Custodian REIT posts NAV fall of 6.3%

Custodian REIT to reduce dividend as rent receipts fall

Custodian REIT posted a 6.3% drop in net asset value (NAV) in interim results today as the COVID-19 pandemic continued to impact its portfolio.

The company reported a NAV per share of 95.2p (March 2020: 101.6p), after a 5.1% fall in the value of its property portfolio during the six months to the end of September.

Its portfolio was valued at £532.3m and the fall was primarily due to decreases in the estimated rental value (ERV) of its retail assets, which account for 32% of its portfolio.

NAV total return for the period was -3.7%.

EPRA earnings per share decreased to 2.6p for the period, from 3.4p in 2019, due to reduced level of rent collection of 88%, including rent deferral agreements.

The company paid dividends of 2.0p for the period, which was down on the 3.325p it paid in the same period last year but up on the 1.5p minimum it promised in April.

The company has a strong balance sheet, with cash of £26.2m and gross borrowings of £150m, resulting in a low net gearing of 23.4%.

CREI : Custodian REIT posts NAV fall of 6.3%

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