Custodian REIT has made a £14.1m loss for the first half of 2022, as its portfolio swells.
The slump in profit is a marked shift from the same period last year, when it recorded £48.1m in pretax profit. Profit for the full year ending March 2022 was £122.3m.
EPRA earnings per share fell to 2.8p for the six months to the end of September, down from 3p for same period last year. Custodian said the decrease was due to “administrative cost inflation and higher finance and ESG compliance costs”.
Valuation decreases of £27.7m were partly to blame, however new acquisitions valued at £52.7m helped offset that, with the portfolio’s value increasing from £665.2m to £685.4m over the six months.
Chair David Hunter said: “The company’s well-diversified investment portfolio has shown its resilience during the period and this diversification has mitigated the risks posed by volatility in real estate investment markets. In addition, the company’s conservative balance sheet and its longer-term fixed-rate debt profile have provided insulation against the challenge of rising interest rates in the short to medium term.”
The REIT’s dividend remains fully covered, with 2.75p paid for the period.
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