Real Estate Investment Trust (REIT)
A Real Estate Investment Trust (REIT) is a quoted company that owns and manages property on behalf of shareholders.
On 26 March 2014, Custodian REIT plc was launched with £95 million of UK commercial property portfolio. This was sourced from an existing portfolio of 48 properties, previously held by clients of Mattioli Woods in a syndicated structure.
Custodian REIT plc consists of a diverse portfolio of properties let to institutional grade tenants on long leases throughout the UK. In addition to the existing portfolio, Custodian REIT plc has raised over a further £250 million and has a market capitalisation that is first approaching £400 million.
Custodian REIT’s policy is to invest in high-quality properties with a value in the region of £2-£10 million.
Its main objects are to provide:
- Long-term, secure income with a target distribution of 6.35 pence per share from year 3 (5.25p in year 1 and 6.25p in year 2)
- Long-term NAV growth
UK-REITs provide a range of important benefits to companies and investors. As Custodian REIT plc is listed on the Main Market of the London Stock Exchange, investors can enjoy benefits associated with the city’s equity markets. These include:Tax transparencyPotential high-yield returnsAccess to property for minimal outlayLow/controlled gearingPortfolio diversification (low correlation to equities and bonds)Liquidity - easy to buy/sellStrong corporate governance
The market value and the income from this investment can go down as well as up. You may get back less than the amount invested. Investment in Custodian REIT plc should be considered only as part of a balanced portfolio of investments.
For more information on Custodian REIT plc and its portfolio, please visit the Custodian REIT website