Cromwell Property Group (CMW) H1 2025 earnings summary

Executive summary

• Completed sale of European platform and related co-investments, simplifying operations and refocusing as an Australian-based investment manager with enhanced balance sheet strength and liquidity.

• Statutory loss for the half-year ended 31 December 2024 was $28.6 million, a significant improvement from the $271.4 million loss in the prior year, primarily due to a $99.0 million valuation decline in the investment portfolio.

• Operating profit was $55.1 million (2.10 cps), down 34.4% year-over-year, reflecting lower segment contributions and non-core asset sales.

• Assets under management decreased to $4.5 billion from $11.4 billion due to asset sales and reclassifications, with a strong focus on Australian assets.

• Distributions for the half-year totaled $39.2 million (1.50 cents per stapled security), down from $41.3 million (1.58 cents) in the prior period.

Financial highlights

• Underlying operating profit of $55.1 million, down 34.4% year-over-year due to non-core asset sales.

• Statutory loss of $28.6 million, mainly from $99.0 million investment portfolio revaluation loss and $31.6 million in derivative losses.

• Net tangible assets per security declined from $0.61 to $0.57, reflecting negative revaluations.

• Distributions of 1.5 cps (payout ratio 106.4% of AFFO); AFFO at $36.9 million.

• Liquidity increased to $538.5 million; interest rate hedging at 99.7%.

Outlook and guidance

• No OEPS guidance provided due to ongoing capital deployment flux; board will review guidance practices at year-end.

• Distributions for March 2025 quarter expected at 0.75 cps.

• Focus on active asset management, capital-light investment management, and expanding the investment platform.

• Corporate costs expected to decrease in the full year post-EU sale.

• Market conditions remain challenging with higher interest rates and subdued property transaction volumes.