s FY2024 revenue and net property income (NPI) decreased by 1.2 per cent and 10.3 per cent year-on-year, respectively. However, distribution per unit (DPU) rose 5.0 per cent to 2.87 pence due to interest and tax savings. The REIT’s portfolio valuation increased to 416.2 million pounds as at 31 December, with an occupancy rate improvement of 160 basis points to 93.9 per cent.
IREIT Global’s FY2024 gross revenue and NPI increased by 16.3 per cent and 7.2 per cent year-on-year respectively, driven by the B&M Portfolio and higher rents from the Decathlon Portfolio and Berlin Campus. The REIT’s DPU rose by 1.6 per cent to 1.90 euro cents. IREIT’s Manager plans to reposition Berlin Campus into a mixed-use, multi-let asset and has secured two major hospitality leases for this project.
Stoneweg European REIT (SERT) reported lower FY24 gross revenue and NPI of 1.6 per cent and 2.3 per cent year-on-year, respectively. DPU declined by 10.1 per cent to 14.106 euro cents, mainly due to asset sales and higher interest costs.
In December 2024, SERT was renamed from Cromwell European REIT after welcoming its new Sponsor, Stoneweg Icona Capital Platform (Stoneweg). Stoneweg, a global alternative investment group headquartered in Geneva, Switzerland, manages approximately 10 billion euros in assets, employs over 300 professionals, and operates in 15 European countries, the US, and Singapore. Stoneweg is also a 28 per cent substantial unitholder of SERT.
The new Sponsor is expected to bring complementary expertise, footprints, and an extended financial network in Europe, and SERT has a right of first refusal (ROFR) over its Sponsor’s investments. The larger integrated platform is expected to offer expanded opportunities and pipeline such as logistics and data centre projects and potential new markets in Switzerland and Spain.
In 2021, SERT accelerated its pivot towards logistics assets with its first acquisition in the UK. SERT now has 55 per cent of its portfolio comprising logistics and light industrial assets for future value creation and notes that it is on track to reach 60 per cent.
The REIT’s logistics and light industrial portfolio remains resilient at 94.2 per cent occupancy and a 5.0 per cent rent reversion in FY24. SERT notes that this segment of its portfolio is under-rented with passing rents still 7.2 per cent lower than market rents, and believes that it continues to be a beneficiary of the still growing e-commerce penetration with European online parcel delivery forecasted by Cushman & Wakefield to grow by 37 per cent between 2022 and 2027.
The REIT’s logistics and light industrial valuations rose 4.5 per cent year-on-year in FY24, underpinning the 0.8 per cent increase in overall portfolio valuations.
On the capital management front, SERT notes that its financial position significantly improved following its recent 6-year 500 million euros green bond issuance, which was almost five-times oversubscribed.
On the sustainability front, SERT’s strategy is to continue focusing on ESG-certified and well-located modern offices. Its Nervesa 21 in Milan completed a major asset enhancement in March 2024, achieved LEED Platinum and WELL Gold certification and is the second highest rated Green office building in Italy.
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Originally Posted on March 10, 2025 – REIT Watch – Stoneweg European REIT eyes growth with a new Sponsor as European property rebounds in 2024
For more research and information on Singapore’s REIT sector, visit sgx.com/research-education/sectors for the SREITs & Property Trusts Chartbook.
REIT Watch is a regular column on The Business Times, read the original version.
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