Net asset value (NAV) of CEREIT group stood at €879.4 million as at March 31, up 6.4% compared to the NAV of the CEREIT group as at Dec 31 2017. Based on the number of units in issue at the end of the reporting period, this translates to a NAV per unit of 55.9 Euro cents.
CEREIT recorded gross revenue amounting to €41.0 million during the reporting period, up from the IPO forecast of €40.7 million. Net property income (NPI) came in at €27.0 million, surpassing the IPO forecast of €26.3 million by 2.8% due to the better-than-expected performance by CEREIT’s Pan-European light industrial portfolio, which exceeded the IPO forecast NPI by €819,000.
CEREIT’s office portfolio and other assets performed largely in line with expectations.
Total property operating expense amounted to €14.0 million, down 2.8% from the IPO forecast, consequence of the manager’s strategy to rationalise operating costs while maintaining the quality of services.
Following an external valuation of the entire CEREIT property portfolio, the property portfolio is valued at €1.36 billion as at March 31. This is 3.9% higher than the agreed purchase price of the properties at IPO.
As at March 31, CEREIT’s portfolio has an 89.6% occupancy rate, up 1.9 percentage points compared to the portfolio occupancy rate as at April 30 2017; and CEREIT’s weighted average lease expiry (WALE) profile remained stable at 5.1 years.
CEREIT has a diversified tenant base comprising over 700 tenants, with the top 10 tenants accounting for approximately 41% of the portfolio’s total headline rent, down from approximately 44.2% as at April 30 2017, as a result of the manager’s continued initiatives to maintain a low tenant concentration risk.
Looking ahead, meeting and exceeding IPO Forecast through proactive asset management strategies and asset enhancement initiatives remains a top priority for the manager for the rest of 2018. Business plans include unlocking asset value through a proactive approach to acquisitions and disposals, as well as capitalising on the deep pool of acquisition opportunities, including those accessed through the sponsor, Cromwell Property Group’s extensive pan-European platform.
Shares in CEREIT closed 0.5 cent lower at 60 Euro cents on Wednesday.
