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Highlights

  • Cromwell is an Australian real estate investment trust and a property fund manager
  • In FY23, CMW’s third-party AUM increased by 2.5% YoY to AUD 8 billion
  • As of June 2023 end, the company had sold AUD 505.8 million of assets since the initiation of non-core sale campaign in December 2021

Cromwell Property Group (ASX: CMW) is a fund manager and real estate investor which operates across Europe, New Zealand and Australia. The company caters to an international investor base and its platform comprises over 350 employees in 15 countries.

The company announces dividends on quarterly basis, and recently it had announced an interim dividend of AUD 0.008 apiece, with pay date of 17 November 2023.

In the financial year 2023 (FY23), the company undertook significant steps to simply its business to focus on its core funds and asset management capabilities.

During the reported period, the company witnessed a 21.1 % YoY drop in  operating profit to AUD 158.6 million, while its third-party assets under management increased by 2.5% YoY to AUD 8 billion.

The period recorded a loss because of unrealized fair value adjustments to investment properties. However, group investment and leasing activities grew.

Top 10 shareholders of CMW

The top 10 shareholders of CMW have around 56.22% shareholding in the firm, while the top four have approximately 43.91% shareholding. ARA Real Estate Investors XXI Pte. Ltd. and Tang (Gordon) have the maximum stakes in the group, with a shareholding of 23.57% and ~7.18%, respectively.

Recent business update

Through an ASX-filing dated 12 December 2023, the company informed that it has promoted the existing fund manager and executive team member, Michelle Dance to the role of CFO. Michelle will take up the responsibilities of CFO from 1 January 2024.

She carries more than 30 years of corporate experience and had held high-profile positions at some of the leading organization in the Australian real estate and finance space.

Outlook

The company is focused on simplifying its business by focusing on its asset management capabilities and key core funds. The focus is on reducing debt to protect balance sheet, tapping growth and diversification opportunities for the funds management platform and also towards environmental social and governance improvements with multiple initiatives.

Moreover, the company intends to continue the sale of its non-core assets. As of June 2023 end, the company had sold AUD 505.8 million of assets since the beginning of non-core sale program in December 2021.

Share performance of CMW

CMW shares closed 6.90% higher at AUD 0.465 apiece on 14 December 2023 with a market capitalization of AUD 1.13 billion. With this, CMW’s share price has dropped by 10.58% in the last six months and has increased by 24% in the last one month.

The 52-week high of CMW is AUD 0.76, recorded on 6 February 2023, and the 52-week low is AUD 0.31, recorded on 31 October 2023. 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 14 November 2023. The reference data in this report has been partly sourced from REFINITIV.