Custodian REIT improves profit, lifts dividend

Commercial real estate investment company Custodian REIT has turned in a strong full-year performance that saw profits, revenue, dividend and net asset value (NAV) increase.

The company saw its NAV per share firm to 101.5p, from 101.3p, as its pre-tax profit reached £11.2m, from £8.7m. Revenue was £19.0m, from £11.6m.

However, it also noted that occupancy was down to 96.8%, from 99.2%. Total dividend was hiked to 6.25p a share, from 5.25p.

It said the performance was a strong one, noting it had invested £109.8m on the completion of 29 acquisitions and achieved practical completion on two pre-let developments, funded by £77.7m raised from the issue of new shares and a new £20m term loan.

"We plan to seek further growth to realise the economies of scale offered by the company's relatively fixed cost base, while adhering to the company's investment policy and maintaining the quality of both properties and income," it said in a statement.