Cromwell European REIT Reports Record 95.7% Occupancy, +3.8% increase in YTD 2022 Income Available for Distribution

The Manager of Cromwell European REIT (“CEREIT”), today announced CEREIT’s business update for the third quarter ended 30 September 2022 (“3Q 2022”).

Key Highlights:

  • Record portfolio occupancy of 95.7% and blended +6.8% rent reversion as at 30 September 2022
  • Net property income up 4.5% year-on-year, leading to a 3.8% increase in income available for distribution for the nine months ended 30 September 2022 (“YTD 2022”)
  • 38.9% aggregate leverage, 6.5x interest coverage ratio, 76.4% hedged / fixed debt with no material refinancing until November 2024

The Manager’s CEO, Mr. Simon Garing, commented, “We are pleased to report a strong operational performance with a record 95.7% occupancy and +3.8% YTD 2022 income available for distribution. The Manager’s active portfolio and capital management strategies continue to underpin the resilience of CEREIT’s portfolio. Notably, the recent €180 million 4-year sustainability-linked term loan facility coupled with 76% of the debt being fixed or hedged, with no material refinancing until November 2024, put CEREIT in a strong position, and cushion impact on DPU against rapid increase in interest rates.

“The rising interest rate environment may negatively impact cap rates and potentially offset some of the gains from higher rentals and occupancy on the overall portfolio valuation in 2023. In light of this, the Manager will continue to recycle assets to refresh the portfolio.”

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The Manager is committed to ensuring that CEREIT meets expectations of good corporate governance and sustainable business practices while seeking to achieve superior investor performance over the medium and long term.

The Board and the Manager are both proactive with respect to corporate governance and actively review developments to determine which corporate governance arrangements are appropriate for CEREIT and its investors.

The Code of Corporate Governance 2018 is adopted as the REIT's benchmark for corporate governance policies and practices.