Cromwell European REIT (CEREIT) has reported a distribution per unit of 1.02 Euro cents for its 1Q 2019, an increase of 6.3% year-on-year.
With this DPU, the REIT has also beaten its IPO forecast for this period by 5.2%, when adjusted for the issuance of new units in December 2018. I
The REIT’s gross revenue and net property income increased by 31.7% and 33.8% year-on-year to EUR40.0 million and EUR26.4 million respectively.
CEREIT has attributed these increases to contributions from 23 new properties that have been acquired since listing, with 22 of these inducted between December 2018, and February 2019.
Correspondingly, the REIT’s income available for distribution came in 36.9% more than the EUR16.4 million recorded in the previous corresponding quarter.
“The income uplift attests to the accretion from the recent acquisitions and CEREIT’s enhanced ability to deliver stable and sustainable distribution growth”, said Simon Garing, who has now been appointed CEO of the REIT's manager.
“CEREIT has benefitted from access to the growing Finnish and Polish economies, with the new Finnish office properties contributing a maiden full quarter to earnings and the new Polish assets contributing from February 2019”, Garing, who previously served as acting CEO, added.
The REIT’s aggregate leverage rose from 33.0% as at 31 December 2018 to 37.0%, largely due to loans drawn to partially finance its recent acquisitions.
CEREIT slid by 1.0% at the close of the trading day on 13 May, to end at EUR0.50.