Cromwell HY23 Market Update

Real estate investor and fund manager, Cromwell Property Group (ASX:CMW) (Cromwell), has today reported its results for the half-year period 31 December 2022 (HY23).

HY22 Results Overview

• Statutory loss of $129.5 million (HY22 $132.5 million profit), due to a fall in property valuations;
• Operating profit of $87.1 million (HY22 $96.4 million), equivalent to 3.33 cents per security;
• HY23 distributions of 2.75 cents per security, for a payout ratio on operating profit of 82.6% and 103.4% of adjusted funds from operations (AFFO); and
• Net Tangible Assets of $0.97 (FY22 $1.04), gearing at 41.8% (FY22 39.6%).

HY23 Operational Highlights

• Total assets under management remain at $12 billion, unchanged from 30 June 2022;
• Market wide valuation impacts led to revaluations down 1.31%;^1,2
• Occupancy is 95.1% by income1 with net property income growth of 2.7%, ^.2
• Weighted average lease expiry of 5.6 years,¹ with 51% of income weighted to Government tenants;^.1
• Cromwell becomes a member of the Dow Jones Sustainability Australia Index, 1 of only 6 property groups; and
• Gearing 41.8% at the end of the period, attributed to the fall in property valuations.

Cromwell Chair Dr Gary Weiss, in commenting on the HY23 results said, “in the face of challenging market conditions, the Cromwell team has made progress in the delivery of its strategy, with a series of key initiatives either completed or advanced: simplification of Cromwell’s operating structure, improved staff engagement and management of the balance sheet through non-core asset sales. This is reflective of Cromwell’s long-standing ability to adapt and manage complex market conditions.”

To view the HY23 Results Announcement, click here.

To view the HY23 Results Presentation, click here.