Cromwell European REIT 2H and FY2020 Results: Outstanding Performance Despite Pandemic

Cromwell EREIT Management Pte. Ltd., the manager (the “Manager”) of Cromwell European Real Estate Inves­tment Trust (“Cromwell European REIT” or “CEREIT”), today announced CEREIT’s financial results for the second half and the financial year ended 31 December 2020 (“2H 2020” and “FY 2020”, respectively).

Key highlights:

  • 2H 2020 distribution per unit (“DPU”) of €1.744 cents, only 1.3% lower than 2H 2019 on a like-for-like basis1 and 6.8% above 1H 2020 (excluding capital distribution)
  • FY 2020 DPU of €3.484 cents, only 3.0% lower compared to FY 2019 DPU on a like-for-like basis
  • €88.6 million cash flow from operating activities, 1.3% higher than FY 2019 and in line with FY 2020 distributable income; close to 100% cash collection rate for FY 2020
  • 95.1% portfolio occupancy rate, 7.4 percentage points above IPO Portfolio with +2.1% positive rental reversion and weighted average lease expiry (“WALE”)  profile maintained at 4.9 years
  • €2.2 billion portfolio valuation, 2.2% increase in valuation in 2H 2020 as at 31 December 2020, leading to a net asset value (“NAV”) of €50.9 cents per unit and aggregate leverage of 38.1%

The Manager’s Chief Executive Officer, Mr. Simon Garing, commented on the outlook for the year: “In 2021, we will look to further rebalance CEREIT’s portfolio, increasing its exposure to the logistics sector closer to 40% weighting and exploring similar opportunities in the post-Brexit UK, while divesting a number of office and other non-strategic assets. We will also continue planning for key redevelopment opportunities in Paris, Amsterdam, and Milan.

We are well-advanced with our green finance framework and will look to further tap our €1.5 billion EMTN bond programme and return to the bond market at a later date. We remain committed to enhancing the investment-grade credit rating and exploring ways to maintain CEREIT’s conservative capital structure while further improving funding flexibility. While the pace of the Eurozone’s recovery will be dependent on the success of vaccine rollouts and government initiatives, we are cautiously optimistic that the near-term headwinds presented by the pandemic will likely be temporary in nature.”

For media release, financial statements, presentation deck and supporting deck on European economic and real estate updates click here.

Our investors are at the forefront of everything we do.

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.