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, today provides a trading update for the quarter ended 31 December 2023 (“Q3” or the “Quarter”).

Leasing activity continues to support rental growth and underpin fully covered dividends

• 1.375p dividend per share approved for the Quarter, fully covered by unaudited EPRA earnings, in line with target of at least 5.5p for the year ending 31 March 2024, representing a 8.0% yield based on the prevailing 69p share price[1]
• EPRA earnings per share[2] of 1.4p for the Quarter (FY24 Q2: 1.4p, Q1: 1.5p)
• Passing rent increased to £43.4m (FY24 Q2: £43.2m) driven by continued occupier demand for space across all sectors in the Company’s portfolio, with four rent reviews settled during the Quarter, on average, in line with ERV and 21% above previous passing rent. Four new leases also signed securing £0.5m of annual rent.  These initiatives have increased property capital value by £1.0m
• Like-for-like ERV has increased by 0.8% since 30 September 2023, driven primarily by rental growth in the industrial sector. Portfolio ERV (£50.1m) exceeds passing rent by 15% (30 Sept 2023: 15%) demonstrating the portfolio’s significant reversionary potential
• EPRA occupancy[3] has remained at 91% (30 Sept 2023: 91%). 0% of ERV is vacant subject to refurbishment or redevelopment with 3.1% of ERV vacant but under offer to let or sell

You can read the full update here.

[1] Price on 6 February 2024. Source: London Stock Exchange.

[2] Profit after tax excluding net gains or losses on investment property divided by weighted average number of shares in issue.

[3] Estimated rental value (“ERV”) of let property divided by total portfolio ERV.