Cromwell European REIT reports 3Q19 net property income climbed 32 percent

Euro coinsPhoto by Leslie Shaffer

Cromwell European REIT reported Tuesday its third-quarter net property income climbed 32.3 percent on-year to 28.45 million euros on contributions from new office properties acquired in December 2018 and September 2019.

Gross revenue for the quarter ended 30 September jumped 39.2 percent on-year to 43.78 million euros, the REIT said in a filing to SGX.

The distribution per unit (DPU) was 1.01 euro cents, up 1 percent from 1 euro cent in the year-ago quarter, the filing said.

The REIT noted it made around 248 million euros of accretive acquisitions during the quarter, which expanded the income base and diversified the portfolio. It added it now expects to exceed the forecast from its IPO prospectus for DPU of 4.02 euro cents for the year.

“We are pleased to have delivered yet another quarter of operational outperformance, our sixth consecutive reporting period of exceeding
IPO forecasts,” Simon Garing, CEO of the REIT’s manager, said in the statement. “Since December 2018, we have augmented CEREIT’s portfolio with 28 high-quality assets, representing an approximately 50 percent increase in CEREIT’s portfolio value, and welcomed new
tenant-customers such as Motorola Solutions Systems, UBS, BNP Paribas and Santander Group, amongst others.”

For the nine-month period, the REIT reported net property income rose 33.2 percent on-year to 82.58 million euros on gross revenue of 126.15 million euros, up 34.8 percent on-year. The DPU for the nine-month period was 3.05 euro cents, up 2.3 percent from 2.98 euro cents in the year-ago period, the filing said.

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