Custodian REIT PLC (LON:CREI) has reported a 34% increase in full-year profit, driven by increases in its portfolio and net asset values and raised its dividend, targeting another payout increase in the current year.
Reporting results for the year ended 31 March 2018, the UK commercial and real estate investment company said its profit after tax jumped by 34% to £32.4mln, up from £24.2mln a year earlier, as its portfolio value rose to £528.9mln from £418.5mln.
The group continued to deliver strong shareholder returns with net asset value (NAV) per share increasing by 9.6% on a total return basis, compared to 8.5% a year ago.
Custodian REIT said it invested a total of £106.3mln on the completion of 20 acquisitions, one ongoing pre-let development and one significant refurbishment, funded principally by £54.7mln raised from the issue of new shares and £50mln of new term debt.
The company is paying a full-year dividend per share of 6.45p, up from 6.35p in the previous year, and raised its 2019 target dividend per share for the current year to 6.55p.
David Hunter, Custodian REIT's chairman said: “The strength of the occupational market represents an exciting opportunity and rental growth at lease renewal and rent review remains robust.”
He added: “We are confident we can maintain occupancy levels, which in turn will sustain our policy of paying a growing and fully-covered dividend to shareholders.”
In mid-morning trading, Custodian REIT shares were 2% lower at 119.2p.
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