REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Monday, May 29, 2023

Cromwell European REIT Review @ 29 May 2023

Basic Profile & Key Statistics
  • Main Sector(s): Office, Industrial & Logistics
  • Country(s) with Assets: Netherlands, Italy, France, Poland, Germany, Finland, Denmark, Slovakia, Czechia & England
  • No. of Properties (exclude development/associate/fund): 113

Key Indicators

Performance Highlight
Gross revenue and NPI improved YoY mainly due to higher NPI in the light industrial / logistics sector and high occupancy. However, distributable income and DPU declined YoY due to higher finance costs.

Rental Reversion

CEREIT achieved 6.7% rental reversion for 1Q 2023.


Developments of Via Nervesa 21, Lovosice ONE Industrial Park and Maxima are in progress. As for Maxima, strip-out works are planned to start in March.

Related Parties Shareholding

  • REIT Sponsor's Shareholding: ± 10% from median
  • REIT Manager's Shareholding: Below median by 20% or more
  • Directors of REIT Manager's Shareholding: Blow median by 20% or more

Lease Profile

  • Occupancy: ± 5% from median
  • Income in SGD/Major Currencies: Below median by 10% or more
  • WALE: Above median by 10% or more
  • Highest Lease Expiry within 5 Years: Below median by 20% or more; Falls in 2025
  • Weighted Average Land Lease Expiry: Above median by 20% or more

Debt Profile

  • Gearing Ratio: ± 10% from median
  • Gearing Ratio including Perps: ± 10% from median
  • Cost of Debt: Below median by 20% or more
  • Fixed Rate Debt %: Above median by 10% or more
  • Unsecured Debt %: ± 10% from median
  • WADM: ± 10% from median
  • Highest Debt Maturity within 5 Years: Above median by 20% or more; Falls in 2025
  • Interest Coverage Ratio: Above median by 20% or more

Diversification Profile

  • Top Geographical Contribution: Below median by 20% or more
  • Top Property Contribution: Below median by 20% or more
  • Top 5 Properties' Contribution: Below median by 20% or more
  • Top Tenant Contribution: ± 10% from median
  • Top 10 Tenants' Contribution: Below median by 10% or more

Key Financial Metrics

  • Property Yield: ± 10% from median
  • Management Fees over Operating Distributable Income: Below median by 20% or more; €15.38 distribution for every dollar paid 
  • Operating Distributable Income on Capital: Above median by 10% or more
  • Operating Distributable Income Margin: ± 10% from median
  • Operating Distribution Proportion: Above median by 5% or more

DPU Breakdown
  • Distributable Income Breakdown:
    • 96.6% from Operation
    • 3.4% from Proceeds from Divestment


  • Uptrend: Occupancy
  • Flat: DPU from Operation
  • Downtrend: NAV per Unit, Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin
*DPU and NAV per Unit are adjusted for the 5-to-1 consolidation.

Relative Valuation

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

Author's Opinion

 Favorable Less Favorable
Diversified SectorLow REIT Manager's Shareholding
Long WALELow Directors of REIT Manager's Shareholding
Well Spread Lease ExpiryConcentrated Debt Maturity
Long Weighted Average Land Lease ExpiryNAV per Unit Downtrend
Low Cost of DebtInterest Coverage Ratio Downtrend
High Fixed Rate Debt %Property Yield Downtrend
High Interest Coverage RatioOperating Distributable Income on Capital Downtrend
Low Top Geographical ContributionOperating Distributable Income Margin Downtrend
Low Top Property & Top 5 Properties' Contributions 
Low Top 10 Tenants' Contribution 
Competitive Management Fees 
High Operating Distributable Income on Capital 
High Operating Distribution Proportion 
Occupancy Uptrend

Performance has declined as compared to the previous quarter in terms of gross revenue, NPI and distributable income. On a positive note, There is no refinancing requirement this year and the high fixed rate proportion of 84% should somewhat mitigate the impact of rising interest rates.

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, join:

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

REIT-TIREMENT Patreon - Support my work and get exclusive content

REIT-TIREMENT Facebook Page - Support by liking my Facebook Page    

REIT Investing Community - Facebook Group where members share and discuss REIT topic

*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.

No comments:

Post a Comment