Atiqah Mokhtar Published on Fri, Aug 13, 2021 

Cromwell European REIT (CEREIT) has posted distributable income of EUR46.2 million for the 1HFY2021 ended June, up 3.6% y-o-y.

The higher distributable income followed 5.7% y-o-y growth in gross revenue to EUR99 million for the period, driven by newly-acquired assets in Italy, the Czech Republic and Slovakia.

Net property income (NPI) came in at EUR64.3 million, growing 11.4% y-o-y due to the higher revenue and the absence of doubtful debt provisions in 1H2021.

Distribution per unit (DPU) for the 1HFY2021 was 8.502 Euro cents, 2.5% lower than the prior corresponding period. This was due to the gap between the recent private placement and the completion of acquisitions, higher interest costs as a result of the November 2025 EMTN and zero distribution of capital gains in 1HFY2021.

Like-for-like, 2QFY2021 DPU and 1HFY2021 DPU increased 20.7% and 4.1% y-o-y respectively after adjusting for the EUR2.8 million capital top-up in 2QFY2020.

Unitholders will receive a distribution of 5.602 Euro cents per unit for the period from March 5 to June 30,which will be paid out on Sep 28. The advanced distribution of 2.900 Euro cents per unit for the period between Jan 1 to March 4 was paid out on March 31.

CEREIT’s distribution reinvestment plan (DRP), which was introduced in February, applies to the 1HFY2021 distribution. The DRP price, to be announced on August 24, will be at a 2% discount to the 10-day volume-weighted average price from August 10, adjusted for the above-mentioned 5.602 Euro cents distribution.

CEREIT’s manager also announced the revaluation of its portfolio assets. Independent valuations were conducted for 80 properties as at June 30, representing some 80% of CEREIT’s portfolio by value as at Dec 31, 2020.

The net valuation increased by 1.9% or EUR31.8 million, as compared to their December 2020 valuations. This resulted in a EUR2.51 net asset value (NAV) per unit, with adjusted NAV excluding distributable income unchanged at EUR2.46 per unit as compared to Dec 31, 2020.

Fair value gains on CEREIT’s portfolio have cumulatively increased 9.6% compared to original purchase prices (exceeding EUR100 million), most significantly in Germany (+41.7%), Denmark (+21.4%), France (+21.4%) and the Netherlands (+12.8%).

“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%. The second quarter saw a substantial pick-up in leasing activities which resulted in +10% rent reversion, leading to an overall +5.9% rent reversion in 1H 2021, partly reflecting the +13.7% year-on-year Eurozone GDP growth for 2Q2021. This stronger consumer price index and GDP growth led to a DPU increase of 20.7% in 2Q 2021 and 4.1% in 1H2021, on a like-for-like basis,” says the manager’s CEO, Simon Garing.

As at 9.30am, units in CEREIT are down 1 Euro cent or 0.4% lower at EUR2.50.

Photo: The manager of CEREIT