Key Highlights

  • Funds from Operations (FFO) reached $110.3 million, up 5.0% on FY25, equivalent to 4.2 cents per security, with statutory profit of $135.8 million.
  • Assets under management grew 11.4% to $4.7 billion, supported by the establishment of the Cromwell Industrial Partnership and Brisbane office venture.
  • Investment Portfolio occupancy was 95.6%, with a weighted average Lease expiry of 4.6 years and portfolio value increasing to $2.2 billion.
  • The Group expects to pay a distribution of 3.1 cents per security in FY27, with gearing of 31.6% and Liquidity of $370.8 million supporting continued growth.

Cromwell Property Group (ASX:CMW) share price was trading at $0.40, down 2.44% or $0.0100 on the day, as at 27 August 2026, 11:55am AEST, as the company announced its results for the year ended 30 June 2026. Funds from Operations was $110.3 million, up 5.0% on FY25 on a like-for-like basis, equivalent to 4.2 cents per security, with statutory profit of $135.8 million, equivalent to 5.2 cents per security. Cromwell adopted FFO as its primary Earnings measure from FY26, moving away from Operating Profit, which the company said provides a clearer view of operating performance and improved comparability with industry peers.

CEO Jonathan Callaghan said the Group delivered on its strategic priorities in FY26, growing its Investment management platform, expanding institutional Capital partnerships and maintaining resilient investment portfolio performance. 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.

Investment Portfolio Performance Remains Resilient

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

Active asset management initiatives contributed to leasing outcomes, including completion of the 400 George Street, Brisbane lobby upgrade, which supported the Queensland State Government's exercise of its three-year lease option and extended 20,800 square metres of FY27 lease expiries to 2030. This underpinned a $98 million valuation uplift to $450 million at 30 June 2026 for that asset.

Investment Management Platform Expands

Cromwell continued to execute its strategy to grow and diversify its Investment Management platform, with the establishment of the Cromwell Industrial Partnership and the Brisbane office venture adding $748.0 million of new institutional mandates. This figure includes the $478 million Cromwell Industrial Partnership acquisition, $113 million in additional industrial mandates, and the $157 million Creek Street mandate, broadening the Group's sector capability and strengthening fee income.

The Group progressed key development initiatives, including completion of the final stage of Kilsyth Connect in Melbourne in June 2026, and commencement of Stage 2 of Cavan Connect Logistics Park in Adelaide following a new tenant precommitment for over 6,200 square metres. The Barton1 development in the ACT, a 19,800 square metre office development that is 100% pre-leased to a major Commonwealth Government department on a 15-year lease, is progressing on schedule and to budget, with completion expected by the end of FY27.

Balance Sheet Strength and Asset Sales

Cromwell's Balance Sheet remained positioned to support growth initiatives, with headline gearing of 31.6%, liquidity of $370.8 million and $1.5 billion of net assets at 30 June 2026. The Group maintained covenant headroom, with LVR of 36.8% against a 60% covenant and ICR of 4.3 times against a 2.0 times covenant. Net Tangible Assets were 57.5 cents per security.

During the financial year, Cromwell completed three asset sales from the Cromwell Direct Property Fund for $268 million, above prior book value, with proceeds returned to investors as the asset realisation and fund wind-up process continues. This includes 100 Creek Street, Brisbane, contracted for sale and due to settle in September 2026.

Sustainability Credentials and FY27 Outlook

Cromwell achieved five-star ratings in all applicable PRI categories during FY26, improved to a 5/5 GRESB Assessment rating, maintained a Public Disclosure Rating of A, and was included 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.

Cromwell enters FY27 focused on continuing to scale its investment management platform, expanding institutional and wholesale capital relationships, and progressing Barton1 to completion. The Group expects to pay an increased annual distribution of 3.1 cents per security for FY27, to be paid quarterly, and said positive market momentum is expected to continue for most markets, supported by firming Demand for high quality real estate and constrained Supply of office space.

Conclusion

Cromwell Property Group's FY26 results reflect growth across both its core Investment Portfolio and its expanding Investment Management platform, with the transition to FFO as its primary earnings measure providing what the company describes as clearer alignment with industry peers. The combination of resilient portfolio occupancy, an expanded institutional mandate base and a balance sheet carrying moderate gearing and considerable liquidity positions the Group to continue its stated growth strategy into FY27, with the increased FY27 distribution guidance and progress on the Barton1 development representing near-term markers of that trajectory.