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 ending 31 December 2025, with assets under management up 13.6% to $5.0 billion.

• Statutory profit for the half-year was $99.3 million, a turnaround from a $28.6 million loss in the prior period.

• Investment portfolio occupancy remains high at 97.2%, with a valuation uplift of $72 million and NTA per security up 3.6% to $0.58.

• Strategic growth initiatives included the launch of a new wholesale office fund, the Barton 1 development, and the acquisition of Terre Property Partners, adding $560–567 million in AUM.

• Sale of the European Funds Management Platform completed in December 2024, marking a strategic exit from European operations.

Financial highlights

• Statutory profit was $99.3 million (3.79 cps); operating profit $55.9 million (2.13 cps).

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

• Gearing stands at 30.2%–32.8%, at the lower end of the 30%-40% target range, with liquidity of $418 million.

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

• Investment and asset management EBIT increased by 90%, driven by higher fee income and Barton 1 development fees.

Outlook and guidance

• Annual distribution guidance reaffirmed at 3.0 cps for FY2026, 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 real estate.

• The real estate valuation cycle appears to have bottomed, with improved performance and signs of increasing liquidity in capital markets.

• Focus on sustainable returns, stable distributions, and leveraging a strengthened balance sheet for growth.