Successful results for Leicester’s Custodian

Credit: Jevanto Productions

Custodian REIT, the Leicester-based commercial real estate investment company, has posted “another successful period of capital raising and investment”.

For the six months ended 30 September, profit after tax stood at £13.2 million, up from last year’s figure of £8.3 million.

Portfolio value was also up, with the company reporting value of £474.3 million compared to last year’s £385.3 million.

“I am pleased to report another successful period of capital raising and investment,” said Chairman David Hunter.

“We continue to target growth to realise the potential economies of scale offered by the Company’s relatively fixed cost base and the amendment to the Investment Manager’s charging structure announced in June, while maintaining the quality of both properties and income.

“Occupational demand remains healthy and we are witnessing rental growth and low vacancy rates across the portfolio, giving us comfort that there is still an opportunity to invest.

“I believe the current market supports our strategy of targeting high quality 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.

“We remain well placed to meet our target of paying further quarterly dividends, fully covered by income, to achieve an annual dividend for the year of 6.45p per share.

“I expect occupational demand, combined with a limited supply of new development, to drive rental growth and lower vacancy rates across regional markets, which will support our objectives to both grow the dividend on a sustainable basis and deliver capital value growth for our shareholders over the long-term.”