DJ Custodian Property Income REIT plc: Two further sales agreed bringing total announced disposals in 2024 to c. GBP30 million, reflecting a 24% average premium to book value
Custodian Property Income REIT plc (CREI)
Custodian Property Income REIT plc: Two further sales agreed bringing total announced disposals in 2024 to c. GBP30
million, reflecting a 24% average premium to book value
28-Feb-2024 / 16:30 GMT/BST
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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. GBP30 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 GBP19.5 million, representing a premium of 29% to their 31 December 2023 aggregate valuation of GBP15.0
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 GBP10.1 million, the Company has sold or agreed to sell GBP29.6 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.
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ISIN: GB00BJFLFT45 Category Code: MSCU 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.: 306653 EQS News ID: 1847643 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
February 28, 2024 11:30 ET (16:30 GMT)
