Investment Matters

Cromwell Group

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%.

Cromwell Group 10 Sep 15