Stoneweg Europe Stapled Trust (SERT) is poised for its next growth phase, maintaining a “buy” recommendation with a target price of EUR1.90, reflecting a 23% upside, according to an RHB report.
The trust’s first half of 2025 performance aligns with expectations, and with stabilising interest costs and improved operations, a distribution per unit (DPU) turnaround is anticipated in the financial year 2026. The trust’s recent investment in its sponsor’s data centre fund is expected to enhance net asset value (NAV), a potential not yet fully recognised by the market.
Trading at an attractive 0.8 times the forecasted price-to-book value for 2025, SERT is well-positioned to benefit from potential interest rate cuts, which could reduce its trading discount. Analyst Vijay Natarajan noted, “There are also more of such sponsor-led growth opportunities ahead,” highlighting the trust’s strategic direction.
This development is significant as it underscores SERT’s commitment to leveraging sponsor-led opportunities to drive growth. The investment in the data centre fund is particularly noteworthy given the increasing demand for data infrastructure, which could lead to substantial NAV appreciation.
Looking forward, SERT’s strategic investments and operational improvements suggest a promising trajectory, with further growth opportunities on the horizon. As the market begins to recognise the trust’s potential, SERT could see a narrowing of its trading discount, making it an attractive proposition for investors seeking growth in the European real estate sector.
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