Custodian REIT (CREI) AI Stock Analysis

• Market Cap: £389.57M
• Dividend Yield: 7.42%
• Average Volume (3M): 554.87K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.05
• Revenue Growth: 7.81%
• EPS Growth: N/A
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Diversified
• EPS (TTM): 0.02
• Shares Outstanding: 463,778,750
• 10 Day Avg. Volume: 693,180
• 30 Day Avg. Volume: 554,872
• PEG Ratio: 0.04
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Custodian REIT achieves a solid score due to stable financial performance, strong cash flows, and attractive dividends. The technical analysis suggests a neutral outlook, while recent corporate events reinforce the company's growth strategy. However, challenges in profitability and declining equity warrant cautious optimism.

Custodian REIT Business Overview & Revenue Model

Company Description

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 portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is principally characterised by small lot sizes, with individual property values of less than £10 million at acquisition. The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund. By targeting smaller lot size 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.

How the Company Makes Money

Custodian REIT generates revenue primarily through rental income from its portfolio of commercial properties. By leasing these properties to a variety of tenants across different sectors, the company ensures a steady stream of income. Additionally, Custodian REIT may also realize gains from the strategic acquisition and disposal of properties, optimizing the portfolio's value over time. The company benefits from its expertise in property management and maintains significant partnerships with real estate agents, property managers, and financial institutions to enhance its operational efficiency and market reach. Furthermore, as a REIT, Custodian REIT is required to distribute a significant portion of its taxable income to shareholders as dividends, which can attract income-focused investors and contribute to the company's overall financial performance.

Custodian REIT Financial Statement Overview

Summary

Custodian REIT shows stable revenue growth and strong cash flow generation. However, profitability challenges and declining equity raise concerns about future financial performance. The balance sheet remains strong with manageable debt levels, but attention should be paid to reversing the trend of declining equity.

Income Statement

The company has shown stable revenue growth from 2023 to 2024 with a 4.75% increase. However, profitability has been a concern with negative net income in the latest period, indicating challenges in cost management or valuation losses. The EBIT margin decreased significantly, reflecting pressure on operating profitability. Despite this, the gross profit margin remained strong, showing efficient primary operations.

Balance Sheet

Custodian REIT maintains a healthy equity ratio of 68.06%, indicating a strong equity base relative to total assets. The debt-to-equity ratio remains manageable at 0.43, suggesting prudent leverage levels. However, the declining stockholders' equity over recent years may pose a future risk to financial stability.

Cash Flow

The company's operating cash flow is robust relative to net income, indicating strong cash-generating capabilities despite net losses. The free cash flow has decreased significantly from the previous year, driven by higher capital expenditures, which could impact liquidity if not managed carefully.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
48.17M	46.24M	44.15M	39.89M	39.58M	40.90M
	Gross Profit
42.49M	46.24M	33.09M	35.18M	35.33M	34.62M
	EBIT
24.07M	6.55M	31.05M	30.08M	28.52M	33.36M
	EBITDA
33.93M	0.00	31.17M	30.09M	28.52M	33.37M
	Net Income Common Stockholders
16.07M	-1.50M	-65.82M	122.33M	3.75M	2.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.92M	9.71M	6.88M	11.62M	3.92M	25.40M
	Total Assets
603.37M	605.12M	625.33M	682.01M	561.84M	590.51M
	Total Debt
152.53M	177.29M	172.10M	136.61M	138.60M	148.32M
	Net Debt
141.61M	167.58M	165.22M	124.99M	134.68M	122.92M
	Total Liabilities
190.65M	193.30M	187.76M	154.37M	151.98M	163.76M
	Stockholders Equity
412.73M	411.82M	437.57M	527.64M	409.87M	426.75M
Cash Flow		Free Cash Flow
21.65M	4.21M	23.07M	24.62M	17.02M	23.84M
	Operating Cash Flow
23.02M	23.22M	24.29M	28.14M	19.33M	26.64M
	Investing Cash Flow
19.04M	-891.00K	-40.06M	26.61M	-10.11M	-12.23M
	Financing Cash Flow
-37.84M	-19.49M	11.02M	-48.74M	-30.70M	8.51M

Custodian REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CREI, the sentiment is Positive. The current price of 80.9 is below the 20-day moving average (MA) of 81.25, above the 50-day MA of 77.09, and above the 200-day MA of 75.64, indicating a neutral trend. The MACD of 1.75 indicates Positive momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 44.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CREI.

Custodian REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CREI	73 Outperform	£389.57M	9.34	9.14%	7.42%	7.81%	―
AEWU	68 Neutral	£164.44M	18.18	5.56%	7.71%	―	―
SREI	68 Neutral	£264.12M	87.10	1.05%	6.64%	―	―
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
PCA	58 Neutral	£64.13M	49.01	1.67%	6.74%	-49.23%	49.40%
TOWN	50 Neutral	£54.72M	―	-0.26%	1.92%	-0.20%	98.04%
PCTNF		$579.84M	11.33	7.04%	4.79%	―	―

Custodian REIT Corporate Events

Custodian Property Income REIT to Discuss Future of REITs in Upcoming Webinar

Custodian Property Income REIT is set to participate in a panel discussion on the future of REITs, hosted by Richard Williams, alongside other industry experts. This event, part of a weekly webinar series, will explore current trends and challenges in the investment companies’ sector, offering insights into the REIT market’s potential rebound and its implications for investors.

Spark’s Take on GB:CREI Stock

According to Spark, TipRanks’ AI Analyst, GB:CREI is a Outperform.

Custodian REIT achieves a solid score due to stable financial performance, strong cash flows, and attractive dividends. The technical analysis suggests a neutral outlook, while recent corporate events reinforce the company’s growth strategy. However, challenges in profitability and declining equity warrant cautious optimism.

To see Spark’s full report on GB:CREI stock, click here.

Custodian Property Income REIT Announces Interim Dividend

Custodian Property Income REIT plc has announced a fourth quarterly interim dividend of 1.5 pence per share for the financial year ending 31 March 2025. This dividend, designated as a property income distribution, will be paid to shareholders on 30 May 2025, reflecting the company’s ongoing commitment to providing income returns to its investors.

Spark’s Take on GB:CREI Stock

According to Spark, TipRanks’ AI Analyst, GB:CREI is a Outperform.

Custodian REIT scores a solid 70, driven by stable financial performance with strong cash flow, an attractive dividend yield, and prudent debt management. The company’s operational strategy, reflected in recent corporate events, supports future growth prospects. However, challenges in profitability and declining equity warrant cautious optimism. Technical indicators suggest a neutral market sentiment, aligning with the stock’s fair valuation.

To see Spark’s full report on GB:CREI stock, click here.

Custodian Property Income REIT Reports Strong Q3 Performance with Rental Growth and Asset Disposals

Custodian Property Income REIT plc reported a steady performance in the quarter ended December 31, 2024. The company noted a stabilization in property valuations and a positive trend in rental growth, driven by proactive asset management and strong leasing activities. The REIT achieved rental growth, maintained a stable occupancy rate, and reported a fully covered dividend, offering an attractive yield to investors. In addition, the company successfully disposed of assets at values above previous valuations, contributing to its earnings growth. The REIT’s strategic management and prudent debt levels indicate a robust positioning in the market, despite broader economic challenges. Stakeholders can expect continued income growth and stable dividends, supported by ongoing asset management initiatives and potential rental upside.