Custodian REIT see “successful” interim results

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Custodian REIT, the Leicester-based real estate investment firm, has witnessed a rise in revenue to over £19.6m according to its interim results for the six months ended 30 September 2018.

Profit before tax rose 26% to £16.6m (2017: £13.2m).

The firm’s portfolio value also increased, reaching £547.0m (from £474.3m in 2017).

David Hunter, Chairman of Custodian REIT, said: “I am pleased to report another successful period of positive shareholder returns and cautious investment in a market where value can still be found with a disciplined approach to deployment.

“We continue to target growth to realise the potential economies of scale offered by the Company’s relatively fixed administrative cost base and tiered annual management charge.

“The Board and Investment Manager are closely monitoring the potential impact of evolving trends in the UK retail industryand ‘Brexit’ on commercial property markets.

“Our role is to look beyond the media coverage to weigh up dispassionately the associated risks, which often create opportunity, and we expect proactive asset management will continue to drive performance in the portfolio, as rental growth at lease renewal or rent review remains robust.

“We also expect occupational demand, combined with a limited supply of new development, to maintain low vacancy rates across our regional portfolio.

“We are well placed to meet our target of paying further quarterly dividends, fully covered by net income, to achieve an annual dividend for the year of 6.55p per share, and remain committed to both growing the dividend on a sustainable basisand delivering capital value growth for our shareholders over the long-term.”