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.
๐๐๐ฒ ๐๐๐ค๐๐๐ฐ๐๐ฒ๐ฌ ๐๐ซ๐จ๐ฆ ๐ญ๐ก๐ ๐ฅ๐ฎ๐ง๐๐ก ๐ฆ๐๐๐ญ๐ข๐ง๐ :
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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.
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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.
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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.
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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?).
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Valuation Stability: Valuations are expected to stabilize as the cap rate may have peaked and stabilized.
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Low Vacancy Rates: Office vacancy rates are relatively low compared to US commercial offices.
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Institutional Holdings: An increase in institutional holdings is anticipated.
๐๐ญ๐จ๐ง๐๐ฐ๐๐ ๐๐ฎ๐ซ๐จ๐ฉ๐๐๐ง ๐๐๐๐ ๐๐ญ ๐ ๐๐ฅ๐๐ง๐๐:
๐กSponsor: Stoneweg Icona Capital (28% stake in SERT)
๐กSector: Diversified
๐กProperty Types: Office (42.7%), Logistics & Light Industry (55.3%)
๐กPortfolio: Stoneweg European REIT Portfolio
๐กAssets: 105 properties
๐กTTM Distribution Yield: 9.4%
๐กPrice / NAV: 0.74
๐กGearing Ratio: 40.2%
๐กInterest Coverage Ratio: 3.1x
๐กMSCI 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 Singaporeโs 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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