empty boardroom with chairs pushed in
Source: Henry Thai
  • Statutory profit of $146.8M, "a 35.4% reduction due to a lower fair value gain on investment properties"
  • A $100M rise on total value of investment properties held on balance sheet
  • Gearing at 42.5%, above the preferred 30%-40% range

A resilient Cromwell Property Group has weathered the COVID storm, posting statutory and operating profits of $146.8M and $99.1M respectively.

It has been a tough period for many companies, but the resilience of the market has shown generally healthy figures across many property and real estate companies.

A number have posted increases in profits, revenue, and other key markers, however the profits for Cromwell during this half-year reporting period are down.

Statutory profits represent a 35.4% drop, operating profits down by 26.8%.

Cromwell said in a statement to the ASX the falls in profit was due to ” a lower fair value gain on investment properties versus the prior comparable period,” and “due to the development fees from the sale of Northpoint Tower being recognised in the prior comparable period”.

The company is positive about the results though, Acting CEO Michael Wilde said:

“Cromwell has successfully navigated the global complexities of COVID-19 without significant disruption.

Our assets have proven to be resilient, our cost of debt is at an historic low, we have ample liquidity and substantial headroom on banking covenants,”

In other figures, Cromwell stated their direct property investment segment profit came in at $77.1M, down from the previous corresponding period of $105.7M, and an increase in like-for-like net operating income of 3.6%, up from 3.0%.

Cromwell’s European REIT fared slightly better, operating profits were $22.5M, a smaller gap to their last corresponding period of $22.8M.

These figures may not show as much promise as many other companies, however the COVID impact seemed small, Cromwell reporting only 0.7% of rent was waived for the reporting period, 6.1% deferred.

The company is calling it slow and steady wins the race, Mr Wilde said:

“2021 will be transitionary year dominated by COVID-19,”

The search for a new CEO continues, with Board Chair Jane Tongs, and directors Tanya Cox and Lisa Scenna re-elected earlier this month.

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