LSE:CREI

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Custodian REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CREI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

CREI

-4.2%

GB REITs

-5.4%

GB Market


1 Year Return

-2.1%

CREI

8.4%

GB REITs

2.0%

GB Market

Return vs Industry: CREI underperformed the UK REITs industry which returned 8.4% over the past year.

Return vs Market: CREI underperformed the UK Market which returned 2% over the past year.


Shareholder returns

CREIIndustryMarket
7 Day-1.4%-4.2%-5.4%
30 Day-2.1%-2.1%-4.2%
90 Day-2.1%-1.1%-2.6%
1 Year3.7%-2.1%13.2%8.4%7.6%2.0%
3 Year19.1%0.6%22.4%5.2%11.4%-2.7%
5 Year38.6%4.1%22.8%-1.6%29.0%-0.6%

Price Volatility Vs. Market

How volatile is Custodian REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Custodian REIT undervalued compared to its fair value and its price relative to the market?

18.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CREI (£1.12) is trading below our estimate of fair value (£1.38)

Significantly Below Fair Value: CREI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CREI is poor value based on its PE Ratio (57.9x) compared to the REITs industry average (15.2x).

PE vs Market: CREI is poor value based on its PE Ratio (57.9x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: CREI is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CREI is overvalued based on its PB Ratio (1.1x) compared to the GB REITs industry average (1x).


Next Steps

Future Growth

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

87.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CREI's forecast earnings growth (87.1% per year) is above the savings rate (0.5%).

Earnings vs Market: CREI's earnings (87.1% per year) are forecast to grow faster than the UK market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CREI's revenue (3.3% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: CREI's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CREI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Custodian REIT performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CREI has a large one-off loss of £18.7M impacting its September 30 2019 financial results.

Growing Profit Margin: CREI's current net profit margins (19%) are lower than last year (94.9%).


Past Earnings Growth Analysis

Earnings Trend: CREI's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: CREI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CREI had negative earnings growth (-78.3%) over the past year, making it difficult to compare to the REITs industry average (-16.7%).


Return on Equity

High ROE: CREI's Return on Equity (1.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Custodian REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CREI has a high level of physical assets or inventory.

Debt Coverage by Assets: CREI's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: CREI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CREI has a sufficient allowance for bad loans.

Low Risk Liabilities: CREI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CREI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CREI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CREI has an appropriate level of bad loans.


Next Steps

Dividend

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

5.92%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%1.9%markettop25%5.4%industryaverage4.0%forecastin3Years6.0%

Current dividend yield vs market & industry

Notable Dividend: CREI's dividend (5.92%) is higher than the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: CREI's dividend (5.92%) is in the top 25% of dividend payers in the UK market (5.37%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CREI has been paying a dividend for less than 10 years.

Growing Dividend: CREI's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (99.4%), CREI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Richard Shepherd-Cross (48yo)

0

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 se ...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Top Shareholders

Company Information

Custodian REIT Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Custodian REIT Plc
  • Ticker: CREI
  • Exchange: LSE
  • Founded: 2014
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: UK£472.140m
  • Shares outstanding: 420.05m
  • Website: https://www.custodianreit.com

Location

  • Custodian REIT Plc
  • MW House, 1 Penman Way
  • Grove Park, Enderby
  • Leicester
  • East Lothian
  • LE19 1SY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CREILSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2014
CREIlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2014

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:59
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.