Cromwell Property Group reported a 5% rise in funds from operations (FFO) to $110.3 million for the year ended June 30, alongside a $748 million increase in institutional capital mandates, according to FY26 results presented on August 27.
Net tangible assets per security climbed 3.6% to 57.5 cents, while statutory profit swung to $135.8 million from a $22.6 million loss in FY25. The group attributed the statutory profit improvement to $66.3 million in fair value gains on investment properties. Corporate costs fell 17% and net financing costs dropped 31.5% to $33.3 million.
Investment management earnings before interest and tax (EBIT) rose 77.1% to $14.7 million, driven by a 700% surge in co-investment EBIT to $6.4 million, which included $4.3 million in deferred consideration from the Campbell Park sale. The investment portfolio EBIT declined by $7.5 million due to a nine-month vacancy at 400 George Street in Brisbane, though the asset’s valuation increased by $98 million to $450 million as of June 30.
Total portfolio valuation rose by $93.7 million, with core portfolio valuations up 4.7% to $2.1 billion. The group maintained conservative gearing at 31.6%, below its 30–40% target range, and held liquidity of $370.8 million. Debt metrics improved, with the weighted average debt maturity extending to 3.2 years and 85.5% of debt hedged at a weighted average cost of 5.0%.
Institutional capital grew 11.4% to $4.7 billion, including $478 million from the acquisition of the Cromwell Industrial Partnership’s seven core assets and $113 million in additional industrial mandates. Funds under management in the investment platform reached $2.4 billion, up 18% since FY24.
Portfolio occupancy stood at 95.6%, down from 97.6% in FY25, with a weighted average lease expiry of 4.6 years. The Queensland State Government extended its lease at 400 George Street to 2030, covering approximately 20,800 square meters. Management noted that FY27 would represent "a bit of a trough year" for FFO due to lease expiry timing.
ESG performance improved, with scope 1 and 2 emissions falling 96% to 592 tonnes of CO2 equivalent from a FY22 baseline of 15,080 tonnes. The group achieved a NABERS energy rating of 5.4, placing it third in the 2026 NABERS Office Energy Sustainability Performance Index.
