Custodian Property Income REIT Announces Share Buyback Programme

Custodian Property Income REIT plc has unveiled its intention to initiate a share buyback programme, engaging Deutsche Bank AG to manage the purchase of its ordinary shares, capped at £5 million. This move is aligned with the company’s strategy to enhance shareholder value by targeting an increase in earnings per share and net asset value per share.

Since April 2023, Custodian has selectively disposed of 14 properties, yielding £41.8 million, allowing it to reinvest in portfolio improvements and debt reduction. Their disposals focused on assets with limited rental growth potential, marking a strategic pivot in portfolio management. The board acknowledges the current share price significantly undervalues the company, prompting this buyback decision.

The programme will operate under shareholder authorization from August 2024, allowing purchases up to 10% of issued capital. However, the Board stresses the buyback volume remains uncertain, subject to market conditions, with flexibility to alter or cancel as needed.