Cromwell Property’s Securities Placed In Trading Halt In Light Of Potential Capital Raising Event

  • Nov 26, 2018 AEDT
  • Team Kalkine
Cromwell Property’s Securities Placed In Trading Halt In Light Of Potential Capital Raising Event

Real estate investor Cromwell Property Group’s (ASX: CMW) securities were placed in a trading halt today (i.e., 26 November 2018) at the request of Cromwell Property Group to ASX. As per the request of CMW, the trading halt shall continue for two trading days or till the announcement is made regarding the details of a potential capital raising.

The company has requested this trading halt to avoid trading taking place on an uninformed basis. As per the company’s request, Cromwell is not aware of any other information which is required to be disclosed to the market at this stage in relation to the trading halt.

During FY 2018, the company reported a full-year statutory profit of $204.1 million. The company recorded an operating profit of $156.8 million for FY 2018 compared with an operating profit of $152.2 million in the previous corresponding period. The Operating profit per security for FY 2018 was 8.36 cent which was approximately 3% lower than the prior year but was 0.11 cent (1%) above the company’s expectations. The company’s total assets under management (AUM) increased by 14% to $11.5 billion driven in part by the successful IPO of the Cromwell European REIT, or CEREIT, in Singapore. CEREIT recently announced a proposed acquisition of 23 for a total purchase consideration of €384.4 million. These 23 assets will be financed partially financed through a Rights Issue, under which CEREIT is seeking to raise up to €224.1 million, and the remaining will be financed through debt.

The Net debt of the company decreased by $168.1 million in FY 2018 due to the proceeds from the issue of new securities which were used to repay the short-term bridging loans used to fund CECIF. The Gearing ratio of the company decreased from 45% in FY 2017 to 37% in FY 2018 as a result of the decrease in net debt combined with the increase in property valuations and asset acquisitions. The net tangible asset per security increased from $0.89 in FY 2017 to $0.96 in FY 2018 mainly due to the increase in property valuations which contributed 4.6 cents to the increase in NTA.

For FY 2019, the company is expecting the distribution payout ratio of approximately 90% of operating earnings. The company is expecting that the earnings per share will be around 8.0cps, and the Distributions will be not less than 7.25 cents per security in FY 2019.  Recently, the company announced the retirement of Mr. Marc Wainer from the role of Non-executive Director. In the month of November, Mr. Richard Foster was also retired from the role of Non- Executive Director, and Mr. Andrew Fay was brought in by the Board to replace him.

In the last six months, the share price of the company decreased by 4.63 percent as on 23 November 2018, traded at a PE level of 9.470x. CMW’s shares traded at $1.030 with a market capitalization of $2.05 billion as on 26 November 2018 (AEST 4:00 PM).


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