24th Nov 2015 12:59
LONDON (Alliance News) - Custodian REIT PLC on Tuesday said the first half of its financial year was a period of "significant investment", with GBP23.4 million put into 14 acquisitions and developments.
Pretax profit swelled to GBP7.9 million in the six months ended September 30, compared with GBP3.3 million in the corresponding half the prior year.
The UK commercial real estate investment company reported a net asset value per share total return of 4.6% in the six months to September 30.
Its NAV per share was 103.0 pence on September 30, when its portfolio was valued at GBP232.9 million.
The company said it has a pipeline of GBP78.1 million of properties under offer or in solicitors' hands.
"This has been another period of significant investment, as we seek to realise economies of scale offered by the company's relatively fixed cost base, while adhering to the company's investment policy and maintaining the quality of both properties and income. We remain well placed to meet our goal of paying further quarterly dividends, fully covered by income, to achieve an annual dividend of 6.25 pence for the year ending March 31, 2016," Chairman David Hunter said in a statement.
"The current market dynamic supports our strategy of targeting high quality, smaller lot size properties across regional markets, with the type of institutional grade property targeted by the company showing value relative to larger lots through a higher net income return and opportunities for future rental growth," Hunter added.
Shares in Custodian REIT were up 0.7% at 105.50p on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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