Custodian sees ‘turning point’ for values

Custodian Property Income REIT is the latest investor saying the bottom of the market may have been reached, with its portfolio valuation flat over recent months after earlier falls. Over the year to 31 March, the company saw a 5.6% rise in rental income to £43.1m and a 3.6% rise in estimated rental value. The portfolio value fell by 4% over the year to £589.1m but was flat over the last quarter. The company said this suggests “a turning point in sentiment and valuations has been reached”. The REIT posted a £1.5m loss, driven by the valuation fall. That was down sharply on a £65.8m loss a year earlier. Chairman David MacLellan said: “The company’s portfolio is well placed to benefit from any upwards rerating in sector valuations as the economy improves. “In an inflationary environment and with a lack of supply of modern, smaller regional properties, we expect to see continued rental growth over the year ahead and it will be this growth in income that is likely to form the greater component of total return over the next phase of the property market.”