A real estate investor company, Cromwell Property Group (ASX: CMW) had concluded 2 big office leases with Unibet and 1 with Leap Dev at its building Symantec House in Sydney CBD.
A 1021 sqm office lease on the ninth floor for 5 years was taken out by Unibet while Leap Dev gained a 4- year lease on the eighth floor for 1569 sq m. Symantec House is owned by CMW, and the group had been handling the asset since mid-2013. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]
The property has a prime location which oversees Darling Harbour and is close to the area of Barangaroo office which is a leader in the business hub for the Asia Pacific region. CMW has been constantly working to be at par with the location’s development with substantial reconstructions at Symantec. In 2014, the premises got a freshly constructed lobby with safe end-of-trip amenities.
On 18 January 2019, CMW announced the extension received till 17 January 2020 on its on-market buyback which was a part of its continuing capital management programme. The extension happened as it was significant for CMW to uphold the highest amount of flexibility about its capital management plans to increase the worth for stapled shareholders. The company intends to buyback a maximum of 194,325,974 stapled securities.
On 25 September 2018, CMW published its annual report ending 30 June 2018. Cromwell recorded a profit of $204.1 million for the year ended 30 June 2018 (FY 2017: $277.5 million). The Trust recorded a profit of $288.4 million for the year ended 30 June 2018 (FY 2017: $261.1 million).
The most significant of the items impacting the profit of Cromwell for the year and not considered part of the underlying operating profit was: An increase in the fair value of investment properties of $77.4 million (2017: increase of $125.0 million), Gain on disposal of listed securities of $15.7 million (2017: $nil), Decrease of $76.1 million in the recoverable amount of goodwill and other assets (2017: $0.7m), Net non-operating gains in relation to equity accounted investments of $94.8 million (2017: loss of $1.7 million) and Net non-operating finance costs of $21.2 million (2017: $7.7 million).
Cromwell recorded an operating profit of $156.8 million for the year ended 30 June 2018 compared with an operating profit of $152.2 million for the previous corresponding period.
Operating profit reflected underlying earnings as $156.8 million, up 3.0% from the prior year result of $152.2 million. Total assets under management, post the successful IPO of the Cromwell European REIT (CEREIT) in Singapore, increased by 14% to $11.5 billion.
Operating profit per security for the year was 8.36 cents (2017: 8.65 cents). It represented a decrease of approximately 3% over the prior year but was 0.11 cents (1%) above its expectations. The change in operating profit per security arose as a result of several key factors, mainly: An increase in the number of securities on issue following the 175 million new securities issued in December 2017 under the strategic placement to SingHaiyi Group Ltd and Haiyi Holdings Pte Ltd and 37 million new securities issued in February 2018 under the Security Purchase Plan. A decrease in earnings from Cromwell’s property investment segment mainly as a result of the sale investment properties located in Queensland and the vacancy at Tuggeranong Office Park in the ACT. A decrease in earnings from Cromwell’s retail funds’ management segment. In the prior year, a $4.1 million one-off performance fee was earned from Cromwell’s Riverpark Trust compared with none in the current period.
By the end of the trading session (as at 14 February 2019), the stock of the company stood at A$1.080 with a market capitalization of approximately A$2.41billion.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.