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 second quarter ended 30 September 2025 (“Q2” or the “Quarter”).
Commenting on the trading update, Richard Shepherd-Cross, Managing Director of the Investment Manager, said: “The direct property market has been witnessing a recovery since September 2024, with valuations improving quarter on quarter for Custodian Property Income REIT, driven by consistent rental growth across all real estate sectors in the UK. As a result, the diversified nature of our portfolio is well positioned to benefit from the upside of both the real estate recovery and the improving market sentiment towards listed markets.
“Despite uncertainty leading into the November 2025 Budget, the Company has continued to deliver another quarter of stable earnings, fully covering our dividend, with like-for-like passing rent growing by 2.3% through active asset management initiatives and the leasing of vacant space. Logic suggests that the strong performance of our underlying assets should flow through to narrowing the share price discount. However, a continued shift in sentiment is required alongside a willingness to consider the longer term income-focused opportunity that exists in listed real estate, with Custodian Property Income REIT currently offering an attractive c.7.5% dividend yield secured against a broadly diversified, well-let, reversionary portfolio of modern, regional properties.
“Looking ahead, we will continue to pursue opportunities to invest in our existing portfolio and grow through selective corporate acquisitions, such as the all-share acquisition of the Merlin portfolio in May 2025. At the same time we will continue to actively recycle capital to strengthen the portfolio and increase NAV, facilitated by our share buy-back programme through which we have been selling assets at a premium to valuation while undertaking the timely acquisition of shares at a discount to the same metric.”
You can read the full update here.
