New acquisitions boost profits at Custodian

Real estate investment trust Custodian saw a 4.2% increase in its net asset value (NAV) over the six months leading to 30 September, as new acquisitions boosted the value of its portfolio to £474.3m.

Custodian's post-tax profits rose to £13.2m from the £8.3m the firm had recorded at the same time twelve months prior.

The trust raised £24.8m over the half, most of which was put towards the £56.1m spent on 12 new acquisitions during the period.

NAV was £378.6m, up from the £297.1m figure reported a year earlier.

David Hunter, chairman of Custodian, said, "Occupational demand remains healthy and we are witnessing rental growth and low vacancy rates across the portfolio, giving us comfort that there is still an opportunity to invest.

"We remain well placed to meet our target of paying further quarterly dividends, fully covered by income, to achieve an annual dividend for the year of 6.45p per share. I expect occupational demand, combined with a limited supply of new development, to drive rental growth and lower vacancy rates across regional markets, which will support our objectives to both grow the dividend on a sustainable basis and deliver capital value growth for our shareholders over the long-term," he added.

The group, which had already paid dividends of 3.2p per share in the half, announced a further 1.6125p dividend for the three months ended 30 September.

As of 1445 GMT, shares remained untraded, sitting at 116.50p.