REG-Custodian Property Income REIT plc Custodian Property Income REIT plc: Share Buyback Programme

Custodian Property Income ReitAnnouncement

Thu 07:02

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   Custodian Property Income REIT plc (CREI)
   Custodian Property Income REIT plc: Share Buyback Programme

   17-Jul-2025 / 07:00 GMT/BST

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                                                                 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  1 www.custodianreit.com or please contact:

   Custodian Capital Limited

   Richard Shepherd-Cross – Managing Director
                                                     Tel: +44 (0)116 240 8740
   Ed Moore – Finance Director
                                                   2 www.custodiancapital.com
   Ian Mattioli MBE DL – Chairman

    
   Deutsche Numis

   Hugh Jonathan / George Shiel                      Tel: +44 (0)20 7260 1000

    
   FTI Consulting                                    Tel: +44 (0)20 3727 1000

   Richard  Sunderland  /  Ellie  Sweeney   / custodianreit@fticonsulting.com
   Andrew Davis / Oliver Parsons
                                                                             

    

   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      3 www.custodianreit.com     and
    4 www.custodiancapital.com.

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   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00BJFLFT45
   Category Code:  MSCH
   TIDM:           CREI
   LEI Code:       2138001BOD1J5XK1CX76
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   396133
   EQS News ID:    2170792


    
   End of Announcement EQS News Service

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