Custodian REIT and abrdn Property Income Trust Limited Merger Update

Custodian Property Income REIT plc (CREI) has reiterated its support for the all-share merger with abrdn Property Income Trust Limited (API), asserting it as the most beneficial move for shareholders of both entities. This announcement follows previous communications and comes amidst speculation around an alternative offer from Urban Logistics REIT (ULR).

The merger is highlighted for its strategic and financial advantages, promising significant value to shareholders compared to ULR's indicative offer. CREI points out that the merger not only promises a superior dividend increase for API shareholders but also maintains investment strategies aligned with both groups’ interests, posing minimal risk to API shareholders in terms of investment profile alteration.

Critically, CREI warns against the execution risks and the potential for value erosion associated with the ULR's proposal. The company underscores the substantial refinancing risks ULR faces, which could impact dividend growth adversely. Conversely, CREI's diversified investment approach and stable refinancing outlook offer a solid foundation for the merger’s success.

The CREI Board has recommended that API shareholders remain focused on the planned merger, advocating for a vote in favor during the upcoming API Court Meeting and General Meeting on 20 March 2024. This advice comes with a commitment to publishing a video briefing to further elucidate the merger's benefits.