Custodian Property Income REIT plc: Steady Leasing Activity and Strong Dividend Yield

Custodian Property Income REIT plc (LSE: CREI) has announced a trading update for the quarter ending 30 June 2024. The company declared an interim dividend of 1.5p per share, fully covered by EPRA earnings, aligning with a target of at least 6.0p for the year ending 31 March 2025. This reflects a 7.7% yield based on the current share price of 78p.

The quarter saw a 1.2% rise in like-for-like passing rent and a 1.0% increase in estimated rental value, mainly driven by the industrial sector. Leasing activities added £0.7m of new annual rent, with EPRA occupancy remaining stable at 92%.

The company's portfolio, valued at £579.6m, remained steady, with asset recycling generating proceeds 49% above valuation. Redevelopment and refurbishment activities continue to add value, with an expected yield on cost of 7%.

Net gearing was reported at 28.8% loan-to-value, with £168m of debt at a weighted average cost of 3.9%. The company remains focused on sustainable asset management, publishing an annual report highlighting recent initiatives.