FAQ

A Cromwell Property Group stapled security (ASX:CMW) consists of a share in Cromwell Corporation Limited (CCL) and a unit in Cromwell Diversified Property Trust (CDPT) which are contractually bound together so that they cannot be sold or transferred separately. CCL and CDPT remain separate legal entities and are treated separately for tax purposes.

In December 2006, following unitholder and shareholder votes, 5 Cromwell managed syndicates were merged with CDPT, and the consolidated CDPT was stapled to CCL. The Group initiated trading on 12 December 2006 at a price of $1.20 with a market capitalisation of $835 million.

The core business activities are property investment and funds management. Approximately 81% of 2007/08 financial year operating earnings came from recurring property and funds management income.

To check your current holding, contact the share registry for Cromwell Property Group, LINK Market Services Limited on 1300 550 841 or by clicking here.

Distributions from Cromwell Property Group comprise a distribution from CDPT and a dividend from CCL. For distribution details, click here.

Distributions are expected to be paid in mid to late February, May, August and November. 

Distributions from CDPT may be partially tax deferred.

Allowances for the amortisation of the buildings, depreciation of plant and equipment and the writing off over time of capital raising and borrowing costs result in a portion of the distributions being tax deferred, however the portion of distributions which is tax deferred will vary from year to year.

Deferred tax may be reduced in the future by capital gains tax discounts or other individual investor circumstances.

Dividends from CCL may carry franking credits if CCL has already paid tax on income. It is anticipated that 2008/09 dividends will only be approximately 1/3 franked.

To view the 20 minute delayed ASX trading price of Cromwell Property Group click here.

As at 30 June 2008 Cromwell Property Group had a diversified property portfolio valued at approximately $1.2 billion, with 24 properties held across 7 states and territories. As at 30 June 2008 the portfolio had a weighted average lease term of 5.9 years and 86% of income came from either government or listed company tenants.

To view the Cromwell Property Group portfolio click here.

As at 30 June 2008, Cromwell Property Group had a NTA of $1.01 per stapled security.

On 24 January 2008 the Group announced an on-market security buy-back up of to 10 per cent of issued capital (a maximum of 69 million stapled securities) as part of its capital management program.

The buy-back is considered by the Board to be the optimal way of utilising Cromwell’s capital resources at a time when the Board believes the market price does not accurately reflect the inherent value of the Group.

The buy-back period commenced on 8 February 2008 and may continue for up to 12 months from 24 January 2008 unless the maximum number of stapled securities are bought back or Cromwell decides to cease the buy-back earlier.

As at 30 June 2008, the Group had bought back 5,565,342 stapled securities.

Yes, Cromwell issues tax statements after the end of the financial year. We endeavour to release tax statements at the end of August. You should not lodge your tax return until the statement is received.

To download the most recent Cromwell Property Group annual report click here.

To contact a member of Cromwell’s Investor Service team, email invest@cromwell.com.au or phone 1800 334 533 inside Australia or +617 3225 7777 outside of Australia.