Home Capital Broker's Calls

Cromwell European REIT is reaping the benefits from its renewed focus into the logistics sector

Samantha Chiew
Samantha Chiew8/17/2022 12:35 PM GMT+08  • 3 min read
Cromwell European REIT is reaping the benefits from its renewed focus into the logistics sector
Cromwell European REIT's move to focus on the logistics sector seems to be a good one. Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

DBS Group Research is keeping its “buy” call on Cromwell European REIT (CEREIT) with a target price of EUR2.60 ($3.65), as analysts Dale Lai and Derek Tan remain confident on the REIT’s operating performance and higher valuations backed by a growing income.

“Faced with a slowing economy and weakening EUR, the REIT’s year to date (ytd) 20% decline in its share price appears to have priced in most of these risks,” says the analysts, while noting that yields have expanded over 1 standard deviation (s.d.) above normal to about 8.1%, which they view as attractive.

Despite the continued weakness seen in the REIT’s office portfolio (mainly in Poland and Finland), its growing light industrial/logistics portfolio has led to earnings growth. With record low vacancies for logistics properties across Europe, the analysts believe that it would drive further growth in occupancies and rents for CEREIT’s light industrial/logistics portfolio.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.