Custodian REIT

LSE: CREI

Market Cap£404m

Last Close 91.7p

Custodian REIT (CREI) is a London Main Market-listed REIT focused on commercial property in the UK outside London. It is income-focused, with a commitment to pay a high but sustainable and covered dividend.

More Custodian REIT content >

Investment summary

Strong leasing activity is supporting EPRA earnings and Custodian REIT (CREI) is on track to meet its FY23 DPS target of not less than 5.5p, fully covered. Despite the robustness of occupational demand and continued rent growth in many areas, capital values began to reprice to increased bond yields. We expect these trends to continue, with EPRA earnings and DPS progressing further while asset values and net asset value (NAV) decrease further.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2021A 33.1 28.5 23.7 5.64 16.3 16.2
2022A 35.6 30.1 25.3 5.89 15.6 12.1
2023E 37.9 31.7 25.2 5.72 16.0 14.0
2024E 39.3 33.5 26.1 5.92 15.5 12.4
Industry outlook

The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles while income returns have been significantly more stable. Commercial property has the potential to offer a degree of inflation hedging but rising government bond yields have begun to weigh on asset valuations across the main sectors.

Last updated on 30/11/2022
Content on Custodian REIT
Custodian REIT – Robust EPRA earnings but decreased NAV
Real Estate | research Update | 28 November 2022
architecture-1048092 (1)
Custodian REIT – Good momentum through Q123
Real Estate | research Outlook | 30 August 2022
architecture-1048092 (1)
Custodian REIT – Strong returns continued through Q422
Real Estate | research Update | 23 May 2022
architecture-1048092 (1)
View more
Register to receive research on Custodian REIT as it is published
Share price graph
Balance sheet
Forecast net cash (£m) 179.5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.6 (10.5) (4.6)
Relative* (3.0) (13.3) (7.2)
52-week high/low 110.0p/83.2p
*% relative to local index
Key management
David Hunter Chairman
Richard Shepherd-Cross MD
Ed Moore Finance manager