Custodian Property Income REIT (CREI) H2 2025 earnings summary

Executive summary

• Achieved strong earnings growth and valuation recovery, with profit after tax of £38.2m versus a £1.5m loss last year, driven by a £11.2m investment property valuation increase and robust recurring earnings.

• Portfolio value rose to £594.4m, with 151 properties diversified by sector and geography, and occupancy at 91.1%.

• Dividend per share increased to 6.0p, fully covered by EPRA earnings, with a 101.3% dividend cover.

• Completed the acquisition of Merlin Properties Limited, adding 28 properties and further diversifying the portfolio.

Financial highlights

• Revenue increased 1.5% year-over-year to £47.997m, with rental revenue up to £42.8m.

• EPRA earnings per share rose to 6.1p (2024: 5.8p), and NAV per share increased to 96.1p (2024: 93.4p).

• NAV total return per share was 9.5%, with share price total return at 1.2%.

• Net gearing reduced to 27.9% (2024: 29.2%), with a weighted average cost of debt at 3.9%.

• Ongoing charges ratio (OCR) excluding direct property expenses at 1.30%.

Outlook and guidance

• Target dividend per share for FY26 set at 6.0p, with continued focus on fully covered dividends.

• Board expects ongoing cost of revolving credit facility to fall as interest rates decrease.

• Portfolio positioned for further growth through strategic acquisitions and asset management.