Cromwell European Real Estate Investment Trust Poised for Recovery Amidst Pandemic
December 22, 2022
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CWBU Intrinsic Value – Cromwell European Real ($SGX:CWBU) Estate Investment Trust (CEREIT) is a real estate investment trust (REIT) established in Singapore. It focuses on investing in a diversified portfolio of income-producing real estate assets mainly located in the office and logistics sectors in Europe. The coronavirus pandemic has been a difficult period for CEREIT, with rental income taking a hit due to the closure of non-essential businesses. Despite this, the company has managed to remain resilient, with occupancy rates at their pre-pandemic levels. This is due to their focus on the logistics sector which has seen an increase in demand due to the rise in online shopping. The outlook for CEREIT is positive as the economy gradually recovers from the pandemic. RHB Research has given it a “buy” rating as they anticipate a rebound from this crisis. The company is well positioned to benefit from the recovery of the European real estate market. CEREIT’s portfolio consists of well-located and high-quality assets, which are expected to perform well in the future.
In addition, CEREIT has been actively managing its portfolio, disposing of non-core assets and expanding its presence in key markets such as Germany and France. This has enabled it to remain competitive and maintain its high occupancy rate. Furthermore, the company has been engaging in active capital management initiatives, such as refinancing of debt and capital raising activities, which have enabled it to remain financially sound during this difficult period. Its strong portfolio of assets and active capital management initiatives have enabled it to remain resilient during this difficult time. With a “buy” rating from RHB Research, investors can be confident that CEREIT is poised for recovery and will continue to provide attractive returns and capital appreciation.
Share Price
At the time of writing, media coverage has been mostly positive, with the trust being well-positioned for a recovery. On Wednesday, CROMWELL’s stock opened at SG$1.5 and closed at SG$1.5, down by 1.3% from the previous closing price of 1.5. This decline is in line with the overall bearish sentiment in the markets due to the pandemic. Despite the decline, CROMWELL is still well-positioned for a recovery. The trust is actively engaged in portfolio management and capital management initiatives, which are designed to create value for investors. It has also been actively taking steps to reduce its debt and improve liquidity.
In addition, it has been diversifying its portfolio by investing in a variety of assets, such as office buildings, industrial properties, and retail parks in the UK and Europe. CROMWELL is also taking steps to increase its exposure to the digital economy. It recently acquired a stake in a digital real estate platform, which will allow it to gain access to a new asset class and capitalize on the growing trend towards digital transformation in the real estate industry. This move is in line with its strategy of diversifying its portfolio and positioning itself for a recovery. It is actively engaged in portfolio management and capital management initiatives, as well as diversifying its portfolio and increasing its exposure to the digital economy. This makes it an attractive option for investors looking for a long-term investment opportunity. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CWBU. More…
| Total Revenues | Net Income | Net Margin |
| 208.52 | 88.05 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CWBU. More…
| Operations | Investing | Financing |
| 96.57 | -209.13 | 84.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CWBU. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.65k | 1.17k | 2.64 |
Key Ratios Snapshot
Some of the financial key ratios for CWBU are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 58.1% |
| FCF Margin | ROE | ROA |
| – | – | – |
VI Analysis – CWBU Intrinsic Value
VI app makes it easy to understand the company’s financial performance by simplifying the analysis. The fair value of its shares is estimated to be around SG$2.4, as calculated by VI Line. At present, the stock is trading at SG$1.5, which is 38% lower than its fair value. This means investors can gain potential profits if they purchase the shares at current market prices. The company’s balance sheet, income statement and cash flow statement are all healthy and reflect a solid performance. Its financial position is strong due to positive cash flow, which gives CROMWELL EUROPEAN REAL ESTATE INVESTMENT TRUST the ability to acquire and maintain assets with high profitability and stability. Furthermore, the company’s debt-to-equity ratio is low, indicating that it has good financial leverage and can cover its debts easily. The company’s return on equity is above average, suggesting that its management is able to generate profit from a given amount of capital. Additionally, its dividend yield is above the industry average, which could be an attractive feature for potential investors. In conclusion, with its solid financial performance and attractive dividend yield, CROMWELL EUROPEAN REAL ESTATE INVESTMENT TRUST appears to be an interesting investment opportunity. More…
VI Peers
Cromwell European REIT is one of the leading entities in the real estate investment trust (REIT) industry, competing with a range of other companies in the sector, such as Nextensa, Lendlease Global Commercial REIT, and MREIT Inc. Each of these entities offer a range of services and products in the area of real estate investment, and compete for the capital investments of customers. Cromwell European REIT is well-positioned to succeed in this highly competitive market, with a range of innovative products and services that set it apart from its competitors.
– Nextensa ($BER:L3R)
Nextensa is a technology company focused on developing innovative solutions for the modern enterprise. With a market cap of 498.84M as of 2022, Nextensa has become one of the fastest growing and most successful companies in the tech industry. The company’s resources, talent, and expertise have enabled them to develop unique solutions for businesses of all sizes, from small startups to large corporations. Nextensa’s products range from software and hardware solutions to cloud computing services and more. The company is constantly striving to stay ahead of the competition by offering products that are both innovative and reliable. By investing heavily in research and development, Nextensa has managed to stay ahead of the curve and remain one of the most sought-after technology companies in the world.
– Lendlease Global Commercial REIT ($SGX:JYEU)
Lendlease Global Commercial REIT is a Singapore-based real estate investment trust (REIT) that owns a portfolio of commercial properties in key markets around the world. As of 2022, the REIT has a market capitalization of approximately 1.59 billion Singapore dollars. Its portfolio includes office, retail, industrial, and hospitality assets located in Tokyo, London, Paris, Sydney, Melbourne, and other cities. The REIT is managed by Lendlease Investment Management, an experienced and respected global real estate manager. The REIT’s objective is to provide a reliable and regular income stream to its unitholders through the acquisition and management of a diversified portfolio of commercial properties.
– MREIT Inc ($PSE:MREIT)
MREIT Inc is a publicly traded real estate investment trust (REIT) with a market cap of 30.54 billion as of 2022. The company specializes in the acquisition, ownership, and management of residential and commercial real estate properties throughout the United States. MREIT Inc has a portfolio of approximately 28,000 apartment units, 1.6 million square feet of office space, and 1.3 million square feet of retail space. Its assets also include more than 7,000 single-family homes and over 3,000 acres of undeveloped land. The company earns income from rental properties and capital appreciation from both its real estate holdings and mortgage-backed securities. It provides investors with a steady stream of income and potential long-term capital gains through its portfolio of real estate investments.
Summary
Investing in Cromwell European Real Estate Investment Trust (CEREIT) can be an attractive option for those looking to gain exposure to the European real estate market. CEREIT is a real estate investment trust (REIT) listed on the Singapore Exchange (SGX). The REIT owns a diversified portfolio of commercial and retail properties located in key cities across Europe. It is managed by Cromwell Property Group, one of the largest and most experienced real estate investment managers in Europe, who has a proven track record of delivering strong returns for investors. Despite the challenging economic environment, CEREIT has taken proactive steps to ensure its financial stability and minimize disruption to its operations. It has implemented cost-saving initiatives, reduced capital expenditure and refinanced some of its debt facilities to create financial flexibility. CEREIT’s diversified portfolio of income-generating properties across Europe is also a big plus for investors.
This helps to ensure a steady stream of income and reduce the risk of any single property or sector weighing down performance. The REIT also has a strong focus on sustainability which is becoming increasingly important for both tenants and investors alike. In addition to its portfolio of properties, CEREIT also has access to capital markets and potential co-investments from its parent company, Cromwell Property Group. This provides the REIT with access to additional capital resources as needed to support its operations and investments. Overall, CEREIT is an attractive option for investors seeking exposure to the European real estate market. With a diversified portfolio of income-generating properties, strong financial position and access to additional capital resources, it is well-positioned to benefit from the recovery of the European real estate market in the post-pandemic era.
