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Custodian Property Income REIT PLC on Wednesday reported its portfolio value had held steady amid an ‘acutely sensitive’ property market. Custodian Property Income REIT is a Leicester-based property investment company focused on a portfolio of smaller, regional properties across the UK. Shares in the firm were down 0.6% at 85.50 pence on Wednesday morning in London. The company reported a net asset value of 98.6p per share as at June 30, down 0.7% from 99.3p as at March 31. Its total NAV return for the quarter ended June 30 was 0.7%. Custodian’s portfolio valuation remained broadly stable at £614.3 million as at June 30. Its EPRA occupancy remained at 90% in the quarter. The firm explained that the listed property market had been ‘acutely sensitive’ to broader economic news with inflation, interest rates and a potential recession all impacting investors‘ confidence. ‘Interest rate outlook bites the hardest and at the start of the previous quarter there was a belief that interest rates might have been close to topping out. This optimism saw yields harden in some sectors following a market rerating in the second half of 2022, but by the end of the quarter that confidence had been eroded with the 50 [basis point] rise in the base rate to 5% and the expectation of more to come. On the back of the rate rise listed real estate prices fell sharply, but there has been some recovery since then on the back of the most recent inflation numbers for June 2023,’ the company explained. Custodian said a dividend of 1.375 pence had been approved for the quarter. It added that it is targeting dividends per share of no less than 5.5p for the year ending March 31. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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