Custodian REIT delivers positive half-year return despite “struggling retail sector”
The investment trust said other areas of the commercial property market were continuing to see supply and demand imbalances that would further rental growth
Company
LON:CREI
Custodian Property Income REIT PLC aims to be the real estate investment trust of choice for private and institutional investors seeking high and stable dividends from well-diversified UK real estate. The company invests in a diverse portfolio of commercial real estate, principally characterised by individual property values of less than £15 million at acquisition.
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The investment trust said other areas of the commercial property market were continuing to see supply and demand imbalances that would further rental growth
Since the period to 30 September, the property investor has agreed terms to fund drive-through coffee shop in Nottingham
The UK property investor has a new largest tenant for its property portfolio, which stood at £568mln in June
The city centre office and retail unit was bought as part of a larger portfolio in 2016
The property was purchased in June 2016 as part of a three-property portfolio. The lease is up for renewal in four years.
Custodian REIT said it benefits from a "balanced and diverse" portfolio
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The company's full-year dividend of 6.55p (2018: 6.45p) was 110.4% covered by net recurring income
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"We are considering a pipeline of opportunities and believe there may be potential to make contra-cyclical acquisitions"
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In an update for the period from 1 October to 31 December, the real estate investment firm said NAV per share had remained fairly flat at 108.1p compared to 108.6p at the end of September, while the NAV total return per share for the period
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Under the terms of the agreement, the company pays interest of 2.45% above the three-month London interbank offer rate (LIBOR) per annum on the outstanding amounts used under the agreement from time to time