European commercial property deals rebounded in 2024 after two years of contraction, with MSCI data showing a busy fourth quarter with transaction volume totalling 55.6 billion euros, an 11% increase year-on-year. While the UK, Sweden, and the Netherlands showed positive trends, France and Germany had mixed results.
This recovery is supported by a significant inward shift in prime yields across various sectors, particularly logistics and offices, indicating strong demand and investor confidence. INREV's survey also indicates that real estate investors' top preferences for 2025 are residential, industrial, and student accommodation, reflecting a continued focus on sectors with robust fundamentals and growth potential.
Singapore lists three European-focused S-REITs – Elite UK REIT, IREIT Global, and Stoneweg European REIT.
1. $EliteComREIT GBP(MXNU.SI)$
Elite UK REIT's FY2024 revenue and net property income (NPI) decreased by 1.2% and 10.3% year-on-year, respectively. However, distribution per unit (DPU) rose 5.0% to 2.87 pence due to interest and tax savings. The REIT’s portfolio valuation increased to 416.2 million pounds as at 31 December, with an occupancy rate improvement of 160 basis points to 93.9%.
2. $IREIT Global SGD(UD1U.SI)$
IREIT Global's FY2024 gross revenue and NPI increased by 16.3% and 7.2% year-on-year respectively, driven by the B&M Portfolio and higher rents from the Decathlon Portfolio and Berlin Campus. The REIT’s DPU rose by 1.6% to 1.90 euro cents. IREIT’s Manager plans to reposition Berlin Campus into a mixed-use, multi-let asset and has secured two major hospitality leases for this project.
3.$Stoneweg Reit EUR(CWBU.SI)$
Stoneweg European REIT (SERT) reported lower FY24 gross revenue and NPI of 1.6% and 2.3% year-on-year, respectively. DPU declined by 10.1% to 14.106 euro cents, mainly due to asset sales and higher interest costs.
In December 2024, SERT was renamed from Cromwell European REIT after welcoming its new Sponsor, Stoneweg Icona Capital Platform (Stoneweg). Stoneweg, a global alternative investment group headquartered in Geneva, Switzerland, manages approximately 10 billion euros in assets, employs over 300 professionals, and operates in 15 European countries, the US, and Singapore. Stoneweg is also a 28% substantial unitholder of SERT.
Open a Cash Boost Account (CBA) today and unlock a trading limit of up to SGD 20,000!
Enjoy the benefits of upcoming 0-commission, unlimited trading across Singapore, Hong Kong, and US stocks, as well as ETFs. Start trading smarter and more efficiently. Find out more here.
Comments