CROMWELL European Real Estate Investment Trust : CWBU 0% (Cromwell E-Reit) on Tuesday (Apr 30) posted an indicative distribution per unit (DPU) of 3.505 euro cents for the first quarter ended Mar 31, 2024. (*see amendment note)

This was 10.2 per cent below the 3.902 euro cents recorded in the same period a year earlier, as higher finance costs as a result of higher interest rates weighed on distributions, the manager said in a business update.

Income available for distribution to unitholders fell 10.2 per cent to 19.7 million euros (S$28.7 million) from 21.9 million euros.

The Europe-focused commercial Reit’s gross revenue and net property income (NPI) were also down year on year.

Gross revenue slipped 2.7 per cent to 53.3 million euros from 54.8 million euros.

NPI, meanwhile, was down 2.7 per cent to 32.7 million euros from 33.6 million euros, mainly due to the divestment of Bari Europa, Bari Trieste and Piazza Affari during the period.

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The manager noted that excluding the divestments, NPI was up 5 per cent on a like-for-like basis. Its Nervesa21 office development in Milan is being redeveloped, while Maxima is undergoing strip-out works.

Simon Garing, chief executive of Cromwell E-Reit’s manager, said the Reit remains ahead in its disposal programme.

Its net gearing stood at 39.7 per cent as at Mar 31, 2024, 1.3 percentage points higher than Dec 31, 2023. No debt is maturing until November 2025.

The 2.08 euro net asset value per unit is approximately 40 per cent higher than Cromwell E-Reit’s most recent trading unit price on the Singapore Exchange, the manager added.

The Reit’s total portfolio occupancy, excluding Maxima and Via Dell’Industria 18, stood at 93.4 per cent. Its weighted average lease expiry is 4.8 years, up 0.3 years from the previous corresponding period.

“The strategic pivot to logistics and light industrial is progressing well, with the portfolio now weighted to a more significant 53 per cent in this sector,” Garing said.

He added that Cromwell E-Reit continues to benefit from the low European logistics market vacancies, which stand at a mere 2.9 per cent. It delivered a positive rent reversion of 5 per cent in the quarter, despite Europe’s recent relative cyclical economic weakness.

Cromwell E-Reit units were down 1.3 per cent or 0.02 euro at 1.47 euros as at 1.18 pm on Tuesday.

*Amendment note: The story has been corrected to reflect the latest financial performance of Cromwell E-Reit to be for the first quarter ended Mar 31, 2024 and not Mar 31, 2023.