Interim Report: For the period ended 30 September 2022

Interim Report 2022

Welcome to the Custodian Property Income REIT plc Interim Report 2022

Oxford

For more information, visit: custodianreit.com

Custodian Property Income REIT plc ("Custodian Property Income REIT" or "the Company") is a UK real estate investment trust ("REIT") which seeks to deliver a strong income return by investing in a diversified portfolio of smaller regional properties let to institutional grade tenants across the UK, principally characterised by properties with individual values of less than £15m at acquisition

Inside this report

Highlights and performance summary	02
Chairman's statement	06
Investment Manager's report	14
Asset management report	20
ESG Committee report	24
Property portfolio	34
Condensed consolidated statement
of comprehensive income	40
Condensed consolidated statement
of financial position	41

Condensed consolidated statement of cash flows 42

Condensed consolidated statements
of changes in equity	43
Notes to the interim financial statements	44
Directors' responsibilities for the interim
financial statements	64
Auditor's independent review report	65
Company information	67
Financial calendar	68

Custodian Property Income REIT plc Interim Report 2022

01

Highlights and performance summary

Property highlights	2022
		£m
Portfolio value	685.4
Property valuation movements1:
• From asset management initiatives	8.4
• General valuation decreases	(36.1)
	(27.7)
Property acquisitions	52.7
Capital expenditure	5.3
Profit on disposal2	4.7
Disposal proceeds since the Period end	13.5
Portfolio income split by region	Our portfolio by sector
weighting by income 30 Sept 2022	weighting by income 30 Sept 2022

West Midlands: 19%

North-West: 18%

East Midlands : 14%

South-East: 12%

North-East: 12%

Scotland: 11%

South-West: 9%

Eastern: 4%

Wales: 1%

Industrial: 38%

Retail warehouse: 24%

Office: 16%

Other: 11%

Retail: 11%

1. Before acquisition costs of £3.4m.
2. Net of disposal costs of £0.1m.

02

Custodian Property Income REIT plc Interim Report 2022

	Valuation increases from
Portfolio value	asset management	General valuation decreases
£685.4m	£8.4m	(£36.1m)
Property portfolio value of	Detailed in the Asset	Across all sectors and driven
£685.4m (31 March 2022:	management report	by current investor and market
£665.2m, 2021: £551.9m)		sentiment around the UK's
		economic outlook

Property acquisitions

£52.7m

• £15.0m retail park in Nottingham
• £11.1m distribution unit near Glasgow
• £8.9m for two DFS retail warehouses in Droitwich and Measham
• £7.5m industrial facility in Grangemouth
• £3.7m high street retail units in Winchester
• £3.5m industrial unit in Chesterfield
• £3.0m drive-through restaurants in York

Profit on disposal2

£4.7m

Sale proceeds of £14.9m at an aggregate

46% premium to valuation comprising:

• Industrial unit in Milton Keynes to a special purchaser for £8.5m
• Audi dealership in Derby for £5.7m
• High street retail unit in Weston-Super-Mare for £0.7m

Capital expenditure

£5.3m

Primarily relating to significant refurbishment work on two industrial assets in Avonmouth and Manchester and a retail warehouse in Swindon, with £0.7m invested in electric vehicle chargers at various sites

Disposal proceeds since the Period end

£13.5m

• £9.3m for a shopping centre in Gosforth
• £2.8m for business park offices in Leicester
• £1.4m for an industrial unit in Kilmarnock

Custodian Property Income REIT plc Interim Report 2022

03