Cromwell European REIT reports results exceeding IPO forecasts

Euro coinsPhoto by Leslie Shaffer

Cromwell European REIT reported on Monday that its gross revenue and net property income for the 30 November 2017 to 30 June 2018 reporting period have exceeded the forecasts in its initial public offering statements.

Net property income for the reporting period was 47.74 million euros, 3.1 percent above the IPO forecast, while gross revenue was 72.85 million euros, 2.2 percent above the IPO forecast, it said in a filing to SGX on Monday before the market open.

The outperformance was mainly due to higher net property income from the REIT’s pan-European light industrial portfolio, which beat the IPO forecast by 1.5 million euros, while the office and other properties performed in line with expectations, the REIT said.

The distribution per unit (DPU) for the reporting period is 2.53 European cents, 3.0 percent above the IPO forecast, Cromwell European REIT said in the filing.

For the April-to-June period, net property income was 20.74 million euros, while gross revenue was 31.81 million euros, it said. That compared with gross revenue of 41.03 million euros and net property income of 27.0 million euros for the 30 November 2017 to 31 March 2018 period.

During the April-to-June period, the REIT renewed 32 existing leases, and added a new 7.5 year lease with Dutch e-commerce company Coolblue BV to commence at Central Plaza in the Netherlands in January 2019, securing around 2.0 million euros of rental income, it said.

The portfolio occupancy rate was at 88.7 percent as of 30 June, one percentage-point above the level stated in the IPO prospectus, it said.

Cromwell European REIT, which was listed on SGX on 30 November 2017, was added to the MSCI Singapore Small Cap Index on 1 June, it noted.

The REIT has a portfolio of 75 office and light industrial/logistics properties in or near gateway cities in Denmark, France, Germany, Italy and the Netherlands, it said.

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