0 Peter Kimani Posted July 30, 2019 Author Share Posted July 30, 2019 Quote Link to comment Share on other sites More sharing options...
0 Simon Mugo Posted July 30, 2019 Share Posted July 30, 2019 Custodian REIT Plc (LON:CREI), a UK firm that invests in commercial real estate reported lower earnings in the second quarter compared to Q1 due to a tough retail environment. However, the firm reassured investors that it has a diversified portfolio of properties, which should help it navigate the current commercial real estate market. The firm reported that the value of its real estate portfolio currently stands at £568m, which is a slight decline to the £572.2m recorded in the first quarter ended March, with the difference being caused by company voluntary arrangement (CVA) where existing tenants renegotiated for lower rents. Richard Shepherd-Cross, a managing director at the firm, said that he expects more tenants to enter into CVAs given the tough economic environment, but he anticipates that resistance from landlords may lead to the scrapping of CVA provisions in the near future. He cautioned that the impact of CVAs could extend into the future as tenants may want to keep paying lower rents once their CVAs have expired, which could lower the net asset value of its properties over the medium-term. Quote Link to comment Share on other sites More sharing options...
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