Custodian Property Incom... Share Discussion Threads

[hugepants] 10/5/2022 11:42

Agree good quarterly update. I think they are well positioned going forwards. LTV only 19%. Good portfolio mix etc. Also some interesting comments on the market in general.

[pdt] 10/5/2022 08:40

NAV at 31st March 2022 is 120p, a yield of 5.5% at 100p share price and trading at a discount of 17%. I have topped up on this news.

[hugepants] 28/4/2022 09:57

Another strong quarterly update from BREI this morning. NAV +5.8% for the quarter which implies CREI's next NAV could be 120p+. Let's see. They tend to update in early May.

[hugepants] 24/4/2022 22:00

Discount here back up to 11% (NAV 113.7p) and yield 5.45%
LTV approx 20%. Target LTV is 25%.

I see AEWU reported Q1 figures last week. Their industrial assets were +4.6% and retail warehouses +4%

At year end 2021 CREI's portfolio was
Industrial 47%
Retail warehouse 19%
Office 14%
High street retail 8%
Other 12% (drive-through restaurants, car showrooms, trade counters, gymnasiums, restaurants and leisure units)

So I think CREI's Q1 NAV may be over 117p now which would put it on a 13.5% discount (compared to no discount at all before the pandemic)
Still a smaller discount than say BREI and SLI which have fairly similar portfolio weightings but the yield here is higher (30% higher than BREI)

[rambutan2] 24/2/2022 22:07

Really interesting presentation I thought:

On Wednesday, 23rd February 2022, the portfolio management team of Custodian REIT, Richard Shepherd-Cross & Ed Moore, provided an update on the strategy, portfolio, and performance as well as providing their outlook for UK commercial property sector...

[nickrl] 23/2/2022 23:08

Laura Mattioli been busy again

250,000 @ 101 pence

[nickrl] 22/2/2022 18:10

chunky buy by a person closely associated with director - Laura Mattioli, daughter of Ian Mattioli, a NED

200,000 @ 100.6 pence

[skyship] 13/2/2022 16:02

nick - those placings were possible because of the appetite of buyers. I suspect that appetite no longer there to the same extent.

Placings were conducted at a premium to NAV, so NAV accretive; whereas CREI now on a 6% discount.

[nickrl] 10/2/2022 10:33

Not in this one but with its diversified portfolio gives you a broader view of what is happening. I also like the transparency they give leases on the qtr although they of course never mentions the ones that walked away! So NAV is up a 8.5% divi up to 1.375p/qtr will give a forecast yield on current share price of 5.2%. Vacancy rate is up a tad but they imply that's largely down to the DRUM acquisition which had a high vacancy rate.

Steady eddie this one and I do wonder if they will jump back on their old bandwagon of almost weekly placements that they were doing pre pandemic.

[nickrl] 09/12/2021 09:39

6.29% yield isn't to be sniffed at but shows how much retail wharehouses have tightened up over the last year and should have good read across to other like EPIC.

[alter ego] 09/12/2021 08:32

"The Company has acquired a 45,779 sq ft retail warehouse unit in Cromer occupied by Homebase, with nearby retailers including Travis Perkins, Topps Tiles, Screwfix, Halfords and Argos.



The property is let on a lease expiring in July 2028 with a current passing rent of £300,000 per annum, reflecting a net initial yield1 of 6.29%."

[petewy] 04/12/2021 11:38

hxxps://www.edisongroup.com/publication/strong-h122-returns-and-further-dps-growth/30276

Good report

[nickrl] 30/11/2021 22:29

They always give a comprehensive portfolio update and plenty of positives on lettings although do draw our attention to couple of hefty administrations. The 5.5p dividend is covered at the cash level at HY so with addition of DRIP maybe scope for a bit more by year end.

[9degrees] 30/11/2021 08:27

excellent results and increased dividend

[hugepants] 21/11/2021 20:39

fyi there's a recent article from Proactive investors which includes a link to a pdf document


The are estimating LTV rising to 20% to include the effects of the DRIP acquisition. The DRIP portfolio adds about 10% to the portfolio value. DRIP portfolio is about 50% offices with remainder split between retail w/house, other and industrial. So overall office exposure rises to about 15% but is still low. Industrial and retail warehouse will account for about 65% of the portfolio.

Dividend next year is 5.5p so forward yield of 5.8% and now an a double digit discount of 11%. At this price I think this is no one of the more attractive REITS. It's certainly one of the bigger ones with a £0.4 billion market cap.

[nickrl] 06/11/2021 16:10

HP couple of the sales shows how superheated some areas have become

A portfolio of seven industrial assets for £32.6m, £5.1m (19%) above the properties' 31 March 2021 valuation, when terms of the sale were agreed, and £2.9m (10%) above the 30 June 2021 valuation;
A retail warehouse in Galashiels to a special purchaser for £4.5m, £1.8m (67%) ahead of the 30 June 2021 valuation

so probably a smartish move to buy DRUM and avoid stamp duty.

These used to regularly issue shares at a modest premia so thats my indicator that the good times are back but they generally traded just above NAV so with prospective divi boost as well will keep watching.

[hugepants] 04/11/2021 09:07

Q3 update.


Actually look interesting with a portfolio of 49% industrial and 19% retail warehouse.

Dividend up and yield now above peer group at 5.7%. Discount lower than peers at 9%.

[skyship] 05/10/2021 08:48

2 months on and CREI now languishes at 93p; trading where all the other mortal propcos trade, ie, at a discount!

[skyship] 04/8/2021 10:47

CREI finds another way to issue equity and expand the company.

Still standing at a premium, so a sensible thing for them to do; but yet again undermines any reason to hold IMO.

[edinandy] 04/8/2021 10:31

It's cheap even with the retail. It makes a mockery of the open market valuations if a Board accepts this rather than sell the assets!

[nickrl] 04/8/2021 09:26

CREI making an offer of shares for DRIP not sure what they get out of this as its nearly 45% retail, very little industrial and rest offices other than they avoid stamp duty. Opening offer is low ball mind you and giving biggest shareholder (7IM) at c67% has accepted maybe a smart move.

[nickrl] 27/7/2021 09:53

NAV update put out and then replaced an hour later with some adjusted percentage figures as they'd miscalculated them!! NAV stated at 7.2% increase was actually 6%!! Not that its harmed share price and CREI back trading above par. Never know why this one attracts so much attention OK it has 51% industrials, 18% retail parks rest offices and a little bit of high st retail but then BREI isn't dissimilar but has been a laggard.

Suspect we will see more share issues again as well.

[nickrl] 06/5/2021 10:31

CREI another one now trading above par although it generally did till 15 months ago seemingly able to seduce investors to buy into every share offering at a premium.

Yesterdays RNS

confirms a modest uptick in NAV to 97.6 primarily from the industrial assets offset by the other sectors. Divi remain unchanged but let see at final results what they say albeit this is a pretty comprehensive FY21 update. Occupancy down 4.4% to 91.5% and along with other rental collection challenges thats caused a 10% reduction in rent translating into a 20% reduction in EPRA from 7p to 5.6p but covers divi but not much scope to increase it from here me thinks.

Edit: 24hrs on from writing this CREI have managed to issue 550k new shares at 101.5p

[nickrl] 02/2/2021 13:51

CREI NAV update out today up a modest 95.2 > 96.4 and the divi is uplifted from 1.05p to 1.25p with intention to at least at that rate till Mar 22.

Rental collection looks reasonable at 96% for Q3 and 79% for Q4/21 so far and modest improvement on the position at Q3 of 74%.

Plenty of asset mgt updates but omits giving previous rates to compare but one can infer I guess from the valuation increases they report on most assets that its been positive.

Yields 5.4% on todays share price

This one hasn't had the volatility of some others in this sector and I wonder whether thats due to investor base being diversified through all the share placings it was making over previous years.

[nickrl] 01/12/2020 10:26

CREI not my favourite REIT but manages to maintain a stable share price compared to its peer group has interims out today and you can't fault its level of transparency on its tenants. It helpfully provides a complete schedule as well as advising on tenants lost or at risk.

NAV has previously been updated and whilst there rental collection rate looks reasonable at 88% against the contracted rent roll its more like 75% but at least they are clear about what is being deferred. Compared to others they have provided a hefty provision of around 16% of rent roll over above agreed deferments. They are also benefiting to the tune of 3.5m for HMRC payments that can be deferred til Mar 21.

They are keeping a lid on admin and director costs but voids have crept up. Lower dividend is 120% covered on cash and yields 4.8% on current share price Should be scope for another small increase but will be a while before it gets back to its previous levels.

Doubt they will issue shares at premia for a while either but another one if it goes 5% threshold might tempt me.