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Cromwell E-Reit posts 13-month DPU below forecast at 4.1 euro cents

CROMWELL European Real Estate Investment Trust's (Cromwell E-Reit) distribution per unit (DPU) for the 13 months to Dec 31, 2018 was 4.10 euro cents, lower than its forecast of 4.64 euro cents.

Excluding a rights issue in late 2018 that enlarged its unitholder base, the DPU would have been 4.70 euro cents, 1.4 per cent higher than projected.

Income available for distribution for the pan-European industrial and commercial Reit was 74.4 million euros, 1.4 per cent above the 73.4 million euros forecast in its prospectus when it listed in November 2017.

Net property income (NPI) was 90.2 million euros, 3.7 per cent higher than the forecast 87 million euros. It recorded gross revenue of 135.3 million euros, 1.3 per cent higher than its IPO forecast of 133.5 million euros.

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Higher gross revenue and NPI were mainly attributable to the strong performance of its light industrial/logistics portfolio, which recorded higher-than-expected gross revenue and NPI. The Netherlands, Germany and France did particularly well in this segment.

Overall, its light industrial/logistics portfolio’s occupancy rate increased to 86.6 per cent, up 1.4 percentage points from 85.2 per cent for the previous quarter.

For the fourth quarter ended Dec 31, the Reit posted revenue of 31 million euros and NPI of 20.9 million euros, with NPI slightly higher than its IPO forecast of 20.5 million euros.

Simon Garing, CEO of Cromwell EReit Management, said its “barbell approach” to portfolio management and diversification across geographies, sectors and myriad tenants hedge the risks from the uncertain global macro environment.

He added that the Reit "remains steadfast" in its efforts to actively manage its portfolio of properties while keeping a lookout for accretive acquisition opportunities.

In 2018, Cromwell E-Reit announced the acquisitions of 24 properties, 16 of which were completed during the financial period.

The number of properties in its portfolio increased from 74 as at its listing to 90 as at Dec 31, with its portfolio value 25.2 per cent higher at 1.7 million euros from 1.4 million euros over the same period. Including all acquisitions, the number of properties rose to 97 as at Feb 14, 2019. The portfolio value increased 32.6 per cent to 1.8 million euros from 1.35 million euros over the same period. 

As at 9.34am, units of Cromwell E-Reit traded up 0.5 euro cent at 51 euro cents.