Leasing momentum continues to drive income returns and support fully covered dividends

Custodian REIT (LSE: CREI), which seeks to deliver a strong income return by investing in a diversified portfolio of smaller regional properties across the UK, today provides a trading update for the quarter ended 30 September 2022 (“Q2” or the “Quarter”).

Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, said: “We believe strong recent leasing activity demonstrates the resilience of Custodian REIT’s well-diversified investment portfolio and the depth of the occupational market, the strength of the Company’s balance sheet, low gearing and a longer-term fixed rate debt profile will continue to support a high income return strategy.

“Despite recent valuation decreases our active asset management has enabled us to capture occupational demand, lease vacant space and deliver rental growth which support earnings and underpin the Company’s fully covered dividend.

“Custodian REIT’s prudent approach to investment and the management of its balance sheet has left the Company well insulated from the negative impact of interest rate rises continuing in the short to medium-term.  We also remain confident that our ongoing intensive asset management of the portfolio will maintain cash flow and support consistent returns.  The current market volatility, particularly in relation to valuations, further strengthens our ongoing belief that earnings yield is the more reliable and important measure of value as income supports the greater part of total return.”

You can read the full update by clicking here.