CREI confounds again. Back up to 118p where the NAV PREMIUM is 10% and the yield 5.5%.
Compared to, say, RLE @ 56p where the NAV DISCOUNT is 21% and the yield 6.25%.
With the share price at this level we could well see another of those famous placings at a large NAV premium! |
In the absence of unforeseen circumstances, the Board intends to pay quarterly dividends to achieve a target dividend13 per share for FY19 of 6.55p (FY18: 6.45p, FY17: 6.35p). The Board's objective is to grow the dividend on a sustainable basis, at a rate which is fully covered by projected net rental income and does not inhibit the flexibility of the Company's investment strategy. |
Ex-div
1.6125p
26/4/18 |
Link announces CEO interviewed in the February issue of What Investment magazine: |
Another 2m issued @ 114.5p - 1m on 9th & 1m on 14th Feb. |
....and then on 1st Feb'18 they issue another 1.5m @ 115p - "to satisfy continued investor demand".
The investors' fate surely reflected in the recent performance of NRR - they too were a wunderkid issuing stock at a premium; but eventually common-sense and gravity prevails! 110p looks likely pretty soon...but I suspect no-one still holding here; so no matter. |
Dec'17 NAV @ 106p; yet CREI still manages to issue another 4m shares @ 115p - an 8.5% premium. |
CREI isn't my favourite in the new "Income" sector due to its NAV premium. Personally I prefer EPIC, RGL & RLE; but whichever, this interview explains exactly why I believe the sector to be safe for income and growth: |
Remarkable - CREI manages to issue 3m shares at a 10% NAV premium and a 5.6% yield.
Bearing in mind the pulling of the AVIVA Secure Income REIT yesterday, such a performance is rather bizarre. Just who are these investors prepared to buy a propco at a 10% premium?
Certainly the few traders paying 117p+ at the moment will regret that decision. |
announces that to satisfy continued investor demand, 3,000,000 new ordinary shares of 1 pence each in the capital of the Company ("the New Shares") were issued today under its ordinary share block listing facility. The New Shares were issued at 115.25 pence per share, raising £3,457,500 (before costs and expenses). |
There is a detailed report by Cliff Weight on Custodian Reit who attended our London seminar on the 13th September, which can be found in our members area here:
ShareSoc full members can download Stockopedia reports, presentations from all of the companies that presented at this seminar, and this report from Cliff Weight on proceedings from our members area
To access the report, you'll need to be a full member of ShareSoc, which is a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join here:
Once you've joined, you'll receive an invitation to register for our "members network" private social network, from where you'll be able to access the report (and reports on 100s of other meetings). If you're already a member and have any difficulty accessing the report, please do not hesitate to contact us here: |
Custodian REIT present at our London growth company seminar coming up on the 13th September
It may be of interest to potential investors and current shareholders. There will be a chance to ask questions and is a great opportunity to network with fellow investors at the event. |
PCA currently the pick of the bunch in share price performance; though this is after CREI drops back from its June spike:
free stock charts from uk.advfn.com |
You've got to admire the management team at CREI, who are still managing to issue stock at a near 10% premium to the underlying NAV.
Why any institution is prepared to buy a non-specialist property investment company at such a premium is beyond my comprehension, even on a prospective 5.6% yield.
A slight sense of reality setting in on the share price as it drifts back to 114.5p.
==========================================================================
Issue of equity
Custodian REIT (LSE: CREI), the UK commercial real estate investment company, announces that to satisfy continued investor demand, 3,500,000 new ordinary shares of 1 pence each in the capital of the Company ("the New Shares") were issued today under its ordinary share block listing facility. The New Shares were issued at 114.25 pence per share, raising GBP3,998,750 (before costs and expenses). |
 2018 target dividend per share increased to 6.45p (2017: 6.35p)
_______________________________________
"I am pleased to report that Custodian REIT has continued to deliver strong shareholder returns with NAV per share total return of 8.5% (2016: 6.4%) for the year. We invested a total of £105.0m on the completion of 25 acquisitions and one ongoing pre-let development, funded by £92.4m raised from the issue of new shares and £25m of new term debt.
"I anticipate that occupational demand combined with a limited supply of new development will continue to drive rental growth across regional markets, supporting a low vacancy rate and securing dividends and long-term capital growth for the Company's shareholders.
"The Company has met its target of paying an annual dividend per share for the year of 6.35p (2016: 6.25p, 2015: 5.25p), 101% covered by net recurring income. Our objective is to grow the dividend on a sustainable basis at a rate which is fully covered by projected net rental income, and the Board is pleased to have increased the target dividend for the year ending 31 March 2018 by 1.6% to 6.45p per share." |
Thankyou - hope you'll join in! |
nice ramp .... |
An update on the comparative performances of the high yielding regional players.
I’ve added in two other players – The Birmingham specialist Real Estate Investors (61p; 4.3% Yield; 7.9% NAV discount; £113m MCap) & the other small regional propco Palace Capital (360p; 5.0% Yield; 16.3% NAV discount; £89m MCap). This last is my short-term tip for a possible/likely 10% rise before or upon the Finals on 6th June – I’ve taken a position @ an average of c355p.
Feb’17 Investor Presentation:
May’17 Broker Research Note:
free stock charts from uk.advfn.com |
RGL a recent poor performer; whereas the others still in a pack.
Personally I've ducked out of EPIC at prices up to 107p+ - will look to buy back again when offered below 105p...
free stock charts from uk.advfn.com |
I did consider PCA, skyship, but I went for RGL in the end. That yield is tasty. |
LG - Absolutely right to make the switch; though I think you should have gone for PCA rather then RGL, which I think made a poor acquisition with the CIC purchase... |
Just swapped out of CREI and into RGL. CREI above NAV, RGL below NAV. RGL offering higher yield. Higher LTV with RGL, but still looks to be a good deal and I regard the two as decent alternatives. |
good posts, gets us all thinking.... |
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