Cromwell Property Group reported a 5% increase in funds from operations (FFO) to AUD 110.3 million for the year ended June 30, 2026, driven by portfolio valuation gains and higher funds under management.
Net tangible assets (NTA) per security rose 3.6% to AUD 0.575, while total portfolio valuations increased 4.7% year-over-year, marking the third consecutive six-month period of gains. The group maintained a conservative gearing ratio of 31.6%, within its target range of 30% to 40%, and reported liquidity of AUD 370.8 million. Loan-to-value stood at 36.8%, well below the 60% covenant, and interest coverage was 4.3 times, exceeding the 2.0 times requirement.
Institutional capital inflows totaled AUD 748 million, lifting funds under management (FUM) by 11.4% in FY 2026 and 18% since FY 2024 to AUD 4.7 billion across Australia and New Zealand. The Cromwell Industrial Partnership portfolio, comprising seven industrial assets valued at AUD 478 million, reported 98.6% occupancy with a weighted average lease expiry of 4.7 years.
Portfolio occupancy in the core investment portfolio reached 95.6%, with no major vacancies anticipated until FY 2028. Leasing activity included more than 28,000 square meters of new or renegotiated leases, though a temporary 7,000-square-meter vacancy at 400 George Street in Brisbane weighed on EBIT. The space was leased effective July 1, 2026, and lobby upgrades secured a 20,800-square-meter lease extension with the Queensland Government through FY 2030.
Management guided FY 2027 FFO distribution to AUD 0.031 per security, noting FY 2027 as a trough year due to lease expiry profiles. Larger lease expiries are scheduled for FY 2028 and FY 2032. The group also reported a 96% reduction in market-based Scope 1 and Scope 2 emissions from its FY 2022 baseline.
Cromwell’s shares traded down 2.44% at AUD 0.403, yielding 6.7% with a 6.5x P/E ratio. InvestingPro’s fair value estimate stands at AUD 0.80, implying 63% upside potential.
