Natarajan notes that the REIT’s DPU decrease is mainly from the absence of contributions from three assets sold, as well as higher interest expenses.
Analysts from RHB Bank Singapore and DBS Group Research are lowering their target prices for Cromwell European REIT (CEREIT), following the REIT’s 1HFY2024 ended June 30, which saw a 9.5% lower y-o-y distribution per unit (DPU) of 7.05 Euro cents (10 cents).
However, with increasing odds of interest rate cuts, and the REIT’s gearing that has been “kept under control”, both brokerages are keeping their “buy” calls on the REIT. RHB’s Vijay Natarajan is lowering his target price to EUR1.90 from EUR2.05 previously, and DBS’s Dale Lai and Derek Tan have lowered their target price to EUR1.90 from EUR2 previously.
