Custodian Property hails "stable valuations" and demand for space

(Alliance News) - Custodian Property Income REIT PLC on Wednesday said it believed it was at the ...

Alliance News 5 February, 2025 | 11:44AM
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(Alliance News) - Custodian Property Income REIT PLC on Wednesday said it believed it was at the start of a "gradual upwards trend," noting potential rental upside at five-yearly rent reviews.

The Leicester-based investor in "smaller, regional properties" said it saw "further evidence that the market has bottomed out". In the quarter to December 31, the value of its portfolio rose 0.7% to GBP586.4 million from GBP582.4 million in September.

"Benefitting from a diversified portfolio, in the last 12 months the company has seen two quarters of stable valuations followed by two quarters of modest like-for-like capital growth across almost all asset classes," the firm added.

Its net asset value per share rose 0.9% to 94.4p at the end of December from 93.6p in September.

The company said a dividend of 1.5 pence per share was approved, in line with its 6.0p per share target for financial year 2025, up 3.4% from 5.8p a year prior.

Richard Shepherd-Cross, managing director of Custodian Capital Ltd said: "This quarter saw further evidence that the market has bottomed out, with the last 12 months seeing two quarters of broadly flat valuations followed by two quarters of like-for-like valuation growth. These valuation increases add further support to our belief that we are at the start of a gradual upwards trend having delivered like-for-like average rental growth of more than 5.0% per annum over the last 18 months, with proactive asset management being the key driver of returns."

Looking ahead, highlighting a "significant" potential for further rental growth with its portfolio's estimate rental value, Custodian Property said: "Based on our track record and occupier demand for space in our assets we expect to capture this potential rental upside at [typically] five-yearly rent reviews or on re-letting, in addition to continuing to drive passing rent and ERV growth further through asset management initiatives."

Custodian Property shares rose 3.2% to 78.70 pence each on Wednesday morning in London.

By Tom Budszus, Alliance News slot editor

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Custodian Property Income REIT Ord 79.00 GBX 3.54 -

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