SINGAPORE - Cromwell European Reit first quarter results were boosted by a better-than-expected performance from its light industrial segment.
Distribution per unit (DPU) for the period from Nov 30, 2017 to March 31, 2018 came in at 1.45 euro cents, 3.5 per cent higher than its initial public offering forecast of 1.4 euro cents, the group said in a Singapore Exchange filing on Thursday morning (May 10). That came as Q1 income available for distribution was also 3.5 per cent above forecast at 22.8 million euros.
Gross revenue was 0.8 per cent above forecast at 41 million euros, while net property income was 2.8 per cent above forecast at 27 million euros.
The trust - whose assets include commercial properties in Denmark, France, Germany, Italy and the Netherland - listed last November.
"The better than expected result of 6.9 per cent net property income above forecast (for the light industrial segment) is mainly attributable to the light industrial portfolios in France and the Netherlands, while the portfolios in all other countries performed largely in line with expectations," said the trust.
It said the light industrial portfolio in France benefitted from some better-than-expected leasing outcomes, in particular for the largest property, Parc des Docks, where a tenant was expected to vacate the property at the beginning of the year and has now extended the lease for a further six months, as well as better than expected rental income across most properties.
The light industrial portfolio in Denmark performed as per expectations, it said. "The major tenant of the Naverland 12 properties located near Copenhagen, however, vacated the property which is expected to have a negative impact on the performance of Danish portfolio going forward," it added.