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Custodian REIT pays out more than expected as rental collections improve

The trust is recommending a quarterly dividend of 0.95p or 27% above the minimum indicated in April

Custodian REIT -

Custodian REIT PLC (LON:CREI), the UK commercial property investor, has paid a higher dividend than expected after rent collections improved in its latest quarter.

The trust said it had collected 92% of rents due for the June quarter adjusting for deferrals and 80% of the September quarter.

As a result, it is recommending a quarterly dividend of 0.95p or 27% above the minimum indicated in April.

Net assets per share for the period to end June dipped by 5.8% to 95.7p, reflecting the impact of the coronavirus lockdowns on property values in the UK.

In a statement, Richard Shepherd-Cross, managing director of the trust’s manager said:  "A full quarter of lockdown has seen occupational and investment activity in marked contrast to the buoyant market at the start of 2020.  

"Investment volumes during the Period were only 20% of the previous quarter's levels and many office and retail occupiers deserted their premises in late March." 

"While we are starting to see occupiers returning to offices and non-essential shops have been open for a few weeks, we have yet to fully recover from the occupational void caused by lockdown. The principal impact of this void has been the challenge of rent collection.

"While greater clarity is emerging on the medium-term picture for rent collection, there has been limited transactional evidence in the market, creating a difficult environment in which to provide valuations," he added.

Quick facts: Custodian REIT

Price: 89.5 GBX

LSE:CREI
Market: LSE
Market Cap: £375.95 m
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