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Custodian REIT

Custodian REIT - Strategy still winning

Custodian REIT (LON:CREI) released its quarterly net asset value (NAV) updated on 29 January. This was in line with our expectations.

NAV Total Return +1.0% in the quarter. Portfolio net initial yield (a measure of property income yield) of 6.6%. Balance sheet gearing remains low at LTV (loan-to-value) ratio of 24.7%.

We believe that all of the key dynamics remain intact to sustain continuing strong shareholder returns.

Executive summary

During 2018 Custodian was among the top 10 performing UK real estate investment trusts (REITs) by total shareholder return. In this report, we take a look at strategies that have performed well in the REIT sector. We argue that Custodian's focus on regional properties sustains continued strong rental income returns in 2019 and beyond.

Since the initial public offering (IPO) in 2014, Custodian has delivered NAV total returns of 7.3% per year, of which more than 70% has come from dividends paid. Dividends are supported by strong rental income (details on p3).

Quick facts: Custodian REIT

Price: £1.16

Market: LSE
Market Cap: £475.15 m
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What's in the report?

Financial results and forecasts
Growth drivers
Management
Market conditions
Milestones & inflection points

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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...

3 weeks, 2 days ago

5 min read