The company has announced an equity raising to pay down debt and fund the CEREIT acquisition. The $300m equity raising will be via a rights issue. Macquarie calculates this is around -5% dilutive to FY19 earnings in isolation.
Cromwell Property Group’s first half results were ahead of the broker’s forecast. FY16 guidance for a 9c distribution implies second half earnings will be lower, although the broker thinks this looks conservative.
Cromwell’s result beat the broker, driven by fixed lease increases, accretion from the Valad Europe acquisition and lower interest costs but also a performance fee on the sale of the Box Hill Trust. Despite a material beat on first half guidance, FY guidance has been retained.