Richard Shepherd-Cross, PLC’s () managing director, says the trust’s diversified property portfolio is helping offset a troubled UK high street.
Pressure on retail rents is coming from the flood of company voluntary arrangements or CVAs.
Tenants are staying put but just paying less, he says, while open market rents are dropping to CVA levels.
Direct retail accounts for just 12% of Custodian’s portfolio but industrial and offices are still going well and offsetting the retail weakness.
Good quality properties with long leases remain in demand he says, adding Custodian’s dividend is still covered by earnings, something that Shepherd-Cross does not see changing.
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