Stock Idea Cromwell European REIT is yielding at 7%, and l | FSMOne SG - Research Highlights

Stock Idea

Cromwell European REIT is yielding at 7%, and logistics will be a key driver for growth

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• On the back of its strengthening light industrial / logistics portfolio, Cromwell European REIT (CEREIT) has been delivering a resilience performance.

• Light industrial / logistics properties are expected to account for 50% of the REIT’s portfolio eventually, up from the current 39%.

• Looking ahead, we believe that the light industrial / logistics portfolio can drive sustainable growth for CEREIT. Growth in logistics rents is underpinned by shortage of supply and robust demand from e-commerce and manufacturers.

• We maintain our target price of EUR 2.65, which translates into an upside potential of 3%. While CEREIT seems about fairly valued, investors can continue to look forward to a strong stream of recurring income, with a yield of 7.3% in FY2022.

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: Cromwell European REIT (SGX:CWBU)