What are the recent business developments announced by FTSE-listed Custodian REIT?

Summary

  • CREI had collected 91% of rent in FY21 despite the adverse impact of the Covid-19 pandemic.
  • The Company will pay a fifth interim dividend of 0.5 pence per share on 30 June 2021.
  • The total property value was valued at £551.9 million as of 31 March 2021.

Custodian REIT PLC (LON: CREI) is the LSE listed real estate stock. CREI’s shares have generated a return of around 13.53% in the last 12 months. CREI is listed on the FTSE All-Share index.

 Company Overview

Custodian REIT PLC is a real estate investment trust that provides investors with an opportunity to access a diversified portfolio of UK-based commercial properties. Moreover, the property portfolio comprised 159 assets with a net initial yield of around 6.6% as of 31 March 2021.

 (Source: Company presentation)

Recent Developments

Fifth Interim dividend – On 07 May 2021, CREI announced the fifth interim dividend for FY21 ended 31 March 2021. The Company will pay an interim dividend of 0.5 pence per share on 30 June 2021, taking the total FY21 dividend to 5.0 pence per share. It remained lower than the total dividend of 6.65 pence per share paid during FY20 due to the reduction in rent collection rate since the emergence of the Covid-19 pandemic.

Appointment of Non-Executive Director - On 17 March 2021, the Company had appointed Elizabeth McMeikan as the Senior Independent Director and Chris Ireland as an independent Director effective 01 April 2021.

Q4 FY21 Highlights (for three months ended 31 March 2021 as of 04 May 2021)

Increase in Net Asset Value during Q4 FY21 - CREI had shown an increase of 1.2% in net asset value (“NAV”) from 96.4 pence per share as of 31 December 2020 to 97.6 pence per share as of 31 March 2021. The NAV total return per share (movement of NAV per share including the dividends paid during the period) stood at 0.9% during FY21, while it was 1.1% for FY20. Moreover, the total property value was valued at £551.9 million as of 31 March 2021, while it was £546.8 million as of 31 December 2020.

91% Rent Collection - CREI had shown improvement in rent collection as 91% of rent got collected for the financial year ended 31 March 2021 after adjustment for contractual rent deferrals. Moreover, the Company had collected 66% of the rent, net of contractual deferrals, related to the Q1 FY22 period.

Share Price Performance Analysis of Custodian REIT PLC

(Source: Refinitiv, Thomson Reuters)

CREI shares were trading at GBX 101.50 and were down by close to 2.40% as of 07 May 2021 at 02:17 PM GMT. CREI’s 52-week Low and High were GBX 76.00 and GBX 104.00, respectively. Custodian REIT PLC had a market capitalization of around £416.27 million.

Business Outlook

The Company would target a dividend per share of at least 5.0 pence for FY22 based on levels of rent collection. Moreover, CREI had warned of significant economic uncertainty regarding the adverse impact of the withdrawal of COVID-19 business support by the Government. Nonetheless, the Board believed CREI would navigate the near-term uncertainties with ease boosted by the diverse portfolio by sector & location with a well-managed tenant base and low gearing.


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