Custodian Property Income REIT (CREI) H2 2024 earnings summary

Executive summary

• Achieved a 10-year average annual NAV total return of 5.5% with fully covered dividends and a sixfold increase in portfolio size since launch.

• Portfolio value at year-end was £589.1m, with occupancy rising to 91.7% and further to c.93% post year-end.

• Dividend per share increased to 5.8p (including a 0.3p special dividend), with a target of 6.0p for FY2025.

• NAV per share decreased 5.9% year-over-year, but Q4 saw a return to positive NAV total return.

Financial highlights

• EPRA earnings per share rose to 5.8p (2023: 5.6p), driven by rental growth and improved occupancy.

• Loss before tax was £1.5m, a significant improvement from £65.8m loss last year, mainly due to a smaller £27.0m valuation decrease.

• NAV per share at 93.4p (2023: 99.3p); NAV total return per share was -0.4% (2023: -12.5%).

• Share price total return was -2.6% (2023: -7.0%).

• Net gearing increased to 29.2% (2023: 27.4%), with 78% of drawn debt at fixed rates.

• Ongoing charges ratio (OCR) rose to 2.20% (2023: 1.96%).

Outlook and guidance

• Target dividend per share for FY2025 set at 6.0p, reflecting confidence in recurring earnings.

• Management expects continued rental growth, especially in industrial and retail warehouse sectors, as supply remains tight and demand robust.

• Anticipates improved earnings as interest rates are expected to decrease and cost of debt falls.