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Cromwell European REIT reports 2.8% lower DPU of 8.459 Euro cents in 2HFY2021

Felicia Tan
Felicia Tan2/23/2022 08:32 AM GMT+08  • 2 min read
Cromwell European REIT reports 2.8% lower DPU of 8.459 Euro cents in 2HFY2021
Total DPU for the FY2021 stood 2.6% lower y-o-y at 16.961 Euro cents.
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The manager of Cromwell European REIT has reported a distribution per unit (DPU) of 8.459 Euro cents in the 2HFY2021 ended December, down 2.8% from the DPU of 8.703 Euro cents.

This comes on the back of the higher base of 561.05 million units in the 2HFY2021, from the 512.21 million units in the 2HFY2020.

Total DPU for the FY2021 stood 2.6% lower y-o-y at 16.961 Euro cents.

In the 2HFY2021 gross revenue increased by 8.3% y-o-y to EUR101.1 million.

Net property income (NPI) grew 10.4% y-o-y to EUR65.8 million, while distributable income rose 6.5% y-o-y to EUR47.5 million.

Simon Garing, CEO of the manager explains, “While the headline FY2021 DPU was slightly lower as compared to FY2020, the 16.961 Euro cents in FY2021 was not topped up by any capital distribution and was ahead of last year’s FY2020 DPU on a like-for-like basis.”

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On a like-for-like basis, FY2021’s DPU inched up by 0.5% y-o-y.

As at end-December, the REIT reported a high portfolio occupancy of 95.0%, mainly boosted strong leasing in the light industrial and logistics portfolio, which was slightly offset by the office portfolio’s weaker performance.

The REIT’s weighted average lease expiry (WALE) came in at 4.6 years as at end-December.

See also: CDL reports high occupancies for Singapore office, recovery in retail and hotel portfolios

Overall portfolio rent reversion was recorded at a positive 5.0% for the year, with over 12% of the portfolio leased or renewed in FY2021 and with 40% of the new leases occurring in the 4th quarter.

As at end-December, cash and cash equivalents stood at EUR59.3 million.

Looking ahead, the manager of the REIT progressing on EUR250 million of redevelopment and new developments on the predominately freehold land held by CEREIT to unlock value and provide an accretive high yield on cost.

The redevelopment of Via Nervesa in Milan, when completed in 2021, said to provide “long-term income accretion and value upside”.

In terms of greenfield developments, the manager is commencing its first such project in FY2022, for the two-phase development of logistics warehouses on 39,380 sq m plot of land in the REIT’s Nove Mesto ONE Industrial Park I in Slovakia, subject to final regulatory approvals and pre-lease commitments.

Units in Cromwell European REIT closed at EUR2.34 on Feb 22.

Photo: Cromwell European REIT

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