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Custodian REIT rentals stabilise after coronavirus uncertainties

Snapshot

  • Market valuation up considerably since IPO
  • Annual dividend growth
  • Recently gained new largest tenant
Custodian

Quick facts: Custodian REIT

Price: 92 GBX

LSE:CREI
Market: LSE
Market Cap: £386.45 m
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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 substantially on the back of investment into UK regional real estate.

 

How it's doing

In July, Custodian recommended a higher dividend than expected after rent collections improved in its latest quarter.

The trust said it had collected 92% of rents due for the June quarter adjusting for deferrals and 80% of the September quarter.

As a result, it is recommending a quarterly dividend of 0.95p or 27% above the minimum indicated in April.

Net assets per share for the period to end June dipped by 5.8% to 95.7p, reflecting the impact of the coronavirus lockdowns on property values in the UK.

 

What the boss says: Richard Shepherd-Cross, manager

"A full quarter of lockdown has seen occupational and investment activity in marked contrast to the buoyant market at the start of 2020.  

"Investment volumes during the Period were only 20% of the previous quarter's levels and many office and retail occupiers deserted their premises in late March." 

"While we are starting to see occupiers returning to offices and non-essential shops have been open for a few weeks, we have yet to fully recover from the occupational void caused by lockdown. The principal impact of this void has been the challenge of rent collection."

 

Proactive Research - Ed Stacey

 

Inflexion points

  • Dividends still being paid albeit at a slightly reduced rate
  • NAV per share of 95.7p at last valuation
  • Rental collections improving

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Custodian REIT highlights focus on income and continued need for commercial...

Custodian REIT's (LON:CREI) Richard Shepherd-Cross speaks to Proactive London's Andrew Scott following the release of its results to March 2020. He says the outlook for real estate investment is likely to become clearer and potentially more positive as lockdown eases. He adds that around 70% of...

on 24/6/20

2 min read