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Custodian Property Income REIT PLC on Wednesday noted rental growth in the industrial sector but lamented a ‘hiatus’ in improving inflation statistics. The real estate investment trust focused on UK commercial property said like-for-like estimated rental value ticked up 0.8% in the fourth financial quarter ended March 31, which it said was driven by rental growth. The company highlighted that portfolio ERV of £49.4 million was 15% higher than passing rent of £43.1 million, which showed ‘the portfolio’s significant reversionary potential.’ Net asset value per share edged up to 93.4 pence per share as at March 31 from 93.3p at December 31. ‘2024 began with greater confidence in the market than at the close of 2023. Much of this confidence was rooted in an expectation of falling interest rates and an acknowledgement that, in many sectors of the property market, valuations had adjusted sufficiently to reflect investor sentiment. However, the early part of the year witnessed an increase in the five year swap rate, and a hiatus in the improving inflation statistics. These factors may have delayed a recovery, but a recovery is still expected later this year as inflation settles and interest rate decreases follow. We expect transactional activity to increase as the recovery takes hold,’ the company said. Looking ahead, it targets a financial year 2025 dividend of 6.0 pence per share, up 3.4% from 5.8p paid for financial year 2024. Custodian Property shares were 0.2% higher at 74.38 pence each on Wednesday morning in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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