Custodian PLC recovery led by industrial and logistics properties

Custodian REIT PLC (LSE:CREI) saw a strong recovery in its latest half-year as the property market recovered from the impact of the pandemic.

Net asset value at the end of September 2021 rose almost 9% from six months earlier helped by rising values in its industrial and logistics portfolio.

Rental collection also improved to 95% from 91% six months ago and 88% this time last year and as a result, Custodian has raised its quarterly dividend target by 10%.

 David Hunter, the REIT’s chairman, said: “The UK property market has shown significant resilience since the outbreak of the COVID-19 pandemic.  

“The subsequent recovery, in certain sectors, since the successful vaccination roll-out has been marked with the company’s rent collections improving to 95%, net of contractual deferrals, and EPRA earnings per share increasing to 3.0p (2020: 2.6p) reflecting this improvement and the stabilisation of the company’s rent roll.  

“The COVID-19 pandemic has reinforced Custodian REIT’s strategy which, over and above decisions in relation to investment approach, has always placed income and financial resilience at the heart of the company’s objectives.  

“When allied to the appropriate property strategy this focus underpins sustainable dividends, which in turn support long-term total return.”