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Custodian REIT CEO confident it can ride out wave of CVAs

Richard Shepherd-Cross, Custodian REIT PLC’s (LON:CREI) 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.

Quick facts: Custodian REIT

Price: 115 GBX

LSE:CREI
Market: LSE
Market Cap: £473.29 m
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Proactive Research analyst discusses Custodian REIT's refinancing and...

Proactive Research analyst Ed Stacey says Custodian REIT (LON:CREI) is continuing to pursue its strategy of low-churn buy-and-hold rental income. In October 2019, Custodian announced the acquisition of a portfolio of eight distribution warehouses under a sale and leaseback deal with Menzies...

on 9/10/19

2 min read