Custodian Property Income REIT's Growth Driven by Asset Management

Custodian Property Income REIT plc reported a solid first quarter of 2025, showcasing its ability to drive income and valuation growth through active asset management. The firm maintained a strong dividend yield of approximately 7.7%, supported by a 13.5% increase in average rental income from varied asset management actions.

The company's acquisition of the Merlin portfolio reflects strategic growth, with a boost in earnings and asset scalability. Even amidst market uncertainties, Custodian's diversified UK property portfolio and strong tenant demand highlight underlying real estate fundamentals.

The REIT achieved a 0.8% portfolio valuation uptick, aided by strategic disposals, £2.4 million in capital investments, and continued prudent debt management. These actions support the company's robust 26.9% loan-to-value ratio and forecast of at least a 6.0p dividend for the upcoming fiscal year.