It expects the net valuation adjustment to be relatively flat after accounting for expected capital expenditures over the latest half-year period
Cromwell European Real Estate Investment Trust’s (Cromwell E-Reit) portfolio valuations for 107 properties rose 0.6 per cent to 2.2 billion euros (S$3.3 billion) for the first half ended Jun 30, 2024.
This was compared to the half-year period ended Dec 31, 2023, the Reit’s manager said on Wednesday (Jul 3).
Valuations rose as conditions in Europe stabilised, supported by lower risk-free rates and an improvement in financing conditions for selective asset classes and completed development projects.
Another main driver was the increase in market rents across the Reit’s portfolio amid positive economic and market factors such as inflation, an ease in monetary policy and better demand prospects.
“Our teams’ proactive leasing and asset management initiatives and the completion of asset enhancement works for assets in Italy, the Czech Republic and Slovakia were the main factors contributing to this valuation uplift,” said Simon Garing, chief executive officer of Cromwell E-Reit’s manager.
The Reit’s focus on improving environmental performance and tenant amenities had also supported valuations, Garing added.
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That being said, the manager expects the net valuation adjustment to be relatively flat after accounting for expected capital expenditures over the latest half-year period.
Units of Cromwell E-Reit ended Tuesday 0.01 euro or 0.7 per cent down at 1.39 euros.
