Broker: iFAST Financial Pte Ltd
Date of Report: 18 March 2026
Excerpt from iFAST report.
Report Summary
- Stock: Stoneweg Europe Stapled Trust (SGX: SEB, SET)
- Call to Action: BUY
- Target Price: SGD 2.07 by end-2028 (31.9% upside from 16 March 2026 closing price)
- Dividend Yield: Forecasted at 9.4% (2026-2028 avg), well above peer median of 6.6%
- Key Idea: SERT is transitioning its portfolio to focus on logistics, light industrial, and data centres (targeting 70% by 2027, currently 61%), with reduced exposure to traditional offices. This strategic shift positions the Trust to benefit from structural tailwinds in European logistics and digital infrastructure.
- Highlights:
- Embedded growth from its AiOnX data centre platform (6.65% stake) adds NAV upside, with exposure capped at 10% of total assets.
- Disciplined capital recycling with EUR 411 million of non-core assets divested at an 11% premium to book value since 2022; no refinancing required until 2030.
- Resilient, diversified tenant mix (780 tenants, WALE 4.9 years, no single industry >17% of rent), ensuring strong earnings visibility.
- Valuation remains attractive at 0.77x P/B, trading at a discount to peers.
- Investment-grade balance sheet (gearing 42.4%, interest coverage 3.1x), Fitch rating upgraded to BBB (Stable).
- Implications: SERT offers a compelling risk-reward with high dividend yield, visible earnings recovery, and sector-leading growth prospects from its reweighting into high-demand logistics and data centre assets. The absence of near-term refinancing risk and embedded rental reversion provide further upside potential for investors.
above is an excerpt from a report by iFAST Financial Pte Ltd. Clients of iFAST can be the first to access the full report from the iFAST website : https://secure.fundsupermart.com/fsmone/
