Cromwell Property Group (CMW) H2 2025 earnings summary

Executive summary

• Completed $1.6 billion in asset and business sales since 2022, simplifying operations, reducing debt, and focusing on Australia and New Zealand.

• Achieved sector-leading portfolio occupancy of 97.6% through effective leasing and asset management.

• Streamlined business structure with exit from non-core assets, including the European platform, and transition to a capital-light investment management model.

• Board streamlined, with Rob Blain departing and not replaced to align with new operational model.

• ESR exited the investor register, with Brookfield acquiring a 19.9% stake, increasing liquidity and register diversification.

Financial highlights

• Operating profit of $108.6 million for FY25, down 20% year-over-year, impacted by asset sales and prior year one-off fee.

• Funds from operations (FFO) at $105.7 million (4.0 cps) with a payout ratio of 74.2%.

• Net tangible assets at $0.56 per security, impacted by valuation changes and above current trading price.

• Gearing reduced to 28.2% from 38.9% year-over-year, with liquidity of $504.3 million.

• Statutory loss of $22.6 million for FY25, a significant improvement from FY24's $531.6 million loss.

Outlook and guidance

• Distribution guidance reinstated and maintained at 3.0 cps for FY26, to be paid quarterly.

• Focus on disciplined, value-accretive growth, active asset management, and stable returns through prudent capital management.

• Barton ACT development to be completed in 2027, with plans to bring in third-party capital and yield on cost expected to exceed 6.3%.