Cromwell continues pivot to capital light fund manager - Cromwell Property Group
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Home Cromwell continues pivot to capital light fund manager

25/08/2022

Real estate investor and fund manager, Cromwell Property Group (ASX:CMW) (Cromwell), today delivers its full year results for the period ending 30 June 2022 (FY22).

FY22 Results Overview

  • Statutory profit of $263.2 million (FY21 $308.2 million) equivalent to 10.05 cents per security (FY21 11.78 cents per security);
  • Operating profit of $201 million (FY21 $192.2 million) equivalent to 7.68 cents per security (FY21 7.35 cents per security);
  • FY22 distributions per security of 6.5 cents, for a payout ratio on operating profit of 85% and 98% of Adjusted Funds From Operations (AFFO);
  • Net Tangible Assets of $1.04 (FY21 $1.02);
  • Gearing reduced to 39.6% (FY21 41.8%), within Cromwell’s target range of 30-40%;
  • Total assets under management stable at $12 billion (FY21 $12 billion);
  • Mr Jonathan Callaghan commenced as new Chief Executive Officer; and
  • Revised vision and strategy to support a more capital light funds management model.

Cromwell Chair Dr Gary Weiss, in commenting on the full year results, said, “Cromwell has once again proven to be a strong and resilient company, with our full year results achieved in challenging market conditions and during a period of change for the company.

“The year saw the appointment of Jonathan Callaghan as CEO, a leader who brings significant experience and capability to drive the renewed vision for the business, while the organisation also strengthened its senior management capability with various executive management appointments.

“Pleasingly, FY22 results mark a new era for the company under new leadership, underpinned by a fresh strategic vision to take us forward. The Board is confident in management’s ability to execute on the strategy and to deliver continued strong, ongoing returns to our securityholders,” Dr Weiss said.

Commenting on the FY22 results, Cromwell CEO Jonathan Callaghan said:

“I’m pleased to report a solid result, with management activities undertaken throughout the year focused on building the foundations for our renewed vision. We are fully committed to pivoting Cromwell to become a simpler and more capital efficient business with a greater focus on driving securityholder returns through funds and asset management.

“Similar to FY22, the current financial year will be one of change as we continue to simplify the business and focus on reallocating capital from non-strategic investments to new opportunities which will drive growth in our funds management platform. The management team will continue to take a measured approach to progressively implementing our renewed strategy, taking into account prevailing market conditions, to ensure actions taken are in the best long-term interests of our securityholders.

“Cromwell has also identified further non-core assets to be sold which will initially further reduce gearing, but importantly provide liquidity to capitalise on more targeted opportunities to grow its funds management platform,” Mr Callaghan said.

The full ASX Announcement can be viewed here.