February 26, 2026
Cromwell annouces HY26 results
Cromwell Property Group (ASX:CMW) (Cromwell or the Group) announces its financial results for the half year ended 31 December 2025.
Cromwell Chief Executive Officer, Jonathan Callaghan, said: “This has been a successful half-year for Cromwell, with disciplined execution and solid operational performance across the platform.” Key highlights for the six months to 31 December 2025 include accelerated growth, strengthened financial performance, and continued progress across strategic initiatives.
Key Highlights
- Growth accelerated with the acquisition of an industrial management platform and a 19.9% stake in a $472 million Australian industrial portfolio (the Cromwell Industrial Partnership (‘CIP’)), establishing the foundation for a core pillar of the Group’s growth strategy.
- Group AUM rose 13.2% to $5.0 billion, driven by the industrial platform acquisition and stronger portfolio valuations.
- Operating performance strengthened, with operating profit up 1.5% for the six months ended 31 December 2025.
- The Group’s strong balance sheet provides financial flexibility for growth, with gearing at 30.2%1, significant liquidity of $418 million, and 71%1 of debt hedged, all as at 31 December 2025.
- Investment Portfolio valuations increased by 3.6%1, driven by a successful leasing strategy and high portfolio occupancy of 97.2%1.
- Investment management pipeline continues to build momentum with the Barton1 development progressing on schedule and within budget.
- Distribution guidance of 3.0 cps is reaffirmed for FY26.
We continue to build momentum as we progress our strategy and position the Group to deliver sustainable long-term growth.Jonathan Callaghan, Cromwell Chief Executive Officer
Financial performance
Cromwell reported an increase of 1.5% in operating profit to $55.9 million, supported by the continued strong performance of the Investment Portfolio, which recorded valuation gains of $72.0 million during the period. The Group reported funds from operations (FFO) of $55.3 million, equivalent to 2.11 cents per security, reflecting a payout ratio of 71.0%.
Net Tangible Assets (NTA) increased to $0.58 per security, up from $0.56 per security at 30 June 2025. NTA remains above the current trading price, highlighting the upside potential relative to the Group’s underlying asset base.
Gearing remains low at 30.2%1, providing substantial balance sheet capacity and maintaining significant headroom against debt covenant limits. Cromwell’s $418.0 million of liquidity supports continued flexibility for disciplined capital deployment into growth initiatives.
Investment portfolio performance
Cromwell’s Investment Portfolio delivered a strong performance over the six months to 31 December 2025, with valuations up 3.6% since FY25 to $2.1 billion1, driven by resilient asset fundamentals and improving market conditions. The uplift reflects both sustained leasing activity across key assets and continued stabilisation in valuation metrics as capital markets regain confidence.
Occupancy remains high at 97.2%1, supported by leasing of more than 23,000 square metres during the period. Material uplift was seen at Cromwell’s asset at 400 George Street, Brisbane, where key leases have been extended to 2030 following the exercise of a three‑year lease option by QLD State Government.
Positive market momentum is expected to continue through the remainder of the financial year, supported by firming demand for high‑quality real estate and constrained supply of office space. Together, these factors position the portfolio well for ongoing stable earnings and enhanced returns for investors as the Group continues its growth trajectory.
Strategic growth initiatives
Cromwell advanced its growth strategy during the half through three key initiatives.
Expansion into Australian industrial real estate
Cromwell completed Phase 1 of its transaction with Straits Real Estate Pte Ltd (SRE), acquiring a 19.9% interest in SRE’s industrial portfolio and its management platform, Terre Property Partners (TPP). TPP adds $567 million in AUM, deep industrial expertise and a proven team, strengthening Cromwell’s on-the-ground capability and supporting further growth in investment management.
Phase 2, launching shortly, will bring additional capital partners to the portfolio as it grows through acquisition and development. The existing seven-asset, $472 million logistics portfolio (cap rate 6.1%) provides scale and diversification, with assets in key logistics hubs of Bayswater (VIC) and Salisbury South and Port Adelaide (SA).
New wholesale fund launched
Cromwell launched the Cromwell Creek Street Investment Trust, with a ~$102 million capital raise underway to acquire 100 Creek Street, a 24-level, ~20,000 sqm Brisbane CBD tower. The asset is 94.3% occupied with a diversified tenant base.
The Fund targets an 8.0% p.a. monthly distribution yield, 100% tax-deferred distributions for the first two years, and a 15% target equity IRR over five years. Independent research has rated the Fund “Recommended.”
Barton1 development progressing to plan
Cromwell’s Barton1 development is forecast to complete on schedule and within budget for mid-2027 completion. The 19,800 sqm office building is fully pre-leased to a Commonwealth Government tenant on a 15-year lease, plus a 5-year option, providing long-term income security. Given the challenging development environment, the fixed-price contract, secured pre-lease, and strong tenant covenant position Barton1 as a rare and compelling opportunity.
Investment Management update
Growth in Cromwell’s Investment Management business was driven by the acquisition of TPP and the 19.9% interest in CIP during the period, and the Group now manages $2.8 billion across Australia and New Zealand.
The Cromwell Direct Property Fund (DPF) holds seven2 assets valued at $470.3 million, with the five direct assets valued at $396.5 million, representing a 1.3% valuation increase since at 30 June 2025. Portfolio occupancy remains high and unchanged at 96.4%, with the portfolio’s cap rate tightening to 7.7%.
DPF has commenced the wind up process following the Periodic Liquidity event voted for by investors in late 2025. As part of this process, the sale of 545 Queen Street settled on 19 December 2025, delivering $77 million in net proceeds after selling costs.
Outlook
The Group has made strong initial progress in implementing its strategy to grow third‑party funds under management, broaden our capability set and investor base, and bring to market new products in the office and industrial sectors, with continued work underway in the retail sector, which remains a key focus.
Capital deployment will continue to support growth through both organic initiatives and targeted inorganic opportunities, with an emphasis on strategic, value‑add acquisitions in Australia’s core sectors in partnership with new, aligned capital partners.
Cromwell will maintain strong occupancy across its Investment Portfolio to support income during the current growth phase, underpinned by targeted leasing campaigns, spec‑suite delivery, and capital works designed to enhance occupancy, grow WALE and rental income.
The Group continues to monitor its capital management position by preserving gearing headroom to enable opportunistic transactions, proactively managing refinancing to protect interest costs and liquidity, and maintaining disciplined capital allocation.
The Group reaffirms its expectation of an annual distribution of 3.0 cents per security for the 2026 financial year.
Footnotes:
- Excluding 475 Victoria Ave, Chatswood, which is classified as held for sale and includes Barton1, currently under development.
- DPF assets are comprised of 5 direct assets and 2 assets in underlying unit trusts.
Straits Trading and Cromwell form strategic partnership to strengthen Australian industrial and logistics platform
11/11/205
SINGAPORE / BRISBANE – 11 November 2025 – The Straits Trading Company Limited (SGX:S20) (“Straits Trading”), through its wholly-owned subsidiary Straits Real Estate Pte. Ltd. (“SRE”), and Cromwell Property Group (ASX:CMW) (“Cromwell”) today announced a strategic partnership to enhance their industrial and logistics platform across Australia.
Under a series of agreements executed in connection with the partnership, Cromwell will acquire a 19.9% interest in SRE’s Australian industrial portfolio for approximately AUD 47.6 million (SGD 40.5 million1), based on a total portfolio valuation of about AUD 470 million (SGD 400.1 million1). The transaction will be executed in two phases. Phase 1, expected to complete by 31 December 2025, involves the acquisition of the 19.9% interest in the seed portfolio and the purchase of Terre Property Partners Pty Ltd. (“TPP”), which oversees the assets comprising the portfolio. Phase 2 will comprise a recapitalisation of the seed portfolio and is expected to commence shortly after completion of Phase 1 and conclude in FY2026. This partnership combines Cromwell’s operational expertise, Straits Trading’s institutional strength and TPP’s deep sector expertise to drive long-term value creation and future fund initiatives.
The seed portfolio comprises seven high-quality industrial assets located in key logistics hubs across South Australia and Victoria which are leased to blue-chip tenants including Coca Cola Europacific Partners, Incitec Pivot and Wengfu. Strategically positioned within established precincts such as Bayswater, Salisbury South and Port Adelaide, the assets benefit from strong connectivity and resilient occupier demand.
Following the acquisition, the TPP team will operate as part of Cromwell’s platform, bringing deep sector expertise and a proven track record in managing and repositioning industrial assets. Their integration will enhance Cromwell’s on-the-ground capabilities and support the continued growth of its investment management business, while contributing to the development of a leading investment management platform aligned with Cromwell’s capital-light strategy. SRE will remain an investor in the portfolio, supporting future growth and capital deployment initiatives.
“We’re excited to join Cromwell’s platform and contribute to the next phase of growth,” said Mr Mark Brammy, CEO, and Mr Mark Pettman, COO of Terre Property Partners. “We’ve built deep expertise across the national industrial sector and have a proven track record in developing and repositioning value-add opportunities into prime grade institutional product. Cromwell’s strategic acquisition of Terre Property Partners, makes us well placed to continue delivering performance and scale, while contributing to the growth of a leading investment management business.”
“This strategic partnership marks an important milestone in our continued focus on optimising our industrial and logistics portfolio. Cromwell’s established presence and deep operational capabilities in Australia will augment our platform and position us for long-term value creation,” said Ms Chew Gek Khim, Executive Chairman of Straits Trading.
“This initiative reflects our continued progress in repositioning Cromwell as a capital-light, investment manager. By expanding our AUM, integrating a proven management team and partnering with an institutional investor of Straits Trading’s calibre, we’re strengthening our platform and creating new opportunities to partner with capital providers in sectors where we see long-term value,” said Mr Jonathan Callaghan, CEO of Cromwell Property Group.
Australia’s industrial and logistics market continues to demonstrate strong fundamentals, with vacancy rates around 1%2 and prime rents rising 5% to 8% year on year across key precincts3, underscoring the sector’s resilience and attractiveness as a long-term asset class. These favourable conditions provide a supportive backdrop for the partnership’s continued collaboration and capital redeployment across Australia.
The partnership reflects Straits Trading’s disciplined approach to capital recycling and portfolio optimisation, while advancing Cromwell’s strategy to grow its investment management business and expand assets under management through a capital-light model. Together, the collaboration provides a strong foundation for future fund initiatives and platform expansion across Australia. Both parties remain confident in the resilience of the industrial and logistics sector, supported by robust occupier demand and sustained investor interest, and will continue to focus on building institutional partnerships and delivering long-term value.
Read the full ASX announcement here
Footnotes:
1 Based on the AUD/SGD exchange rate of 0.8512 as at 10 November 2025. Future settlement amounts may vary as exchange rates fluctuate, potentially resulting in foreign currency gains or losses upon realisation.
3 https://www.cbre.com.au/insights/figures/figures-australia-industrial-and-logistics-q2-2025
Annual Results for Financial Year Ended 30 June 2025
28/08/2025
Cromwell Property Group (ASX:CMW) (Cromwell or the Group) announces its financial results for the year ended 30 June 2025.
Key highlights
- Strong portfolio performance, sector leading occupancy of 97.6%1, demonstrating Cromwell’s effective leasing strategy execution.
- Investment Portfolio valuations are up $3.5 million over six months, signalling office market stabilisation, supported by ongoing active asset management.
- Platform transformation delivered, with $1.6 billion in total asset sales since 2022 to reduce debt and enable focus on growth in the Australian funds management business.
- Strong balance sheet ready for capital deployment with low gearing of 28.2% and liquidity of$504.3 million to support growth.
- Funds Management growth pipeline initiated with Barton ACT development underway, featuring a 15-year lease to a Commonwealth Government tenant, with a 5-year extension option.
- Distribution guidance of 3.0 cps is provided for FY26, to be paid quarterly.
Financial performance
Cromwell reports operating profit of $108.6 million driven primarily by the strong ongoing performance of the Investment Portfolio. The Group reports funds from operations (FFO) of $105.7 million (4.0 cps) with a payout ratio of 74.2%. Net Tangible Assets (NTA) are $0.56 per security, well above the current trading price and offering a discounted buying opportunity. Gearing reduces to 28.2% following the sale of 475 Victoria Ave, Chatswood, down significantly from 38.9% at 30 June 2024. The Group has ample liquidity of $504.3 million, providing capital for deployment into value-accretive growth opportunities.
Investment portfolio performance
Strong portfolio performance over the period with sector-leading occupancy of 97 .6%1. Leasing markets remained active, with over 51,000 sqm2 of new or renegotiated leases committed during the financial year. Portfolio valuations increased by $3.5 million (0.17%) from HY25, reflecting a stabilisation in office market values. FY26 vacancy risk has been significantly mitigated through the signing of a Heads of Agreement with a government-funded organisation at 400 George Street, Brisbane which accounts for 55% of the forecast vacancy in that period.
Strategic growth initiatives
Cromwell’s strengthened balance sheet, with ample liquidity and low debt, will support future growth initiatives to drive securityholder value. Cromwell has commenced strategic capital deployment with the recently announced 19,800 sqm office development in Barton, ACT, leased to a Commonwealth Government tenant on a 15-year lease, with 5-year option to extend. This $201 million project is anticipated to deliver a yield on cost of more than 6.3%. Cromwell will introduce capital partners at the appropriate time to reduce its ownership stake, consistent with its transition to a capital-light investment management model.
Dr Gary Weiss, Chair of Cromwell, stated: “Much was achieved during the 2025 financial year to simplify the business and strengthen its financial position. The completion of the sale of non-core assets, including the European Platform, are key steps in simplifying the business structure and reducing Group gearing. Cromwell is now positioned as a well-capitalised, Australia/New Zealand-focused investment manager with capacity to undertake accretive growth initiatives in an improving market.”
Funds management update
Cromwell’s Funds Management business manages $2.1 billion across Australia and New Zealand. Transaction activity was muted, and valuations in the Cromwell Direct Property Fund (DPF) declined by 5.3% to $537 million over the financial year to 30 June 2025, and only 1.3% from HY25. In July 2025, DPF held a Full Periodic Liquidity Event with the outcome expected end September 2025. In December 2024, unitholders in the Cromwell Riverpark Trust also voted in favour to extend the Fund’s investment term by two years.
Register diversification following ESR exit
In May 2025, ESR Group divested 10.8% of its holding in Cromwell to a mix of new and existing institutional and sophisticated investors. In July 2025, ESR completed the sale of its remaining 19.9% interest in Cromwell to Brookfield Asset Management. The strong uptake reflects positive interest in Cromwell’s repositioned platform, strategic direction, and value proposition.
Board update
Mr Rob Blain will step down from the Board today but will continue to support Cromwell in an advisory capacity. In line with Cromwell’s commitment to a leaner and more agile operating structure, the Board has decided not to appoint a replacement for Rob. We express sincere thanks to Rob for his outstanding contributions to Cromwell’s strategic transformation.
Outlook
Looking ahead, Cromwell remains focused on active asset management of the current Investment Portfolio to maintain strong occupancy and continue to maximise rental income. Prudent capital deployment will drive growth through new product development, platform acquisitions, and strategic expansion of the investment management business.
Jonathan Callaghan, CEO of Cromwell, commented: “As Cromwell enters a growth phase, our priority remains on delivering stable, long-term growth through disciplined capital management and allocation. With a simplified business model, strong liquidity, and a high-quality portfolio, we are well positioned to take advantage of emerging market opportunities to create enduring value for our securityholders.”
To view the FY25 Results Presentation, click here.
Footnotes:
1 Excluding 475 Victoria Avenue, Chatswood, NSW, contracted for sale.
2 Includes Barton, ACT, currently under construction.