Should You Invest In Cromwell European REIT [Fundamental Analysis]

In this article, we'll be conducting a fundamental analysis of Cromwell European REIT and its suitability to achieve the following investment objective: To deliver a stable dividend yield of 5% to 6% per year while having a high degree of capital preservation ability.

Information Is Accurate Up To Jan 2024

Business Description

Cromwell European REIT is an Office and commercial REIT that was listed in 2018 and owns 113 properties across Europe. They are listed in Singapore with two separate denominations in EURO (CWBU) and SGD (CWCU)

What I Like About Cromwell REIT:

• Distribution has been relatively stable (Fig 8)
  

• Weighted Average Lease Expiry is well managed (Fig 12)
  

• Management has a clear strategy, is pre-emptive and takes action to adjust the property portfolio to adapt to current trends. Currently, they are pivoting and diversifying away from office exposure into light industrial to manage the threats of WFH trends and take advantage of the onshoring trends. 

What I Do Not Like About Cromwell REIT:

• The counter is very illiquid (Especially for the SGD counter).