Simon Garing, CEO of Cromwell European REIT’s (CE REIT) manager, is keen to point out that the REIT has been well-rated in Singapore Corporate Governance scores, such as Governance Index for Trusts or GIFT, and GRESB.
“Because we are a REIT with a foreign sponsor, you need the trust of the investors. So we need to show our numbers and performance because this is how you get investors to trust you,” Garing says. “Since we listed, we have been in the top 10 in GIFT — we’re now number 4,” Garing points out. “In terms of disclosure and how we convey our information, we rank very high, and this is feedback from investors.”
Since its IPO in 2017, CE REIT has traded mainly at a discount to its net asset value (NAV). As at Jan 10, its unit price is at EUR2.53 ($3.60), a few cents above its latest reported NAV of EUR2.49. In May 2020, the manager and sponsor decided that both the base fee and the property management fee would be fully paid in cash from 1Q2020 onwards, as compared to 100% and 40% in CE REIT units previously.