Cromwell European REIT's 3Q FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Despite similar gross revenue, NPI has improved YoY. However, distributable income has declined mainly due to higher interest costs.

Rental Reversion

The rental reversion for 3Q 2024 stands at 2.3%.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Moderate
• REIT Manager's Shareholding: Less Favorable
• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Occupancy: Moderate
• Income Received in SGD/Major Currencies: Less Favorable
• WALE: Less Favorable
• Highest Lease Expiry in 4 Years: Favorable
• Weighted Average Land Lease Expiry: Moderate

Debt Profile

• Gearing Ratio: Moderate
• Cost of Debt: Favorable
• Fixed Rate Debt %: Favorable
• Unsecured Debt %: Moderate 
• WADM: Less Favorable
• Highest Debt Maturity in 4 Years: Less Favorable
• Interest Coverage Ratio: Moderate

Diversification Profile

• Top Sector Contribution: Favorable
• Top Geographical Contribution: Favorable
• Top Property Contribution: Favorable
• Top 5 Properties' Contribution: Favorable
• Top Tenant Contribution: Less Favorable
• Top 10 Tenants' Contribution: Favorable

Key Financial Metrics

• Property Yield: Moderate
• Management Fees over Operating Distributable Income: Favorable
• Operating Distributable Income on Capital: Favorable
• Operating Distributable Income Margin: Moderate
• Operating Distribution Proportion: Favorable

DPU Breakdown

• TTM Distribution Breakdown:
• 100% from Operation

Trends (Up to 10 Years)

• Uptrend: Committed Occupancy, Operating Distribution Proportion
• Slight Downtrend: Property Yield
• Downtrend: DPU from Operation, NAV per Unit, Adjusted Interest Coverage Ratio, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Below -1SD for 1y; Average for 3y, 5y & 10y
• P/NAV: Above +1SD for 1y; Average for 3y, 5y & 10y

Author's Opinion

As compared to the previous quarter, performance has improved. In terms of debts, there is no refinancing requirement until November 2025.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

To support my work, check out:

Patreon - Subscribe and get exclusive content

Investing Note - Support by following my Investing Note profile

Facebook Page - Support by liking my Facebook Page    

Facebook Group - REIT Investing Community - Join to share and discuss REITs

Telegram Channel - Singapore REITs Post - Join to receive posts for Singapore REITs

Buy Me a Coffee - Treat me a coffee for my efforts

*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.