Custodian REIT - Diverse portfolio still paying dividends
Custodian REIT (LON:CREI) remains one of the best dividend/yield plays in the UK market going into the calendar year 2020, in our view. The company has recently released its interim report for the half-year period ending September 2019, confirming continued solid progress. During the period Custodi
16 Jan 20
Custodian REIT - Delivering on income target
Custodian REIT’s (CREI’s) diversified portfolio of UK commercial real estate delivered a positive total return in H120 despite challenges in the retail sector. Current-year quarterly DPS has increased by 1.5% and CREI targets a fully covered DPS of 6.65p for the year, barring unforeseen circumstances. The company targets further sustainable growth through accretive acquisitions and active management of the existing portfolio.
20 Dec 19
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, C
09 Oct 19
Custodian REIT - Positive income-driven returns continuing
Custodian REIT (CREI) continued to produce positive returns through Q419 despite continuing weakness in high street retail capital values outweighing gains elsewhere, including from accretive asset management. Reflecting positive income growth, the company’s current year DPS target has been increased and, barring unforeseen circumstances, CREI intends to pay fully covered aggregate DPS of 6.65p for the year.
09 May 19
Custodian REIT - Consistent income to shareholders
Custodian REIT (LON:CREI) released its quarterly net asset value (NAV) update on April 30. The release shows a NAV of £426.6mln, unchanged versus December 2018, and NAV total return per share (definition in the release) of 5.9%. Occupancy remains high at 95.9%. The property portfolio valuation is do
30 Apr 19
Custodian REIT - Strategy still winning
Custodian REIT (LON:CREI) released its quarterly net asset value (NAV) updated on 29 January. This was in line with our expectations. NAV Total Return +1.0% in the quarter. Portfolio net initial yield (a measure of property income yield) of 6.6%. Balance sheet gearing remains low at LTV (loan-to-val
29 Jan 19
Custodian REIT - On track to meet income targets
With its balanced portfolio of regional UK commercial real estate, Custodian REIT (CREI) continued to produce good returns through H119 while selectively growing the portfolio. The company says that barring unforeseen circumstances, it is well placed to meet its target of paying a fully covered aggregate DPS of 6.55p for the year, and targets further sustainable growth through accretive acquisitions and active management of the existing portfolio.
09 Jan 19
Custodian REIT PLC (LON:CREI) issued its quarterly NAV (net asset value) update for the three months ended September 30, on October 23. The company reported a NAV total return per share of 2.3% for the period (NAV increase plus dividend approved), and a reduction in net gearing to 20.5% loan-to-value, from 21.0% on June 30. Custodian acquired five new properties during the period with net initial yields of between 6.38% and 9.79%. More details are on p2.
25 Oct 18
Income-driven returns continuing
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.
27 Jun 18
Strong returns, strong foundations
Custodian Reit (LON:CREI) ) has performed strongly in recent years, delivering a total shareholder return of 10% a year over the last three years, and with lower volatility than the REIT sector or the stock market. In this report, we look at the fundamentals that drive this performance.
29 May 18
Income and capital growth supporting valuation
Custodian REIT recently provided an update on the three months ended 31 December 2017 (Q318). NAV total return in the period was a healthy 2.6%, including a 1% increase in EPRA NAV per share, in addition to a quarterly dividend paid of 1.6125p. Management’s aim is to sustainably grow the fully covered dividend and generate less volatile returns than is typical for the sector over time. Its strategy is to maintain high levels of occupancy and grow income through rental growth and accretive acquisitions. The 8% premium to FY18e NAV has proven robust, justified by the conservative gearing and one of the highest dividend yields in the sector.
22 Feb 18
Diversified income focus
Custodian REIT (CREI) continued to grow its asset base, income earnings, and NAV per share in H118, with a well-controlled cost base. NAV and share price total returns were 4.2% and 5.3%, respectively. We have adjusted our estimates, primarily for property acquisitions and equity issuance since the first quarter, with a positive full year impact on forecast FY19 EPRA EPS (+6.0%) and DPS (+0.8%). Management’s focus is on secure income, to deliver the earnings to cover a sustainable long-term growth in dividends and generate less volatile returns. We believe the 9% premium to FY18e NAV is justified by the conservative gearing and one of the highest dividend yields in the sector.
05 Dec 17
Forecasts revised after FY17 results
Custodian REIT (CREI) reported a 2.2% increase in FY17 EPRA NAVPS, boosted by revaluation gains and disposal profits. With a dividend of 6.35p (+1.6%), the share price total return for the year was 10.3%. We have made minor changes to our forecasts following the results. Our EPRA NAV forecasts have increased by 1% in both FY18 and FY19, as CREI has made acquisitions worth £19m in the year to date, with another £19m under offer. Management’s focus is on long-term secure income, to deliver the earnings to cover a sustainable growth in dividends and generate less volatile returns. We believe the 9% premium to FY18e NAV is justified by the conservative gearing and one of the highest dividend yields in the sector.
11 Jul 17
It's all about income
Custodian REIT (CREI) is an income-orientated REIT focused on UK commercial property outside London. Its portfolio of 133 properties is diversified by both geography and sector, is valued at c £420m, has 98% occupancy and an LTV of just 18%. Management’s focus is on long-term secure income, to deliver the earnings to cover a sustainable growth in dividends. Growth in NAVPS also contributes to CREI’s total return, despite the high payout ratio and regular share issues to part-fund the acquisitions. We believe the 7% premium to FY17e NAV is justified by the conservative gearing and one of the highest dividend yields in the sector.
22 Mar 17