Brisbane-based Cromwell Property Group
(ASX:CMW) has disclosed another significant write-down in the value of its Australian property assets for the six months ending December 31, 2023. This revelation follows a larger impairment reported in June of the same year, affecting assets in both Australia and Poland.
In a concise statement to the Australian Securities Exchange (ASX) on Monday, Cromwell stated that "8 of 9 assets within the Australian investment portfolio have been independently externally revalued as at 31 December 2023." The company further highlighted that the December 2023 valuations indicate an estimated decrease of $192.1 million or 7.5% on portfolio book values since June 30, 2023.
Notably, Cromwell refrained from disclosing specific details regarding the identity, location, or new valuations of the assets in question.
In August of the previous year, Cromwell had unveiled a substantial $491.6 billion write-down, primarily stemming from challenges within its retail asset portfolio in Poland, along with some Australian buildings. This led to the company reporting a statutory loss of $443.8 million for the fiscal year 2022-23.
Despite the latest announcement, Cromwell conveyed that it currently manages $11.5 billion in assets globally, a figure unchanged from June 30. However, this marks a decline from the $12 billion reported on June 30, 2022.
The impact of these developments was reflected in the securities market, with a modest dip of less than 1% on Monday. This decrease values the Cromwell Property Group at approximately $1.04 billion. Over the past year, the company's securities have witnessed a notable decline of 44%.
Investors and industry analysts are now closely monitoring Cromwell's strategic moves as it navigates challenges in its asset portfolio, both in Australia and abroad.
