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In our second episode, we speak on the impact of US tariffs on Europe. As a preview, we’re sharing a special segment focusing on this week’s key themes: Tariffs, Turbulence & Tailwinds. Discover the surprising connection between Trump-era tariffs, declining interest rates, and Europe’s semiconductor goals—and how Stoneweg European REIT is strategically positioned within this evolving European real estate landscape.
We speak to Simon Garing, CEO of Stoneweg European REIT.
I am honored to have been invited by Elena Arabadjieva to the Market Opening at SGX, where Stoneweg European REIT (SERT) and its sponsor, the StonewegIcona Capital Platform, officially rang the opening bell, marking the start of trading on the SGX securities market.
Last week, I also had the privilege of meeting with the senior management team, including Simon Garing (CEO) and Shane Hagan (CFO), to discuss strategic insights with the new sponsor, Stoneweg Icona Capital. Joining us were Ernest Lim,Reginald Koh and Royston Yang.
𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐥𝐮𝐧𝐜𝐡 𝐦𝐞𝐞𝐭𝐢𝐧𝐠:
✅Focus on Share Price: Management is evaluated based on the share price, aligning their goals with investors’ interests. They are committed to enhancing SERT’s share price.
✅Strategic Pivot: The long-term goal is to shift the portfolio towards logistics and light industrial assets, while maintaining high-grade current office properties with strong development potential.
✅Financial Stability: No debt refinancing is planned for 2025, and efforts are underway to strengthen the balance sheet. A credit rating upgrade is anticipated due to de-risking efforts, improved operating metrics, and the recovery of the commercial office market in Europe.
✅Expansion Plans: SERT’s senior management has identified top-notch properties in the sponsor’s portfolio as a wish list, potentially expanding into new countries (Switzerland?).
✅Valuation Stability: Valuations are expected to stabilize as the cap rate may have peaked and stabilized.
✅Low Vacancy Rates: Office vacancy rates are relatively low compared to US commercial offices.
✅Institutional Holdings: An increase in institutional holdings is anticipated.
𝐒𝐭𝐨𝐧𝐞𝐰𝐞𝐠 𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐑𝐄𝐈𝐓 𝐚𝐭 𝐚 𝐆𝐥𝐚𝐧𝐜𝐞:
🟡Sponsor: Stoneweg Icona Capital (28% stake in SERT)
🟡Sector: Diversified
🟡Property Types: Office (42.7%), Logistics & Light Industry (55.3%)
🟡Portfolio: Stoneweg European REIT Portfolio
🟡Assets: 105 properties
🟡TTM Distribution Yield: 9.4%
🟡Price / NAV: 0.74
🟡Gearing Ratio: 40.2%
🟡Interest Coverage Ratio: 3.1x
🟡MSCI ESG Rating: A
Additionally, I recently had the opportunity to visit properties located in the Netherlands during my family holiday last June. https://lnkd.in/gsymb3gQ
Kenny Loh is an Associate Wealth Advisory Director and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.
Technical Analysis of FTSE ST REIT Index (FSTAS351020)
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 631.70 to 628.61 (-0.49%) compared to last month’s update.Singapore REITs index is trading sideways near the support level. It remains to be seen if the REIT index will break the support, which has been tested in April 2024.
The following is the compilation of 38 Singapore REITs with colour-coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.
The Financial Ratios are based on past data and these are lagging indicators.
REITs highlighted in orangehave the latest Q4 2024 values, otherwise they have the Q3 2024 values.
I have introduced weighted average (weighted by market cap) to the financial ratios, in addition to the existing simple average ratios. This is another perspective where smaller market cap REITs do not disproportionately affect the average ratios.
FY DPU: If Green, FY DPU for the recent 4 Quarters is higher than that of the preceding 4 Quarters.If Lower, it isRed.
Yield (ttm): Yield, calculated by DPU (trailing twelve months) and Current Price as of March 11th, 2025.
Gearing (%): Leverage Ratio.
Price/NAV: Price to Book Value. Formula: Current Price over Net Asset Value per Unit.
Yield Spread (%): REIT yield (ttm) reference to Gov Bond Yields. REITs are referenced to SG Gov Bond Yield.
As of May 2024, all REITs’ Yield Spread will be referenced to SG Gov Bond Yields, regardless of trading currency.
Price/NAV Ratios Overview
Price/NAV increased to 0.93 (Weighted Average: 0.93)
Increased from 0.88 in February 2025.
Singapore Overall REIT sector is slightly undervalued
Most overvalued REITs (based on Price/NAV)
ParkwayLife REIT
1.64
Keppel DC REIT
1.34
Mapletree Industrial Tr
1.17
Capitaland Ascendas REIT
1.15
Paragon REIT
1.03
AIMS APAC REIT
0.98
EC World REIT is currently suspended, however at current Price and NAV/Unit values it has a value of 7.00 (N.M)
Most undervalued REITs (based on Price/NAV)
Prime US REIT
0.24
Acrophyte Hospitality Trust
0.27
Keppel Pacific Oak US REIT
0.30
Manulife US REIT
0.30
Lippo Malls Indonesia Retail Trust
0.35
OUE REIT
0.48
Distribution Yields Overview
TTM Distribution Yield increased to 6.30%. (Weighted Average remained at 6.27%)
Increased from 6.15% in February 2025. (Weighted Average was 6.27%)
19 of 38 Singapore REITs have ttm distribution yields of above 7%.
Highest Distribution Yield REITs (ttm)
IREIT Global
13.53
Stoneweg European REIT
10.30
Elite UK REIT
9.57
First REIT
9.08
ESR REIT
8.83
Sasseur REIT
8.81
Reminder that these yield numbers are based on current prices.
Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.
A High Yield should not be the sole ratio to look for when choosing a REIT to invest in.
Yield Spread widened to 3.66%. (Weighted Average tightened slightly to 3.90%)
Widened from 3.30% in February 2025. (Weighted Average was 3.92%)
From May 2024 onwards, all my yield spread measurements are now in relation to SG Gov Bond Yields, no longer a mix with US Gov Bond Yields.
Gearing Ratios Overview
Gearing Ratio decreased to 38.29%. (Weighted Average: 38.15%)
Decreased from 39.52% in February 2025. (Weighted Average: 38.26%)
Gearing Ratios are updated quarterly. All values are based on the most recent Q4 2024 updates.
S-REITs Gearing Ratio has been on a steady uptrend. It was 35.55% in Q4 2019.
Highest Gearing Ratio REITs
Manulife US REIT
60.8
EC World REIT
56.5
Prime US REIT
46.7
Keppel Pacific Oak US REIT
43.7
ESR REIT
42.8
Elite UK REIT
42.5
MUST and EC World REIT’s gearing ratio has exceeded MAS’s gearing limit of 50%. However, the aggregate leverage limit is not considered to be breached if exceeding the limit is due to circumstances beyond the control of the REIT Manager.
Market Capitalisation Overview
Total Singapore REIT Market Capitalisation decreased by 0.18% to S$87.81 Billion.
Decreased from S$87.81 Billion in February 2025.
Biggest Market Capitalisation REITs (S$m):
Capitaland Integrated Commercial Trust
14815.89
Capitaland Ascendas REIT
11176.00
Mapletree Logistics Tr
6322.50
Mapletree Pan Asia Commercial Trust
6316.68
Mapletree Industrial Tr
5809.92
Keppel DC REIT
4528.45
Smallest Market Capitalisation REITs (S$m):
Acrophyte Hospitality Trust
116.02
Manulife US REIT
128.45
Lippo Malls Indonesia Retail Trust
153.94
Prime US REIT
170.04
Elite UK REIT
178.26
Keppel Pacific Oak US REIT
219.33
Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. If you want to know more about investing in REITs, scroll down for more information on the REITs courses.
Singapore REITs sector is consolidating at the support level of about 619 of FTSE ST REIT Index. The US 10Y Risk Free Rate has dropped to 4.24% and currently forming a Triple Tops chart pattern. Singapore REITs sector has very strong inversed correlation with US 10Y Risk Free Rate and it is predicted the Singapore REIT may reverse to uptrend once there is a confirm trend reversal of the risk free rate.
US 10 Year Risk Free Rate
Fundamentally, the S-REIT sector is trading at a 12% discount to its fair value, with an average trailing twelve-month (TTM) yield of 6.30%.
According to the current Fed Fund Rate projections from the CME Group, the market expects a 25 basis point cut by Q2 2025. The cut in interest rate will help to boost the DPU of the REITs which have shorter debt maturity profile and higher percentage of floating rate. However, the impact will only be reflected in the financial statement probably in Q2 or Q3 2025.
Kenny Loh is a distinguished Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.
In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).
With over a decade of experience in holistic estate planning, Kenny employs a unique “3-in-1 Will, LPA, and Standby Trust” solution to address clients’ social considerations, legal obligations, emotional needs, and family harmony. He holds double master’s degrees in Business Administration and Electrical Engineering, and is an Associate Estate Planning Practitioner (AEPP), a designation jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of the United Kingdom and Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.
US 10 Year Risk Free Rate