Cromwell Property Group (CMW) H2 2025 earnings summary

Executive summary

• Completed $1.6 billion in asset and business sales since 2022, including the European platform and Polish Retail Fund, simplifying operations and focusing on Australia and New Zealand.

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

• Statutory loss of $22.6 million for FY25, a significant improvement from FY24's $531.6 million loss, mainly due to lower valuation losses.

• 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, down 20.6% year-over-year due to European exit and prior year one-off fee.

• Statutory loss of $22.6 million (0.9 cps) for FY25, compared to $531.6 million loss in FY24.

• Funds from operations (FFO) at $105.7 million (4.0 cps); payout ratio to FFO increased to 74.2%.

• Net tangible assets at $0.56 per security, down from $0.61 in FY24, impacted by fair value declines.

• Group gearing reduced to 28.2% from 38.9% in FY24, with liquidity of $504.3 million.

Outlook and guidance

• Distribution guidance reinstated and maintained at 3.0 cps for FY26, or 0.75 cps per quarter.

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

• Barton ACT development to be completed in 2027, fully pre-leased to the Commonwealth Government, with plans to bring in third-party capital.