Custodian REIT has reported a 5.7% decline in net asset value in a trading update for the three months to 30 June.
It attributed the drop to “the risk factor” in rent collections in place of limited transactional evidence and material uncertainty.
NAV fell by £24.2m to £402.1m, with NAV per share down to 95.7p.
Custodian REIT has reported a 5.7% decline in net asset value in a trading update for the three months to 30 June.
It attributed the drop to “the risk factor” in rent collections in place of limited transactional evidence and material uncertainty.
NAV fell by £24.2m to £402.1m, with NAV per share down to 95.7p.
The REIT saw £26.1m shaved from the value of its property portfolio, dropping to £533.7m, with material uncertainty clauses for all properties excluding its industrial and logistics assets.
Custodian reported income of £9.8m. It has collected 92% of rent for the first quarter and 80% of the rent for the second quarter, net of deferrals.
Managing director Richard Shepherd-Cross said the drop was “perhaps inevitable but not, we believe, an irrecoverable structural shift”.
He said: “Income is a more important metric than NAV per share in delivering long-term and sustainable returns. As a result, our focus has understandably been on rent collection.
“As improvements in the prevention of Covid-19 continue, we expect that demand from occupiers for commercial real estate will improve from occupiers and the risk factor applied to rents within valuations will dissipate.”
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