IN BRIEF: Custodian REIT lowers annual dividend on net asset value dip

Custodian REIT PLC - Leicester, England-based commercial real estate investor - As at March 31, ...

Alliance News 16 June, 2021 | 6:50PM
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Custodian REIT PLC - Leicester, England-based commercial real estate investor - As at March 31, net asset value per share down 3.9% year-on-year to 91.8 pence from 101.6p, on portfolio value which dropped to GBP551.9 million from GBP559.8 million, as a result of declines in the rental value of high street retail properties.

Pretax profit for year is GBP3.7 million, up 77% from GBP2.1 million the year before, driven by a weaker net loss on investment property, even as revenue dipped to GBP39.6 million from GBP40.9 million.

Declares total dividend of 5.0 pence per share, down from 6.65p the prior year, reflecting a drop in rent collection and rent roll.

Looking ahead, is targeting no less than 5.0p per share for the current financial year.

"The impact of the pandemic has been to accelerate the decline in high street retail, pushing an increasing number of occupiers into insolvency and many occupiers into seeking to defer rental payments. Despite the strongly positive performance of the company's industrial and logistics portfolio, the net result has been a 3.5% property valuation decrease during the year," said Chair David Hunter.

Current stock price: 98.00 pence

Year-to-date change: up 12%

By Dayo Laniyan;

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Custodian REIT Ord 105.00 GBX 0.00 -

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