Is Stoneweg European REIT A Good Buy In 2025? [Fundamental Analysis]

In this article, we'll conduct a fundamental analysis and review of Stoneweg European REIT and its suitability to achieve the following investment objective: To deliver a stable dividend yield of 5% to 6% per year while having high capital preservation ability.

Information Is Accurate Up To April 2025

Business Description

Stoneweg European REIT is an Office and commercial REIT that was listed in 2018 and owns properties across Europe. They are listed in Singapore with two separate denominations in EURO (CWBU) and SGD (CWCU).

What I Like About Stoneweg:

• Distribution has been relatively stable (Figure 8)

  
  

• Weighted Average Lease Expiry is well managed (Figure 12)

  
  

• Management has a clear strategy, is pre-emptive and takes action to adjust the property portfolio to adapt to current trends.

What I Do Not Like About Stoneweg:

• The counter is very illiquid (Especially for the SGD counter).

  
  

• Financial health has been deteriorating over the years (Figures 4 & 5), though the management has highlighted their intention to get it under control. (Gearing ratio of 35-40% in the med term and an upper limit of 45% short term).

  
  

• The change in sponsor resulted in a broader investment mandate which may include “unattractive” sectors such as hospitality. While the management has explicitly stated their intentions to maintain 75% exposure in Industrial/Offices, the expansion of the investment mandate might be a double-edged sword that needs to be closely monitored.

Updates From Recent Performance (FY 2024)

General Comments:

• In FY2024, Cromwell transited to a new sponsor, SWI Group, and rebranded into Stoneweg EU REIT.

  
  

• DPU decreased by around 10% at the back of lower Net Property Income due to the loss of income from divested assets combined with the impact of higher borrowing costs and tax expenses. On a like-for-like basis, NPI grew by 2.8%, driven by positive rent reversion.

  
  

• Managers’ fees declined by 7.9% due to a reduced deposited property value following divestments and debt reduction.

Positive Headwinds:

• The cost of debt is expected to remain stable for the next two years as there are no refinancing requirements until the end of 2026.

  
  

• The increasing trend of friend-shoring will continue to drive demand for logistics and warehouse space.

Negative Headwinds:

• Ongoing economic uncertainty and rising trade war tension might result in a higher unoccupancy rate which may impact the gross rental income and hence DPU in FY2025.

  
  

Download Full Report On Telegram

and continue reading my independent analyst report which will provide you with a detailed look at the fundamentals of the stock and a range of price targets to help you out with your investment decision for Stoneweg European REIT:

*Join the channel → click on the channel name → under files → download the report you want!

If you would like to learn about REIT investing, you can find my entire methodology in my eBook: Retire With REITs here:

If you are looking for personalized financial advice, I offer a 1-to-1, fee-only consultation where you will receive personalized strategies to design, implement and manage a profitable REIT portfolio. You can find out more about it here:

Connect with me on social media platforms to receive updates on future content! You can also slide into my DMs if you have any questions :)

---

Disclaimer:

This article is meant to be the opinion of the author

This article is for information purposes only

This article should not be seen as financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore