Custodian Property Income REIT plc: Share Buyback Programme

17 July 2025

Custodian Property Income REIT plc

(the “Company” or “Custodian Property Income REIT plc)

Share Buyback Programme

Custodian Property Income REIT plc (LSE: CREI), which seeks to deliver an enhanced income return by investing in a diversified portfolio of smaller regional properties with strong income characteristics across the UK, today announces its intention to commence a share buyback programme.

The Company has instructed its corporate broker, Deutsche Bank AG, London Branch (trading for these purposes as Deutsche Numis), to purchase on behalf of the Company ordinary shares in the capital of the Company pursuant to a share buyback programme with a maximum aggregate consideration of £5m (the “Buyback Programme”).

Background to the Buyback Programme

Owning the right properties at the right time is a key element of effective property portfolio management, which necessarily involves periodically selling properties to balance the property portfolio. Since 1 April 2023, the Company has executed 14 selective disposals for an aggregate consideration of £41.8m at an aggregate average premium to the prevailing valuation of 8.0%. Disposals have been focused on assets that the Investment Manager believed to have limited opportunities for future rental growth and represented attractive opportunities to crystallise profits for shareholders.

The Board expects the Company to continue to make profitable sales during the remainder of the financial year with more than £5m of assets currently earmarked for disposal. 

In the higher interest rate environment since 1 April 2023, the Company has prioritised re-investment of proceeds from selective disposals in funding capital expenditure to improve the quality and environmental credentials of the portfolio and to pay down variable rate debt, aligning with the Company’s strategy of providing shareholders with strong income returns. The Company operates with a conservative approach to gearing, with target borrowings over the medium-term of 25%. The Company’s net gearing has decreased from 27.4% loan-to-value (LTV) as at 31 March 2023 to 25.6% as at 31 March 2025, adjusted for disposals completed since.

The Board believes the current share price materially undervalues the Company and its portfolio, including the security and quality of income offered through the fully covered dividend. As stated in the Company’s most recent notice of annual general meeting, the Company would undertake a share buyback if the Directors believed it would result in an increase in earnings per share or an increased NAV per share (or both) for the remaining Shareholders and would be likely to promote the success of the Company for the benefit of its Shareholders as a whole. At the current share price and given the latest expectations for future interest rates, the Directors believe the Buyback Programme is an attractive use of property disposal proceeds that will create value for shareholders.

Buyback Programme

The Buyback Programme will be carried out under the existing shareholder authorisation granted at the last Annual General Meeting, in August 2024 (the “AGM”), for purchases of Ordinary Shares by the Company in the market for up to 10% of the Company's issued capital as at the AGM, being 44,085,039 Ordinary Shares. The Company intends, at its sole and absolute discretion and subject to prevailing market conditions, to exercise this authority from time to time pursuant to the Buyback Programme.

In line with the authority given at the AGM, the maximum price (exclusive of expenses) which may be paid for an Ordinary Share is the higher of; (i) an amount equal to 105% of the average of the middle market quotations of an Ordinary Share as derived from the London Stock Exchange Daily Official List for the five business days immediately preceding the day on which the Ordinary Share is contracted to be purchased; and (ii) an amount equal to the higher of the price of the last independent trade of an Ordinary Share and the highest current independent bid for an Ordinary Share as derived from the London Stock Exchange Trading System.

Unless previously varied, revoked or renewed, the authority for the Company to repurchase its own shares granted at the AGM will expire at the conclusion of the Annual General Meeting of the Company to be held on 9 September 2025 (save that the Company may, prior to such expiry, enter into a contract to purchase Ordinary Shares under such authority and may make a purchase of Ordinary Shares pursuant to any such contract).

Given the level of liquidity in the Company's shares, the Company will retain the ability to exceed the average daily volume parameters prescribed by the exemption for buyback programmes established by UK MAR and the MAR buyback programme technical standards (Commission Delegated Regulation (EU) 2016/1052), as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended from time to time). Accordingly, the Company may not benefit from the exemption contained in Article 5(1) of MAR.

While the Company has launched the Buyback Programme, there is no certainty on the volume of Ordinary Shares that may be acquired under the Buyback Programme and the pace of acquisitions. The Board will keep the Buyback Programme under review to make sure it continues as an efficient and effective means of generating value for shareholders and the Buyback Programme may be cancelled or changed at any time at the Company's sole and absolute discretion.

Any Ordinary Shares repurchased will be held in Treasury by the Company.

Any market purchase of Ordinary Shares pursuant to the Buyback Programme will be announced no later than 7:30am (UK time) on the business day following the day on which the purchase occurred.

- Ends -

Further information:

Further information regarding the Company can be found at the Company's website www.custodianreit.com or please contact:

Custodian Capital Limited Richard Shepherd-Cross – Managing Director Ed Moore – Finance Director Ian Mattioli MBE DL – Chairman	Tel: +44 (0)116 240 8740 www.custodiancapital.com
Deutsche Numis Hugh Jonathan / George Shiel	Tel: +44 (0)20 7260 1000
FTI Consulting Richard Sunderland / Ellie Sweeney / Andrew Davis / Oliver Parsons	Tel: +44 (0)20 3727 1000 custodianreit@fticonsulting.com

 

Notes to Editors

Custodian Property Income 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 throughout the UK and is principally characterised by smaller, regional, core/core-plus properties.

The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund.  By principally targeting smaller, regional, core/core-plus properties, the Company seeks 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.

For more information visit www.custodianreit.com and www.custodiancapital.com.