Custodian REIT


Market Cap£439m

Last Close 99.5p

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.

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Investment summary

Custodian REIT’s (CREI’s) unaudited Q422 NAV per share increased 5.3% to 119.7p and including DPS paid the NAV total return was 6.4%. The FY22 NAV return reached 28.4%. Returns have been substantially driven by capital growth but have also benefitted from growth in dividends, recovering from the pandemic. Having met its 5.25p FY22 DPS target, CREI targets aggregate FY23 DPS of at 5.50p, fully covered by earnings. The Q422 investment portfolio valuation increased 4.0% on a like-for-like basis, still driven by industrials and retail warehouses but with increasing signs of broadening across sectors. FY22 EPRA EPS increased to 5.9p (FY21: 5.6p), including lower doubtful debt provisions and an accretive contribution from Drum since acquisition in November.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 38.1 33.4 28.7 7.00 14.2 13.2
2021A 33.1 28.5 23.7 5.64 17.6 17.6
2022E 36.0 30.8 25.9 6.04 16.5 13.5
2023E 39.4 33.9 28.5 6.48 15.4 13.7
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. Despite a deteriorating economic outlook market momentum has thus far been maintained. Despite strongly rising inflation interest rates remain relatively low and like other real assets commercial property is expected to offer a degree of inflation hedging.

Last updated on 01/07/2022
Content on Custodian REIT
Custodian REIT – Strong returns continued through Q422
Real Estate | research Update | 23 May 2022
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Custodian REIT – Strong capital growth with increasing income
Real Estate | research Update | 25 February 2022
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Custodian REIT – Strong H122 returns and further DPS growth
Real Estate | research Update | 2 December 2021
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Share price graph
Balance sheet
Forecast net cash (£m) 155.7
Forecast gearing ratio (%) N/A
Price performance
Actual 0.5 (2.8) 2.4
Relative* 6.2 3.6 5.6
52-week high/low 107.6p/93.0p
*% relative to local index
Key management
David Hunter Chairman
Richard Shepherd-Cross MD
Ed Moore Finance manager