Property investor slips to big first half loss

Custodian REIT, the Leicester-based property investment firm, has slipped to a loss before tax of £16.1m for the six months to September 30.

The company has admitted that the ongoing Covid-19 pandemic has continued to impact the property market and its tenants. It has seen a £27.4m decrease in the valution of its portfolio over its first half.

Custodian REIT made a profit of £700,000 for the corresponding period last year.

David Hunter, chairman of Custodian REIT, said: “We expect further tenant failures as Government support packages are withdrawn, the November 2020 English lockdown and subsequent restrictions bite and while CVAs remain legal, if questionable, practice, but this is likely to be heavily weighted towards the retail sector and should not diminish the overall appeal of real estate. In a low return environment we believe that property returns will look attractive and the search for income and long-term capital security will bring many investors back to real estate.

“The COVID-19 pandemic has reinforced Custodian REIT’s strategy which has always placed income and financial resilience at the heart of the Company’s objectives. When allied to the appropriate property strategy this focus underpins sustainable dividends, which in turn support total return, and we remain committed to both growing the dividend on a sustainable basis and delivering capital value growth for our shareholders over the long-term.”