Cromwell European REIT - DBS Research 2023-08-15: Recycling Capital Into Higher-Yielding Developments

• Cromwell European REIT (SGX:CWBU)'s revenues and NPI were 0.9% and 1.8% higher y-o-y, mainly to better performances in the light industrial/logistics (L/L) portfolio. This was partially offset by weaker performance for the office portfolio along with the ongoing redevelopment of Nervesa 21 and Maxima (both in Italy).
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• Cromwell REIT acquired five L/L assets in Italy, Germany, and the UK in FY22, while Piazza Affari 2 was divested for EUR 93.6m on 28 June 2023, with the proceeds mainly be used to repay loans.
• Cromwell REIT's 1H23 DPU of EUR0.0779 was 10.4% lower y-o-y, accounting for ~45.6% of our FY23 DPU projections. Decline in DPU was mainly due to the absence of income from redevelopment (Maxima) as well as higher financing costs. On a h-o-h basis, DPU was ~8.3% lower. This was also a result of the lack of capital gains distribution in 1H23.
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Gearing inched up to 41.5%; but will improve to 39.5%

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Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-02-28 Stoneweg European REIT - De-risking Balance Sheet At A Small Cost.

Previous report by DBS:
2024-08-08 Cromwell European REIT - Dialing Back On Divestments.

Price targets by other brokers at Cromwell REIT Target Prices.

Listing of research reports at Cromwell REIT Analyst Reports.

Relevant links:
Cromwell REIT Share Price History,
Cromwell REIT Announcements,
Cromwell REIT Dividend Payout Dates & Corporate Actions,
Cromwell REIT News