Custodian REIT (CREI) continued to deliver strong returns in FY18, with a NAV total return of 9.6% (FY17: 8.5%), 6.0% from dividends paid and the balance from NAV growth. Barring unforeseen circumstances, the board intends to again increase fully covered DPS in the current year. The manager’s ability to source accretive acquisitions, the opportunities to actively manage the existing portfolio, and the prospect of continuing rental growth, all suggest upside in income returns with further potential for capital growth.
