During the 2018 Financial Year, Cromwell reported full-year, FY18, statutory profit of $204.1 million. Operating profit, considered by the Directors to best reflect underlying earnings was $156.8 million, up 3.0% from the prior year result of $152.2 million.
After Cromwell’s institutional and retail capital raisings last year, distributions met original guidance of 8.34 cents per security.
Total assets under management (AUM) increased by 14% to $11.5 billion driven in part by the successful IPO of the Cromwell European REIT, or CEREIT, in Singapore, 12 months ago.
Cromwell have established a new strategy by investing where they can leverage returns from additional management revenues and create value for securityholders, "Invest to Manage". The success of CEREIT, the growth in Funds Management platform, and the support they now have from a range of capital partners gives them confidence to adopt the new strategy of increased investment to drive further growth.
Cromwell's will continue with diversification and some measured, low-risk exposure to Asian capital flows and European economic growth.
FY19 guidance continues to assume maintainable transactional and funds management revenues consistent with historical performance as well as the reinvestment of some distributable cash back into the business for further growth, with a distribution payout ratio of approximately 90% of operating earnings in FY19.
FY19 operating profit is maintained at no less than 8.00 cps and distributions no less than 7.25 cps. This represents an operating profit per security and distributions per security yield of 7.92% and 7.17% respectively based on closing price of $1.01 on 20 November 2018.