Cromwell European Reit *Official* (SGX:CWBU)

[homer123]

 

[TehSi99]

Price dropping during CD.
Typical behavior after good earning results?

 

[homer123]

https://www.reitsweek.com/2022/08/c...fice-bifurcation-energy-crisis-in-europe.html

Cromwell European REIT outlines strategy amid office bifurcation, energy crisis in Europe​

It has been more than a year since Cromwell Europea REIT (CEREIT) articulated the plan to reduce its exposure to the office segment in favour of logistics assets.


This ‘pivot to logistics’ strategy was disclosed by the REIT at the height of COVID-19 pandemic when employees worked from home enmasse, given prevailing social restrictions then.


To realise this plan, the REIT has been progressively acquiring light industrial and logistics assets across Western and Central Europe, while simultaneously reducing its exposure to the office segment via selective disposals.

 

[Shion]

Cromwell E-Reit to divest 3 assets for 22m euros, above valuation​

https://www.businesstimes.com.sg/co...divest-3-assets-for-22m-euros-above-valuation
CROMWELL European Real Estate Investment Trust (Cromwell E-Reit) is selling 3 of its non-core, light industrial/logistics assets at a total consideration of 22 million euros (S$30.6 million).

In a midday filing on Friday (Sep 9), the Reit manager said this represents a 28 per cent premium to the properties’ combined valuations as at end-June 2022. The divestment is expected to complete in Q4 2022.

Two of the 3 assets, Bischofsheim II and Hanau, are located in Germany.

Bischofsheim II is a 50-year-old commercial and logistics park with a 7,158 square metre net lettable area. It was acquired for 3.5 million euros.

On the other hand, Hanau is a 51-year-old business park acquired for 2.9 million euros. It was more recently extended in 1996, and comprises a 3-storey office block and a single-storey warehouse with an attached set of small office suites.

Bischofsheim II and Hanau were both independently valued by CBRE at or around 5 million euros each. They will be divested at considerations of 6 million euros and 5 million euros (at valuation price) respectively.

Another asset, Bois du Tambour, is located in France about 10 km from the centre of Nancy. The building was constructed between 1980 and 1982 and consists of 5 main separate structures housing a mix of light industrial/warehouse space and associated offices.

It was acquired at the Reit’s initial public offering (IPO) for 2 million euros, and has been valued by Savills at 7.1 million euros. The asset will be divested for a consideration of 11 million euros.

All 3 assets were acquired at the Reit’s November 2017 IPO to form part of its IPO portfolio.

The manager’s chief executive Simon Garing said the asset management plans and associated leasing programmes for the 3 older-style warehouses were recently fulfilled, with the Reit’s team executing the sales at some 13.6 million euros above the aggregate IPO purchase price of 8.4 million euros in 2017.

“This is testament to the local teams’ ability to identify and manage value-add opportunities, realising strong gains for investors,” added Garing.

Proceeds from the divestment of these properties will be deployed into repaying Cromwell E-Reit’s revolving credit facility, and/or for other working capital purposes.

Units of Cromwell E-Reit were trading 0.01 euro cent or 0.5 per cent lower at 1.99 euros as at 1.06 pm on Friday, after the announcement was made.

 

[dappermen]

b it a Cromwell trading in Euro/pounds or 1 in USD

So long you done your hedging, even w USD keep rising daily
it doesnt mean the stock will not drop

i honestly dont understand why many keep harping forex causes the stock drop

https://www.businesstimes.com.sg/co...mpact-on-singapore-firms-s-reits-mitigated-by

 

[Shion]

Cromwell European REIT completes divestment in France for $15.7 mil at 55% premium to latest valuation​

https://www.theedgesingapore.com/ne...nt-france-157-mil-55-premium-latest-valuation
The manager of Cromwell European REIT has completed the divestment of a logistics park in Bois du Tambour, France on Dec 9.

The park was divested for EUR11.0 million ($15.7 million), which is a 55% premium to the park’s latest valuation. The park was independently valued at EUR7.1 million as at June 30.

The divestment was announced by the REIT manager in September. Two other assets in Germany were also proposed to be divested at around the same time.

“Our local Cromwell asset management team have added substantial value considering CEREIT’s purchase price was only EUR2.0 million in 2017,” says Simon Garing, CEO of the REIT manager.

Bois du Tambour comprises five main separate structures housing a mix of light industrial and warehouse space as well as associated offices. The place was constructed between 1980 and 1982 and is located 355km from the French capital, Paris.

A divestment fee of EUR0.6 million, which is 0.5% of the sale consideration, is payable to the REIT manager. This is in accordance to the trust deed that constitutes the REIT.

Units in Cromwell European REIT closed 1 Euro cent higher or 0.64% up at EUR1.57 on Dec 9.

 

[Shion]

RHB initiates 'buy' on Cromwell European REIT with TP of EUR2.15​

https://www.theedgesingapore.com/ca...nitiates-buy-cromwell-european-reit-tp-eur215
RHB Group Research analyst Vijay Natarajan is initiating “buy” on Cromwell European REIT (CEREIT) with a target price of EUR2.15 ($3.09).

To Natarajan, the REIT offers an “attractive entry level” for a mid- to long-term play on the recovery of Western Europe. At its current share price levels trading at 0.6x P/BV below -2 standard deviation (s.d.) levels, the REIT’s near-term weakness has been “sufficiently priced in", Natarajan writes.

The REIT also has an attractive dividend yield of around 10%, after accounting for rising interest costs, he adds.

“The REIT’s consistent historical operating performance and portfolio rebalancing track record lends confidence that it will emerge stronger from current market challenges in [the] Euro area,” the analyst continues.

CEREIT has a portfolio of 115 assets currently valued at EUR2.6 billion across 10 different countries. Its top three markets, the Netherlands, Italy and France, account for two-thirds, or 66% of the REIT’s portfolio by value. Office assets account for 49% of its portfolio, although the proportion has been decreasing since 2019 with the REIT’s ongoing pivot to the industrial/logistics assets. CEREIT’s industrial/logistics assets currently stand at around 46%.

To Natarajan, the REIT is expected to lower its proportion of office assets with more divestments “in the offing”, as well as with capital likely to be recycled to logistics assets.

Since the REIT’s listing in November 2017, it has reported a strong operational track record with its occupancy on a steady uptrend. As at Natarajan’s report on Dec 21, CEREIT has an occupancy level of a record 95.7%.

“Its ability to maintain high occupancy level of [around] 95% over last two years despite the Covid-19 impact demonstrates on-the-ground property management team’s expertise, in our view,” the analyst says. “Rent reversions too have been positive since 2HFY2018 with portfolio’s blended reversionary yields [around] 80 basis points higher than [its] current net property income (NPI) yield - indicating upside potential.”

Another plus for the REIT is its leases, where about 90% of them are pegged to inflation-linked rent escalation clauses, providing rental growth from the high inflation environment.

On the other hand, utility charges are mostly passed through to tenants as per contractual agreements.

“The REIT has also been active on the divestment front since the start of the year with more planned in the near term, which we believe could potentially unlock value for unitholders,” says Natarajan.

Amid the high-interest-rate environment, the REIT also has about 76% of its debt hedged for the next two years with minimal refinancing needs till November 2024. As at the analyst’s report, CEREIT’s gearing is at a “manageable” 38.9%.

In environmental, social and governance (ESG) terms, CEREIT scored 3.2 out of 4.0 based on RHB’s proprietary model. “As this score is two notches above the country median, we apply a 4% premium to our intrinsic dividend discount model (DDM)-derived fair value.”

Catalysts to CEREIT’s unit price includes the peaking of the inflationary environment as well as interest rates. A potential truce to the Russia-Ukraine war and asset divestments at a premium to their book value are also seen as catalysts.

On the other hand, risks include inflation remaining stickily high resulting in higher interest rates for longer resulting in severe recession, and a prolonged Russia-Ukraine war.

As at 3.35pm, units in CEREIT are trading 1 Euro cent lower or 0.65% down at EUR1.52.

 

[TehSi99]

is price on downtrend since IPO?

 

[homer123]

Right now , this is one of the more undervalued foreign reits. Compare to the US reits which have more time bomb , this one is actually safer to buy

 

[direbmem]

Wan

Right now , this is one of the more undervalued foreign reits. Compare to the US reits which have more time bomb , this one is actually safer to buy

Wanted to buy a bit since a few weeks ago but prices keep rising..

 

[homer123]

Wan
Wanted to buy a bit since a few weeks ago but prices keep rising..

The yield is still insane >10% at current price while hitting record 95.7% occupancy level. With this reit pivoting to almost 50% logistic, this is also a long term buy.

 

[starbugs]

I bought some in the past two months. Agree that it is a good reit. Main attraction is that most of their leasing rates are indexed to inflation. The higher the inflation in Europe, the better it is in fact for unit holders in SG.

 

[DevilPlate]

Just noticed CWCU (SGD) just listed.
Which one (EU or SGD) you guys bought?

 

[soneat]

Whichever is cheaper. They are fungible.
SGD counter has very little float and more illiquid.

 

[homer123]

Cromwell E-Reit reports 1.6% portfolio valuation decline for FY2022
CROMWELL European Real Estate Investment Trust : CWBU -2.42%(Cromwell E-Reit) on Tuesday (Jan 31) reported a total portfolio valuation of about 2.5 billion euros (S$3.6 billion) for FY2022 ended Dec 31, 2022, after taking into account valuation increases on properties under development in Italy and the Czech Republic.
The latest valuation represents a drop of 1.6 per cent from June last year, as the Reit’s assets in most countries saw a valuation decline.
In the Netherlands, Cromwell E-Reit saw a valuation decline of 25.4 million euros, while valuation of the US portfolio also fell by 16.6 million euros.
Valuations in Germany, Italy, and Poland were also down by six million to seven million euros each.
The Reit manager attributed this to higher capitalisation rates caused by increased interest rates.
On the other hand, the Denmark and France assets reflected valuation increases of 12.2 million euros and 2.4 million euros respectively, which the manager said was owing to asset management enhancement initiatives and market rent growth.
The Czech Republic also saw a higher valuation due to the increase in value of properties under development.
Simon Garing, cheif executive of Cromwell E-Reit manager, noted that the logistics or light industrial sector recorded a small valuation gain of 3.5 million euros over the six months, while the office portfolio was 3.2 per cent lower.
Ahead of Cromwell E-Reit’s FY2022 results which are expected to be announced on Feb 24, 2023, its manager is projecting an aggregate leverage of under 40 per cent, which lies within the board’s loan-to-value policy range of 35 per cent to 40 per cent.
Preliminary unaudited net asset value is also expected to be about 2.42 euros per unit as at end-December 2022.
The resultant overall portfolio valuation decline of 1.6 per cent for FY2022 is considered “minimal” as well as demonstrates the Reit’s portfolio resilience, said the manager.
In Garing’s view, broader market conditions are currently more supportive of an improved European outlook despite expectations of rising capitalisation rates in FY2023.
Commenting on the overall valuation decline, he said that the impact of rising interest rates to the portfolio’s valuation was cushioned by a high weighted average initial yield; asset value enhancement initiatives and leasing programmes; and properties under development in Italy and the Czech Republic.
Most of the Reit’s assets are in “good or very good macro or micro” locations which are experiencing market rent growth with little competitive supply, he noted, while the majority of its leases also have inflation indexation clauses which – together with strong rent reversion – helped with the rise in capitalisation rates.
“The strategy to pivot Cromwell E-Reit to a majority weighting to logistics or light industrial sector continues to contribute positively,” Garing said.

 

[limster]

CROMWELL European Real Estate Investment Trust : CWBU -2.42%(Cromwell E-Reit) on Tuesday (Jan 31) reported a total portfolio valuation of about 2.5 billion euros (S$3.6 billion) for FY2022 ended Dec 31, 2022, after taking into account valuation increases on properties under development in Italy and the Czech Republic.

I find it interesting that the NAV of the REIT is larger than the market cap of the Sponsor which according to this is AUD1.90B. When I investigate any REIT, I often check on the sponsor's stock - depending on price, it might be better to buy the Sponsor's stock (eg: Capitaland) rather than the REIT.

Here the P/E ratio of the sponsor looks like a very attractive 7.25 but investigations show that its earnings have been falling.

I stand corrected on the latest figures, but the sponsor owns about one quarter of the REIT's shares? So a fair chunk of the sponsor's market value comes from owning the REIT.

Finally, i've included Lendlease for comparison, since both Cromwell and LL are listed on ASX. Lendlease's share price is like a total collapse compared to Cromwell. Cromwell's share price has done reasonably well actually.

 

[starbugs]

>10% yield currently



Cromwell E-Reit’s H2 DPU rises marginally to 0.08494 euro

FRI, FEB 24, 2023 - 09:22 AM

Michelle Zhu
michellezhu@sph.com.sg
@MichZhuBT

CROMWELL European Real Estate Investment Trust (Cromwell E-Reit) posted a distribution per unit (DPU) of 0.08494 euro for the half-year ended December 2022, up by a marginal 0.4 per cent from its H2 FY2021 DPU of 0.08459 euro.

Gross revenue for the half year rose 13.4 per cent on year to 114.7 million euros (S$163.3 million) from 101.1 million euros, while net property income (NPI) increased 5.5 per cent to 69.4 million euros, from 65.8 million euros the previous year.

Income available for distribution rose 0.6 per cent to 47.8 million euros from 47.5 million euros previously.

The top line increase for H2 was mainly due to new acquisitions and indexation in rentals – plus increased operating expense, of which a considerable amount is recoverable, said its manager on Friday (Feb 24).

Net finance costs grew 34.5 per cent to 13.9 million euros versus 10.4 million euros the previous year. This was due to increased interest expenses incurred on a higher debt balance, a rise in the three-month Euro interbank offered rate, and slightly higher margin on a new loan.

Trustee fees and other trust expenses rose 70.1 per cent to 4.7 million euros, from 2.8 million euros the previous year. The variance was mostly due to higher foreign exchange losses in H2, said the manager.

Cromwell E-Reit also recorded other losses of 55 million euros as opposed to a loss of just 0.6 million euros in H2 FY2021, as a result of a fair value loss on investment properties in H2.

For FY2022, DPU was up 1.3 per cent at 0.17189 euro from 0.16961 euro in FY2021. Gross revenue and NPI were up 11 per cent at 222.1 million euros in FY2022, and 5.1 per cent at 130.1 million euros in FY2021.

The Reit manager’s chief executive Simon Garing said that the Reit’s full-year DPU growth “would have been close to 10 per cent” if not for divestments, higher non-recoverable operating expenses, increased effective income tax rates and higher interest costs.

As at end-December 2022, the Reit’s portfolio occupancy stood at a record high of 96 per cent – a one percentage point increase from the previous year.

Near-full occupancies were reported in the Reit’s four core markets – the Netherlands, Italy, France and Germany. This accounts for about 75 per cent of overall portfolio value.

About 18 per cent of the portfolio was leased or renewed during H2 at a positive rent reversion of 7.6 per cent.

The portfolios’ weighted average lease expiry as at end-2022 remained unchanged at 4.6 years.

Garing believes the Reit’s income growth will be supported by high occupancy, rising market rents and indexation.

“Sustainable developments and asset enhancements will further improve the overall quality of the portfolio and provide growth in DPU and net asset value over the medium term,” he said.

Units of Cromwell E-Reit : CWBU +1.82% ended Thursday unchanged at 1.65 euro.

https://www.businesstimes.com.sg/co...l-e-reits-h2-dpu-rises-marginally-008494-euro

 

[DevilPlate]

The main problem with overseas reit is that we cannot touch & feel their properties and SGD is too strong.

 

[homer123]

One of the best performing foreign reit listed in SGX..

 

[homer123]