Thinking out aloud
Cromwell is an interesting one. Board and management renewal, predominantly Office exposed assets (with office being the most challenged sector in REITs, to our mind, more so than Retail) and a slightly unusual mix of assets (Italian logistics, Polish retail).
The valuation is very cheap, against that, gearing is quite high amongst the REITs (at 42%), and sits outside the stated target range.
Note also, that in general the sector has de-geared from the bad old days prior to the GCF (where look through gearing rates were often well above 40%).
Last year, CMW gave their thoughts on the property market, views that have largely held up well.
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