Custodian Property Income REIT has agreed terms on two sales comprising industrial units in Warrington and Weybridge.
As a result, and following the previously announced sales of an industrial unit in Milton Keynes and an office building in Derby in January 2024 for an aggregate €11.7m, the Company has sold or agreed to sell €33.9m of assets this calendar year.
Richard Shepherd-Cross, Managing Director of Custodian Capital Limited said: “The successful completion of these sales would be significantly accretive to annual recurring earnings, adding c.5% on a pro forma basis for the 12 month period to 31 December 2023, by using expected sale proceeds to pay down variable rate debt with a current all-in interest rate of c. 6.9%, and so be supportive of paying a fully covered dividend in line with the Company’s policy and practice since IPO. These disposals would also have a positive effect on NAV adding c.1%, while improving the Company’s debt position by reducing LTV from 30.6% to 27.5%, as well as increasing occupancy from 91% to 93%, each on a pro forma basis as at 31 December 2023. These sales also demonstrate our ability to leverage our asset and portfolio management expertise and highlight the benefits of the Company’s diversified investment strategy. This allows us to undertake both sales and acquisitions across all sectors where we see opportunities to optimise shareholder value, without the confines of being beholden to the head or tailwinds of any single sector at a specific point in time.”
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