Custodian REIT PLC (LON:CREI) has trumpeted positive total returns in its first half despite “a struggling retail sector and continued UK political uncertainty”.
David Hunter, chairman of the investment trust, added that going forward while retail was struggling, there remained “supply and demand imbalances that should continue relatively low vacancy rates and further rental growth” across the rest of the commercial property market.
READ: Custodian heralds "pipeline of opportunities" ahead after slight drop in portfolio value
“These conditions are positive for the income focused strategy of Custodian REIT”, Hunter said.
For the six months ended 30 September, the company reported a net asset value (NAV) per share total return of 0.5% compared to 4.3% a year ago, while pre-tax profits declined to £700,000 from £16.6mln primarily as a result of decreases in property valuations.
However, despite the fall in profits the group’s half-year dividends rose to 3.325p per share from 3.275p in 2018, while the value of its portfolio had remained mostly steady at £547.2mln compared to £547mln in 2018.
Custodian REIT shares were 0.5% lower at 112.2p in early deals on Thursday.
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