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Custodian REIT

LSE:CREI
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CREI
LSE
£480M
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

Custodian REIT aims to be the Real Estate Investment Trust of choice for private and institutional investors seeking high and stable dividends from well-diversified UK real estate. The last earnings update was 5 days ago. More info.


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CREI Share Price and Events
7 Day Returns
0.2%
LSE:CREI
0.1%
GB REITs
-0.1%
GB Market
1 Year Returns
-3.3%
LSE:CREI
-8.2%
GB REITs
-2.6%
GB Market
CREI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Custodian REIT (CREI) 0.2% -0.3% 4.6% -3.3% 13.3% 7.3%
GB REITs 0.1% -0.4% -1.8% -8.2% 3.5% 4.3%
GB Market -0.1% 1.3% 2.5% -2.6% 16.5% 3.8%
1 Year Return vs Industry and Market
  • CREI outperformed the REITs industry which returned -8.2% over the past year.
  • CREI matched the United Kingdom of Great Britain and Northern Ireland Market (-2.6%) over the past year.
Price Volatility
CREI
Industry
5yr Volatility vs Market

Value

 Is Custodian REIT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Custodian REIT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Custodian REIT.

LSE:CREI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:CREI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.492 (1 + (1- 19%) (28.67%))
0.736
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:CREI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Custodian REIT is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:CREI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2019 36.65 Est @ 15.23% 34.40
2020 40.70 Est @ 11.03% 35.85
2021 43.99 Est @ 8.09% 36.37
2022 46.64 Est @ 6.03% 36.19
2023 48.78 Est @ 4.59% 35.53
2024 50.53 Est @ 3.58% 34.54
2025 51.98 Est @ 2.87% 33.35
2026 53.22 Est @ 2.38% 32.04
2027 54.30 Est @ 2.03% 30.69
2028 55.27 Est @ 1.79% 29.32
Present value of next 10 years cash flows £338.27
LSE:CREI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £55.27 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£1,051.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,051.74 ÷ (1 + 6.55%)10
£557.82
LSE:CREI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £338.27 + £557.82
£896.09
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £896.09 / 407.20
£2.2
LSE:CREI Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.20
Current discount Discount to share price of £1.18
= -1 x (£1.18 - £2.20) / £2.20
46.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Custodian REIT is available for.
Intrinsic value
46%
Share price is £1.18 vs Future cash flow value of £2.2
Current Discount Checks
For Custodian REIT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Custodian REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Custodian REIT's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Custodian REIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Custodian REIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:CREI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.06
LSE:CREI Share Price ** LSE (2019-06-26) in GBP £1.18
United Kingdom of Great Britain and Northern Ireland REITs Industry PE Ratio Median Figure of 43 Publicly-Listed REITs Companies 12.84x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 787 Publicly-Listed Companies 16.32x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Custodian REIT.

LSE:CREI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:CREI Share Price ÷ EPS (both in GBP)

= 1.18 ÷ 0.06

19.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Custodian REIT is overvalued based on earnings compared to the GB REITs industry average.
  • Custodian REIT is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Custodian REIT's expected growth come at a high price?
Raw Data
LSE:CREI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.52x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland REITs Industry PEG Ratio Median Figure of 24 Publicly-Listed REITs Companies 0.61x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 577 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Custodian REIT, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Custodian REIT's assets?
Raw Data
LSE:CREI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £1.07
LSE:CREI Share Price * LSE (2019-06-26) in GBP £1.18
United Kingdom of Great Britain and Northern Ireland REITs Industry PB Ratio Median Figure of 54 Publicly-Listed REITs Companies 0.89x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,372 Publicly-Listed Companies 1.48x
LSE:CREI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:CREI Share Price ÷ Book Value per Share (both in GBP)

= 1.18 ÷ 1.07

1.1x

* Primary Listing of Custodian REIT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Custodian REIT is overvalued based on assets compared to the GB REITs industry average.
X
Value checks
We assess Custodian REIT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Custodian REIT has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Custodian REIT expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.5%
Expected REITs industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Custodian REIT expected to grow at an attractive rate?
  • Unable to compare Custodian REIT's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Custodian REIT's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
  • Unable to compare Custodian REIT's revenue growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
LSE:CREI Future Growth Rates Data Sources
Data Point Source Value (per year)
United Kingdom of Great Britain and Northern Ireland REITs Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
United Kingdom of Great Britain and Northern Ireland REITs Industry Revenue Growth Rate Market Cap Weighted Average 2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.6%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:CREI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:CREI Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-03-31 42 30 2
LSE:CREI Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 40 32 24
2018-12-31 39 33 30
2018-09-30 38 34 36
2018-06-30 36 30 34
2018-03-31 35 25 32
2017-12-31 33 21 31
2017-09-30 32 17 29
2017-06-30 30 19 27
2017-03-31 28 21 24
2016-12-31 25 19 18
2016-09-30 23 18 12
2016-06-30 21 15 11

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Custodian REIT is high growth as no earnings estimate data is available.
  • Unable to determine if Custodian REIT is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:CREI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Custodian REIT Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CREI Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-03-31 0.08 0.08 0.08 1.00
LSE:CREI Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.06
2018-12-31 0.08
2018-09-30 0.09
2018-06-30 0.09
2018-03-31 0.09
2017-12-31 0.09
2017-09-30 0.09
2017-06-30 0.08
2017-03-31 0.08
2016-12-31 0.07
2016-09-30 0.05
2016-06-30 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Custodian REIT will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Custodian REIT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Custodian REIT has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Custodian REIT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Custodian REIT's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Custodian REIT has delivered over 20% year on year earnings growth in the past 5 years.
  • Custodian REIT's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Custodian REIT's 1-year earnings growth is negative, it can't be compared to the GB REITs industry average.
Earnings and Revenue History
Custodian REIT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Custodian REIT Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CREI Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 39.97 23.65 1.43
2018-12-31 38.86 29.72 1.39
2018-09-30 37.74 35.80 1.34
2018-06-30 36.27 34.11 1.30
2018-03-31 34.81 32.42 1.25
2017-12-31 33.28 30.78 1.15
2017-09-30 31.75 29.14 1.05
2017-06-30 29.68 26.67 1.01
2017-03-31 27.61 24.21 0.97
2016-12-31 25.26 17.90 1.00
2016-09-30 22.90 11.60 1.03
2016-06-30 20.96 11.40 0.95
2016-03-31 19.01 11.21 0.88
2015-12-31 17.16 12.30 0.74
2015-09-30 15.30 13.39 0.60
2015-06-30 13.43 11.07 0.69
2015-03-31 11.57 8.75 0.79

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Custodian REIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Custodian REIT used its assets less efficiently than the GB REITs industry average last year based on Return on Assets.
  • Custodian REIT has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Custodian REIT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Custodian REIT has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Custodian REIT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Custodian REIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Custodian REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Custodian REIT's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Custodian REIT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Custodian REIT Company Filings, last reported 2 months ago.

LSE:CREI Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 426.62 137.53 2.47
2018-12-31 426.62 137.53 2.47
2018-09-30 427.54 117.46 8.19
2018-06-30 427.54 117.46 8.19
2018-03-31 415.20 113.36 5.06
2017-12-31 415.20 113.36 5.06
2017-09-30 378.56 98.47 8.05
2017-06-30 378.56 98.47 8.05
2017-03-31 351.88 63.79 5.81
2016-12-31 351.88 63.79 5.81
2016-09-30 297.08 85.90 6.66
2016-06-30 297.08 85.90 6.66
2016-03-31 255.06 65.14 5.46
2015-12-31 255.06 65.14 5.46
2015-09-30 196.46 39.28 8.35
2015-06-30 196.46 39.28 8.35
2015-03-31 179.99 23.81 0.85
  • Custodian REIT's level of debt (32.2%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Custodian REIT's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (23.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).
X
Financial health checks
We assess Custodian REIT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Custodian REIT has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Custodian REIT's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.56%
Current annual income from Custodian REIT dividends. Estimated to be 5.65% next year.
If you bought £2,000 of Custodian REIT shares you are expected to receive £111 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Custodian REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Custodian REIT's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.45%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:CREI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland REITs Industry Average Dividend Yield Market Cap Weighted Average of 49 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:CREI Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2020-03-31 0.07 2.00
LSE:CREI Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-21 0.066 5.532
2019-06-06 0.066 5.552
2018-10-03 0.066 5.657
2018-07-11 0.066 5.416
2018-06-21 0.065 5.315
2018-06-05 0.065 5.346
2017-04-18 0.064 5.498
2016-04-27 0.067 6.210
2016-01-27 0.064 5.900
2015-11-19 0.060 5.624
2015-07-28 0.060 5.564
2015-04-30 0.060 5.520
2015-02-02 0.050 4.643
2014-11-25 0.050 4.675
2014-07-28 0.050 4.626

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Custodian REIT has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Custodian REIT only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Custodian REIT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Custodian REIT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Custodian REIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Custodian REIT has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Custodian REIT's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Shepherd-Cross
AGE 47
CEO Bio

Mr. Richard Shepherd-Cross, Bsc Mrics serves as Managing Director and Investment Manager of Custodian REIT Plc. Mr. Shepherd-Cross served as Property Consultant of Mattioli Woods PLC. Mr. Shepherd-Cross serves as Managing Director and Executive Director of Custodian Capital Limited. He has more than 20 years’ experience in the commercial property market. Prior to Custodian Capital, he served as a Director at Jones Lang LaSalle in London running a team focused on portfolios of commercial investment property. He has experience across the national commercial property market and all commercial property types, with a strong focus on investment. He is a chartered surveyor having graduated from Reading university in 1994 in land Management and attaining the MRICS qualification in 1996.

CEO Compensation
  • Insufficient data for Richard to compare compensation growth.
  • Insufficient data for Richard to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Ian Mattioli

TITLE
Founder & Chairman
COMPENSATION
£38K
AGE
53

Richard Shepherd-Cross

TITLE
Managing Director
AGE
47

Nathan James Imlach

TITLE
CFO & Company Secretary
AGE
49

Ed Moore

TITLE
Finance Director
TENURE
1.4 yrs
Board of Directors

David Hunter

TITLE
Independent Non-Executive Chairman
COMPENSATION
£58K
AGE
63

Ian Mattioli

TITLE
Founder & Chairman
COMPENSATION
£38K
AGE
53

Matthew Wadman Thorne

TITLE
Independent Non-Executive Director
COMPENSATION
£46K
AGE
65
TENURE
5.3 yrs

Barry Gilbertson

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£43K
AGE
67
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Custodian REIT individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
29. Mar 19 Buy Barry Gilbertson Individual 27. Mar 19 27. Mar 19 10,000 £1.13 £11,313
X
Management checks
We assess Custodian REIT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Custodian REIT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Closer Look At Custodian REIT Plc's (LON:CREI) Uninspiring ROE

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Custodian REIT: 5.5% = UK£24m ÷ UK£427m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … How Does Debt Impact Return On Equity? … Combining Custodian REIT's Debt And Its 5.5% Return On Equity Although Custodian REIT does use debt, its debt to equity ratio of 0.32 is still low.

Simply Wall St -

Three Things You Should Check Before Buying Custodian REIT Plc (LON:CREI) For Its Dividend

Today we'll take a closer look at Custodian REIT Plc (LON:CREI) from a dividend investor's perspective. … Owning a strong dividend company and reinvesting the dividends is widely seen as an attractive way of growing your wealth. … With a five-year payment history and a 5.7% yield, many investors probably find Custodian REIT intriguing.

Simply Wall St -

How To Look At Custodian REIT Plc (LON:CREI)

Custodian REIT Plc is a UK£458m. … real estate investment trust (REIT) based in Leicester, United Kingdom. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.

Simply Wall St -

With A Return On Equity Of 8.4%, Has Custodian REIT Plc's (LON:CREI) Management Done Well?

To keep the lesson grounded in practicality, we'll use ROE to better understand Custodian REIT Plc (LON:CREI). … That means that for every £1 worth of shareholders' equity, it generated £0.084 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why I Like Custodian REIT Plc (LON:CREI)

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past

Simply Wall St -

Investing In Custodian REIT Plc (LON:CREI): What You Need To Know

Custodian REIT Plc is a UK£465m. … real estate investment trust (REIT) based in Leicester, United Kingdom. … This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation.

Simply Wall St -

Custodian REIT Plc (LON:CREI): Exploring Free Cash Flows

Custodian REIT Plc (LON:CREI) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … I’ve analysed below, the health and outlook of Custodian REIT’s cash flow, which will help you understand the stock from a cash standpoint. … There are two methods I will use to evaluate the quality of Custodian REIT’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Why Custodian REIT Plc's (LON:CREI) ROE Of 7.81% Does Not Tell The Whole Story

and want to begin learning the link between Custodian REIT Plc (LON:CREI)’s return fundamentals and stock market performance. … Custodian REIT Plc (LON:CREI) performed in line with its diversified reits industry on the basis of its ROE – producing a return of 7.81% relative to the peer average of 9.35% over the past 12 months. … But what is more interesting is whether CREI can sustain or improve on this level of return

Simply Wall St -

You Should Buy Custodian REIT Plc (LON:CREI) Because Of These Reasons

I've been keeping an eye on Custodian REIT Plc (LON:CREI) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe CREI has a lot to offer. … that has been able to sustain great financial health over the past

Simply Wall St -

What To Know Before Buying Custodian REIT Plc (LON:CREI) For Its Dividend

Over the past 4 years, Custodian REIT Plc (LSE:CREI) has returned an average of 5.00% per year to shareholders in terms of dividend yield. … Check out our latest analysis for Custodian REIT Here's how I find good dividend stocks Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is its annual yield among the top 25% of dividend-paying companies? … Relative to peers, Custodian REIT has a yield of 5.35%, which is high for REITs stocks.Next Steps: Whilst there are few things you may like about Custodian REIT from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

Company Info

Description

Custodian REIT aims to be the Real Estate Investment Trust of choice for private and institutional investors seeking high and stable dividends from well-diversified UK real estate. Custodian REIT plc was launched as a main-market-listed, property investment company on the London Stock Exchange on 26 March 2014. The company was established with a seed portfolio of £95m and successful IPO, raising further 55m. Subsequent placings and considerable investment into UK regional real estate has seen the company grow to its current market capitalisation. The £95m seed portfolio was sourced from an existing portfolio of 48 properties, held by clients of Mattioli Woods and managed by Custodian Capital for the previous 12 years. Custodian Capital Limited is a subsidiary of Mattioli Woods plc. Custodian Capital is a property investment and management business, authorised and regulated by the Financial Conduct Authority (FCA). Their core business is acting as fund manager to Custodian REIT plc.

Details
Name: Custodian REIT Plc
CREI
Exchange: LSE
Founded: 2014
£479,685,539
407,203,344
Website: http://www.custodianreit.com
Address: Custodian REIT Plc
MW House, 1 Penman Way,
Grove Park, Enderby,
Leicester,
East Lothian, LE19 1SY,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE CREI Ordinary Shares London Stock Exchange GB GBP 26. Mar 2014
BATS-CHIXE CREIl Ordinary Shares BATS 'Chi-X Europe' GB GBP 26. Mar 2014
Number of employees
Current staff
Staff numbers
0
Custodian REIT employees.
Industry
Diversified REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 22:10
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/06
Last earnings filing: 2019/06/21
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.