Cromwell European REIT reports 1Q19 net property income jumped 34 percent

Euro coinsPhoto by Leslie Shaffer

Cromwell European REIT reported Monday its first quarter net property income jumped 33.8 percent to 26.42 million euros (S$40.51 million or US$29.69 million) on new acquisitions and improved leasing.

Gross revenue for the quarter ended 31 March increased 31.7 percent on-year to 39.95 million euros, the REIT said in a filing to SGX.

Cromwell European REIT has acquired 23 properties since its IPO in November 2017

The distribution per unit (DPU) was 1.02 European cents, compared with 0.96 European cent in the year-ago quarter, when adjusted for a rights issue in December, the REIT said. That compared with IPO prospectus forecast for 0.97 European cent for the first quarter of 2019, the filing said.

“The income uplift attests to the accretion from the recent acquisitions and CEREIT’s enhanced ability to deliver stable and sustainable distribution growth,” Simon Garing, the CEO of the REIT’s manager, said in the statement.

Garing, who had been acting CEO, was appointed CEO, effective immediately, the REIT said Monday.

“CEREIT has benefited from access to the growing Finnish and Polish economies, with the new Finnish office properties contributing a maiden full quarter to earnings and the new Polish assets contributing from February 2019. We also achieved better leasing outcomes for the light industrial / logistics assets in France and the Netherlands,” Garing said.

The portfolio occupancy rate was 90.2 percent at end-March, the filing said.

The REIT said signed 53 new leases during the quarter, up from 31 in the fourth quarter, with most set to start in the second quarter, which should boost the occupancy rate ahead.

In its outlook, Cromwell European REIT had some caution over slower gross domestic product growth in the Eurozone, but added it expected most of the region’s economies appeared set to weather the challenges as tighter labor markets and real wage growth boost consumer spending.

The REIT’s portfolio has 97 properties across Denmark, Finland, France, Germany, Italy, the Netherlands and Poland; it focuses on office, light industrial, logistics and retail properties.


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