“We believe this is a key strategy, especially since the existing bond was priced at a very low rate of 2.1%. The cost of refinancing this bond will significantly impact its distributions, serving as a ‘final reset’ before we see stability in distribution growth, with the exception of any black swan events,” says Tan.
Analysts at OCBC Investment Research (OIR) and PhillipCapital Securities have kept “buy” on Cromwell European REIT (CEREIT) with higher fair value estimate and target price of EUR1.89 and EUR1.95 respectively following the release of its 3QFY2024 ended September results.
In his Nov 5 report, OIR analyst Donavan Tan notes that the REIT has secured a new EUR340 million debt facility in preparation for its EUR450 million bond, which expires in November 2025. This will provide CEREIT with some bargaining power when pricing a new bond to refinance this among as it offers liquidity for the refinancing, he adds.
