1H 2026 Half-Year Results Presentation

Good afternoon and welcome to the Stoneveg Europe Staple Trust's first half 2026 results briefing. We will begin with remarks from the CEO of the Manager, Simon Gering, followed by a presentation from the management team. We'll then open the floor for Q&A. During Q&A, please click the raise hand button to be placed in the virtual queue. Alternatively, you can submit text questions via the Q&A feature. Now I will hand across to the CEO of the Manager of the Stoneveg Europe Staple Trust, Simon Gering. Simon, over to you. Thanks Kyara and good morning and thank you to all of us for joining today at our first half results discussion and a bit of a strategic update as well.

So if we turn to page two of the first half results presentation, CERT's 2.2 billion euro portfolio is predominantly freehold logistics and light industrial assets located across Western Europe. The portfolio is highly diversified, supported by nearly 800 tenants and a long-weighted average lease to expiry of 4.9 years, providing the resilient and visible income streams. The Netherlands remains our largest country exposure at approximately 30% of the portfolio, reflecting its importance as a key European logistics hub and the strength of its high-tech and export-orientated economy. Our assets are concentrated in major gateway cities and strategic logistic corridors, including Amsterdam, Paris, Milan, Frankfurt and Copenhagen. Overall, CERT has built a large-scale, high-quality European logistics platform that continues to deliver the stable cash flows, while our emerging data center development portfolio provides an additional avenue for long-term growth and value creation.

So before we get into the results, I'd like to take a step back and summarise CERT's transformation over the past three years. This is a story of a REIT that has undergone a meaningful reset and emerged in a structurally stronger position. Today, CERT is in a materially stronger position. Logistics, light industrial and data centres now represent the majority of the portfolio. Our balance sheet has been strengthened with no material refinancing requirements until 2030 and distributions have stabilised. CERT has a new and aligned sponsor based in Europe in the SWI Group or Stoneveg. Looking ahead, we see multiple pathways for future value creation, including rental growth across the logistics portfolio, asset enhancement and redevelopment initiatives and substantial growth from our data centre development strategy while continuing the capital recycling that we've been undertaking for the last three to four years.

This morning, we also announced that discussions are underway with our sponsor SWI Group regarding various strategic governance and organisational initiatives that will further enhance alignment, simplify the platform, including the potential internalisation of the REIT manager and the asset management platform to create long-term value for security holders. I should add that no definitive agreement has yet been reached and any proposal would remain subject to local laws, regulatory and security holder approvals. Watch this space as they say. Against that backdrop, let me now turn to the first half results. Turning to page 4, the right-hand chart shows the current portfolio mix, designed to capture steady and growing income from logistics and substantial growth potential within our data centre options.

The left-hand chart shows our medium-term allocation targets, continuing our pivot to logistics and data centres and funded by the steady sell-down of our office portfolio. Logistics and light industrial already represent the largest asset class at 56% of the portfolio and we target to increase this asset class to around 70% by 28%. We remain constructive on this sector, supported by strong structural demand, healthy occupier activity and continued positive reversion across our key markets, while also leaning heavily on our platform's value-add DNA in this sector. Alongside this, data centres provide an additional growth pillar within the stapled trust structure. Our dual-track approach, combining investments in Aonix with selected conversion opportunities within the REIT's existing portfolio, provides a pathway to increase data centre exposure from 7% today to around 15% to 20% over time.

At the same time, we continue to reduce office exposure from 45% back 3 years ago to now 35% today with a target range of 15% to 25% by 2028. Overall, the portfolio is becoming increasingly concentrated in sectors where we see the strongest long-term growth opportunities in both income and value, and where we feel we have a competitive and scale advantage. Having covered the portfolio strategy, let's talk about the first half results specifically on slide 5, which demonstrate the strength of StoneVed's local teams and the benefits of the strategic actions we've taken. I'm pleased to report that the first half 2026 distribution per security is €0.642, up 1.4% year-on-year, and remains consistent with the Board's DPS guidance for the full year to be broadly in line with that of last year.

Operationally, performance remains steady. Like-for-like NPI increased 1.3%, supported by continued strength in our core assets and core portfolio, while distributable income and DPS remain slightly ahead of the prior period. NAV per stapled security remained broadly stable. Leasing activity, as you can see with the key stats here, was healthy during the half, generating positive rent uplift and supporting occupancy increases across the portfolio. And our balance sheet is in very good shape, which enabled a small but a creative buyback. Turning to capital recycling, we continued to execute on our portfolio repositioning. We acquired a 35 million logistics facility in Wandixvene near Rotterdam at a meaningful 8% discount to both valuation and 37% below reinstatement cost.