16 May 2016

Custodian REIT disposes of a property from its portfolio

Custodian REIT is pleased to announce the disposal of a property from its portfolio.

The Company has sold a purpose-built student residential building in Lenton, Nottingham for £1.2 million, ahead of cost and 31 March 2016 valuation. The property was fully let for the next academic year prior to marketing.

The property was part of the initial portfolio acquired on the Company’s admission to the London Stock Exchange in 2014. Following the disposal and placing of new shares announced on 13 May 2016, net borrowings have decreased to 12.2% loan to value. The Company intends to use the proceeds from the disposal to fund acquisitions better aligned to its stated investment strategy.

Commenting on the disposal, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company’s discretionary investment manager), said:

“Due to the size and nature of use, this asset was identified as being non-core within our ongoing strategy. Over the last two years we have secured rental growth and now a profit on exit. We believe the proceeds can be reinvested to produce an enhanced income return which is a stronger fit with the balance of the portfolio and better supports dividends and future dividend growth.”