Custodian Property Income REIT plc: Update on the Strategic Acquisition of £36m Grove Court Portfolio

13 April 2026

Custodian Property Income REIT plc

(“Custodian Property Income REIT” or “the Company”)

Update on the Strategic Acquisition of £36m Grove Court Portfolio

Custodian Property Income REIT (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, provides an update on its purchase of a £35.9m family-owned portfolio (the “Grove Court Portfolio”) which was achieved through the majority-share acquisition of Grove Court Properties (Holdings) Limited (“Grove Court”) (“the Transaction”) announced on 16 February 2026.

Since completion of the Transaction, the Grove Court Portfolio has performed in line with expectations with occupancy remaining at c. 97%. In addition we have completed successfully a rent review which secured a 5% increase in passing rent, in line with estimated rental value, at a motor dealership in Beaconsfield which is the Grove Court Portfolio’s largest asset and occupier by income, now accounting for 27% of its rent roll.

Following this rent review and the finalisation of Grove Court completion accounts, deferred consideration has now been settled relating to an associated performance related overage payment, and the issuance of the final tranche of equity consideration.

Commenting on the Transaction, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, the Company’s Investment Manager, said: “Following the strategic majority-share acquisition of Grove Court earlier this year, its complimentary properties have improved our existing portfolio by providing tenant diversification and further defensive income to help drive earnings, while helping us continue to add scale to our business. We have already secured a 5% rental uplift with the occupier at Grove Court’s largest asset by income, further cementing our belief that we can capture the latent value in this portfolio.

“Despite macroeconomic and geopolitical uncertainty, this innovative growth strategy has proved to be an effective way to continue scaling our diversified portfolio, while also benefitting our income focused strategy. In a short space of time, we have undertaken three separate corporate acquisitions of family held property holdings totalling c.£66.5m, demonstrating our commitment to generating shareholder value through disciplined consolidation. We recognise the importance of growing the business alongside earnings, and creating value for shareholders is front of mind, as we continue to progress our pipeline of similar opportunities.”

Transaction consideration and issue of equity

On completion of the Transaction in February 2026, expected consideration comprised:

• Initial consideration of £9.0m cash and 24,116,729 new ordinary shares in the Company;
• 0.8m further new ordinary shares to be issued on finalisation of completion accounts; and
• £0.3m of cash overage based on the outcome of a pending rent review (£0.2m) and a pending lease renewal (£0.1m).

There is also the potential to issue further new shares to settle acquisition retentions up to a maximum value of £0.6m, subject to the outcome of an upcoming lease expiry and undertaking certain capital works.

Today the Company announces:

• The payment of overage of £0.2m following successful completion of a rent review, in line with expectations; and
• The finalisation of completion accounts in relation to the Transaction and the associated issuance of 735,920 new ordinary shares (“the New Shares”) to be admitted to the premium segment of the Official List and to trading on the London Stock Exchange's Main Market for listed securities ("Admission").  It is expected that Admission will become effective and dealings in the New Shares will commence at 8am on 16 April 2026.  The New Shares will rank pari passu with the ordinary shares already in issue.

The Company holds 6,045,732 of its ordinary shares in Treasury, purchased since 30 June 2025 under a previously announced non-discretionary buyback programme. The total number of voting rights of the Company following Admission of the New Shares and excluding treasury shares is 488,752,709, and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or of a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

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Further information:

Further information regarding the Company can be found at the Company's website custodianreit.com or please contact:

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.