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 30 June 2025 (“Q1” or the “Quarter”).

Commenting on the trading update, Richard Shepherd-Cross, Managing Director of the Investment Manager, said: “The Company has delivered another quarter of positive net asset value (“NAV”) momentum and stable earnings, fully covering our dividend, which continues to offer investors an attractive yield of c.7.7%.  We achieved an average rental uplift of 13.5% across all asset management initiatives, from rent reviews to new lettings, with growth evident across the full breadth of our diversified portfolio.  This strong rental performance, coupled with resilient tenant demand and stable valuations, highlights the continued disconnect between the underlying fundamentals of UK real estate and current market sentiment, where discounts to NAV and capital outflows point to a clear underappreciation of the opportunity.

“In this context, we were particularly pleased to complete the strategic all-share acquisition of the Merlin portfolio. This transaction allows us to scale and grow earnings despite capital market headwinds, demonstrating both our commitment to enhancing shareholder value and the benefits of disciplined consolidation.

“Custodian Property Income REIT offers a compelling, income-focused opportunity, and with a consensus that the market is now past its inflection point, we see real potential for valuation recovery to enhance total returns.  Looking ahead, we will continue to pursue opportunities to invest in our existing portfolio and grow through selective corporate acquisitions, while actively recycling capital to strengthen the portfolio and increase NAV.”

You can read the full update here.