Custodian REIT plc : Extension of Revolving Credit Facility

26 September2019

Custodian REIT plc

('Custodian REIT' or 'the Company')

Extension of Revolving Credit Facility

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce the extension of its revolving credit facility ('RCF').

On 25 February 2014, the Company agreed aRCF of £25 millionwith Lloyds BankCommercial Banking ('LloydsBank') for a term of five years, and on 13 November 2015, the total funds available under the RCF were increased from £25 millionto £35 million with the termination date extended to 13 November 2020. The RCF is secured by way of a first charge over a discrete portfolio of properties, requiringa maximum loan to value ('LTV')ratio of 50% on those properties specifically charged to it, and interest cover ofat least 250%. Under the terms of the agreement the Company pays annual interest of 2.45% above three-month LIBOR on outstanding amounts drawn from time to time.

On 17 September2019 the Company and LloydsBankagreed to increase the total funds available under the RCFfrom £35 millionto £50 million for a term of three years, with an option to extend the term by a further two years subject to Lloyds Bank's agreement, anda reduction inthe rate of annual interest to between 1.5% and 1.8% above three-month LIBOR, determined by reference to the prevailing LTV ratio.

The RCF includes an 'accordion'option with the facility limit initially set at £46 million, which can be increased to £50 millionsubject to LloydsBank'sagreement.

Commenting on the extension of the RCF, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:

'Since IPO, the RCF has been crucial in providing flexibility to facilitate the Company's growth while minimisingcash drag from equity issuance and opportunistic property disposals tomaintain a fully covered dividend. We are delighted to have increased the RCF to £50 million and secured it for at least three more years at a lower interest margin, which should reduce net finance costs, provideadditional capacity to exploit acquisition opportunities and maintain the flexibility to minimise cash drag.'

Richard Round, Relationship Director for Real Estate & Housing in the Midlands at Lloyds Bank, said:

'Custodian REIT has gone from strength to strength since its IPO in 2014 and weare pleased to have supported it throughout its journey. From loans in 2015,the first long-term financing agreement through our partnership with Scottish Widows, and 2016to, most recently, extending its RCF.

'This deal will ensure Custodian REIT can expand its property portfolio to drive further growth. We look forward to seeing the business prosper in the coming years and supporting it every step of the way.'

-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.