Australia's Cromwell property likely to see diluted equity raise - Morningstar

Cromwell Property

09/10/2023 03:57

** Morningstar reduces fair value estimate for Cromwell
Property Group  CMW.AX  to A$0.70 from A$0.85 as co's stock
price slumps from rise in bond yields
    ** Brokerage increases Uncertainty Rating of real estate co
to "Extreme" from "High"
    ** Analysts see CMW unlikely to be able to raise equity at
A$0.50 per security - assume co will now raise A$510 mln
($324.67 mln) at A$0.30 per security
    ** "We expect NTA will fall further due to rising interest
rates and risks to income affecting asset values, and we also
assume a dilutive equity raise" - Morningstar
    ** All three analysts covering stock rate it "hold" - LSEG 
    ** CMW stock has fallen 48.5% this year, as of last close

($1 = 1.5708 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))