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 Stoneweg Icona 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.
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