The manager of Cromwell European REIT (CEREIT) has reported a distribution per unit (DPU) of 8.695 Euro cents (12.288 cents), 2.3% higher y-o-y.
Gross revenue increased by 8.5% y-o-y to €107.4 million mainly due to contributions from the REIT’s newly-acquired light industrial assets, and partially offset by the absence of income from Via Nervesa 21 in Milan, Italy, which is currently undergoing redevelopment.
Net property income (NPI) increased by 4.7% y-o-y to €67.3 million for the same reasons.
Distributable income rose 5.9% y-o-y to €48.9 million. The amount also takes into consideration a top-up of €1.1 million of realised capital gain to unitholders in lieu of the absence of rental income due to the Via Nervesa 21 redevelopment.
As at June 30, the REIT’s portfolio occupancy reached an all-time high of 95.4%, up 0.4 percentage points q-o-q.
Its weighted average lease expiry (WALE) remained unchanged at 4.6 years.
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The REIT’s net asset value (NAV) per unit stood at €2.53.
In the 1HFY2022, the manager secured or renewed a total of 121 leases covering 147,420 sqm of space.
“I am delighted to report that CEREIT’s 1HFY2022 DPU grew +2.3% year-on-year, demonstrating the portfolio’s resilience and its ability to withstand prolonged economic shocks,” says Simon Garing, CEO of the manager.
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“Despite the confluence of current macro headwinds such as surging energy cost pressures that have been amplified by the Russia-Ukraine war, rising interest rates and inflationary environment, the long-term attractive fundamentals of European commercial real estate remain intact,” he adds.
“CEREIT’s quality portfolio remains resilient and protected against these cyclical risks, supported by a strong balance sheet and ample liquidity. We are committed to CEREIT’s purpose of delivering long-term stable and growing DPU and NAV per unit for unitholders while maintaining an appropriate capital structure.”
Shane Hagan, CFO of the manager adds: “We have taken advantage of the very recent flattening of the Euro yield curve to blend and extend new interest rate caps and lock in 77% interest rate fixed / hedged till end of 2024.”
“We are making good progress on the refinancing of all 2022 and 2023 debt facilities. We have already received in principle support from leading global banks for new facilities of up to €210 million and final documentation is expected in the second half of this year.
“With current € interest rates still considerably lower as compared to both S$ and US$ rates, CEREIT’s expected all-in cost of debt post refinancing and hedging of [around] 2.00% (excluding revolving credit facilities) remains attractive compared to peers,” he says.
Unitholders will receive their DPUs on Sept 28.
As at 9.12am, units in CEREIT are trading 5 Euro cents higher or 2.43% up at €2.11.
