CEO Update

Jonathan Callaghan, Chief Executive Officer, Cromwell Property Group

We recently held our Annual General Meeting, where we reflected on a transformative year for Cromwell. FY25 marked a turning point as we simplified our business, strengthened our balance sheet, and laid the foundation for sustainable growth. I am pleased to share some of the key achievements and strategic initiatives that position us for an exciting future.

Operational highlights

Our Investment Portfolio continues to perform exceptionally well. Occupancy sits at a sector-leading 97.6%, and our weighted average lease expiry remains strong at 5.0 years. During the year, we leased over 51,000 square metres, including a landmark 15-year pre-lease to the Commonwealth Government at our Barton, ACT development—a future flagship asset for our Investment Management business.

Financial performance

We delivered an operating profit of $108.6 million and funds from operations of $105.7 million, equating to 4.0 cents per security. While these figures reflect the impact of our European exit and prior-year one-off fees, they underscore the resilience of our Australian earnings base. Importantly, we reduced Group gearing from 38.9% to 28.2% through $1.6 billion in non-core asset sales, and we now have $504 million in deployable liquidity. This strong position enables us to provide distribution guidance for FY26 of 3.0 cents per security—the first time in several years—supported by secure income streams, 69% of which come from Government and other blue-chip tenants.

Strategic direction

Our strategy is clear: transition toward a capital-light investment management model while maintaining a high-performing portfolio. Recent initiatives demonstrate this approach in action.

Landmark Barton, ACT development

We have commenced development of a fully electric, 6-star rated office building in Barton, ACT, for a Commonwealth Government tenant. This project, due for completion in 2027, will be a prime opportunity to attract capital partners when the time is right.

Growth in AUM through strategic industrial portfolio acquisition

We have entered into a conditional agreement to acquire a 19.9% interest in Straits Real Estate’s Australian Industrial portfolio and its management platform, Terre Property Partners. The portfolio comprises seven high-quality industrial assets with total value of $470 million, located in key logistics hubs across Victoria and South Australia.

The acquisition will cost $47.6 million for the portfolio stake and $2 million for the Terre Property Partners platform. It will be funded from existing group liquidity and is expected to deliver stable, recurring income to the Group through distributions from our partial portfolio ownership and fund management fees. This transaction will grow assets under management by approximately $540 million, which includes two single assets also currently under Terre Property Partners’ management.

This strategic acquisition aligns well with Cromwell’s existing portfolio, enhancing asset and income diversification while strengthening our position through new capital partnerships.

Looking ahead

Cromwell will continue to expand its Funds Management platform through organic growth, scaling existing products, and strategic acquisitions. We will leverage our strong capital position and improving market conditions to accelerate growth, drive recurring fee income, and deliver long-term value for our investors.

Read more about the latest strategic developments

Strategic industrial portfolio acquisition

Cromwell expands AUM with strategic industrial acquisition

The Straits Trading Company Limited (SGX:S20) (“Straits Trading”), through its wholly-owned subsidiary Straits Real Estate Pte. Ltd. (“SRE”), and Cromwell Property Group (ASX:CMW) (“Cromwell”) today announced a strategic partnership to enhance their industrial and logistics platform across Australia.

AGM Chair and CEO Address

The 2025 financial year marked a pivotal chapter in Cromwell’s transformation. Thanks to the dedication and focus of our team, we’ve made substantial progress in simplifying the business and strengthening our financial position.

The successful divestment of $1.6 billion in non-core assets, including a complete exit from our European platform, was a major milestone.

Cromwell Unveils Landmark Project and Debt Refinance

Cromwell Property Group (ASX:CMW) (Cromwell or The Group), today announces it has entered into an agreement for lease with a Commonwealth Government entity to develop a 19,800 sqm office building in Barton, ACT. This project marks a significant milestone in Cromwell’s new strategic growth phase.

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