Cromwell European Reit’s portfolio valuation down to $3.5b

The CEREIT’s portfolio reduced 1.6% compared to June 2022.

Cromwell European REIT (CEREIT) portfolio valuation went down $3.5b (€2.488b) as at 31 December 2022, according to its bourse filing.

“The portfolio valuation has slightly reduced by €39.3 million or -1.6% compared to the June 2022 valuation, taking into account the benefit of valuation increases on properties under development in Italy and Czech Republic,” read CEREIT’s report.

Its properties under Denmark and France showed slight valuation increases of $17.4m (€12.2m) and $3.4m (€2.4m), respectively, because of asset management enhancement initiatives and market rent growth. 

The Czech Republic portfolio valuation grew due to the increase in value of properties under development. 

Modest valuation decreases were reported in the Netherlands down by $36.2m (€25.4m) and the UK down by $23m (down by €16.6m). 

Valuations in Germany, Italy and Poland were also lower by about $8m-$9.9m (€6 - 7m) each, reflecting the higher capitalisation rates (“cap rates") caused by the recent increase in interest rates.