Custodian Property Income REIT (CREI) is benefiting from organic rental growth and a disciplined approach to capital allocation. Non-core assets continue to be sold at a premium to book value, with the proceeds deployed into value-creating portfolio investment and now accretive share repurchases. Meanwhile, the equity-funded ‘NAV-for-NAV’ acquisition of the Merlin portfolio is earnings enhancing and incrementally adds to scale and diversification, and reduces gearing.

Custodian Property Income REIT (CREI) reported a 2.5% NAV total return for Q325, driven by income but with NAV also increasing. Portfolio values increased for the second consecutive quarter and, with a robust occupier market driving rent growth, the company is increasingly confident that the market is at or near an inflection point. CREI yields 7.8% and its portfolio has significant opportunities to further increase income and fully covered DPS. The prospects for capital growth also appear increasingly positive.