Custodian REIT after-tax profits rise

Custodian REIT's after-tax profits rose to £13.2m in the six months to the end of September - up from £8.3m last time.

The net asset value per share total return was 4.2% compared with 3.3% in the corresponding period last year and the share price total return was 5.3% compared with 0.9% a year ago.

Portfolio value rose to £474.3m - up from £385.3m last time.

Chairman David Hunter said: 'I am pleased to report another successful period of capital raising and investment.

'We continue to target growth to realise the potential economies of scale offered by the Company's relatively fixed cost base and the amendment to the Investment Manager's charging structure announced in June, while maintaining the quality of both properties and income.

'Occupational demand remains healthy and we are witnessing rental growth and low vacancy rates across the portfolio, giving us comfort that there is still an opportunity to invest.

'I believe the current market supports our strategy of targeting high quality properties across regional markets, with the type of institutional grade property targeted by the Company showing value relative to larger lots through a higher net income return and opportunities for future rental growth.

'We remain well placed to meet our target of paying further quarterly dividends, fully covered by income, to achieve an annual dividend for the year of 6.45p per share.

'I expect occupational demand, combined with a limited supply of new development, to drive rental growth and lower vacancy rates across regional markets, which will support our objectives to both grow the dividend on a sustainable basis and deliver capital value growth for our shareholders over the long-term.'

At 9:31am: (LON:CREI) Custodian Reit Plc share price was -0.87p at 115.63p