Cromwell European REIT posts 3Q21 net property income rose 8 percent

Cromwell European REIT's Haagse Poort office building, located near the center of The Hague. Credit: Cromwell European REIT's websiteCromwell European REIT's Haagse Poort office building, located near the center of The Hague. Credit: Cromwell European REIT's website

Cromwell European REIT reported Wednesday its third quarter net property income rose 8.4 percent on-year to 33.16 million euro on additional income from newly-acquired assets in the U.K., the Czech Republic and Slovakia and continued outperformance of light industrial/logistics properties in France, Germany and Denmark.

The REIT said it also wrote back 800,000 euro in bad debt provisions made in the year-ago period.

Gross revenue for the July-to-September quarter increased 9.9 percent on-year to 50.65 million euro, the REIT said in a filing to SGX.

Income available for distribution to unitholders grew 7.6 percent on-year to 24.27 million euro, the REIT said.

The indicative distribution per unit (DPU) for the third quarter was 4.326 euro cents, assuming 100 percent payout of distributable income and fees being paid in cash, which is down 1.5 percent on-year, the REIT said. That was mainly on a delay between financing and completing acquisitions funded by the private placement, higher interest costs, higher average cash balance earning a zero rate, and the absence of capital gains paid out in the first half of 2020, the REIT said.

Occupancy reached a record high of 95.3 percent as of end-September, compared with 94.3 percent in the year-ago quarter, Cromwell European REIT said.

“Occupancy was largely boosted by strong leasing in the light industrial / logistics portfolio in Denmark,” the REIT said.

Rent reversion was positive at 1.2 percent in the quarter, with the REIT signing 29 new leases and 18 renewals across 45,532 sqm, the REIT said.

Simon Garing, CEO of the REIT’s manager, was upbeat on the results.

“CEREIT’s performance reflects the resilience of the 1.7-million sqm portfolio of geographically diverse, quality assets. This is further supported by the post-Covid-19 lockdown rebound in European economic conditions, the manager’s active and effective asset management strategy and the accretive logistics acquisitions made,” Garing said in the statement.

Read Cromwell European REIT’s third quarter update.