Key Highlights

  • Funds from Operations (FFO) of $110.3 million for FY26, up 5.0% on FY25, equivalent to 4.2 cents per security
  • Statutory profit of $135.8 million for the year, equivalent to 5.2 cents per security
  • Assets under management increased 11.4% to $4.7 billion, supported by new institutional mandates
  • Investment Portfolio occupancy stood at 95.6%, with a weighted average Lease expiry of 4.6 years and portfolio value of $2.2 billion

Share Price Movement

Shares in Cromwell Property Group (ASX:CMW) were trading at $0.38 on 3 September 2026, up 0.53%, or 0.2 cents, as at 1:46pm AEST. The move follows the company's 27 August 2026 release of its results for the year ended 30 June 2026, in which Cromwell reported growth in both funds from operations and Assets under management.

Financial Performance

Cromwell reported FFO of $110.3 million for FY26, up 5.0% on FY25 on a like-for-like basis, equivalent to 4.2 cents per security. Statutory profit for the year was $135.8 million, or 5.2 cents per security. The company noted this was the first year it adopted FFO as its primary Earnings measure, moving away from Operating Profit, a change it said provides a clearer view of operating performance and improves comparability with industry peers.

Total continuing segment EBIT increased 2.7% to $171.0 million, with Investment Management EBIT increasing to $14.7 million and Co-investment EBIT increasing to $6.4 million. The company's Balance Sheet showed headline gearing of 31.6%, Liquidity of $370.8 million, and $1.5 billion of net assets at 30 June 2026, with Net Tangible Assets of 57.5 cents per security. Covenant headroom remained, with loan-to-value ratio at 36.8% against a 60% covenant and Interest Cover ratio of 4.3 times against a 2.0 times covenant.

Investment Portfolio Performance

Cromwell's Investment Portfolio maintained occupancy of 95.6%, with a weighted average lease expiry of 4.6 years, and secured 28,607 square metres of new or renegotiated leases during the year. Portfolio value increased to $2.2 billion, with valuation gains of 4.7% across the group's seven stable assets, as increases in some assets more than offset declines in others. The weighted average Capitalisation rate across the portfolio was 7.20%, compared with 7.07% at FY25.

A notable contributor was the completion of the lobby upgrade at 400 George Street, Brisbane, which supported the Queensland State Government's exercise of a three-year lease option and extended 20,800 square metres of FY27 lease expiries out to 2030. This underpinned a $98 million valuation uplift to $450 million at 30 June 2026 for that asset.

Investment Management Growth

Cromwell's assets under management increased 11.4% to $4.7 billion during FY26, reflecting continued execution of the group's investment management growth strategy. The establishment of the Cromwell Industrial Partnership and the Brisbane office venture added $748.0 million of new institutional mandates during the year, comprising the $478 million Cromwell Industrial Partnership acquisition, $113 million in additional industrial mandates, and the $157 million Creek Street mandate.

The company progressed several development initiatives, including completion of the final stage of Kilsyth Connect in Melbourne in June 2026, and the commencement of Stage 2 of Cavan Connect Logistics Park in Adelaide following a new tenant pre-commitment for over 6,200 square metres. The Barton1 development in the ACT, a 19,800 square metre office development fully pre-leased to a Commonwealth Government department on a 15-year lease with a five-year option, remains on schedule and budget, with completion expected by the end of FY27.

During the year, Cromwell also completed three asset sales from the Cromwell Direct Property Fund for $268 million, above prior book value, with proceeds returned to investors as the fund's realisation and wind-up process continues.

Sustainability and Distribution Outlook

Cromwell reported achieving five-star ratings in all applicable PRI categories, a 5/5 GRESB Assessment rating, a Public Disclosure Rating of A, and inclusion in the S&P Global Sustainability Yearbook 2026. Over four years, the group has reduced Scope 1 and Scope 2 market-based emissions by 96% from its FY22 baseline, while maintaining 100% operational renewable electricity and increasing solar PV capacity to 2,450kW.

The Group expects to pay an increased annual distribution of 3.1 cents per security for FY27, to be paid quarterly, and stated it will continue to focus on scaling its investment management platform, expanding institutional and wholesale capital relationships, and progressing the Barton1 development to completion.

Conclusion

Cromwell Property Group's FY26 results reflect growth in both its recurring earnings base and its investment management platform, with FFO increasing 5.0% and assets under management expanding 11.4% to $4.7 billion through new institutional mandates. The Investment Portfolio maintained occupancy above 95% despite broader market conditions, supported by valuation gains across the majority of the group's stable assets and an uplift tied to the 400 George Street lease extension. With an increased distribution guided for FY27 and several development projects, including Barton1, progressing on schedule, the group's continued execution against its stated growth strategy will remain a focus through the year ahead.