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 £43.9m to £45.9m, 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 £50.2m to £51.9m, 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 £43.9m as at 31 March 2025 to £45.9m 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 £625.0m, 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
- £1.6m of solar panel valuation increases represent a 124% uplift on the cost of five of the Company’s operational arrays
- £6.2m of capital investment during the Period, primarily relating to the refurbishment of industrial units in Plymouth and Biggleswade
- £8.9m of proceeds from selective disposals achieved at an aggregate 12% premium to pre-offer valuation, with a further £2.4m 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 £22.1m portfolio via the all-share acquisition of a family property company. The ‘Merlin’ acquisition comprised a £19.4m portfolio of 28 smaller lot-size regional UK investment properties which are highly complementary to the Company’s existing assets, as well as c. £2.7m 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 Ian Mattioli MBE DL – Chairman | Tel: +44 (0)116 240 8740 |
| www.custodiancapital.com |
Deutsche Bank AG, London Branch | |
Hugh Jonathan / George Shiel | Tel: +44 (0)20 7260 1000 |
| www.dbnumis.com |
Property highlights
| 30 Sept 2025 £m | Comments |
| | |
Portfolio value[1] | 625.0 | 31 March 2025: £594.4m, 30 September 2024: £582.4m |
Valuation increases[2]: | 15.4 | - £13.8m investment property, representing a 1.9% like-for-like increase, explained further in the Investment Manager’s report
- £1.6m solar panels[3], representing a 124% uplift on the cost of five of the Company’s operational arrays
|
| | |
Capital investment | 6.2 | Primarily comprising: - £3.6m refurbishing industrial assets in Plymouth and Biggleswade
- £0.7m combining two units to facilitate a letting at a retail warehouse in Southport
|
| | |
Disposal proceeds | 8.9 | At an aggregate 12% premium to pre-offer valuation[4] comprising: - Two office buildings in Cheadle for an aggregate £6.9m
- A retail unit in Guildford for £1.6m
- A retail unit in Leicestershire for £0.4m
|
| | |
Disposal proceeds since the Period end | 2.4 | Six assets in Leicestershire, acquired as part of the Merlin Portfolio |
| | |
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 ended | 6 months ended | 12 months ended | |
| 30 Sept 2025 | 30 Sept 2024 | 31 Mar 2025 | Comments |
Returns | | | | |
EPRA[5] earnings per share[6] | 3.1p | 3.0p | 6.1p | The impact of an improvement in occupancy and increase in income from solar panels have exceeded cost inflation |
Basic and diluted earnings per share[7] | 6.1p | 3.4p | 8.7p | Current period profit reflects improving valuations |
Profit before tax (£m) | 27.6 | 14.9 | 38.2 |
Dividends per share[8] | 3.0p | 3.0p | 6.0p | Target dividend per share for the year ended 31 March 2026 of not less than 6.0p, in line with the Company’s policy of paying fully covered dividends |
Dividend cover[9] | 101% | 100% | 101% |
NAV per share[10] total return | 6.0% | 3.6% | 9.5% | 3.1% dividends paid and a 2.9% capital increase |
Share price total return[11] | 10.2% | 8.8% | 1.2% | Share price increased from 76.2p to 81.0p during the Period |
| | | | |
Capital values | | | | |
NAV and EPRA NTA[12] (£m) | 456.3 | 412.7 | 423.5 | NAV increased during the Period due to £15.4m of valuation increases and the all-share acquisition of Merlin Properties Limited |
NAV per share and NTA per share | 98.9 | 93.6 | 96.1 |
Borrowings | | | | |
Net gearing[13] | 26.3% | 28.5% | 27.9% | Decreased due to disposal proceeds exceeding capital expenditure, valuations increasing during the Period and acquiring the ungeared Merlin Portfolio in an all-share transaction |
Weighted average cost of drawn debt facilities | 4.0% | 4.0% | 3.9% | Majority fixed rate debt insulating the Company from higher base rate |
| | | | |
Costs | | | | |
Ongoing charges ratio (“OCR”) excluding direct property expenses[14] | 1.34% | 1.28% | 1.30% | Fixed cost inflation exceeding rate of valuation increases |
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Environmental | | | | |
