Custodian Property Income REIT plc: Share Buyback Programme

DJ Custodian Property Income REIT plc: Share Buyback Programme

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 GBP5m (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 GBP41.8m 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 GBP5m 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 
                                   Tel: [phone] 
Ed Moore - Finance Director 
                                   www.custodiancapital.com 
Ian Mattioli MBE DL - Chairman 
 
  
 
Deutsche Numis 
 
Hugh Jonathan / George Shiel                       Tel: [phone] 
 
  
 
                                     Tel: [phone] 
FTI Consulting 
                                   [e-mail] 
Richard Sunderland / Ellie Sweeney / 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 www.custodianreit.com and 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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July 17, 2025 02:00 ET (06:00 GMT)