Cromwell half-year loss widens as valuations fall
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The news: Cromwell Property Group has widened its first-half loss on the back of a decline in property valuations.
The numbers: The company reported a wider net loss of $271.4 million, compared to $129.5 million loss a year ago. However, revenue was up 1% to $160.2 million. It will pay an interim distribution of 1.6 cents per security, down from 2.8 cents a year ago.
Cromwell shares were down 1.3% to 38.5 cents in early trading on the ASX, and have now lost 44% of their value over the last 12 months.
The context: Cromwell attributed the wider loss to a $240.2 million decline in property valuations across its Australian and European assets. Occupancy across its leasing portfolio was 93.4% while leasing markets remained active.
Total assets under management were down slightly at $11.4 billion. The investment group has been conducting asset sales to cut down on its debt, and expects to complete divestments of a further $528 million by June 2024, taking the total to $1.1 billion.
What they said: “The current operating environment continues to be challenging with higher interest rates impacting the real estate sector,” Cromwell chair Gary Weiss said.
The source: ASX announcement
