Cromwell E-Reit H1 DPU down 15% to 1.74 euro cents

CROMWELL European Real Estate Investment Trust (Cromwell E-Reit) posted a distribution per unit (DPU) of 1.74 euro cents for the half year to June, 14.7 per cent lower than a year ago. 

But excluding the provision for Covid-19 related doubtful debts of three million euros (S$4.87 million) and distribution of 2.8 million euros in divestment gains - items considered one-off - DPU would have been 3.4 per cent lower, at 1.97 euro cents, the manager said on Friday night. 

The distribution will be paid out on Sept 28.  

Gross revenue for the half year was up 13.7 per cent year on year at 93.7 million euros, largely due to contributions from properties acquired over the course of the past year. As such, net property income was 6.6 per cent higher on the year at 57.7 million euros. 

Income available for distribution to unitholders stood at 44.6 million euros, similar to the 44.8 million euros available for the year-ago period. 

Despite the ongoing coronavirus pandemic, the manager said that it is resuming investment activity. It noted the "re-emergence" of its acquisition pipeline and pick-up in investment activity in Europe. 

The manager said it is currently focusing on acquiring attractive assets in Germany and neighbouring markets to increase the Reit's exposure to logistics properties. It is also eyeing the potential divestment of "a number of office assets".

The manager added that key redevelopment opportunities continue to exist in Paris, Amsterdam and Milan.

Cromwell E-Reit's net gearing was 34.4 per cent as at June 30. 

Units of the Reit closed unchanged on Friday at 0.44 euro.