Cromwell European REIT (CEREIT) has reported a distribution per unit (DPU) of 7.05 Euro cents (10 cents) for the 1HFY2024 ended June 30, 9.5% lower y-o-y.
Distributable income also fell by 9.5% y-o-y to EUR39.6 million due mainly to the impact of the asset sales and higher interest costs over the past two years, says Simon Garing, CEO of the manager. The lower distributable income and DPU was partly offset by net property income (NPI) growth from indexation, positive rent reversions and lower expenses.
Gross revenue fell by 1.9% y-o-y to EUR106.3 million for the 1HFY2024 while net property income (NPI) fell by 4.4% y-o-y to EUR65.5 million.
The lower NPI was mainly due to the loss of rental income that was earned from assets that have been now divested since June 2023.
On a like-for-like basis, NPI for the 1HFY2024 rose by 2.3% y-o-y mainly due to higher income from new leases with strong positive rent reversions especially at Haagse Poort in the Hague.
As at June 30, the REIT’s portfolio now has a 54% exposure to the logistics and light industrial sector, up from 42% in 2022. The total portfolio occupancy rate stood at 93.6% with positive rent reversion of 5.2%. Portfolio weighted average lease expiry (WALE) stood at 4.8 years.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
Total portfolio valuation as at the same period stood at EUR2.24 billion, 0.6% higher h-o-h.
“We are pleased to mark halfway through 2024 with a resilient performance for CEREIT, reflecting stabilising operating and valuation conditions,” says Garing.
"The strategic pivot to logistics/light industrial has served CEREIT well, with the portfolio now weighted to a more significant 54% to this sector, underpinning the uplift in overall valuations. The logistics / light industrial portfolio benefitted from the +4.0% rent reversion, a long 5.1 years WALE, and is 7.4% under-rented versus market rents,” he adds.
See also: Marco Polo Marine reports lower 2HFY2024 earnings of $10.7 mil, down 42% y-o-y
Looking ahead, with the storm of high inflation, rising interest rates, slow economic growth and heightened geopolitical risks now behind the REIT, the REIT manager is able to take on a more “balanced approach” and “look to take advantage of opportunities over the next 12 months with more confidence”, says Garing.
Unitholders will receive their DPUs on Sept 27.
As at 9.13am, units in CEREIT are trading 2 Euro cents higher or 1.46% up at EUR1.39. Units in CEREIT’s SGD counter are trading 1 cent higher or 0.5% up at $2.01.
