This article is from the Australian Property Journal archive
CROMWELL Property Group (ASX: CMW) has shrugged off its tumultuous corporate stoush with the new leadership under Gary Weiss delivering a statutory profit of $308.2 million, as it undertakes a strategic review to simplify the group’s businesses.
This is the first profit result since Weiss and ARA Asset Management successfully secured a position in the group, which claimed the scalp of founder Paul Weightman along with other executives.
Cromwell yesterday announced a statutory profit of $308.2 million, up 73% from $177.6 million in the previous corresponding period, due in part to a $97.5 million increase valuation gains (FY20 $17.5 million).
However, the operating profit was weaker, falling to $192.2 million from $221.2 million in the pcp. The prior period included $32 million fee from the sale of Northpoint Tower. Operating profit, excluding this fee, increased by $3.0 million (1.4%).
With the new board populated, Weiss said its focus is reviewing Cromwell’s strategy and business model.
“The aim is to simplify the group structure with a view to improve capital efficiency using our existing portfolio assets to create new funds and accelerate the growth in our funds management and development businesses.
“We have initiatives underway which we believe will unlock value for securityholders, position Cromwell to grow and provide increased opportunities for our team. An update will be provided to the market as soon as a formal strategy has been approved by the Board,” Weiss concluded.
Acting CEO Michael Wilde said the group has come through a tough year in good shape.
“Cromwell has navigated twelve months dominated by COVID-19 lockdowns, social distancing restrictions and the implications of agile working.
“Notwithstanding the implications of the current COVID-19 situation in Australia and globally, and our expectations of continued subdued market conditions, we are focused on maximising the value of our property investments and the opportunities in our funds management and development businesses,” he added.
Cromwell declined to provide guidance but expects to continue to pay distributions at the current quarterly rate of 1.625 cents per security until further notice.
