Custodian on the hunt for further corporate acquisitions

Custodian Property Income REIT is searching out its next portfolio and corporate acquisitions after agreeing a £22m deal for a family-owned portfolio. Earlier this month, the REIT acquired a £22m real estate portfolio through the takeover of Merlin Properties, a family-owned property company.  Now, in results for the year to 31 March, the company said its team and that of investment manager Custodian Capital “are actively exploring further opportunities to purchase complementary portfolios via mergers or corporate acquisitions”. The company posted an average 29% rental increase at review, driving growth in like-for-like rent of 2.3%. Earnings per share were up by 4.9%. It made a number of disposals over the year, achieving an average 5% premium to the most recent valuation and 38% ahead of the assets’ pre-offer valuation. Richard Shepherd-Cross (pictured), managing director of Custodian Capital, said: “Our strategy of investing in smaller lot sized properties leased to institutional quality and household name occupiers has again led to our diversified portfolio delivering the income growth it is designed to achieve.” Company chairman David MacLellan added: “Custodian Property Income REIT remains one of only a few active and genuinely diversified property investment companies, and the Company’s differentiated property strategy positions it well to continue to deliver for long-term investors seeking an income focused opportunity. “As short-term interest rates fall and investors reconnect with real estate investment for its attractive income credentials, the company’s share price is well-placed to re-rate back towards NAV and enhance total returns. In addition, with asset prices showing signs of recovery and following the recent announcement of an all-share portfolio acquisition, the board looks to the future with confidence.”