Cromwell EREIT’s portfolio valuation dips 1.5% in 2H23

In 2H23, the REIT recorded a gross valuation fair value loss of 2.9%.

The valuation of Cromwell EREIT’s portfolio dipped by 1.5% or €34.1m ($49.75m) in 2H23 compared to 1H23.

Given the decline, the gross valuation fair value loss for 2H23 was 2.9%.

In a bourse filing, the REIT said it recorded a dip in its portfolio valuation after taking into account the benefit of valuation uplifts for properties under development in Italy, the Czech Republic and Slovakia, and before capital expenditure.

Overall, the REIT said its like-for-like portfolio valuation has only reduced by 3.5% over the past 18 months since the onset of rising interest rates.

The REIT said factors such as active leasing/renewals of approximately 33% of the portfolio, longer WALE of 4.7 years and higher rent growth largely offset the impact of the approximately 1% increase in discount rates and terminal cap rates across the portfolio.