Cromwell European REIT reported Friday its first half net property income increased 11.4 percent on-year to 64.29 million euros, mainly on higher revenue from newly acquired assets in Italy, the Czech Republic and Slovakia, and the absence of doubtful debt provisions.
Gross revenue for the January-to-June period rose 5.7 percent on-year to 99.02 million euros, the Europe-focused commercial property REIT said in a filing to SGX.
The cash collection rate has remained high at around 96 percent since February 2020, with no material rent abatement agreements in the first half of this year, the REIT said.
The distribution per unit (DPU) slipped to 8.502 euro cents, down 2.5 percent on-year from 8.717 euro cents, partly due to the time gap between the recent private placement and the completion of acquisitions, the filing said. The REIT said it also had higher interest costs due to the November 2025 euro medium-term note and the lack of distribution of capital gains in the first half.
The DPU payment date will be 28 September.
Simon Garing, CEO of the REIT’s manager, was upbeat on the results.
“We are pleased to report an excellent set of results, considering the prolonged effect from Covid-19. CEREIT’s quality diversified portfolio has supported its income resilience, maintaining a high portfolio occupancy at 94.9 percent. The second quarter saw a substantial pick-up in leasing activities which resulted in positive 10 percent rent reversion, leading to an overall positive 5.9 percent rent reversion in the first half,” he said.
“The first half 2021 results reaffirm our positive outlook towards the continuing strength of the light industrial / logistics segment, based on the structural shift towards e-commerce and global trade soon to re-emerge,” Garing said. “This supports CEREIT’s current pivot towards a 50 percent portfolio weighting to the light industrial / logistics sector. With high cash holdings and access to substantial funding, we look forward to securing further attractive acquisitions.”