SERT NPI slips 1.3% even as data centre strategy advances

This is thanks to a stable occupancy, positive rent reversion and capital recycling initiatives.

Stoneweg Europe Stapled Trust's (SERT) net property income fell 1.3% year on year (YoY) to $49.39m (€33.08m) for the first quarter (Q1) ended 31 March, whilst indicative distribution per stapled security rose 1.5% to $5.133 cents (€3.423 Euro cents), according to its managers on 28 April.

Stoneweg EREIT Management Pte. Ltd. and Stoneweg EBT Management Pte. Ltd. said the performance reflected stable occupancy, positive rent reversion and ongoing capital recycling initiatives.

Gross revenue for the quarter was $78.92m (€52.86m), down 1.3% from the previous year. Distributable income was $28.35m (€18.99m), broadly stable compared to the prior corresponding period. Net asset value (NAV) stood at $2.97 (€1.99) per stapled security as at 31 March 2026.

CEO Simon Garing said like-for-like NPI growth of 2.3% was supported by the logistics and light industrial portfolio, which delivered 3.7% growth and 7.6% rent reversion.

Portfolio occupancy stood at 92.8%, with logistics and light industrial assets at 95.1% and office assets at 86.8%. Weighted average lease expiry was 5.0 years.

SERT reported net gearing of 42.7% and said 87% of its interest exposure is hedged or fixed through late 2027. The trust has no near-term debt maturities.

The managers said the data centre strategy remains on track, with a target of 15% to 25% portfolio allocation by FY2028 and more than 10 identified conversion sites across Europe.

SERT also invested an additional $74.65m (€50m) in AiOnX during the quarter via a mandatory convertible loan carrying a 7.25% annual coupon, alongside a reported 41% valuation uplift on its initial investment.

FY2026 DPS is expected to be broadly in line with FY2025, subject to market conditions.