According to UBS analysts Terence Lee and Michael Lim, CEREIT’s management expects divestments to be possible ahead, while growth in incomes could help offset the effect of higher cap rates.
Analysts are still constructive on Cromwell European REIT’s (CEREIT) (SGX:CWBU
) valuations and divestments, after its business update for 1QFY2023 ended March revealed higher revenue and net property income (NPI) y-o-y.
Gross revenue for the quarter rose by 4.2% y-o-y to EUR54.8 million ($79.72 million) while NPI rose 3.6% y-o-y to EUR33.6 million. The growth in NPI was attributed to the 15.7% NPI growth in the light industrial/logistics sector. On a like-for-like basis, 1QFY2023 NPI was up by 4.2% y-o-y with the light industrial/logistics sector 9.5% higher and office also 1.8% higher.
