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Custodian REIT says most tenants still paying on time

In April so far, 67% of rent due has been collected, with a further 5% expected to be received shortly

Custodian REIT -

Custodian REIT PLC (LON:CREI) has said it is to amend its dividend policy to reflect the amount of rent the group is being paid through the current coronavirus pandemic disruption.

In a statement, the commercial property investor said it will pay a fourth quarterly dividend of 1.6626p for the year to March as it received full collection rent over the past three months.

In the current quarter, however, some tenants have sought to defer rental payments with the result that this level of payment would be not be covered by net rental receipts.

In April so far, 67% of rent due has been collected, with a further 5% expected to be received shortly, it pointed out.

Custodian said it will pay a minimum of 1.5p quarterly in the first half of the current year to March 2021 with any shortfall to be taken from the trust’s reserves.  

Once deferred rents can be collected the dividend can return towards the target level, it added. 

Custodian has more than 250 'industrial grade' tenants with a current occupancy rate of more than 95% and said it has significant headroom on borrowings covenants with £191.3m or 33% of the company's property portfolio currently unencumbered.

Shares eased 1% to 101.6p.

Quick facts: Custodian REIT

Price: 90 GBX

LSE:CREI
Market: LSE
Market Cap: £378.05 m
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