Custodian REIT


Market Cap£412m

Last Close 98p

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 (CREI) and DRUM Income Plus REIT (DRIP) are in discussions regarding a possible securities exchange offer by CREI for DRIP. Full details are available on the CREI website, Under the Takeover Code CREI has initially until 1 September to announce whether or not it intends to make a firm offer for DRIP. CREI’s Q122 NAV per share increased 4.2% to 101.7p (Q421: 97.6p) and including DPS paid the quarterly NAV total return was 6.0%. The Q122 DPS of 1.25p, fully covered by cash earnings, is in line with the board’s stated target of a minimum FY22 DPS of 5.0p, based on rent collection remaining in line with expectations. The Q221 property valuation increase was £19.0m (3.4% of the portfolio value), driven by industrial assets but including £1.4m from asset management initiatives (EPRA occupancy improved to 92.4% from 91.5%).

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 38.1 33.4 28.7 7.0 14.0 13.0
2021A 33.1 28.5 23.7 5.6 17.5 17.3
2022E N/A N/A N/A N/A N/A N/A
2023E N/A N/A N/A N/A N/A N/A
Industry outlook

The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles while income returns have been more stable. While the pandemic has created significant economic and market uncertainty, the rebound in GDP, continuing low interest rates, and lockdown easing are supporting a broadening of positive commercial property returns, still led by the industrial sector.

Last updated on 21/09/2021
Content on Custodian REIT
Custodian REIT – Robust FY21 with improving outlook
Real Estate | Outlook | 23 June 2021
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
Actual (3.7) (0.4) 12.1
Relative* (2.5) (0.5) (9.8)
52-week high/low 105.8p/84.6p
*% relative to local index
Key management
David Hunter Chairman
Richard Shepherd-Cross MD
Ed Moore Finance manager