Custodian REIT has reported a modest 0.5% fall in net asset value (NAV) for the third quarter of 2020 and updated on rent collection.
The company, which owns a diversified portfolio of property assets across the UK with a 47% weighting to the industrial sector, posted a NAV per share of 95.2p at 30 September 2020 (30 June 2020: 95.7p).
The group’s portfolio only marginally fell in value to £532.3m (June 2020: £533.7m). A fall of £5.9m due to the impact of COVID-19 on estimated rental values (ERVs) was offset by valuation gains from asset management initiatives.
NAV total return for the period was 0.5% after dividends of 0.95p were paid in the quarter. The board has approved a dividend for the final quarter of 2020 of 1.05p.
EPRA earnings for the first half of the company’s financial year (ending 31 March 2021) was 2.6p, covering the 2.0p of dividends for the first half. The dividend is down on the 3.325p it paid for the first half of last year, due to the impact of COVID-19 on income, but 33% of the 1.5p minimum target it announced in April.
The group received 85.5% of billed rent for the quarter (July to Sept), 88% including rent deferral agreements. For the current quarter (Oct to Dec) it has so far collected 74% of rent, including deferrals.
The group has a low loan-to-value (LTV) of 23.4%, with £150m of borrowings and £25.5m of cash. It is well within the maximum LTV covenant on the debt of 35%.
It has no short-term refinancing risk and a weighted average debt facility maturity of seven years.
The company put in place pre-emptive interest cover covenant waivers in April 2020 to mitigate the risk that covenants on individual debt facilities came under pressure due to curtailed rent receipts. These have not been required due to the level of rent collected.
CREI : Custodian REIT posts positive NAV total return for quarter
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