Cromwell E-Reit's 7-month DPU beats forecast

Cromwell European Reit (Cromwell E-Reit) will distribute 2.53 euro cents per unit for the seven months ended June 30, 3 per cent higher than its forecast amid better income from its light-industrial portfolio.

The pan-European industrial and commercial real estate investment trust (Reit), which was formed and listed in November last year, posted revenue of €72.8 million (S$114 million) in the seven months ended June, 2.2 per cent higher than the forecast given in its initial public offering.

Net property income was 3.1 per cent higher than projected at €47.7 million, primarily due to income from the light-industrial portfolio outperforming the forecast by €1.5 million. The office and other properties portfolio performed in line with expectations.

Cromwell E-Reit has committed to paying out 100 per cent of its distributable income earned from listing until December next year.

The Reit's portfolio has an 88.7 per cent occupancy rate, and a 73 per cent tenant retention rate during the April to June quarter. Its weighted average lease expiry profile remains at five years.

The portfolio value stood at €1.39 billion as of end-June following its acquisition of a freehold office property in Ivrea, Italy, on June 27. The gearing ratio improved to 33.9 per cent as of June 30 from 35.1 per cent as of March 31.

Looking ahead, the trust manager said it would look for organic and inorganic growth, and that it expects to "unlock asset value further through a proactive approach to acquisitions and divestments".

  • AT A GLANCE

  • REVENUE: €72.8 million

  • NET PROPERTY INCOME: €47.7 million

  • DISTRIBUTION PER UNIT (DPU): 2.53 euro cents

"Moving forward, we will continue to work closely with our sponsor and property manager, leveraging their on-the-ground teams in Europe and strong pipeline sourcing capabilities," Mr Philip Levinson, chief executive of the trust manager, said in a statement. "Together, we have identified a deep pool of acquisition opportunities for further review and action. With its prudent gearing, Cromwell European Reit has ample borrowing capacity to fund growth acquisitions."

Cromwell E-Reit units yesterday ended half a cent lower at 59.5 euro cents.

A version of this article appeared in the print edition of The Straits Times on August 14, 2018, with the headline 'Cromwell E-Reit's 7-month DPU beats forecast'. Print Edition | Subscribe