Cromwell European REIT (CEREIT) has announced distribution per unit (DPU) of 15.693 Euro cents (22.81 cents) for FY2023 ended December, 4.1% lower than the 16.366 Euro cents posted in FY2022.
Distributable income was down by 8.7% y-o-y to EUR88.3 million.
Gross revenue was 2.5% lower y-o-y at EUR216.49 million, while property operating expense decreased by 3.7% y-o-y to EUR82.2 million.
Net property income (NPI) declined by 1.8% y-o-y to EUR134 million. This is mainly due to the impact of the loss of income from the sale of two Italian assets, namely Viale Europa 95 in Bari and Piazza Affari in Milan, as well as two Italian office redevelopment Nervesa 21 in Milan and Maxima in Rome.
On a like-for-like basis, FY2023 NPI was up 4.1% y-o-y compared to the previous corresponding period, mainly driven by higher income from new leases and annual inflation indexation.
CEREIT’s total portfolio valuation stood at EUR2.3 billion as at Dec 31, 2023, down 3% y-o-y.
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Its portfolio weighted average lease expiry (WALE) stood at 4.7 years as at end December last year, as the manager de-risked about 61% of the lease expiries and breaks until June 2024.
“As we progress into 2024, our experienced asset management teams on the ground remain focused on maintaining high portfolio occupancy, driving positive rent reversion growth, as well as delivering accretive developments and asset enhancement initiatives to rejuvenate and future-proof the overall portfolio,” says the manager’s CEO Simon Garing.
He adds that the REIT is progressing steadily on the remaining about EUR170 million of assets earmarked for sale. Proceeds may be used to refinance debt and recycle capital into accretive redevelopments of some of CEREIT’s trophy projects.
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“We look to reduce our weighting in smaller and less liquid markets and continue transitioning to the long-term 60:40 asset class split between light industrial/logistics and well-located Grade A offices. We appreciate our Cromwell teams’ efforts and our tenants, suppliers, financiers and investors for their continued partnership and support,” he says.
Units in CEREIT closed at an unchanged EUR1.36 on Feb 23.
