CROMWELL EUROPEAN REIT RESULTS PRESENTATION FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2018 AND THE FINANCIAL PERIOD FROM 30 NOVEMBER 2017 TO 30 SEPTEMBER 2018 14 November 2018
Disclaimer This presentation shall be read in conjunction with Cromwell European REIT’s (“CEREIT”) financial results announcement dated 14 November 2018 published on SGX Net. This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of CEREIT in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. The value of units in CEREIT (“Units”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by Cromwell EREIT Management Pte. Ltd, as manager of CEREIT (the “Manager”), Perpetual (Asia) Limited (as trustee of CEREIT) or any of their respective affiliates. The past performance of CEREIT is not necessarily indicative of the future performance of CEREIT. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. These forward-looking statements speak only as at the date of this presentation. No assurance can be given that future events will occur, that projections will be achieved, or that assumptions are correct. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages benefits and training, property expenses, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Prospective investors and unitholders of CEREIT (“Unitholders”) are cautioned not to place undue reliance on these forward-looking statements, which are based on current view of the Manager on future events. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained in this presentation. None of the Manager, the trustee of CEREIT or any of their respective advisors, representatives or agents shall have any responsibility or liability whatsoever (for negligence of otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. An investment in Units is subject to investment risks, including possible loss of principal amount invested. Unitholders have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “SGX-ST”). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. ______________________ NOTES: All figures in this presentation are as at 30 September 2018 and stated in Euro (“EUR”), unless otherwise stated RESULTS PRESENTATION FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2018 AND 2 THE FINANCIAL PERIOD FROM 30 NOVEMBER 2017 TO 30 SEPTEMBER 2018
Cromwell European REIT Investment Case – Focus on Yield and Growth Effective 7.9% Annualised Distribution Yield (at current Unit price) 1 Cromwell European REIT (“CEREIT”) successfully debuted on 30 November 2017 and has delivered above the IPO Forecast 2 €1.4 billion Diversified and Balanced Pan-European Exposure 75 predominantly office and light industrial/logistics assets with significant scale and diversification across approximately 1.2 million square metres net lettable area with over 700 tenants Internationally recognised Sponsor and Real Estate Manager Cromwell Property Group (CMW.ASX) operates in 12 European countries with over 200 real estate and finance professionals Opportunities for Income and Net Asset Value Growth Increased resilience from enlarged portfolio size and enhanced geographical diversification, from 5 countries to 7 countries, with the inclusion of Finland and Balanced Asset Class Diversified Geography Exposure 3 Exposure 3 Poland in the recent announced acquisition of 3 portfolios, as well as potential upside in reversionary yield 5 6%8% 10% European economic growth underpinning tenant demand and rental uplifts 33% Active asset enhancement initiatives underway 43% ______________________ 23% Based on €0.545, the last traded price on Singapore Exchange Securities Trading Limited (“SGX-ST”) on 2 nd November 2018. 1. 2. The Prospectus of CEREIT dated 22 November 2017 (“Prospectus”) disclosed a 1-month profit forecast for the period from 1 47% December 2017 to 31 December 2017 (“December 2017 Forecast”), and a full-year profit projection from 1 January 2018 to 31 December 2018 (the “FY2018 Projection”). The FY2018 Projection disclosed in the Prospectus was derived from four separate 30% quarterly projections which in aggregate formed the FY2018 Projection. The “IPO Forecast” figures referred to in this presentation were, where not expressly disclosed in the Prospectus, derived from the December 2017 Forecast and the first, second and third quarterly projections for the period from 1 January 2018 to 30 September 2018 which had been used by the Manager to form the Light Industrial / Logistics Denmark Germany France FY2018 Projection. Office 3. Based on valuations as at 31 March 2018 and 1 April 2018 (for Ivrea). Italy Netherlands 4. Others include three government-let campuses, one retail property and one hotel in Italy on master lease. 4 Others 5. Subject to completion of the acquisition of 3 portfolios – see the announcement dated 30 October 2018 titled Announcement – (i) Acquisition of a Portfolio of 16 Office Assets in Netherlands, Finland, and Poland; (ii) Acquisition of Two Office Assets in Italy; and (iii) Binding Offer to Acquire Four Logistics Assets and Option to Acquire One Retail Big Box in France RESULTS PRESENTATION FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2018 AND 3 THE FINANCIAL PERIOD FROM 30 NOVEMBER 2017 TO 30 SEPTEMBER 2018
Agenda 1 Key Highlights 2 Financial Performance 3 Portfolio Overview and Investment Strategy 4 Asset Management Update 5 Announced Proposed Acquisition of 3 Portfolios 6 Key Takeaways and Priorities 7 Appendix RESULTS PRESENTATION FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2018 AND 4 THE FINANCIAL PERIOD FROM 30 NOVEMBER 2017 TO 30 SEPTEMBER 2018
Key Highlights
Key Reporting Period 1 Highlights Ongoing focus on meeting and exceeding IPO Forecast 2 Higher income, resulting in higher returns Gross revenue up 2.0% 2 Net property income up 4.3% 2 Total return attributable to Unitholders up 1.9% 2 Annualised distribution yield of 7.9% 3 Strong portfolio performance Portfolio occupancy is 89.6% 4 Better leasing outcomes through “barbell approach” to portfolio management with growth provided by light industrial/logistics sector and stability provided by office sector Robust balance sheet Aggregate leverage is 34.9% 5 NTA is 55.3 Euro cents per unit 6 ______________________ 1. Reporting Period refers to the financial period from 30 November 2017 to 30 September 2018 2. As compared to amounts as stated in Prospectus dated 22 November 2017 3. Based on IPO Issue price of 55 Euro cents 4. As compared to occupancy of 87.7% as stated in Prospectus 5. Refers to “aggregate leverage” defined under the Property Funds Appendix as compared to the Prospectus pro-forma balance sheet aggregate leverage as at listing date stated at 36.8% 6. As compared to NTA of 53.2 Euro cents as at listing date RESULTS PRESENTATION FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2018 AND 6 THE FINANCIAL PERIOD FROM 30 NOVEMBER 2017 TO 30 SEPTEMBER 2018
Key 3Q 2018 Highlights Smooth Transition in Leadership Staying on course and focused on key objectives Providing unitholders with stable and growing distributions while managing for net asset growth Proactive Portfolio Strategy Execution Focused on organic value creation Active leasing and property management Renewed 9,145 sqm of leases in light industrial / logistics portfolio Renewed 261 sqm of leases in office portfolio 52% of remaining potential expiries and breaks for 4Q 2018 (4.5% of total portfolio) have been de-risked based on current status Continuing discussions with tenants to further de-risk the portfolio Major asset enhancement initiatives being implemented Focused on growth through acquisitions RESULTS PRESENTATION FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2018 AND 7 THE FINANCIAL PERIOD FROM 30 NOVEMBER 2017 TO 30 SEPTEMBER 2018
Recommend
More recommend
