8th Nov 2024 07:27
(Alliance News) - Custodian Property Income REIT PLC on Thursday said net asset value rose slightly in the second quarter of its current financial year, reflecting the start of a "gradual upward trend".
The Leicester-based real estate investment trust focused on UK commercial property said net asset value per share at the end of its second quarter, on September 30, was 93.5 pence, up 0.4% from 93.1p on June 30.
NAV on September 30 was GBP412.2 million, up 0.5% from GBP410.3 million on June 30, and the NAV total return per share for the quarter was 2.0%.
Custodian Property reported a 1.5% increase in like-for-like passing rent during the three-month period, which it said was driven by 1.1% like-for-like rental growth in the industrial sector.
Portfolio estimated rent value was GBP49.3 million, exceeding passing rent of GBP44.3 million by 11%. This compared to 13% on June 30, which reflected "the reversion captured and sale of vacant property undertaken during the quarter".
The company declared in October a second interim dividend of 1.5p per share, up 8.7% from 1.375p last year.
Custodian Capital Ltd Managing Director Richard Shepherd-Cross said: "Having previously stated that we believed the market was bottoming out, and with two consecutive quarters of broadly flat valuations behind us, it is pleasing to report a marginal increase in our portfolio valuation at the halfway point of the year.
"While one swallow does not make a summer, this does support our belief that, generally speaking, we are at the start of a gradual upwards trend. However, the importance of stock selection and proactive asset management to drive returns remains as acute as ever and the 20 plus lettings, lease renewals, re-gears and rent reviews at significant average premiums to [estimated rental value] and previous rent that we have undertaken during the quarter, as well as the sales we continue to make on terms ahead of valuation, will be supportive of future earnings and dividend cover.
"In September, we also welcomed the Financial Conduct Authority's exemption of investment companies from PRIIPs and MiFID II regulation, which previously obliged wealth managers and platforms to make disclosures about costs which were misleading and ultimately detrimental to investment performance. With the situation now being resolved, and as the investment industry gradually adjusts to this change, we expect the company's competitive cost structure and high returns to be very attractive to new investors seeking strong returns from UK real estate."
Shares in Custodian Property closed 0.9% higher at 77.00 pence each in London on Thursday.
By Emily Parsons, Alliance News reporter
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