16th Dec 2022 09:20
(Alliance News) - Custodian Property Income REIT PLC on Wednesday said it turned a loss in the first half, as net asset value dropped.
The Leicester, England-based real estate investment trust said NAV per share for the half-year that ended September 30 was 113.7 pence, down 5.0% from 119.7p per share in March.
Custodian Property said NAV total return per share was negative 2.7%, swinging from positive 12% a year ago.
The company declared an interim dividend of 2.75p per share, up 10% from 2.5p per share a year prior. It said it expects to achieve a target total dividend of 5.5p, based on rent collection levels remaining at their current levels.
Custodian Property reported an interim pretax loss of GBP14.1 million, swinging from a profit of GBP48.1 million a year ago. Revenue grew 10% to GBP22.3 million from GBP20.2 million.
Chair David Hunter said: "The company’s well-diversified investment portfolio has shown its resilience during the period and this diversification has mitigated the risks posed by volatility in real estate investment markets."
Custodian Property's portfolio was valued at GBP685.4 million in September, up 3.0% from GBP665.2 million in March.
"There is depth in occupational demand and latent rental growth in the portfolio which offers the prospect of growth for existing shareholders, despite the current difficult economic circumstances," Hunter said.
The company said it is optimistic for returns, and confident that its smaller regional property portfolio "will continue to support fully covered dividends while offering a defensive strategy to investors".
Custodian Property shares were down 1.1% trading at 90.28p per share on Friday morning in London.
By Harvey Dorset, Alliance News reporter
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