Cromwell released a solid result. Underlying profit was flat year-on-year, with earnings per share down because of the additional securities on issue as part of the Valad Europe acquisition. (This acquisition was completed on 31-Mar-15, and will thus make a full year contribution in FY16.)
Net property income, on a like-for-like basis increased 2.2%. The lease expiry profile also improved, with a weighted average lease expiry of 6.5 years (was 5.9 years on 30-Jun-14). Vacancy was higher than ideal (occupancy was 94.6%), but still better than the market averages.
Earnings from Cromwell's funds business increased significantly in FY15, albeit off a low base. They are expected to make a meaningful contribution to future earnings and growth.
Cromwell released conservative guidance for FY16 - with operating earnings to be not less than 9.0cps (as compared to 8.4cps for FY15), and distribution growth of 3%.