Deep diveFinance
Custodian REIT

Custodian REIT shares continue to trade at a premium to NAV, says chairman


  • Market valuation up considerably since IPO
  • Annual dividend growth
  • NAV per share total return of 5.9% last year

Quick facts: Custodian REIT

Price: £1.15

Market: LSE
Market Cap: £471.07 m


  • Market valuation up considerably since IPO

  • Consistent annual dividend growth

  • Healthy premium to net asset value


What it does

Custodian REIT PLC (LON:CREI) is a real estate investment trust with a portfolio of assets made of industrial, retail, office and other properties.

The company listed on the main market of the London Stock Exchange in 2014.

Since then, its market capitalisation has grown on the back of significant investment into UK regional real estate.


How’s it doing

In July, Custodian cautioned the retail market was tough but a diversified portfolio was helping to mitigate the challenges.

Overall, the value of its portfolio stood at £568mln at the end of June 2019, down from £572.2mln at the end of March.

A number of retailers closed stores and negotiated lower rents as part of an insolvency process known as a company voluntary arrangement (CVA).

Pressure on retail rents is coming from the flood of company voluntary arrangements or CVAs, said Richard Shepherd-Cross, managing director.

Direct retail accounts for just 12% of Custodian’s portfolio and Industrial and office are still going well and offsetting the retail weakness.

The net asset value (NAV) total return per share for the period was 0.5% while the net asset value per share fell to 106.0p from 107.1p.

For the 2020 financial year, the company aims to pay a dividend of 6.65p per share.


What the boss says: Richard Shepherd-Cross, MD

"Demand continues for UK commercial property and the attractive income returns on offer.  However, demand is polarised between perceived low risk and perceived higher risk assets.

"Those assets which the market perceives to be lower risk include most industrial properties and properties let on longer leases, particularly those with RPI/CPI indexed rent reviews.”.




Inflexion points

  • Dividend for 2020 forecast at 6.65p
  • That gives a yield of 5.7% at 116p
  • Shares stand at a 9% premium to NAV
  • Value of portfolio now £568mln and gearing 23%

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Custodian REIT named herein, including the promotion by the Company of Custodian REIT in any Content on the Site, the Company receives from...



Custodian REIT reports robust quarterly update - Capital Network analyst

Capital Network's Ed Stacey gives his view on Custodian REIT's (LON:CREI) latest quarterly net asset value (NAV) update. The release shows a NAV of £426.6mln, unchanged versus December 2018, and NAV total return per share of 5.9%. Occupancy remains high at 95.9%. Custodian now...

on 1/5/19

2 min read