First-half earnings were well ahead of expectations. This was driven by development and performance fees. Despite the beat on expectations being driven by non-recurring items, Macquarie suspects there is upside risk to FY20 guidance.
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.