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Custodian REIT: DEEP DIVE
OVERVIEW

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
Custodian
OVERVIEW: CREI The Big Picture
The firm's market cap is around £481mln, up from £132mln when it floated in 2014

While property market dynamics may have assisted performance through much of the last five years, we expect our focus on income to provide a stable platform to deliver positive shareholder returns in the future

David Hunter, chairman

 

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:

Custodian REIT delivered a net asset value per share total return of 5.9% in the year to end-March.

The net asset value per share eased to 107.1p from 107.3p a year earlier but the dividend per share rose to 6.55p from 6.45p.

Earnings per share, based on European Public Real Estate Association performance measures, rose to 7.3p from 6.9p last year. 

At the end of March, the portfolio was valued at £572.7mln from £528.9mln a year earlier.

Over the same period the market capitalisation of the company rose 1.3% to £442.8mln from £437.1mln.

The company's current market cap is around £481mln, up from £132mln when the company floated on the market five years ago.

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

What the chairman says:

David Hunter, the chairman of Custodian REIT, said since its initial public offering, the company has successfully deployed new equity, reached target net gearing and grown dividends annually.

"While property market dynamics may have assisted performance through much of the last five years, we expect our focus on income to provide a stable platform to deliver positive shareholder returns in the future," he said.

"Custodian REIT's shares have continued to trade at a premium to NAV while many in its direct peer group have moved to a discount.

"The premium undoubtedly reflects the relatively high dividend yield coupled with a diverse, regional property strategy."

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Custodian REIT Timeline

CN Research
January 29 2019

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