Cromwell revaluation shaves $99m from property portfolio
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The news: Cromwell Property Group said that a revaluation of its Australian investment portfolio has resulted in an estimated decrease of $99 million in asset value over the six months to 31 December.
The numbers: Cromwell said that the valuations reflect an estimated decrease of 4.5% on prior valuations made at 30 June 2024. Its half-year results will be released on 27 February.
The weighted average capitalisation rate for Cromwell's Australian investment portfolio has expanded by 35 basis points to 6.99%, from 6.64% in June.
Cromwell shares were up 1.3% to 40.5 cents by 11:50am AEDT.
The context: The Brisbane-based group widened its full-year loss during the 2024 financial year, attributing the downturn to a $115.5 million, or 5%, devaluation across its Australian property portfolio between between January and June 2024.
The latest devaluation comes as the real estate investor conducts asset sales to cut down on its debt, and following impairments to the sales price of its divested European operations.
The source: ASX announcement
