Rental values (ERV) fell at 17 of its 33 high street properties, said the trust, though it sees potential to recover some of this through ongoing lease re-negotiations.
High street shops account for about 12% of the portfolio. Small industrial and office buildings form a much larger part and rents here are rising strongly, said Custodian.
Net asset value at end-March was 107.1p or £426.6mln.
Investment activity is generally subdued currently due to the combination of Brexit, retail uncertainty and some outflows from property unit trusts, but this might mean attractive properties become available, said Richard Shepherd-Cross, the trust’s manager.
"We are considering a pipeline of opportunities and believe there may be potential to make contra-cyclical acquisitions where we believe that short-term market weakness can unlock long-term value for the company,"
Custodian intends to pay a dividend for the year to March 2020 of 6.65p, a 1.5% increase.