Custodian REIT plc : Statement on Coronavirus (COVID-19) (1019125)
09 4월 2020 - 3:00PM
UK Regulatory
Custodian REIT plc (CREI)
Custodian REIT plc : Statement on Coronavirus (COVID-19)
09-Apr-2020 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
9 April 2020
Custodian REIT plc
("Custodian REIT" or "the Company")
Statement on Coronavirus (COVID-19)
Custodian REIT (LSE: CREI), the UK commercial real estate investment
company, provides the following update on the impact of the COVID-19
pandemic. The Company's focus is on managing cash resources and maintaining
liquidity to mitigate the risks associated with a period of uncertainty
created by the global health emergency.
The health and safety of colleagues, tenants and our wider stakeholders
remain the Company's top priority. We continue to monitor closely the
recommendations issued by the World Health Organisation, UK Government,
Public Health England, the NHS and other relevant authorities and we are
complying with these recommendations across our business.
Dividends
The Board intends to make the fourth quarterly interim dividend payment
relating to the quarter ending 31 March 2020 of 1.6625p per share on 29 May
2020, reflecting the full collection of rent for that period.
We are experiencing an inevitable disruption to cash collection in the
current quarter as a number of tenants seek to defer rental payments in
order to protect their own cash flows. As a result, the current level of
dividend is not expected to be fully supported by net rental receipts going
forward. The Company intends to continue to pay quarterly dividends at a
level broadly linked to net rental receipts, with support from prior years'
undistributed reserves if required, of no less than an aggregate 1.5p per
share for the first half of the financial year ending 31 March 2021, until
deferred rents can be collected and the dividend can return towards the
target level.
Financial resilience
The extraordinary circumstances imposed by COVID-19 find the Company in good
financial health, having:
· A diverse and high-quality asset and tenant base - the Company has 161
assets last valued at GBP571.2m at 31 December 2019, with over 250 typically
'institutional grade' tenants across all commercial sectors with a current
occupancy rate[1] of more than 95%;
· Low levels of net debt - the Company holds GBP25m of cash and has gross
borrowings of GBP150m resulting in low net-gearing with no short-term
refinancing risk and a seven year weighted average debt facility maturity;
· Significant headroom on borrowings covenants - the maximum 35% loan to
value ("LTV") and minimum 250% interest cover[2] covenants compare to
prevailing net-gearing[3] of 21.9% LTV and aggregate interest cover on
borrowings of more than 600% at 31 March 2020, albeit covenants on
individual facilities may come under some short-term pressure;
· An annual contractual rent roll of GBP40.8m, with interest costs if loan
facilities are fully drawn of only GBP5.1m per annum; and
· Put pipeline acquisitions on hold to preserve cash.
The Company operates four loan facilities, each of which has a discrete
allocation of the Company's individual properties over which the relevant
lender has security. Each loan has covenants over the LTV and interest cover
of its discrete security pool. In the expectation that interest cover
covenants on some individual loans at 30 June 2020 may come under pressure,
the Company is in advanced discussions with its lenders to agree covenant
waivers for the next two quarters in return for depositing amounts
equivalent to interest into charged accounts.
While LTV covenants are not currently a concern, approximately GBP191.3m (33%)
of the Company's property portfolio is unencumbered by its borrowings. These
unencumbered assets could, in the future, be charged individually by one or
more of the Company's lenders to cure any potential covenant breaches.
Rent collection
The Investment Manager is working closely with tenants to support them
through these challenging times, to maintain occupancy levels and to protect
long-term rental receipts.
The Company's rent invoicing profile comprises quarterly in advance on both
English and Scottish quarter days and monthly in advance. Following
negotiations regarding the March quarter rent, the Company has agreed that a
number of tenants move from quarterly in advance to monthly in advance rent
payments, or defer the March quarter's rent with a full recovery over the
next 12 months. Some tenants have yet to agree a payment profile, but the
Investment Manager remains in active discussion with over 40 tenants to
agree payment plans for the balance of outstanding rent, which remains
contractually due.
Given the varied profile of the Company's rental invoicing, the Board
believes reporting rent collected relating to the month of April best
reflects the prevailing level of income generation from the Company's
property portfolio. So far, 67% of rent due relating to the month of April
has been collected, with a further 5% expected to be received shortly.
While the short-term picture is challenging and hard to predict, the
long-term case for property investment remains. The defensive nature of
Custodian REIT's investment strategy and diverse portfolio should continue
to support returns for shareholders.
- Ends -
Further information:
Further information regarding the Company can be found at the Company's
website www.custodianreit.com [1] or please contact:
Custodian Capital Limited
Richard Shepherd-Cross / Nathan Tel: +44 (0)116 240 8740
Imlach / Ian Mattioli MBE
www.custodiancapital.com [2]
Numis Securities Limited
Hugh Jonathan / Nathan Brown Tel: +44 (0)20 7260 1000
www.numis.com/funds
Camarco
Ed Gascoigne-Pees Tel: +44 (0)20 3757 4984
www.camarco.co.uk
Notes to Editors
Custodian REIT plc is a UK real estate investment trust, which listed on the
main market of the London Stock Exchange on 26 March 2014. Its property
portfolio comprises properties predominantly let to institutional grade
tenants on long leases throughout the UK and is principally characterised by
properties with individual values of less than GBP10m at acquisition.
The Company offers investors the opportunity to access a diversified
property portfolio of UK commercial real estate through a closed-ended fund.
By targeting sub GBP10m lot-size, regional properties, the Company intends to
provide investors with an attractive level of income with the potential for
capital growth.
Custodian Capital Limited is the discretionary investment manager of the
Company.
For more information visit www.custodianreit.com [1] and
www.custodiancapital.com [2].
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[1] Passing rent of let property divided by passing rent of let property
plus estimated rental value of vacant property.
[2] Historical rental income received and projected contractual rental
income receivable less certain property expenses divided by interest
payable.
[3] Gross borrowings less unrestricted cash divided by last published
property portfolio valuation.
ISIN: GB00BJFLFT45
Category Code: MSCH
TIDM: CREI
LEI Code: 2138001BOD1J5XK1CX76
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 57472
EQS News ID: 1019125
End of Announcement EQS News Service
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