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Custodian Property Income REIT PLC on Thursday said active management of its diversified property portfolio drove earnings growth in the first half of the year, as the trust reaffirmed its annual dividend target. The Leicester-based real estate investment trust focused on UK commercial property said pretax profit for the six months that ended September 30 was £14.9 million, reversing a £2.7 million loss in the same period last year. This was driven by stable property valuations and improved rental income. Revenue rose 8.8% to £24.8 million from £22.8 million a year prior, supported by increased occupancy and growth in income from solar panel installations. Custodian declared an interim dividend of 3.0 pence per share, up 8.7% from 2.75p a year earlier, in line with its full-year target of at least 6.0 pence per share, representing a yield of around 6.9%. Dividend cover for the half-year was 100%. Chair David MacLellan said: ‘The company’s diversified strategy and strong focus on income has delivered relatively stable returns against a background of improving sentiment towards commercial property investment. Looking ahead, we expect a gradual recovery in capital values to complement the fully covered dividend, enhancing total returns for shareholders.’ During the period, Custodian completed 29 leasing activities, including new lettings and lease renewals, which contributed £1.1 million in additional annual rent. The company also sold four properties for £13.7 million, achieving a 39% premium to their pre-offer valuations. Net asset value per share edged up to 93.6 pence at September 30 from 93.4 pence at March 31. Custodian’s portfolio remained focused on smaller, regional UK properties, with 41% of income derived from industrial assets and 22% from retail warehouses. The company said its portfolio occupancy improved to 93.5% from 91.7% in March, while its like-for-like estimated rental value rose by £0.9 million to £49.3 million, providing an 11% reversionary potential. Shares in Custodian were down 1.0% at 79.02 pence each in London on Thursday morning. Copyright 2024 Alliance News Ltd. All Rights reserved.
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