Custodian Property Income REIT has enjoyed double-digit rental growth over the first three months of this year amid rent reviews, new deals and lease renewals.
The company’s leasing activity has skyrocketed in Q1. It has completed two rent reviews at an average 31% increase in annual rent, nine lease renewals and regears in aggregate 13% ahead of the previous rent, and let six vacant facilities.
Looking ahead, the REIT expects to capture this rental upside momentum going forward across further 17% of its portfolio.
Current passing rent totalled £43.9m, down 1.2% on a like-for-like basis. This was due to a decrease in occupancy to 91.1% from 93.4% quarter-on-quarter attributed to an industrial facility becoming vacant in Biggleswade. Custodian is set to refurbish the space in a move to improve the rental rate.
The value of the company’s portfolio of 151 assets on 31 March was £594.4m, a like-for-like increase of 1.2% from the end of 2024 and 2.2% year-on-year. Custodian has reported net asset value per share of 96.1p vs 94.4p at the end of last year.
Richard Shepherd-Cross, managing director of the investment manager Custodian Capital, said: “This quarter’s performance further emphasised the benefits of portfolio diversification, which combined with our hands on approach to generating strong income growth, has helped support three consecutive quarters of capital appreciation.”
Custodian will pay a 1.5p dividend per share for the quarter, achieving aggregate dividends per share of 6.0p for its current trading year.
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