So what gives? For one, trading prices can be notoriously volatile. Yet, both REITs are trading at around 0.63 times price to net asset value (P/NAV).
A stark difference between the two European-focused REITs, IREIT Global (SGX:UD1U
) and Cromwell European REIT (CEREIT) (SGX:CWBU) , is their yield. Based on their historic DPU, as at May 9, IREIT is trading below 8% while CEREIT is priced at 11%.
Interestingly, based on their operating metrics in FY2022 ended December 2022, CEREIT came out better, with higher occupancy rates of 96% versus just 88.3% for IREIT. CEREIT announced positive rental reversions of 5.7% in FY2022, compared to IREIT’s more modest 5.2% rental reversion.
