- Taking a breather on divestment; Cromwell REIT's 3Q24 distributable income increased 4.1% on a q-o-q basis.
- The REIT has secured a new debt facility in preparation for bond refinancing in 2025
Top line turning positive; taking a breather on divestments
- - Read this at SGinvestors.io -
- While distributable income for 3Q24 fell by 7.8% y-o-y to EUR20.8m, it increased by 4.1% on a q-o-q basis. This change is attributed to the REIT pausing its divestment activities.
- As noted in our previous report, stabilising asset valuations and peaking interest rates in the Eurozone allow Cromwell REIT to maintain net gearing at levels between 35% and 40% without the need for significant divestments.
Mild positives in leasing
- - Read this at SGinvestors.io -
- The L&I segment recorded 8.8% rental reversion for the quarter. However, overall reversions were affected by a single office lease, which represents approximately 1.5% of the office portfolio, and recorded a -4.3% rental reversion.
- Management of Cromwell REIT noted that this rental reversion is based on headline rents and does not account for incentives provided for the lease agreement previously. Overall, the renewed lease represents a net gain for the REIT.
Prepared for debt refinancing coming up in Nov 2025
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
Donavan Tan OCBC Investment Research | https://www.iocbc.com/ 2024-11-05
Previous report by OCBC:
2024-09-09 Cromwell European REIT - High Quality Asset At A Discount.
Price targets by 2 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 Dividends & Corporate Actions,
Cromwell REIT News Articles
