Cromwell European REIT full-year net property income rises 10.9% YoY to $198.21m
The growth was driven by two factors.
Singapore Exchange-listed Cromwell European REIT’s full-year net property income for the financial year (FY) 2021 rose 10.9% year-on-year (YoY) to $198.21m (€130.1m).
The growth in the CEREIT’s net property income was attributed to the higher revenues from its new acquisitions in the Czech Republic, Slovakia, the UK, Italy, and the Netherlands; and the absence of doubtful debt provisions in FY 2021 as compared to FY 2020.
The increased net profit pushed the CEREIT’s income available for distribution to unitholders for the full year by 5.0% to $142.62m (€93.62m).
Despite the increase, the CEREIT’s actual distribution per unit (DPU) dipped 2.6% to €0.16961 due to three factors:
- Nil payment of capital gains in FY 2021 vs. $4.27m (€2.8m) paid out in 1H 2020 (equivalent to 0.55 Euro cents in 1H 2020 DPU).
- A slight delay between financing and completing recent acquisitions funded by the private placement in 1H 2021; and;
- Higher interest due to refinancing $761.73m (€500m) debt through bond issues which have extended CEREIT’s WADE profile.
In FY2022, CEREIT will leverage its strengths, “laying the path to long-term strategy execution to emerge stronger in FY 2023.”
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