Cromwell European REIT's Green Office at Krakow, Poland. (Cromwell European REIT)Cromwell European REIT's Green Office at Krakow, Poland. (Cromwell European REIT)

Cromwell European REIT (CEREIT) has recorded a slight decline in the value of its assets.

The valuation of its 111-property portfolio as at 30 June 2023 declined by 1.6% or EUR36.1 million when compared to what was recorded on 31 December 2022.

CEREIT is a Singapore Exchange (SGX)-listed REIT with a pan-European portfolio of mostly logistics, light industrial, and office assets.

“It is pleasing to note that CEREIT’s June 2023 portfolio valuations only declined by a modest 1.6% as compared to December 2022 levels”, said Simon Garing, CEO of the REIT’s manager.

“Taking into account the recent sale of Piazza Affari, Italy, we now expect to report CEREIT’s net gearing at around 38.2% as at 30 June 2023, well inside loan covenants”, he added.

CEREIT’s NAV per unit is expected to be EUR2.30.

“CEREIT has now achieved the aim of being majority weighted to the logistics / light industrial sector, which continues to contribute positively to NAV”, Garing added.

This sector recorded a 0.8% or EUR9.1 million valuation gain to circa EUR1.2 billion in June 2023 as compared to December 2022, on a like-for-like basis, the REIT added.

Additionally, the trend of tenants moving towards quality ESG-certified office spaces has mitigated against more drastic declines in portfolio value, the REIT added.

CEREIT was last done on the Singapore Exchange at EUR1.58, which presently implies a distribution yield of 10.88% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.