Custodian REIT


£481.5m market cap

117.8p last close

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. It targets a balanced portfolio, with a focus on lot sizes of under £10m.

Investment summary

Custodian REIT reported that positive returns continued in the three months to 30 June (Q120) despite continuing weakness in high street retail capital values outweighing gains elsewhere, including from asset management. The Q120 EPRA NAV total return was 0.5% with returns continuing to be underpinned by the strategy of targeting income from well-located properties predominantly let to institutional grade tenants. EPRA NAV per share reduced slightly to 106.0p from 107.1p. Over the past five years income has contributed 78% of NAV total returns. With occupancy maintained at a good level (95.9%), income continued to grow in Q120 and the company targets fully covered DPS of 6.65p in the current year, up 1.5%, barring unforeseen circumstances. The Q120 DPS increased to 1.6625p. With an end-Q120 LTV of 22.8%, and continuing equity issuance at a premium to NAV, the company is well positioned for further accretive property acquisition opportunities.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 34.8 N/A 32.4 6.94 17.0 N/A
2019A 40.0 N/A 23.6 7.26 16.2 N/A
2020E 41.2 N/A 30.5 7.28 16.2 N/A
2021E N/A N/A N/A N/A N/A N/A
Last updated on 19/09/2019
Industry outlook

The supply demand balance for regional office and industrial property remains generally firm and a positive yield spread between the regions and London offers potential for further narrowing. Parts of the retail sector are displaying clear signs of stress.

Last updated on 19/09/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
Actual 1.0 0.2 (2.5)
Relative* (1.7) 0.1 (2.3)
52-week high/low 122.0p/111.0p
*% relative to local index
Key management
David Hunter Chairman
Richard Shepherd-Cross MD
Ed Moore Finance manager

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