Custodian Property Incom... Share Discussion Threads

[skyship] 12/10/2018 13:33

Reality check finally setting in here, as they trade back to 115p.

Even if the 30th Sept. NAV advances to 110p, they will still be on a near 5% PREMIUM; so IMO further weakness likely.

Best of the pack remains RGL @ 99p where the prospective end'18 NAV discount and yield = 17% & 8.1% respectively.

NB: I switched allegiance from RLE due to RGL's far better asset management and sector allocation; also due to the fact that RGL was a market anomaly as fellow propco CIC liquidated their small holding acquired from a property portfolio sale nearly 2yrs ago.

[sleepy] 28/9/2018 08:21

Sale brochure -

[skyship] 27/9/2018 09:42

They certainly seem to have got this one at a very good price:
=============================================================

The Company has acquired Foundry House, a 26,051 sq ft office building
within Riverside Exchange, an established office location on the northern
edge of Sheffield city centre adjacent to the inner ring road.

The property is let to the Secretary of State for Communities and Local
Government operating branches of the Home Office and the Health and Safety
Executive on two leases expiring on 30 June 2022, with aggregate passing
rent of GBP371,299 per annum reflecting a net initial yield[1] of 9.79%.

The agreed purchase price of GBP3.56 million was funded from the Company's
existing debt facilities, resulting in net gearing[2] increasing to 23.1%
loan to value.

[speedsgh] 05/6/2018 08:24

Final Results -

Custodian REIT (LSE: CREI), the UK commercial real estate investment company, today reports its final results for the year ended 31 March 2018.

Financial highlights and performance summary
> NAV per share total return1 of 9.6% (2017: 8.5%)
> EPRA2 earnings per share3 of 6.9p (2017: 6.6p), basic and diluted earnings per share of 8.9p (2017: 8.1p)
> Portfolio value of £528.9m (2017: £418.5m4)
> Profit after tax up 34% to £32.4m (2017: £24.2m)
> £54.7m5 of new equity raised at average premium of 11.1% to dividend adjusted NAV
> 2019 target dividend per share increased to 6.55p (2018: 6.45p)
> £106.3m6 invested in 20 acquisitions, one ongoing pre-let development and one significant refurbishment
> £8.8m valuation uplift from successful asset management initiatives, £5.7m net valuation increase7
> £1.6m profit on disposal of five properties for an aggregate consideration of £11.3m

[neilyb675] 25/4/2018 18:46

decent post no.74

[jombaston] 25/4/2018 18:07

Some interesting points but I can't see any mention of costs or divi cover.

CREI, MKLW & RLE all have a covered divi which is good to see but have a look at the accounts and you will see that the cost structure is much higher at RLE. This is why they have to run higher leverage to generate their yield.

so CREI and MKLW are higher quality and deserve to be more expensive than RLE. Whether the current difference is too much or too little is another matter. And which you prefer may depend on your investing style.

[neilyb675] 24/4/2018 19:16

BRCI
BRWM
CREI
EGL
HICL
MCT
NCYF
TRIG

some at premium, some at discount......I don't cry either way (unlike some)

[skyship] 24/4/2018 17:28

Neily - why so chippy? The explanation of your strange 68 above doesn't seem to ring true.

[neilyb675] 24/4/2018 16:32

Sky

I was talking shares in general not this sector.

If you don't like crei I'm sure you will find some friends somewhere else.

[skyship] 24/4/2018 16:15

Neily - sorry, but you're wrong. The vast majority of propcos stand at discounts. Would you care to provide a short list of those trading at an NAV premium? At the moment all I can think of is MKLW, or the occasional Income Propco at less than 2% premium.

The big "Premium NAV" high-yielding stock in recent times was New River Retail (NRR); and they too were successful at issuing new shares at a substantial NAV premium. Finally the Market woke up to the overhead tap limiting capital progress; and the shares lost their premium and now trade at c.NAV, having been down to a c5% discount. The shares lost c20%!

I'm not forecasting the same fate here; just that in 12months time you are likely to do better overall with a stock like RLE than CREI.

I've made a note in my diary to report back in Apr'19.

[eezymunny] 24/4/2018 12:17

RLE loan to value 38.3%
CREI just 21%

These things are important for valuation purposes. A lowly geared comprop company with a 5.6% yield will remain attractive for some time I guess.

[neilyb675] 24/4/2018 12:11

there are loads of examples of shares that are trading at a premium or discount.

You either buy or you don't buy. Simple.

get over it

[skyship] 24/4/2018 12:08

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!

[neilyb675] 24/4/2018 11:44

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.

[neilyb675] 24/4/2018 09:39

Ex-div

1.6125p

26/4/18

[skyship] 20/2/2018 15:20

Link announces CEO interviewed in the February issue of What Investment magazine:

[skyship] 18/2/2018 11:05

Another 2m issued @ 114.5p - 1m on 9th & 1m on 14th Feb.

[skyship] 03/2/2018 16:13

....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.

[skyship] 26/1/2018 16:57

Dec'17 NAV @ 106p; yet CREI still manages to issue another 4m shares @ 115p - an 8.5% premium.

[skyship] 31/12/2017 16:47

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:

[skyship] 14/12/2017 08:59

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.

[neilyb675] 13/12/2017 19:18

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).

[sharesoc] 28/9/2017 13:43

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:

[sharesoc] 25/8/2017 14:07

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.

[skyship] 08/8/2017 13:41

PCA currently the pick of the bunch in share price performance; though this is after CREI drops back from its June spike:


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