Custodian Property Income 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.
The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles. Income returns have been significantly more stable, supporting rental growth across much of the market. Capital values have fallen significantly from the 2022 peak and should benefit from the expected decline in interest rates.
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David MacLellan
Chairman
Ed Moore
Finance manager
Richard Shepherd-Cross
MD
Forecast net cash (£m)
166.4
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 3.7 | 1.1 | (12.8) |
Relative | 3.9 | (1.1) | (18.4) |
52 week high/low | 92.2p/65.0p |
Custodian Property Income REIT’s (CREI’s) confidence in its organic growth outlook is reflected in accelerated, fully covered DPS growth. Reversionary income potential is strong and, with the occupier market remaining robust, average rental values have continued to increase, providing ongoing support for the company’s enhanced income strategy. The prospective dividend yield is 7.8% and the expected decline in interest rates should benefit earnings and support property valuations and NAV.
Y/E Mar | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2023A | 37.1 | 31.0 | 24.8 | 5.62 | 13.6 | 13.8 |
2024A | 38.9 | 33.7 | 25.7 | 5.84 | 13.0 | 14.5 |
2025E | 40.3 | 34.7 | 27.3 | 6.20 | 12.3 | 13.0 |
2026E | 40.8 | 35.2 | 27.5 | 6.25 | 12.2 | 12.8 |