Portfolio value increases at Leicester real estate investment company

Custodian REIT, the Leicester-based commercial real estate investment company, has increased its portfolio value.

According to the firm’s final results, for the year ended 31 March 2019, portfolio value has grown from £528.9m in 2018 to £572.7m.

Additionally, in the year, Custodian REIT invested £55.5m in 11 property acquisitions.

On the final results, David Hunter, Chairman of Custodian REIT, said: “I am pleased to report that five years since its initial public offering (“IPO”) Custodian REIT is continuing to deliver on its objectives and performing for shareholders.

“The Company’s market capitalisation has grown from £132m to £443m through managing a portfolio of increasingly well diversified regional properties with a gross value that has increased from £95m at IPO to £573m.

“Since IPO the Company has successfully deployed new equity, reached target net gearing and grown dividends annually. While property market dynamics may have assisted performance through much of the last five years, we expect our focus on income to provide a stable platform to deliver positive shareholder returns in the future.

“Custodian REIT’s shares have continued to trade at a premium to NAV while many in its direct peer group have moved to a discount. The premium undoubtedly reflects the relatively high dividend yield coupled with a diverse, regional property strategy.

“The Company paid an interim dividend of 1.6375p per share for the quarter ended 31 March 2019 on 31 May 2019, meeting the Company’s target of paying an annual dividend per share relating to the year of 6.55p (2018: 6.45p), 110.4% covered by net recurring income.”