The Chief Executive Officer of the Depository REIT is confident that he can overcome the CVA wave

Richard Shepherd-Cross, chief executive of Custodian REIT PLC (LON: CREI), said the diversified real estate portfolio of the trust helped offset the difficulties in the UK market.

The pressure on rents from retailers comes from the flood of voluntary agreements entered into by companies.

Tenants stay in the area but pay less, he said, while free market rents fell at the ACV level.

Direct retail accounts for only 12% of Custodian's portfolio, but industry and offices continue to perform well and offset weak retailing.

Demand is for quality properties with long-term leases, adding that Custodian's dividend is still covered by profits, which Shepherd-Cross sees no change.