2nd Sep 2025 11:16
(Alliance News) - Custodian Property Income REIT PLC on Tuesday reported an increase in like-for-like estimated rental value, as it hailed "another quarter of positive net asset value momentum and stable earnings".
The Leicester, England-based real estate investment trust said NAV per share was 96.7 pence at June 30, the end of its first quarter, up 0.6% from 96.1p at March 31.
NAV improved to GBP448.7 million from GBP423.5 million, primarily owing to the issuance of 22.9 million shares through the corporate acquisition of Merlin Properties Ltd. The NAV total return per share for the first quarter was 2.2%.
The trust said EPRA earnings per share fell to 1.5p from 1.6p in the previous quarter, with EPRA occupancy "broadly maintained" at 90.9% compared to 91.1% at March 31.
Custodian Property reported that like-for-like estimated rental value rose 0.8% during the quarter, driven by 1.7% LFL growth in the industrial sector. This represents 43% of the portfolio by income.
The company noted "significant potential" for further income growth, with the portfolio ERV of GBP51.5 million, up 2.6% from GBP50.2 million at March 31. It noted that this exceeds the current passing rent of GBP44.9 million by 15%.
The trust paid a 1.5p dividend for the quarter, flat with a year earlier.
Shares in Custodian Property Income were down 1.0% at 75.38 pence on Tuesday morning in London.
"The company has delivered another quarter of positive net asset value momentum and stable earnings, fully covering our dividend, which continues to offer investors an attractive yield of c.7.7%. We achieved an average rental uplift of 13.5% across all asset management initiatives, from rent reviews to new lettings, with growth evident across the full breadth of our diversified portfolio," said Custodian Capital Ltd Managing Director Richard Shepherd-Cross.
"This strong rental performance, coupled with resilient tenant demand and stable valuations, highlights the continued disconnect between the underlying fundamentals of UK real estate and current market sentiment, where discounts to NAV and capital outflows point to a clear underappreciation of the opportunity," Shepherd-Cross added.
By Christopher Ward, Alliance News reporter
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