Custodian REIT plc : Disposal of Property

16 September2019

Custodian REIT plc

('Custodian REIT'or the 'Company')

Disposalof Property

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the disposal of a propertyfrom its portfolio.

The Company has sold a 39,279 sq ft citycentre office and retail unit in Edinburghfor £9.1 million1, in line with the 30 June 2019 valuation, having acquired the property as part of aportfolio in January2016.

Following the disposal, net gearing2has decreased to 21.1%.

Commenting on the disposal Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's external fund manager), said:

'Following the completion of a refurbishment and various asset management initiatives,which increased the weighted average unexpired lease term to expiry to 8.7 years, we anticipated limited opportunitiesfor future rental growthand believe the disposal proceeds can be redeployed on property with betterincome and capital growth prospects.'

1 Before rent top-ups and costguaranteesrelating to vacant spaceof circa £0.3 million.

2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.

- Ends -

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli MBE	Tel: [phone]
	www.custodiancapital.com

Numis Securities Limited
Nathan Brown / Hugh Jonathan	Tel: [phone]
	www.numiscorp.com

Camarco
Ed Gascoigne-Pees	Tel: [phone]
	www.camarco.co.uk

Notes to Editors

Custodian REIT plc is a UK real estate investment trust with a portfolio comprising properties predominantly let to institutional grade tenants throughout the UK, principally characterised by properties with individual values of less than £10 millionat acquisition.

The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund. By principally targeting sub £10 millionlot size regional properties, the Company intends to provide investors with an attractive level of income and the potential for capital growth, becoming the REIT of choice for private and institutional investors seeking high and stable dividends from well-diversified UK real estate.

Custodian Capital Limited is the discretionary investment manager of the Company.

For more information visitwww.custodianreit.comandwww.custodiancapital.com.