Good to see another one stabilising. I like CREIs transparency on asset mgt but in that info there is a fair few lease extension/renewals where the rent remains unchanged and a few where its dropped. They also tell us that a couple of big vacancies have arisen post qtr end. Finally they are proposing to cover this years loan redemption using the RCF so that will add to interest costs in the short term as they wait out direction of interest rates. So another year without a divi increase imv but as i got in when the API debacle crashed the share price im content. |
 Signs of hope?
Commenting on the trading update, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, said: “This Quarter saw further evidence that the market has bottomed out, with the last 12 months seeing two quarters of broadly flat valuations followed by two quarters of like-for-like valuation growth. These valuation increases add further support to our belief that we are at the start of a gradual upwards trend having delivered like-for-like average rental growth of more than 5.0% per annum over the last 18 months, with proactive asset management being the key driver of returns. We completed 25 plus lettings, lease renewals, re-gears and rent reviews during the Quarter at significant average premiums to ERV and previous rent, as well as continuing to make disposals on terms ahead of valuation. These activities will be supportive of future earnings and our longstanding track record of fully covering our dividend, which now offers investors an attractive c.8% yield.” |
29 January 2025
Custodian Property Income REIT (LSE: CREI), which seeks to deliver an enhanced income return by investing in a diversified portfolio of smaller, regional properties with strong income characteristics across the UK confirms its third quarterly interim dividend for the financial year ending 31 March 2025, relating to the quarter ended 31 December 2024, of 1.5 pence per share will be paid on 28 February 2025 to shareholders on the register on 7 February 2025, and designated as a property income distribution (“PID”). |
Winterflood were right with 54% of their choices last year, so not great but lets hope they are right with this one.
Can't believe how the whole sector has fallen out of favour - my REITs have pretty much all underperformed over the last few months. As API was one of my largest holdings I was a bit disappointed at the exit price, but retrospectively it looks decent.
Might get a few more here but there is no rush. It can wait for the next BoE meeting at a minimum |
CREI get a, favourable, mention here being selected as one of 8 Winterfloods discounted funds of the year |
A well-managed REIT, forgiving their foolish tilt at API! So, surprised to see these back to 72.6p. A general malaise in the sector; but now on a 22.5% discount; and more importantly an 8.3% yield.
Tempted; but cash went into WHR yesterday... |
@Nexus oh yes I overlooked Cross is the key mgr in CREI so my comments aren't relevant and have amended. |
@nickrl re:#403. Thank you for your comments on H1 numbers. The vacant assets sold amounted to c. 2.5% by value of the portfolio; that ought to reduce ongoing property costs. Gearing reduced to 28.5%, nearing their 25% target. RCF repayment of 5mn will reduce interest bill by c. 320k. Divi target FY24 >6.0p, up from FY23 5.8p. Regarding the management of CREI, my understanding is that Mattioli resigned as NED from the CREI board, but remains as Chair of CREI's manager, Custodian Capital Limited. The two key executives of Custodian Capital Limited, MD Richard Shepherd-Cross and FD Ed Moore are unchanged. Thus I have no concerns. Richard is the co-founder and principal driver of Custodian Capital Limited. CREI was originally seeded with assets from Mattioli Woods' clients. Like you I bought CREI soon after the announcement of the proposed merger with API. |
At the cash level things dont look as rosy. NRI was barely up although they have sold on a few assets but bottom line income was flattered by a hefty dilapidations payment worth 4% extra. Then we have an big increase in unrecoverable property costs not explained in the report but maybe with the three big vacant properties out of the portfolio gone this will reduce down. Positively rent roll is up nearly 5% so that supports the divi going forward.
What hadn't spotted till the report is Mattoli is no longer running the REIT and he has been a big driver of this so one hopes his style will be followed by whoever replaces him. Edit: not relevant see update from @Nexus below
Piled in here when the share price got trashed over API merger so will hold for the time being but should have top sliced when it recovered so well a few mths back. |
A fair report. Topped up. |
Interim results look good: dividend up. |
@nickrl Re debt increase FY25Q1 to FY25Q2 of +6mn .
- Capex 2.2mn was covered by disposal proceeds.
- The +6mn could be due to cashflow timing issues, e.g. payment of divi v. receipt of rent.
- The 174.0mn is not net debt. Cash in hand is not disclosed.
- The granularity of full reporting (6 months) FY24 annual report to FY25H1 is unlikely to detail the QoQ changes in net debt; we will be none the wiser.
Hope this helps. |
@marktime passing rent continues to grow modestly qtr on qtr and by my reckoning ought to allow a sub 5% divi increase given a couple of lease events which have happened post period. Debt has crept up +6m despite some asset sales and not clear why as they only report 2.2m on capex. Have to say ive always liked the transparency here on individual assets.
Anyhow as I like to see the qtrly report before i decide on whether to reinvest the last qtrs divi have no compunction here and nice that share price has dropped back. |
I thought that was a solid update, income and debt cost matching each other to make sure the dividend is just covered. Good to see NAV stabilising, hope they are right we have seen the bottom of the cycle. A pity then that the share price has faded back, presumably on macro rather than specific to CREI.
A lot of detail in the report, not sure what is worth noting. A small but positive amount of asset recycling. Anything else? |
cheerful update |
Bought these at 71 & 66p after they got involved in API. I only did it at the time as a hedge against the deal falling through which it did (API being my largest holding). They are my two best trades this year - fair to say I've made as many bad ones as good ones. Hopefully the interest rate cut will help.
Surprised this morning was an RNS rather than a PR statement, but guess it makes little difference. Important to show that underperforming assets haven't fallen further I guess, though one data point isn't particularly meaningful |
I'm surprised they issued an RNS for that. Not material although it could be considered good news with it being in the office space. |
Modest but in-line at least office sale:-
17 September 2024
Custodian Property Income REIT plc
(“Custodian Property Income REIT” or the “Company”;)
Disposal of Property
Custodian Property Income REIT (LSE: CREI), which seeks to deliver a strong income return by investing in a diversified portfolio of smaller regional properties across the UK, is pleased to announce the disposal of a vacant office unit in Castle Donington for £1.75m, in line with the 30 June 2024 valuation, having acquired the property as part of a portfolio in June 2016.
Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, said: “Following the exit of the tenant at lease expiry, substantial refurbishment would be needed to secure a new letting and maintain the rental level which we did not believe would be cost effective. The sale demonstrates the continued demand for smaller lot sized regional assets, particularly from owner occupiers, and we expect to use the sale proceeds to repay variable rate debt, which aligns to our strategy of providing shareholders with strong income returns.” |
I like CREI, but never bought the lows in my own a/c. Just sold out in some a/c's of family members, because it's had a good run & the discount has come back, & got tempted to bank profit.
But interesting thing was how far inside the spread - eg 85.67 to sell when 85/85.9. |
Increasingly few quality small REITs left - wonder if CREI proving a home for BCPT money. |
Strong finish today, UT at 82p. |
MIDAS SHARE TIPS
The property investment trust going cheap and packing a 7.5% dividen ..... |
Steady as she goes NAV update although down a tad with office portfolio doing most damage. This one used to trade just above NAV and did often share placings pre covid so had no interest but their abortive API foray created a nice entry point for income purposes. |
Custodian Property Income REIT plc
Interim dividend
Custodian Property Income REIT (LSE: CREI), which seeks to deliver an enhanced income return by investing in a diversified portfolio of smaller, regional properties with strong income characteristics across the UK, confirms its first quarterly interim dividend for the financial year ending 31 March 2025 of 1.5 pence per share, to be paid on 30 August 2024 to shareholders on the register on 12 July 2024, will be designated as a property income distribution (“PID”). |
Mattioli recently bought out by Pollen, I wonder if CREI might also be snapped up. I believe Mattioli offer various internal property strategies for their clients - would make sense to bring CREI in-house. |
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