3 October 2014

Custodian REIT plc announce issue of equity

Following the recent news of the proposed issue of equity on 23 September, the Board of Custodian REIT plc is pleased to announce that the placing has closed, raising £25 million (before costs and expenses) through the issue of 23,866,349 new ordinary shares of 1p each in the capital of the company under the placing programme established in the REIT’s February 2014 prospectus (issue).

On the issue of equity, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, the external fund manager, said:

“The placing was significantly oversubscribed and the Board has decided in light of the strong pipeline of investment opportunities that it is in shareholders’ interests to increase the size of the issue beyond the £20 million targeted.”

The Board and Custodian Capital Limited confirm that the issue at this higher level remains consistent with the company’s published objectives, including its dividend targets of 5.25 pence per share in the year ending 31 March 2015 and 6.25 pence per share in respect of each financial year thereafter.

The new shares will be issued at 104.75 pence per share, which the Board and Custodian Capital consider represents a premium of circa 5% to the estimated net asset value per share as at 30 September 2014.

Applications will be made for the new shares to be admitted to the premium segment of the official list of the UK Listing Authority and to trading on the London Stock Exchange plc’s main market for listed securities. Admission is expected to become effective, and dealings in the New Shares to commence, at 8 am on 8 October 2014.