Cromwell E-reit posts 10.2% drop in indicative Q1 DPU to 3.505 euro cents

CROMWELL European Real Estate Investment Trust (Cromwell E-reit) on Tuesday (Apr 30) posted an indicative distribution per unit (DPU) of 3.505 euro cents for the first quarter ended Mar 31, 2023.

This was 10.2 per cent below the 3.902 euro cents recorded in the same period a year earlier, as higher finance costs as a result of higher interest rates weighed on distributions, the manager said in a business update.

Income available for distribution to unitholders fell 10.2 per cent to 19.7 million euros (S$28.7 million) from 21.9 million euros.

The Europe-focused commercial Reit’s gross revenue and net property income (NPI) were also down year on year.

Gross revenue slipped 2.7 per cent to 53.3 million euros from 54.8 million euros.

NPI, meanwhile, was down 2.7 per cent to 32.7 million euros from 33.6 million euros, mainly due to the divestment of Bari Europa, Bari Trieste and Piazza Affari during the period.

The manager noted that excluding the divestments, NPI was up 5 per cent on a like-for-like basis.

Simon Garing, chief executive of Cromwell E-reit’s manager, said the Reit remains ahead in its disposal programme.

Its net gearing stood at 39.7 per cent as at Mar 31, 2024, 1.3 percentage points higher than Dec 31, 2023. No debt is maturing until November 2025.

The 2.08 euro net asset value per unit is approximately 40 per cent higher than Cromwell E-reit’s most recent trading unit price on the Singapore Exchange, the manager added.

The Reit’s total portfolio occupancy, excluding Maxima and Via Dell’industria 18, stood at 93.4 per cent. Its weighted average lease expiry is 4.8 years, up 0.3 years from the previous corresponding period.

Cromwell E-reit units ended Tuesday trading unchanged at 1.49 euros.