Custodian Property Income REIT has successfully negotiated the sale of two additional properties, pushing its total disposal value for 2024 to approximately £29.6 million. This figure surpasses the book value of the properties by an impressive 24%, showcasing the company’s strategic acumen in the real estate market.

With its focus on generating substantial income through a diverse array of smaller regional properties within the UK, the company has added industrial units located in Warrington and Weybridge to its list of agreed sales. This update follows the third quarter trading announcement on February 7, 2024, and increases the total number of assets set to be sold since the end of December 2023 to four. The portfolio, which also includes a vacant car dealership in Redhill and an office space in Castle Donington, is on the market for a cumulative £19.5 million. This is a considerable 29% higher than their combined valuation at the end of last year, which stood at £15.0 million.

Scheduled for completion within the next two months, these transactions are anticipated to bolster the company’s finances by reducing its variable rate debt obligations. This strategy follows on the heels of successful January sales, including an industrial unit in Milton Keynes and an office building in Derby, which collectively fetched £10.1 million.

Richard Shepherd-Cross, the Managing Director of Custodian Capital Limited, which manages the REIT, highlighted the potential benefits of these sales. He noted that the expected proceeds could enhance annual recurring earnings by approximately 5% for the year ending December 31, 2023. This financial boost is seen as a pivotal step towards maintaining the company’s dividend policy, which has been consistent since its initial public offering. Furthermore, the sales are projected to improve the company’s net asset value by around 1%, reduce its loan-to-value ratio, and increase occupancy rates, thereby strengthening its financial standing and operational efficiency.

These strategic disposals reflect Custodian Property Income REIT’s expertise in asset and portfolio management. They underscore the company’s commitment to optimizing shareholder value through a diversified investment approach, enabling it to navigate the market’s fluctuating dynamics efficiently.