Custodian narrows gap between passing rent and ERV

Regional investor Custodian Property Income REIT is closing the gap between passing rent and ERV. The REIT revealed in a trading update for the quarter ended 31 December 2023 that the value of its 158-asset portfolio nudged down by £11m to £602.4m, a fall of 1.7%. However, it also benefited from a 21% increase in passing rent on four reviews and a handful of new signings. Like-for-like ERV increased by 0.8% since 30 September 2023, driven primarily by rental growth in the industrial sector. Custodian said there was “significant reversionary potential”, with portfolio ERV of £50m exceeding passing rent by 15%. Passing rent stands at £43.4m. The REIT’s NAV decreased by 2.7% from the previous quarter to £411.2m, or approximately 93.3p per share. Photo © Stuart Bailey/Pixabay