28 February 2024
Custodian
Property Income REIT plc
(“Custodian Property Income REIT”
or the “Company”)
Two further sales
agreed bringing total announced disposals in 2024 to c. £30
million, reflecting a 24% average premium to book value
Custodian Property Income REIT
(LSE: CREI), which seeks to deliver a strong income return by
investing in a diversified portfolio of smaller regional properties
across the UK, is pleased to announce that further to its Third
Quarter Trading Update of 7 February 2024, it has agreed terms on
two additional sales,
comprising industrial units in
Warrington and Weybridge.
This brings the total assets under
offer to sell since 31 December 2023 to four, including a vacant
former car dealership in Redhill and a vacant office in Castle
Donington.
Collectively these four assets are
under offer to sell for an aggregate £19.5 million, representing a premium of 29% to their
31 December 2023 aggregate valuation of
£15.0 million. These disposals are scheduled to
complete during the next two months, with proceeds expected to be
used to reduce variable rate borrowings.
As a result, and following the
previously announced sales of an industrial unit in Milton Keynes
and an office building in Derby in January 2024 for an aggregate
£10.1 million, the Company has sold or agreed to sell
£29.6 million of assets this calendar
year.
Commenting on the
disposals pipeline, Richard Shepherd-Cross, Managing Director of
Custodian Capital Limited (the Company’s external fund manager),
said:
“The successful completion
of these sales would be significantly accretive to annual recurring
earnings, adding c.5% on a proforma
basis for the 12 month period to 31 December 2023, by using
expected sale proceeds to pay down variable rate debt with a
current all-in interest rate of c. 6.9%, and so be supportive of
paying a fully covered dividend in line with the Company’s policy
and practice since IPO.
These disposals would also have a
positive effect on NAV adding c.1%, while improving the Company’s
debt position by reducing LTV from 30.6% to 27.5%, as well as
increasing occupancy from 91% to 93%, each on a pro-forma basis as
at 31 December 2023.
These sales also demonstrate our
ability to leverage our asset and portfolio management expertise,
and highlight the benefits of the Company’s diversified investment
strategy. This allows us to undertake both sales and acquisitions
across all sectors where we see opportunities to optimise
shareholder value, without the confines of being beholden to the
head or tail winds of any single sector at a specific point in
time.”
- Ends
-
For further
information, please contact:
Custodian Capital
Limited
|
|
Richard Shepherd-Cross / Ed Moore /
Ian Mattioli MBE
|
Tel: +44 (0)116 240 8740
|
|
www.custodiancapital.com
|
Deutsche
Numis
|
|
Nathan Brown
|
Tel: +44 (0)20 7260 1000
|
|
www.numiscorp.com
|
FTI
Consulting
|
|
Richard Sunderland / 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 custodianreit.com and
custodiancapital.com.