Update on the recommended merger between Custodian Property Income REIT and abrdn Property Income Trust

Custodian Property Income REIT plc (CREI) has provided an update regarding the proposed all-share merger with abrdn Property Income Trust Limited (API), highlighting the withdrawal of certain letters of intent. CREI's management remains confident that the merger represents the best option for shareholders of both companies, emphasizing income-focused investment strategies and increased portfolio diversification.

CREI underscores several reasons justifying the merger, including a projected 7.3% increase in annual dividends for API shareholders and enhanced asset diversification. In contrast to the competing offer from Urban Logistics REIT plc, the merger with CREI promises ongoing asset disposal management tailored to each company's sector, while providing potential for maximum shareholder value uplift for API shareholders.

The announcement also sheds light on the expected timeline for the merger, with the rescheduling of CREI's Annual General Meeting to March 19, 2024, and API's AGM to March 20, 2024, aiming for effective completion in early April. This timeline is subject to merger approval from the courts and fulfillment of the necessary conditions.