Cromwell E-Reit posts indicative Q3 DPU of 0.882 euro cent

Singapore

CROMWELL European Real Estate Investment Trust's (Cromwell E-Reit) manager has reported an indicative distribution per unit (DPU) of 0.882 euro cent for the third quarter of this year, up 5.8 per cent quarter on quarter (q-o-q). In its business update on Tuesday, the Reit manager did not provide a year on year comparison, but compared to the reported DPU of 1.01 euro cents for Q3 last year, DPU is down 12.7 per cent.

The indicative DPU for Q3 2020 is based on a 100 per cent payout of the distributable income and takes into account no capital distribution, as well as base manager fees and property manager fees paid fully in cash, the manager noted.

For the three months ended Sept 30, 2020, gross revenue was up 2.1 per cent at 46.1 million euros (S$73.4 million) for Q3, from 45.2 million euros in Q2 2020.

Net property income grew 14.3 per cent to 30.6 million euros in the third quarter, from 26.8 million euros in the previous quarter. This was mainly attributable to the absence of doubtful debt provisions in Q3 and the reversal of a 0.3 million euro provision for Covid-19-related doubtful debts, the manager said.

Meanwhile, distributable income rose 5.8 per cent q-o-q to 22.5 million euros, from 21.3 million euros.

As at end-September, Cromwell E-Reit had a net gearing of 35.9 per cent and a weighted average lease expiry of about five years for its overall portfolio.

Looking beyond the pandemic, the manager plans to increase the Reit's portfolio exposure to light industrial/logistics and data-centre assets, while divesting several office and other assets. It will also continue to plan for key redevelopment pipeline opportunities in gateway cities such as Paris, Amsterdam and Milan, it said.

Cromwell E-Reit units closed at 45.5 euro cents on Tuesday, up one cent or 2.3 per cent amid broad market gains on the Singapore bourse.