Custodian Property Incom... Share Discussion Threads

[nickrl] 09/12/2024 18:08

@Nexus oh yes I overlooked Cross is the key mgr in CREI so my comments aren't relevant and have amended.

[nexusltd] 08/12/2024 18:45

@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.

[nickrl] 08/12/2024 17:20

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.

[marktime1231] 05/12/2024 16:44

A fair report. Topped up.

[petewy] 05/12/2024 09:27

Interim results look good: dividend up.

[nexusltd] 11/11/2024 11:23

@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.

[nickrl] 08/11/2024 14:15

@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.

[marktime1231] 08/11/2024 12:38

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?

[petewy] 07/11/2024 16:52

cheerful update

[dr biotech] 17/9/2024 10:13

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

[frazboy] 17/9/2024 08:53

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.

[cwa1] 17/9/2024 08:07

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.”

[spectoacc] 16/9/2024 07:25

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.

[spectoacc] 05/9/2024 06:36

Increasingly few quality small REITs left - wonder if CREI proving a home for BCPT money.

[marktime1231] 04/9/2024 23:32

Strong finish today, UT at 82p.

[petewy] 08/8/2024 15:09

MIDAS SHARE TIPS
The property investment trust going cheap and packing a 7.5% dividen .....

[nickrl] 08/8/2024 08:03

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.

[hugepants] 01/7/2024 22:01

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”).

[riverman77] 28/6/2024 13:47

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.

[marktime1231] 28/6/2024 13:26

Yes a sizeable vote of confidence from Ian Mattioli the wealth manager and non-exec, investing for his own family rather than Mattioli Woods clients.

Hope this impels progress. All very well paying Edison to write positive research notes but nothing speaks louder than an informed investor making big buys.

[spectoacc] 28/6/2024 13:01

One director inc several family members, but reasonable overall. All bought on Wednesday.

[arbus5000] 28/6/2024 13:00

quite a few chunky directors buys

[nickrl] 13/6/2024 10:11

Quick scan of the results.

API endeavour has resulted in a 1.557m charge!

NRI was up c1.5m despite disposals (18m) which by the way have funded a pretty hefty capex activity (19m) so we need see some payback on that as voids are costing 2m pa currently. At least the inv mgt charge is reduced with the prop valuation drop so covers some of that.

Doubt this will ever get back to being able to issues shares at premia that it did regularly pre covid but divi level is good and covered. So if the big capex spend is done and with a few more disposals should be able to eliminate that expensive RCF (6.9%).

[hugepants] 13/6/2024 06:56

Final results.

[skyship] 12/6/2024 07:18

Indeed. Pretty bizare really - being able to get an 8.4% yield with an NAV discount now opened up to 24%.

Opened my a/c this morning at a smidgeon under 70.6p; that = 71p all in. That darned SD really stinks when buying in a pension fund.