The manager of CERT declared a DPU of 1.45 Euro cents (2.32 cents) from its listing on Nov 30 2017 to March 31, exceeding the IPO forecast by 3.5%.
Based on the IPO issue price of 55 Euro cents per unit, this translates to a 7.86% annualised distribution yield, which is 3 percentage points higher than the IPO forecast.
See: Cromwell European REIT declares inaugural DPU of 1.45 Euro cents, 3.5% above IPO forecast
“Our confidence in [CEREIT] delivering on DPU accretive acquisitions is due to the strong investor support as seen by the 10% share price rally since its listing and its sponsor, Cromwell Property Group’s (CPG) expertise,” Song says.
The manager of CEREIT has signalled that meeting and exceeding its IPO forecast – through proactive asset management strategies and asset enhancement initiatives – will remain a top priority for the rest of 2018.
“We believe [CEREIT] delivering or exceeding its IPO forecasts will provide assurance over management’s ability to manage its portfolio, as well as supporting the theme of rising rents on the back of an improving European economy. In our view, this would act a rerating catalyst for the stock,” Song says.
As at 4.32pm, units of CEREIT are trading 1 Euro cent higher, or up 1.6%, at 62 Euro cents. This implies an estimated price-to-earnings ratio of 15.4 times and a distribution yield of 7.4% for FY19.
