The manager of Cromwell European REIT (CEREIT) has declared distribution per unit (DPU) of 1.744 Euro cents (2.8 cents) for the 2HFY2020 ended December, 14.6% lower than DPU of 2.04 Euro cents for corresponding period the year before.

FY2020 DPU stood 14.6% lower at 3.484 Euro cents compared to the 4.08 Euro cents in FY2019, with base management and property management fees paid 100% in cash and distribution of divestment gain of 2.8 million euros from the total available divestment gain of 9.3 million euros from the divestments of Parc d’Osny on Oct 18, 2019, and 12 non-core assets in France, the Netherlands and Denmark on Mar 24, 2020.

On a like-for-like basis, FY2020 DPU fell 3.0% y-o-y to 3.484 cents from 3.59 cents.

Similarly, on a like-for-like basis, 2HFY2020 DPU fell 1.3% y-o-y from 1.767 cents.

Distributable income for the 2HFY2020 fell 14.4% y-o-y to 44.6 million euros, while distributable income for the FY2020 fell 8.0% y-o-y to 89.1 million euros.

Get the latest Singapore corporate news stories for FREE

For FY2020 includes a provision for doubt debts of 3.1 million euros, mostly in relation to Covid-19, though most of the provision was made in 1HFY2020.

Gross revenue for the 2HFY2020 fell 1.4% y-o-y to 93.3 million euros, while net property income (NPI) fell 3.9% y-o-y to 59.6 million euros mainly due to the negative impact of Covid-19

FY2020 gross revenue grew 5.6% y-o-y to 187.0 million euros, while NPI grew 1.0% to 117.3 million euros. The increase in both figures was attributable to contributions from newly acquired office assets in France, Italy and Poly as well as Germany.

As at end-December, cash and cash equivalents stood at 43.6 million euros.

During the period, CEREIT’s occupancy rate grew to 95.1% from 93.2%, as leasing activity continued with minimal disruption throughout the first half of 2020.

Weighted average lease expiry (WALE) stood at 4.9 years during the period, similar to the past three years.

In the 2HFY2020, amid easing lockdowns, the manager signed 50% more leases by area compared to the 1HFY2020.

“At the onset of the COVID-19 pandemic, the manager quickly moved to a ‘safety-first’ mode in the first quarter of the year to preserve cash and unitholder value,” says Simon Garing, the CEO of the manager.

“This move allowed for the gradual return to normal operations in the second half before the second Covid-19 wave kicked in during the European winter. Consequently, CEREIT’s 2HFY2020 NPI was 59.6 million euros, up 3.3% from the 1HFY2020 NPI, the result of active leasing and a testament to the resilience of a portfolio of 95 assets and close to 800 tenant-customers diversified across seven European countries,” he adds.

The manager’s board of directors has also approved the introduction of a Distribution Reinvestment Plan (DRP) and is proposing to activate it for the distribution for 2HFY2020.

“This has been one of the Manager’s capital management objectives since CEREIT’s listing, as DRP provides an alternative investment option for unitholders and a way to reward existing unitholders with an opportunity to acquire new units at a preferential price without incurring transaction costs,” reads the statement on Feb 23.

“While the pace of the Eurozone’s recovery will be dependent on the success of vaccine rollouts and government initiatives, we are cautiously optimistic that the near-term headwinds presented by the pandemic will likely be temporary in nature,” says Garing.

As at 11.56am, units in CEREIT are trading 1 cent lower or 2.0% down at 48 Euro cents.