logo-loader
viewCustodian REIT

Custodian REIT steers steady path through property uncertainties

Snapshot

  • Market valuation up considerably since IPO
  • Annual dividend growth
  • Shares trade at a premium to net assets
  • Gained new largest tenant
Custodian

Quick facts: Custodian REIT

Price: 107.6 GBX

LSE:CREI
Market: LSE
Market Cap: £451.98 m
Follow

 

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 the quarter to December, net asset value (NAV) rose slightly to 104.4p and occupancy picked up to 95.6% as demand for industrial and office property in the regions offset the troubles on the high street.

Custodian repeated its dividend target for the year to March of 6.65p.

Richard Shepherd-Cross, the trust’s manager said the improvement reflected its defensive strengths as activity in the property market overall dropped significantly during the run-up to the UK general election.

Custodian REIT's share price maintained its premium to NAV during the period, reflecting its high dividend yield and the robustness of its closed-ended structure.” 

The trust also acquired eight 'last mile distribution' properties from Menzies Distribution Limited (MDL) for £24.7mln, in a ten year long sale-and-leaseback deal that makes MDL its largest tenant.

It added that it is “considering a pipeline of opportunities”, and championing a selective approach to buck the property market gloom.

 

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 long leases, particularly those with RPI/CPI indexed rent reviews.”.

 

Video

 

 

Inflexion points

  • Dividend for 2020 forecast at 6.65p
  • Shares trade at a premium to NAV per share of 104.4p
  • Value of portfolio now £571mln

Add related topics to MyProactive

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

NO INVESTMENT ADVICE

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...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

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