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: 114.8 GBX
Market Cap: £473.04 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
In exchange for publishing services rendered by the Company on behalf of Custodian REIT named herein, including the promotion by the Company of Custodian REIT in any Content on the Site, the Company receives from...FOR OUR FULL DISCLAIMER CLICK HERE
LEGAL NOTICE – IMPORTANT – PLEASE READ:
Proactive Research is a trading name of Proactive Investors Limited which is regulated and authorised by the Financial Conduct Authority (FCA) under firm registration...FOR OUR FULL DISCLAIMER CLICK HERE