THE manager of Cromwell European Real Estate Investment Trust (Cromwell E-Reit) on Tuesday (Nov 5) announced a 7.8 per cent year-on-year decline in distributable income to 20.8 million euros (S$29.8 million) for the third quarter ended September.
This brings distributable income for the first nine months of FY2024 to 60.4 million euros, down 8.9 per cent from the corresponding period the year before.
The manager attributed the fall mainly to divestments and higher interest costs during the period.
Simon Garing, chief executive of the Reit manager, noted that distributable income for Q3 was up 4.1 per cent quarter on quarter, reflecting the “stabilisation” of the portfolio.
Gross revenue edged up 0.6 per cent to 53.9 million euros for Q3, while net property income (NPI) rose 7 per cent to 34.5 million euros.
For 9M FY2024, gross revenue dipped 1.1 per cent to 160.2 million euros, mainly due to asset sales.
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NPI was 0.8 per cent lower at 100 million euros for the first nine months, despite 264 million euros of divestments, which negatively impacted NPI by 6.7 million euros.
“(The Reit’s) asset sale programme, designed to keep net gearing within the board’s policy of 35 to 40 per cent over the medium term, is largely behind us,” Garing said.
As at Sep 30, net gearing stood at 39.7 per cent.
Cromwell E-Reit’s total portfolio occupancy stood at 93.9 per cent as at end-September, up 30 basis points compared to a quarter ago, with its weighted average lease expiry remaining stable at 4.7 years.
Units of Cromwell E-Reit closed 0.6 per cent or 0.01 euro higher at 1.65 euros on Monday.
