Cromwell E-Reit H1 DPU rises 2.3% to 8.695 euro cents

CROMWELL European Real Estate Investment Trust’s ( Cromwell E-Reit ) distribution per unit (DPU) for the half year ended June 2022 rose 2.3 per cent on year to 8.695 euro cents from 8.502 cents in H1 2021, its manager reported on Friday (Aug 12).

Unitholders will receive their distribution or the Singapore dollar equivalent, with an ex-distribution date of Aug 22 and a payment date of Sep 28.  

Gross revenue for H1 grew 8.5 per cent to 107.4 million euros (S$151.7 million) from 99 million euros in the year-ago period, mainly due to contributions from newly-acquired light industrial assets.

Net property income (NPI) was also up 4.7 per cent on year to 67.3 million euros from 64.3 million euros in H1 2021 due to new acquisitions, partially offset by the absence of income from Via Nervesa 21 in Milan, Italy, as the asset is currently undergoing redevelopment.

After taking into consideration a top-up of 1.1 million euros of realised capital gain to unitholders to compensate for loss of income from Via Nervesa 21, income available for distribution to unitholders stood at 48.9 million euros, up 5.9 per cent year on year.

As at end-2021, Cromwell E-Reit’s portfolio occupancy stood at 95.4 per cent versus 95 per cent the previous year – representing an all-time high, according to the Reit manager’s chief executive, Simon Garing.

Its portfolio weighted average lease expiry stands at 4.6 years by headline rent, unchanged from a year ago.

According to Garing, about 8 per cent of the portfolio has been re-leased with +2.9 per cent blended rent revisions.

While the Reit manager expects to grow its portfolio at a slower pace considering ongoing market volatility, it anticipates no further debt maturity till November 2024 as final documentation for new facilities are expected in H2 of 2022.

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“Despite the confluence of current macro headwinds such as surging energy cost pressures that have been amplified by the Russia-Ukraine war, rising interest rates and inflationary environment, the long-term attractive fundamentals of European commercial real estate remain intact. Cromwell E-Reit’s quality portfolio remains resilient and protected against these cyclical risks, supported by a strong balance sheet and ample liquidity,” said Garing.

Units of Cromwell E-Reit were trading 4 euro cents or 2 per cent higher at 2.10 euros as at 9.39 am on Friday, after the results were released.