Cromwell European REIT's 1H FY24 Result Review
$Cromwell Reit SGD(CWCU.SI)$ $Cromwell Reit EUR(CWBU.SI)$
Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Gross revenue and NPI declined YoY mainly due to lower income resulting from the divestment of Bari Europa, Bari Trieste and Piazza Affari. Coupled with higher net finance costs, distributable income and indicative DPU declined YoY.
Rental Reversion
The rental reversion for 1Q 2024 stands at 9.2%.
Divestment
In 1Q FY23, CEREIT divested Grojecka 5. While in April, CEREIT divested Via Brigata Padova 19 and Grandinkulma.
Development
Redevelopment for Nervesa 21 was completed in January 2024 and is expected to be fully leased by 3Q 2024. Additionally, there are 4 development opportunities.
Related Parties Shareholding
The REIT manager and directors of the REIT manager hold a relatively low proportion of shares.
Lease Profile
The lease expiry is well spread and the weighted average land lease expiry is long. However, Income in SGD/major currencies is relatively low.
Debt Profile
The adjusted interest coverage ratio and fixed rate debt proportion are relatively high. Additionally, cost of debt is relatively low. However, debt maturity is concentrated.
Diversification Profile
The portfolio demonstrates an excellent diversification profile.
Key Financial Metrics
Operating distributable income on capital is high, and all distributions are derived from operations. Additionally, the management fee is low compared to operating distributable income.
DPU Breakdown
TTM Distributable Income Breakdown:100% from Operation
Trends
Flat: Committed Occupancy, Property Yield
Slight Downtrend: Operating Distributable Income over Manager's Fees
Downtrend: DPU from Operation, NAV per Unit, Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin
Relative Valuation
Dividend Yield - Average for 1y, 3y & 5y
P/NAV - Above +1SD for 1y; Average for 3y & 5y
Author's Opinion
In comparison to the previous quarter, gross revenue and NPI have remained similar. However, distributable income and DPU experienced a decline of approximately 10%. No detailed information was provided regarding this decline. In terms of debts, there is no refinancing requirement until November 2025.
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- FranklinMorley·05-13👍LikeReport