Custodian Property Income REIT (CREI) H1 2025 earnings summary

Executive summary

• Interim results for six months ended 30 September 2024 show stable returns, with a share price total return of 8.8% and NAV total return of 3.6%, supported by a fully covered dividend.

• Diversified portfolio strategy and focus on income underpin earnings growth, with dividends per share of 3.0p declared for the period (2023: 2.75p).

• Board expects to maintain quarterly dividends of 1.5p, targeting at least 6.0p per share for the year ending 31 March 2025.

• Portfolio management and active leasing drive improved occupancy and rental growth, with 29 new lettings and lease renewals across 19 assets.

• Economic and political outlook remains uncertain, but indicators point to a gradual recovery in capital values and improved sector sentiment.

Financial highlights

• EPRA earnings per share rose 3.4% to 3.0p (2023: 2.9p); basic and diluted EPS at 3.4p (2023: -0.6p).

• Profit before tax was £14.9m, up from a £2.7m loss in the prior year period.

• NAV per share increased to 93.6p (31 March 2024: 93.4p); NAV at £412.7m.

• Rental revenue for the period was £20.7m, with net finance costs of £3.7m.

• Dividend cover at 100%, with dividends per share of 3.0p declared and paid.

• Share price increased from 81.4p to 85.4p during the period.

Outlook and guidance

• Board expects to pay a fully covered dividend of no less than 6.0p per share for the year ending 31 March 2025.

• Market indicators suggest a gradual recovery in capital values, with falling vacancy rates and improving rental values.

• Private equity activity and narrowing discounts to NAV signal improving sentiment in the listed real estate sector.

• Company continues to seek growth through corporate acquisitions and selective disposals to reduce revolving debt.