9th Jun 2015 08:30
LONDON (Alliance News) - Custodian REIT PLC Tuesday said the dynamics at play in the investment market are supportive of its strategy of targeting a "high income return, fully covered by income from smaller lot size properties across regional markets".
The real estate investment trust listed in March 2014, when it raised GBP55 million, raising a further GBP47.6 million in October that year and deploying all the money raised and GBP24.3 million of debt by the end of March 2015. On Tuesday, the company said it raised another GBP1.1 million by issuing 1.0 million new shares at 108.675p to meet demand from investors.
Custodian REIT shares were down 0.4% at 109.10p on Tuesday morning.
Its net asset value total return was 7.0% from admission to the London Stock Exchange to March 31, the end of its last financial year. NAV per share increased to 101.3 pence from 98.2p on admission.
"While the investment market has tightened significantly, in large part this is being matched by the strengthening occupational market. This, combined with a dearth of modern, vacant space, is leading to rental growth in most office and industrial markets, reducing vacancy rates on the High Street and driving a return to rental growth in many retail centres," Chairman David Hunter said in a statement.
"This dynamic supports the company's strategy of targeting a high income return, fully covered by income from smaller lot size properties across regional markets, which I expect to underpin the delivery of long term NAV growth and strong shareholder returns," Hunter said.
Having already paid three interim dividends totally 3.75p per share and intending to pay a fourth interim dividend of 1.5p per share, the chairman said the trust is "well placed to meet its target of paying further quarterly dividends, fully covered by income, to achieve an annual dividend of 6.25 pence per share for the year ending 31 March 2016 and in subsequent years".
By Samuel Agini; [email protected]; @samuelagini
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