Cromwell Property Group (CMW) H1 2026 earnings summary

Executive summary

• Operating profit rose 1.5% year-over-year to $55.9 million for the half-year ended 31 December 2025, with assets under management up 13.6% to $5.0 billion and high portfolio occupancy at 97.2%.

• Statutory profit rebounded to $99.3 million, reversing a prior loss, driven by valuation gains and improved fee income.

• Strategic growth initiatives included the acquisition of Terre Property Partners and a 19.9% stake in Cromwell Industrial Partnership, adding $567 million in AUM and expanding industrial capabilities.

• The group exited European operations in December 2024, focusing on Australian core sectors and achieving significant cost savings.

• Barton1 development is progressing on schedule and budget, fully pre-leased to a major government tenant.

Financial highlights

• Funds from operations reached $55.3 million (2.11 cps), with a payout ratio of 71% and distributions of 1.50 cps.

• Net tangible assets per security increased to $0.58 from $0.56 at June 2025.

• Gearing stands at 30.2%, with liquidity of $418 million and 71% of debt hedged.

• Investment portfolio valuations increased by $72 million (3.6%) to $2.1 billion, with high occupancy and stable WALE at 5.1 years.

• Net financing costs and interest expense declined significantly due to European asset sales.

Outlook and guidance

• Annual distribution guidance reaffirmed at 3.0 cps for FY26, to be paid quarterly.

• Focus remains on expanding third-party AUM, growing the investment management platform, and selective capital deployment.

• Market conditions support tightening vacancies and rental growth, especially in commercial and industrial real estate.