Investor deep dive
Custodian REIT shares continue to trade at a premium to NAV, says chairman
Custodian REIT - sustained income to investors
Custodian REIT (LON:CREI) is a strong dividend paying UK REIT (real estate investment trust), managing a diverse portfolio of non-residential properties. The company continues to pursue a low-churn buy-and-hold rental income focused strategy. We summarise some recent developments.
In October 2019, Custodian announced the acquisition of a portfolio of eight distribution warehouses under a sale and leaseback deal with Menzies Distribution Limited. Key points:
In September 2019 Custodian agreed with Lloyds Bank to increase the total funds available under the company’s revolving credit facility from £35 million to £50 million for a term of three years, with an option to extend the term by a further two years subject to Lloyds Bank's agreement, and a reduction in the rate of annual interest to between 1.5% and 1.8% (from 2.45%) above three-month LIBOR - the London inter-bank offer rate. This agreement provides visibility on further funding for Custodian, as well as the reduced interest cost.
On p2 we present a reminder of some of the portfolio metrics that support Custodian’s ability to maintain its progressive dividend policy, and we argue that recent developments align well with this objective.
Quick facts: Custodian REIT
Price: 117 GBX
Market Cap: £478.77 m
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