Reported NPI down 1.3% on completed 2025 divestments — but like-for-like NPI is up 2.3%, the AiOnX stake has been written up 41% in twelve months, and the dual-track data centre strategy is the structural lever that decides whether the 22% discount-to-NAV closes

Stoneweg Europe Stapled Trust (SERT) on Tuesday 28 April 2026 reported its 1Q 2026 business update (quarter ended 31 March 2026) with indicative distribution per stapled security of 3.423 Euro cents (5.133 Singapore cents at €1 = SGD1.4997), up 1.5% year-on-year. Reported gross revenue €52.9m (−1.3% YoY) and net property income €33.1m (−1.3% YoY) reflect the carry-through of FY2025 divestments before the proceeds finished recycling into core investments at the end of March 2026 — on a like-for-like basis (excluding 2025 divestments and the 1Q 2026 acquisition) NPI was up 2.3%, driven by Logistics/Light Industrial +3.7% and Other +26.1% (the latter aided by a tenant rent-arrears settlement), partially offset by Office −1.0%. Portfolio occupancy 92.8% as at 7 April 2026 (including a 15,000 sqm short-term lease at Parc de Sully signed effective 7 April), with Logistics/Light Industrial at 95.1% and Office at 86.8%. Portfolio rent reversion +3.9%; Logistics/Light Industrial reversion +7.6%. WALE 5.0 years (unchanged). Net asset value per stapled security €1.99 (unchanged on an adjusted-for-distribution basis); adjusted NAV €1.96; EPRA NRV €2.14 (down €0.04 from €2.18). Aggregate net gearing 42.7% (1pp higher YoY, calculated post-Riverside divestment for €22.5m), below the Board's 45% policy ceiling. 87% of interest exposure hedged or fixed through late 2027. Average all-in interest rate 1Q 2026 3.84% (vs 3.66% pcp). The capital management headline: SERT redeployed €85m in 1Q (€50m mandatory convertible loan into AiOnX, the Sponsor's data centre development fund, plus €35m acquisition of a Waddinxveen Netherlands logistics facility), divested €22.5m at a 5.1% premium to latest valuation, extended a €160m hedge by two years to 30 November 2028, and bought back 2.1m stapled securities YTD for €3.2m. The Manager has hardened the data centre strategic target to 15%-25% of total portfolio by FY2028, articulated through a dual-track strategy (organic conversion of 10+ identified SERT portfolio sites + inorganic exposure via AiOnX). FY 2026 DPS guidance: broadly in line with FY 2025 DPS of 13.39 Euro cents, implying an approximate 8.6% distribution yield at the current SERT security price of €1.55. CEO Simon Garing characterised the quarter as a tangible outcome of strategic initiatives and disciplined capital management.

1Q 2026 Gross Revenue €52,858k (vs €53,562k 1Q 2025, −1.3% YoY); Net Property Income €33,077k (vs €33,506k, −1.3% YoY); Distributable Income €18,990k (vs €18,922k, +0.4% YoY); Indicative DPS 3.423 Euro cents (vs 3.374, +1.5% YoY) or 5.133 Singapore cents at €1 = SGD1.4997. NAV per Stapled Security €1.99 (unchanged adjusted for distribution); Adjusted NAV €1.96 (vs €1.96 31 Dec 2025); EPRA NRV €2.14 (vs €2.18 31 Dec 2025, down €0.04 reflecting capital distributions). Portfolio carrying value €2.20bn across 97 assets (vs 31 December 2025 valuation), with Stoneweg European Business Trust holding €120.5m of AiOnX exposure separately (7.1% of group asset base). Country split by carrying value: Netherlands 29.6% (€651.5m, 15 assets), France 21.3% (€469.0m, 19 assets), Italy 16.4% (€360.7m, 14 assets), Germany 10.1% (€221.1m, 14 assets — all L/Li), Denmark 6.8% (€149.3m, 12 assets — all L/Li), Poland 6.8% (€149.3m, 4 assets — all office), Czech Republic 3.5% (€78.1m, 7 assets — all L/Li), United Kingdom 3.3% (€71.6m, 3 assets — all L/Li), Finland 2.2% (€48.9m, 9 assets — all office). Sector split by carrying value: Logistics/Light Industrial €1,253m (66 properties, 95.1% occupancy, 5.1-year WALE, +7.6% rent reversion 1Q, 30,033 sqm leases signed/renewed at 45.4% tenant retention), Office €902.2m (28 properties, 86.8% occupancy, 5.1-year WALE, −2.8% rent reversion 1Q on three small non-core leases at Poznan/Helsinki/Paris totalling 1,095 sqm, 41.0% tenant retention), Others €44.4m (3 Italian properties, 92.2% occupancy). Initial yield 6.2%; reversionary yield 7.6%; under-renting 8.2% per December 2025 valuation reports. CPI-linked indexation across 965 leases / 775 tenant-customers; top 10 tenants 21.2% of headline rent; largest single tenant Nationale-Nederlanden (NN Group B.V.) at 3.9%. No single industry trade sector >17.0% of portfolio; ~90% of tenant-customers are large MNCs or government / semi-government. SERT-borne non-recoverable utility costs <0.5% of total property opex, with 98.4% average utility cost inflation pass-through to tenants over 2021-2025. Capital management: aggregate net gearing 42.7% (proforma post-Riverside €22.5m sale settling April 2026), 1pp higher YoY; 87% of interest exposure hedged or fixed through late 2027; €160m hedge extension closed in 1Q from 30 November 2026 to 30 November 2028; weighted average debt maturity over 5 years (80% of debt issued in 2025 as 6-7 year euro bonds); no debt maturing before 2030 other than the evergreen RCF maturing late 2028; average all-in interest rate 1Q 2026 3.84% (vs 3.66% pcp); investment-grade credit ratings 'BBB' Stable from Fitch (October 2025) and 'BBB-' Stable from S&P Global (January 2026). 1Q transactions: €50m additional investment in AiOnX through mandatory convertible loan signed March 2026 (7-year tenor, 7.25% fixed annual cash coupon, +2% accretive to indicative pro-forma DPS, conversion into AiOnX equity at material discount to NAV); €35m acquisition of modern freehold temperature-controlled logistics facility in Waddinxveen, Netherlands (near Rotterdam, ~8.0% below independent valuation, ~37.0% below estimated reinstatement cost, 6.0% NOI yield under c.eight-year triple-net lease to long-established single food distribution tenant with two five-year extension options); €22.5m divestment at 5.1% premium to latest valuation; 2.1m securities buybacks YTD (€3.2m). Aggregate AiOnX investment now €120.5m carrying value comprising the original €50m June 2025 equity stake (7% pre-restructuring, written up 41% in twelve months reflecting development milestones) plus the new €50m March 2026 MCL plus revaluation. AiOnX portfolio: five data centre development projects with 1,696MW already secured (up 250MW since June 2025), visibility to 2,259MW total power capacity, >€30bn pipeline gross development value — Dublin Ireland 179MW target / 16MW current / 39.8% ownership / 30 Nov 2024 acquisition, Madrid Spain 600MW target / 200MW current / 92% ownership / 30 Nov 2024 acquisition, Varde Denmark 800MW target / 800MW current / 100% / 30 Nov 2024 acquisition, Milan Italy 150MW target / 150MW current / 100% / 30 Nov 2024 acquisition, Cambridge UK 530MW target / 530MW current / 100% / 30 Jun 2025 acquisition. First phase of 16MW DC in Dublin operational late 2026 with rents from a major US hyperscaler scheduled to commence at that time. ESG: MSCI ESG 'A', Morningstar Sustainalytics 10.7 (Low Risk, top of peer group), GRESB 85 / 4 stars, EPRA sBPR Gold, Top 5 SGTI 2025, Top 5 ASEAN Corporate Governance Awards 2024 — all FY2025 sustainability-linked facility KPIs met. CEO Simon Garing on the results: "SERT's first quarter 2026 performance reflects the strength of our repositioned portfolio and the experienced local Stoneweg asset managers with excellent transaction execution capabilities across our European platform, despite a mixed macroeconomic backdrop."

1. THE LIKE-FOR-LIKE +2.3% IS THE NUMBER THAT CARRIES, NOT THE REPORTED −1.3%:

The headline reads as a soft quarter — gross revenue down 1.3%, NPI down 1.3% — but those numbers are entirely a divestment timing artefact. SERT completed FY2025 divestments through the end of March 2026, with capital recycled into core investments only finishing at quarter-close. The reported numbers therefore compare a 1Q 2026 portfolio that has had 2025-divested assets removed from the income base against a 1Q 2025 portfolio that still owned those assets, before the recycled capital had stepped fully into the income line. The like-for-like NPI growth of +2.3% — calculated excluding both the FY2025 divestments and the 1Q 2026 Waddinxveen acquisition — is the cleaner read of operating performance. Decomposed by sector: Logistics/Light Industrial +3.7%, Other +26.1% (boosted by a one-off rent arrears settlement at the Italian Others portfolio), Office −1.0%. The Logistics/Light Industrial print is the structurally important one. It anchors 53.7% of income contribution today, the Manager has explicitly stated the strategy is to lift that further, and the rent reversion of +7.6% in the segment in 1Q 2026 is a continuation of a multi-quarter trend — 1H 2025 +8.0%, 2H 2025 +8.7%, 1Q 2026 +7.6% — that signals the under-renting in the European industrial book (8.2% per Dec 2025 valuations) is being captured at lease renewal at scale. The reversionary yield of 7.6% versus initial yield of 6.2% implies approximately 22% of NPI uplift available across the 5.0-year WALE if the renewal pace holds. Net property margin held at 62.5% — disciplined cost control through a quarter when energy prices ticked up.

2. €85M DEPLOYED IN ONE QUARTER AT A 6.7% BLENDED YIELD — THE CAPITAL RECYCLING ENGINE IS RUNNING:

The operational story of 1Q 2026 is that the capital-recycling pivot from FY2025 finally landed in the income base in the back half of the quarter. €85m was deployed across two transactions: (a) €50m mandatory convertible loan into AiOnX (the Sponsor's data centre development fund) signed March 2026 with a fixed 7.25% annual cash coupon, 7-year tenor, fully income-generating from day one with conversion into AiOnX equity at a material discount to appraised value at expiry; (b) €35m acquisition of a modern freehold temperature-controlled logistics facility in Waddinxveen, Netherlands — approximately 8% below independent valuation, 37% below estimated reinstatement cost, 6.0% NOI yield under a c.eight-year triple-net lease to a long-established single food distribution tenant-customer with two five-year extension options. Blended yield 6.7%, materially above SERT's 3.84% all-in cost of debt. The Manager characterises the AiOnX MCL as 2% accretive to pro-forma DPS on an illustrative basis. €22.5m of divestments completed at a 5.1% premium to latest valuation (the Riverside sale settling April 2026), and 2.1m stapled securities were bought back YTD for €3.2m — buyback per security cost is below NAV, accretive to NAV per security and contributing to the 1.5% DPS uplift on a fewer-securities-in-issue base. Net gearing held at 42.7% — 1pp higher than 1Q 2025 but well inside the 35-40% policy range upper end and below the 45% Board ceiling. The capital structure carries the strategy: 87% of interest exposure hedged or fixed through late 2027, weighted average debt maturity over 5 years, no refinancing until 2030 other than the evergreen RCF (maturing late 2028), 80% of debt issued as 6-7 year euro bonds in 2025. SERT enters 2H 2026 with the operational room to keep recycling at this pace.

3. AIONX IS THE STRUCTURAL VALUE LEVER — €50M EQUITY WRITTEN UP 41% IN TWELVE MONTHS BEFORE A SINGLE DC IS COMPLETED:

The single most important disclosure in this update — one that does not appear in the headline financial table — is on slide 26 of the deck: SERT's original €50m equity investment in AiOnX, made June 2025 for a 7% stake (now restructured to a different ownership configuration following an opportunistic 2Q 2025 step-up), has already been revalued 41% higher inside twelve months. This is not asset-stabilisation revaluation; it is development-milestone revaluation. AiOnX has secured 1,696MW of power capacity across five projects (up 250MW since June 2025), with visibility to 2,259MW total — Dublin Ireland (179MW target / 16MW current / 39.8% owned / planning, the first 16MW phase scheduled for late 2026 with rent from a major US hyperscaler), Madrid Spain (600MW / 200MW / 92%), Varde Denmark (800MW / 800MW / 100%), Milan Italy (150MW / 150MW / 100%), and Cambridge UK (530MW / 530MW / 100%, acquired June 2025). Aggregate gross development value of the platform is approximately €30bn at full build-out. The deck appendix discloses an indicative seed-stage valuation framework: a hypothetical 1GW (869MW IT capacity at 1.15 PUE) data centre portfolio carries €15.7bn GDV, €9.4bn of development cost, valuation gains pre-tax of €6.3bn at a 5-6% cap rate, and a 12x equity multiple on €500m initial equity assuming construction debt termed out post completion and full lease-up — a framework the Manager explicitly cautions is not indicative of SERT's actual investment returns at this stage of development. Standalone, those numbers are illustrative; layered onto SERT's 7%-equivalent-equity stake in a €30bn pipeline, they are why the Business Trust segment is being valued separately at €0.06 per stapled security. The new €50m mandatory convertible loan structure adds a hybrid layer: cash coupon income from day one (7.25%, +2% DPS accretive on an illustrative pro-forma basis) plus conversion into AiOnX equity at a material discount to NAV at expiry. The Sponsor's recently-agreed acquisition of a majority stake in Polarise GmbH (a leading European NVIDIA-Preferred Partner, valued €500m with a further €1bn funding commitment) creates an integrated land + power + GPU compute stack — SWI Group, AiOnX and Polarise together — that the Manager telegraphs will reinforce SERT's long-term growth trajectory. Whether the 41% revaluation print continues to compound depends on whether the Dublin first-phase rent commencement in late 2026 prints clean.

4. THE 10+ SERT PORTFOLIO CONVERSION CANDIDATES ARE THE OTHER HALF OF THE DUAL-TRACK STRATEGY — PARC DES DOCKS PARIS IS THE FLAGSHIP:

The AiOnX investment is the inorganic pillar of the data centre strategy; the organic pillar is the conversion of 10+ identified sites within SERT's existing portfolio across four European countries. Initial feasibility work is complete on those candidates, with planning now underway for fast-tracked redevelopment to enable conversion in 2-4 years. The Manager has named Parc des Docks in Paris as the flagship conversion project — a 10-hectare warehouse site that has received positive planning feedback and attracted interest from major hyperscalers. The design is described as carbon-negative (aided by its unique location), positioning it among the most environmentally progressive data centre concepts in Western Europe; power and heat offtake arrangements are currently being negotiated, with key milestones targeted over the next 1-2 years. The capital efficiency of the conversion thesis is the structural asymmetry: SERT continues to earn rental income on these assets through the planning and approval phases, and if even a handful of sites secure DC planning consent the same land could be worth substantially higher amounts with no additional acquisition cost. The Manager's framing — "feasibility complete → planning and power submitted → consent received → valuation uplift capture" — is a procedural disclosure that valuers will start reflecting material upside once key approval milestones land. The hardened 15%-25% data centre allocation target by FY2028 implies approximately €330m to €550m of incremental DC exposure to be created or acquired in the next 30 months, of which the AiOnX MCL and any conversion-driven revaluation contribute the majority — a credible glide path given the platform infrastructure already in place.

5. THE 0.78x P/NAV DISCOUNT IS WHAT THE MARKET PAYS FOR AN UNPROVEN DUAL-TRACK STRATEGY — 1Q 2026 IS THE FIRST QUARTER WITH EXECUTION EVIDENCE:

SERT trades at a P/NAV of 0.78x on the deck's 16 April 2026 reference (€1.55 stapled security price against €1.99 NAV) — a 22% discount to NAV. The peer-group context disclosed in the deck is the salient comparison: Euro REITs (WDP, CTP, Merlin, Segro, Montea, Argan, NSI) at 0.90x, Singapore Logistics & Industrial REITs at 1.15x, Singapore Data Centre REITs (Keppel DC REIT, Digital Core REIT, NTT DC REIT) at 1.21x. The dividend yield comparison runs the same way: SERT 8.6%, Euro REITs 4.0%, SG L&I REITs 6.2%, SG DC REITs 4.0%. Sympathetic read: the 22% discount is what the market pays before it has priced an unproven dual-track DC strategy into the unit, and the catalysts that close the gap — Dublin first-phase rent commencement late 2026, Parc des Docks planning consent, conversion-driven valuation uplift, the 41%+ AiOnX revaluation arc compounding into FY2027 NAV prints — all sit in front of the trust over the next 12-18 months. Skeptical read: 22% is also what the market pays when it discounts an Office sector that remains 41.0% of the portfolio at 86.8% occupancy with negative rent reversion, a Finland office book at 69.6% occupancy, a Polish office book at 83.2% with 8.7% initial yield reflecting structural vacancy, and an FY2026 DPS guide that is broadly flat versus FY2025 13.39 cents — the 8.6% yield is therefore not yet a growing yield. Both reads can be correct simultaneously. The deciding variable is execution evidence: 1Q 2026 is the first quarter where the like-for-like NPI growth (+2.3%), the L/Li reversion (+7.6%), the AiOnX revaluation (+41%), and the capital recycling cadence (€85m deployed at 6.7% blended) have all printed in the same disclosure. The Manager has guided FY2026 DPS broadly in line with FY2025 13.39 cents — the implied ~8.6% yield holds even before any DC-driven uplift, and the upside optionality is on the FY2027-FY2028 prints when AiOnX rent commencement and the first portfolio conversion approvals start landing simultaneously.

SERT's joint sponsor is SWI Group (SWICH on Euronext Amsterdam), an investment conglomerate built around Stoneweg SA (Geneva, €11bn AUM) plus Icona Capital and associates, with a 28% stake in SERT's stapled securities and full ownership of the Manager and Property Manager. SWI Group's recent listing on Euronext Amsterdam is a governance overlay that the Manager characterises as reinforcing transparency and institutional discipline; the strong share-price performance of SWICH since listing is offered as market validation of strategy. SERT carries investment-grade credit ratings from Fitch ('BBB' Stable, October 2025) and S&P Global ('BBB-' Stable, January 2026), is a constituent of FTSE EPRA Nareit, MSCI ACMI IMI (APAC), iEdge S-REIT Leaders Index and iEdge SG ESG Leaders Index, and holds an MSCI ESG 'A' rating, GRESB 85/4 stars, and Sustainalytics 10.7 Low Risk (top of peer group). The macro frame disclosed in the deck reads as cautiously constructive: Eurozone GDP growth forecast 0.8% in 2026 (Oxford Economics, 13 April 2026), moderating from 1.5% in 2025, with headline inflation 2.5% in March 2026 (highest since July 2024) driven by energy-price increases. Industrial / logistics demand is supported by manufacturing onshoring and B2B distribution despite a Eurozone Composite PMI at 48.6 (April 2026, contraction), with the Manufacturing PMI rising to 52.2 — a near-4-year high. Green Street projects 3.2% pa annualised industrial rental growth over 2026-2030, outperforming retail (3.0%) and office (2.3%); office net new supply is expected to slow from c.1% to 0.6%-0.7% over the next five years on energy and construction-cost headwinds. Approximately €200m of SERT-internal developments are expected to receive permitting within the next 12-18 months, each with a minimum yield-on-cost / IRR hurdle to ensure value accretion. The asset-base headline: 97 well-located properties across 9 European countries with an average portfolio initial yield of 6.2%, longer-term reversionary yield of 7.6%, 93.3% freehold by NLA, and 90% Western Europe / Nordics exposure.

SERT 1Q 2026 is the first quarter where the dual-track data centre strategy has printed execution evidence in the same disclosure as the operating numbers. Reported NPI down 1.3% is a divestment-timing artefact; the like-for-like +2.3% NPI growth, the +7.6% Logistics/Light Industrial rent reversion, and the +1.5% DPS lift are the cleaner reads of an operating book that is structurally compounding. The capital recycling engine ran at full throttle: €85m deployed at a 6.7% blended yield (€50m AiOnX MCL at 7.25% cash coupon plus €35m Waddinxveen logistics at 6.0% NOI yield), €22.5m divested at a 5.1% premium, €160m hedge extended two years to November 2028, 87% of interest exposure now fixed through late 2027. The structural disclosure that does not appear in the headline financial table — the 41% revaluation of the original €50m AiOnX equity stake inside twelve months — is the lever the Manager is asking the market to price into the 0.78x P/NAV. AiOnX has 1,696MW of power capacity secured across Dublin / Madrid / Varde / Milan / Cambridge with visibility to 2,259MW and an indicative €30bn GDV pipeline; the first 16MW Dublin phase commences hyperscaler rent late 2026. Inside SERT's own portfolio, 10+ conversion candidates — flagship Parc des Docks Paris — are progressing through planning. The hardened 15%-25%-by-FY2028 DC allocation target implies approximately €330-550m of incremental DC exposure created or acquired over 30 months. FY 2026 DPS is guided broadly in line with FY 2025 13.39 Euro cents, implying an 8.6% distribution yield at €1.55 — and the upside optionality sits on FY2027-FY2028 NAV and DPS prints when AiOnX rent commencement and the first conversion approvals print together. For investors, the question is whether the 22% discount-to-NAV closes as the strategy starts compounding execution evidence — and 1Q 2026 is the quarter where that compounding has begun.