Custodian Property Income REIT announces favorable sales for 2024

Custodian Property Income REIT plc (CREI) recently announced the completion of two new sale transactions, bringing the total announced disposals for 2024 to approximately £30 million. These operations were carried out at an average price 24% higher than the book value of the assets concerned, reflecting efficient management of the company's real estate portfolio.

The recently completed sales include industrial units located in Warrington and Weybridge, and are in addition to two other assets under compromise since December 31, 2023. These four assets are expected to sell for a total of £19.5 million, i.e. a capital gain of 29% compared to their cumulative valuation as of December 31, 2023. The company plans to devote the proceeds from these sales to reducing its variable rate debt.

The company has sold or agreed to sell assets worth a total of £29.6 million this year. Richard Shepherd-Cross, Managing Director of Custodian Capital Limited, external manager of the fund, highlighted the anticipated positive impact of these sales on annual recurring revenues and the company's ability to support a fully covered dividend, in line with its policy since the IPO.