SGX:CNNU

Stock Analysis Report

Cromwell European Real Estate Investment Trust

Executive Summary

Cromwell European REIT is a real estate investment trust (“REIT”) with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of income-producing real estate assets in Europe that are used primarily for office, light industrial / logistics, and retail purposes.


Snowflake Analysis

Good value second-rate dividend payer.

Share Price & News

How has Cromwell European Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CNNU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

CNNU

-1.5%

SG REITs

-1.2%

SG Market


1 Year Return

11.9%

CNNU

11.9%

SG REITs

-4.4%

SG Market

Return vs Industry: CNNU matched the SG REITs industry which returned 11.9% over the past year.

Return vs Market: CNNU exceeded the SG Market which returned -4.4% over the past year.


Shareholder returns

CNNUIndustryMarket
7 Day-3.4%-1.5%-1.2%
30 Day3.7%-1.5%-3.1%
90 Day9.7%1.6%-2.3%
1 Year25.1%11.9%18.5%11.9%-0.5%-4.4%
3 Yearn/a48.1%23.0%8.0%-3.4%
5 Yearn/a56.0%12.6%7.6%-10.5%

Price Volatility Vs. Market

How volatile is Cromwell European Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Cromwell European Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNNU (€0.57) is trading below our estimate of fair value (€0.82)

Significantly Below Fair Value: CNNU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CNNU is good value based on its PE Ratio (12.3x) compared to the REITs industry average (14.7x).

PE vs Market: CNNU is good value based on its PE Ratio (12.3x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: CNNU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CNNU is overvalued based on its PB Ratio (1.1x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Cromwell European Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNNU's earnings are forecast to decline over the next 3 years (-0.3% per year).

Earnings vs Market: CNNU's earnings are forecast to decline over the next 3 years (-0.3% per year).

High Growth Earnings: CNNU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CNNU's revenue is expected to decline over the next 3 years (-6.6% per year).

High Growth Revenue: CNNU's revenue is forecast to decline over the next 3 years (-6.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNNU's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Cromwell European Real Estate Investment Trust performed over the past 5 years?

37.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: CNNU has a large one-off gain of €44.4M impacting its December 31 2019 financial results.

Growing Profit Margin: CNNU's current net profit margins (61.6%) are lower than last year (63.4%).


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if CNNU's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare CNNU's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: CNNU earnings growth over the past year (37.8%) exceeded the REITs industry 2.6%.


Return on Equity

High ROE: CNNU's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is Cromwell European Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CNNU has a high level of physical assets or inventory.

Debt Coverage by Assets: CNNU's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: CNNU's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CNNU has a sufficient allowance for bad loans.

Low Risk Liabilities: CNNU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CNNU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CNNU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CNNU has an appropriate level of bad loans.


Next Steps

Dividend

What is Cromwell European Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

7.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CNNU's dividend (7.22%) is higher than the bottom 25% of dividend payers in the SG market (2.57%).

High Dividend: CNNU's dividend (7.22%) is in the top 25% of dividend payers in the SG market (5.66%)


Stability and Growth of Payments

Stable Dividend: CNNU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CNNU has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (91%), CNNU's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNNU's dividends in 3 years are not forecast to be well covered by earnings (113.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Simon Garing (50yo)

1.4yrs

Tenure

Mr. Simon Robert Garing has been Chief Executive Officer of Cromwell EREIT Management Pte. Ltd. at Cromwell European Real Estate Investment Trust since 2019. He serves as Non-Independent Executive Director ...


Leadership Team

NamePositionTenureCompensationOwnership
Simon Garing
CEO & Executive Director of Cromwell EREIT Management Pte. Ltd.1.4yrsno datano data
Shane Peter Hagan
Chief Financial Officer of Cromwell EREIT Management Pte Ltd0.8yrsno datano data
Elena Arabadjieva
COO & Head of Investor Relations of Cromwell EREIT Management Pte Ltd1.4yrsno data0.00078% 11.1k
Thierry Leleu
Chief Investment Officer of Cromwell EREIT Management Pte Ltd0yrsno datano data
Yoke Tham
Head of Legal1.7yrsno datano data
Yi Kim
Company Secretary of Cromwell EREIT Management Pte Ltd0yrsno datano data

1.4yrs

Average Tenure

50yo

Average Age

Experienced Management: CNNU's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Simon Garing
CEO & Executive Director of Cromwell EREIT Management Pte. Ltd.1.4yrsno datano data
Swe Guan Lim
Chairman of Cromwell EREIT Management Pte Ltd0yrsno data0.021% 306.3k
Paul Weightman
Non-Independent Non-Executive Director of Cromwell EREIT Management Pte Ltd3.1yrsno datano data
Christian Delaire
Independent Non-Executive Director of Cromwell Ereit Management Pte. Ltd2.5yrsno datano data
Ai Lian Fang
Independent Non-Executive Director of Cromwell EREIT Management Pte Ltd0yrsno datano data

2.5yrs

Average Tenure

58yo

Average Age

Experienced Board: CNNU's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CNNU insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 37.9%.


Top Shareholders

Company Information

Cromwell European Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cromwell European Real Estate Investment Trust
  • Ticker: CNNU
  • Exchange: SGX
  • Founded: 2017
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: €1.427b
  • Shares outstanding: 2.55b
  • Website: https://www.cromwelleuropeanreit.com.sg

Number of Employees


Location

  • Cromwell European Real Estate Investment Trust
  • 50 Collyer Quay
  • No. 07-02, OUE Bayfront
  • Singapore
  • 49321
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNNUSGX (Singapore Exchange)YesUnitsSGEURDec 2017
CSFUSGX (Singapore Exchange)YesUnitsSGSGDDec 2017

Biography

Cromwell European REIT is a real estate investment trust (“REIT”) with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of income-producing real estate assets in Europe that are used primarily for office, light industrial / logistics, and retail purposes. With a portfolio of 102 properties as at 12 November 2019 in or close to major gateway cities in Denmark, Finland, France, Germany, Italy, the Netherlands as well as Poland, and a balanced focus on the office and light industrial / logistics sectors, it is also the first REIT with a diversified Pan-European portfolio to be listed on Singapore Exchange Securities Trading Limited. As at 30 September 2019, CEREIT’s portfolio has an aggregate lettable area of approximately 1.5 million sq m with close to 1,000 tenant-customers and a WALE profile of around 4.6 years. Comprising primarily freehold or ongoing leasehold assets, the portfolio has an appraised value of approximately €2,082 million as at 30 September 2019. CEREIT is managed by Cromwell EREIT Management Pte. Ltd., a wholly-owned subsidiary of CEREIT’s sponsor, Cromwell Property Group16, a real estate investor and manager with operations in 15 countries, listed on the Australian Securities Exchange Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:20
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.