Custodian REIT Expands Portfolio with £22 Million Acquisition from Merlin Properties

PUBLISHED: 02 Jun 2025 @ 18:07 | Comments (0) | More info about Fiona Craig

Custodian Property Income REIT plc (LSE:CREI) has acquired a £22 million property portfolio from Merlin Properties Limited in an all-share deal, marking a significant step in its strategic growth plan. The acquisition is anticipated to boost earnings per share, enhance tenant diversity, and improve key financial metrics such as the loan-to-value ratio and ongoing charges. For the sellers, the transaction offers a tax-efficient exit, while Custodian gains new opportunities for value creation through targeted asset management.

This move supports Custodian’s broader strategy of scaling its operations and further diversifying its holdings. By strengthening its property portfolio and reinforcing its ability to maintain a fully covered dividend, the acquisition is expected to contribute positively to long-term shareholder value.

The company continues to benefit from a stable financial foundation, strong cash generation, and a reliable dividend track record. While technical indicators currently suggest a neutral trend, recent corporate developments, including this acquisition, reflect a proactive growth strategy. Nonetheless, investors should remain mindful of ongoing challenges related to profitability and pressure on equity performance.

More about Custodian REIT

Custodian Property Income REIT plc is a UK-based real estate investment trust focused on building a diversified portfolio of regional commercial properties. Specializing in smaller assets across the industrial, office, and retail sectors, the company targets investments that offer robust income potential. Its strategy centers on delivering sustainable income and long-term value through active asset management and disciplined acquisitions.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Ltd. ADVFN Ltd does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.