Custodian Property Income REIT (LSE: CREI), which seeks to deliver an enhanced income return by investing in a diversified portfolio of smaller, UK regional properties with strong income characteristics, today provides a trading update for the quarter ended 30 June 2026 (“Q1” or the “Quarter”).
Commenting on the trading update, Richard Shepherd-Cross, Managing Director of the Investment Manager, said: “The Company has delivered another positive quarter of stable valuations and a fully covered dividend, which continues to offer investors an attractive yield of c.7%. Performance remains underpinned by rental growth, with Custodian Property Income REIT’s portfolio now showing a reversionary potential of 15%, following a further 1% increase in the like-for-like ERV. We expect to capture this potential through our asset management approach and upcoming lease events.
“Despite ongoing economic and geopolitical instability, the occupier market has remained extremely resilient with rental growth evident across all real estate sectors within our diversified portfolio, including on the high street and in regional offices, which is a positive shift in momentum from previous periods. There is a significant disconnect between the strong underlying fundamentals of UK real estate and current investor sentiment, where persistent discounts to NAV and increased levels of consolidation and takeover activity indicate that the widening window of opportunity remains underappreciated. Importantly, our diversified portfolio is well positioned to benefit from the upside of both the continued real estate recovery and the gradually improving sentiment towards listed markets.
“Looking ahead, we will continue to pursue our hands-on approach to asset management, targeting opportunities to invest in the existing portfolio which will be accretive to earnings and deliver sustainable dividend growth for shareholders, while actively exploring opportunities to scale through selective corporate acquisitions.”
You can read the full update here.
