DJ Custodian Property Income REIT plc: Interim results for the period ended 30 September 2025
Custodian Property Income REIT plc (CREI)
Custodian Property Income REIT plc: Interim results for the period ended 30 September 2025
05-Dec-2025 / 07:01 GMT/BST
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5 December 2025
Custodian Property Income REIT plc
("the Company" or "Custodian Property Income REIT")
Interim results for the period ended 30 September 2025
A strong operational performance with active asset management driving valuation and earnings growth, underpinning fully
covered dividend
Custodian Property Income REIT (LSE: CREI), which seeks to deliver an enhanced income return by investing in a
diversified portfolio of smaller regional properties with strong income characteristics across the UK, today announces
its interim results for the period ended 30 September 2025 ("the Period").
Commenting on the interim results, Richard Shepherd-Cross, Managing Director of the Investment Manager, said: "The
direct property market is continuing its recovery in the UK, with valuations improving quarter-on-quarter, driven by
rental growth across all sectors. The strong performance of the underlying assets should be expected to steadily flow
through to listed property companies' share prices, but a further shift in market sentiment is required along with a
willingness to consider the longer-term opportunity that exists in real estate.
"At a property level, Custodian Property Income REIT is delivering on all fronts to provide shareholders with strong
income returns by capturing portfolio reversion and driving sustainable earnings growth. During the Period, our
targeted asset management programme grew the rent roll from GBP43.9m to GBP45.9m, primarily driven by lease renewals
picking up ongoing rental growth, as well as the new lettings of vacant units and positive rent review results. In line
with the growth of the rent roll and estimated rental value of the portfolio, we have witnessed continued valuation
growth for the fifth consecutive quarter, with NAV per share increasing by 2.9% since 31 March 2025.
"The portfolio has continued to deliver a fully covered dividend of 6.0p per share, with future rental growth potential
of 13% embedded, and offering a road map to further earnings growth. Simultaneously, undertaking profitable sales ahead
of pre-offer valuations has helped to fund various refurbishment initiatives within the existing portfolio, as well as
proving valuations. Our ongoing share buyback programme has executed the timely acquisition of shares at a discount to
NAV.
"In the inflationary environment that is likely to persist, real assets that can be enhanced to deliver rental and
capital growth will protect the real value of both shareholders' investment and income. At the same time, we will
continue to look for opportunities to grow through corporate acquisitions similar to the Merlin transaction we
announced at the start of the Period."
Highlights of the Period:
-- 3.3% growth in EPRA earnings per share to 3.1p (30 September 2024: 3.0p) with a fully covered dividend per share of
6.0p, reflecting a 7.4% dividend yield as at 30 September 2025
-- Estimated rental value ("ERV") increased by 3.4% from GBP50.2m to GBP51.9m, with ERV 13% ahead of passing rent,
providing a significant opportunity to unlock further rental growth through asset management and at lease events
-- Leasing activity during the Period included eight new lettings and four rent reviews, helping grow the rent roll
from GBP43.9m as at 31 March 2025 to GBP45.9m as at 30 September 2025
-- Occupancy increased by 1.1% to 92.2% (31 March 2025: 91.1%)
-- Like-for-like valuation of the Company's portfolio of 175 properties increased by 1.9% to GBP625.0m, supporting a
2.9% NAV per share increase and contributing to a 6.0% NAV total return (30 September 2024: 3.6%). Encouragingly,
valuations have improved at an accelerating rate, quarter-on-quarter, reflecting falling interest rates and the
recovery of real estate market sentiment
-- GBP1.6m of solar panel valuation increases represent a 124% uplift on the cost of five of the Company's operational
arrays
-- GBP6.2m of capital investment during the Period, primarily relating to the refurbishment of industrial units in
Plymouth and Biggleswade
-- GBP8.9m of proceeds from selective disposals achieved at an aggregate 12% premium to pre-offer valuation, with a
further GBP2.4m of disposals since the Period end
-- Net gearing remains low at 26.3% (31 March 2025: 27.9%) with 69% at a fixed rate of interest
-- During the Period, the Company completed the purchase of a GBP22.1m portfolio via the all-share acquisition of a
family property company. The 'Merlin' acquisition comprised a GBP19.4m portfolio of 28 smaller lot-size regional UK
investment properties which are highly complementary to the Company's existing assets, as well as c. GBP2.7m of newly
built housing stock, the ongoing sales of which are expected to conclude by the end of the financial year,
generating additional cash for the Company.
Further information:
Further information regarding the Company can be found at the Company's website custodianreit.com or please contact:
Custodian Capital Limited
Richard Shepherd-Cross - Managing Director
Ed Moore - Finance Director Tel: +44 (0)116 240 8740
Ian Mattioli MBE DL - Chairman
www.custodiancapital.com
Deutsche Bank AG, London Branch
Hugh Jonathan / George Shiel Tel: +44 (0)20 7260 1000
www.dbnumis.com
FTI Consulting
Richard Sunderland / Ellie Sweeney / Andrew Davis / Oliver Parsons Tel: +44 (0)20 3727 1000
custodianreit@fticonsulting.com
Property highlights
30 Sept
2025
GBPm
Comments
31 March 2025: GBP594.4m, 30 September 2024: GBP582.4m
Portfolio value[1] 625.0
-- GBP13.8m investment property, representing a 1.9% like-for-like increase,
Valuation increases[2]: 15.4 explained further in the Investment Manager's report
-- GBP1.6m solar panels[3], representing a 124% uplift on the cost of five of the
Company's operational arrays
Primarily comprising:
Capital investment 6.2
-- GBP3.6m refurbishing industrial assets in Plymouth and Biggleswade
-- GBP0.7m combining two units to facilitate a letting at a retail warehouse in
Southport
At an aggregate 12% premium to pre-offer valuation[4] comprising:
Disposal proceeds 8.9
-- Two office buildings in Cheadle for an aggregate GBP6.9m
-- A retail unit in Guildford for GBP1.6m
-- A retail unit in Leicestershire for GBP0.4m
Disposal proceeds since 2.4 Six assets in Leicestershire, acquired as part of the Merlin Portfolio
the Period end
Occupancy 92.2% Increased 1.2% since 31 March 2025 through letting eight vacant units across seven
assets in the retail warehouse, industrial and office sectors
Financial highlights and performance summary
6 months 6 months 12 months
ended ended ended
30 Sept 30 Sept
2025 2024 31 Mar 2025
Comments
Returns
EPRA[5] earnings per 3.1p 3.0p 6.1p The impact of an improvement in occupancy and increase in
share[6] income from solar panels have exceeded cost inflation
Basic and diluted 6.1p 3.4p 8.7p
earnings per share[7]
Current period profit reflects improving valuations
Profit before tax 27.6 14.9 38.2
(GBPm)
Target dividend per share for the year ended 31 March 2026 of
Dividends per share not less than 6.0p,
[8] 3.0p 3.0p 6.0p
in line with the Company's policy of paying fully covered
dividends
Dividend cover[9] 101% 100% 101%
NAV per share[10] 6.0% 3.6% 9.5% 3.1% dividends paid and a 2.9% capital increase
total return
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