Cromwell European REIT suffers 9.5% DPU decline on asset sales impact

Apart from lower DPU, the REIT recorded lower net property income. 

Cromwell European REIT suffered a 9.5% YoY decline in its distribution per unit, which fell to €0.07050 ($0.10), primarily due to the impact of asset sales and higher interest costs.

Apart from lower DPU, the REIT recorded lower net property income and income available for distribution in H1 2024.

NPI in H1 fell 4.4% YoY to €65.51m ($95m), whilst income available for distribution declined 9.5% YoY to €39.65m ($57.5m).

The REIT attributed its NPI decline to the loss of rental income from assets divested since June 2023.  The outperformance of the Dutch office portfolio partially offset the decline.

On a like-for-like basis, however, NPI increased by 2.3% YoY to €64.7m ($93.8m), driven by higher income from new leases with strong positive rent reversions, notably at Haagse Poort in The Hague.