Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
LONDON - Custodian Property Income REIT plc (LSE: CREI) has reported continued income growth driven by a diversified investment strategy, strong leasing activity, and proactive asset management. The company, which focuses on a portfolio of smaller, regional UK properties, shared its trading update for the quarter ending December 31, 2024, noting a 0.9% increase in like-for-like passing rent and a 0.6% rise in like-for-like estimated rental value (ERV).
Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, commented on the positive trend, indicating the market has reached an inflection point with two quarters of flat valuations followed by two quarters of valuation growth. Shepherd-Cross also highlighted the company’s active management as key to driving returns, with 25+ lettings and lease activities in the quarter, contributing to the company’s ability to fully cover its dividend, now offering an approximately 8% yield.
The company approved a 1.5p dividend per share for the quarter, in line with the target of at least 6.0p for the year ending March 31, 2025. This dividend is fully covered by unaudited EPRA earnings per share, which remained stable at 1.5p for the quarter. Custodian REIT’s diversified portfolio has shown resilience, with two quarters of stable valuations followed by modest like-for-like capital growth across almost all asset classes.
The value of Custodian REIT’s portfolio, which includes 151 assets, was £586.4 million at the quarter’s end, a like-for-like increase of 0.5% for the quarter, net of capital expenditure. The company’s net asset value (NAV) total return per share for the quarter was 2.5%, with NAV per share growing by 0.9% to 94.4p.
Asset disposal also contributed to the company’s performance, with the sale of a vacant office asset in Solihull for £1.4 million, 33% ahead of its valuation. The proceeds have been used to fund capital expenditure that is expected to be earnings accretive. Additionally, the company has been actively managing its borrowing, with net gearing at 28.5% loan-to-value as of December 31, 2024.
Custodian REIT’s investment manager provided a market update, noting that despite positive indicators in the direct property market, the listed sector has yet to recover fully. However, the commentary suggests that the importance of income in driving total return is increasingly recognized, and the company’s diversified portfolio is positioned to leverage rental growth potential.
The information in this article is based on a press release statement from Custodian Property Income REIT plc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.