Custodian Property Income REIT plc Announces Year-End Results

Custodian Property Income REIT plc (LSE: CREI) has released its final results for the fiscal year ending 31 March 2024. The 10th annual results highlighted strong operational performance that led to further growth in fully covered dividends.

Chairman David MacLellan noted that the company celebrated a decade since its launch with a sixfold increase in portfolio size and an average annual NAV total return of 5.5%. The fully covered dividend increased to an annual average of 5.9p per share amidst declining charges.

The year saw a 3.6% rise in EPRA earnings per share, enabling a special dividend in March 2024, bringing the annual total dividend to 5.8p per share. The board also announced a prospective dividend increase of 9% to 6.0p per share due to improved market conditions.

Despite market volatility, Custodian's portfolio is poised to benefit as the economy improves, expecting rental growth driven by demand for modern regional properties. Highlights include a 5.6% rise in contracted rental income and an occupancy increase to 91.7%.

Capital investments totaling £19.0m included refurbishments and EPC improvements, while £18.2m was generated from disposals at an 8% premium to valuation. Net gearing remains low at 29.2%. The board's confidence is reflected in the latest dividend increase and a focus on high-yielding properties.