12th Dec 2019 13:29
(Alliance News) - Custodian REIT PLC on Thursday said its half-year performance was hurt by challenges in the retail market.
The real estate investment trust said its pretax profit fell dramatically to GBP700,000 from GBP16.6 million reported a year earlier, primarily due to property valuation decreases.
Custodian property portfolio was valued at GBP547.2 million as at the end of September compared to GBP572.7 million as of March 31.
The company's net asset value per share at the end of the first half stood at 104.3 pence, down from 108.6p a year ago and 107.1p as at March 31.
Custodian's shares were trading at 117.6p each at the end of the period, representing a 13% premium to NAV. The London listing was 0.3% lower on the day on Thursday at 112.44p a share.
"I am pleased to report that the company delivered a further positive total return for the Period despite a struggling retail sector and continued UK political uncertainty," said Chair David Hunter.
"The challenges to physical retail compared to online retail have yet to reach a conclusion, but, across other sectors of the commercial property market, there remain supply and demand imbalances that should continue relatively low vacancy rates and further rental growth," added Hunter.
Custodian paid 3.30p per share in dividends during the period, and said it is on track for annual payout of 6.55p, unchanged year-on-year.
By Evelina Grecenko; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Cust Prop Inc