Custodian REIT plc : Results of Annual General Meeting - Additional Statement (714809)

Dow Jones received a payment from EQS/DGAP to publish this press release.

 
 
 Custodian REIT plc (CREI) 
Custodian REIT plc : Results of Annual General Meeting - Additional 
Statement 
 
16-Aug-2018 / 09:45 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            16 August 2018 
 
      Custodian REIT plc 
 
      ("Custodian REIT" or "the Company") 
 
      Results of Annual General Meeting - Additional Statement 
 
        Custodian REIT (LSE: CREI), the UK commercial real estate investment 
company, announces its response to the results of the Annual General Meeting 
      ("AGM") of the Company held on 19 July 2018, at which Resolution 11 to 
      dis-apply pre-emption rights in relation to up to 10% of the Company's 
       issued share capital ("ISC") was passed, but Resolution 12 to further 
        dis-apply pre-emption rights in relation to an additional 10% of the 
     Company's ISC did not receive the required 75% of votes cast in favour. 
 
          This resolution was tabled to take advantage of the changes to the 
  Prospectus Directive that were effective from 20 July 2017, increasing the 
          limit on new equity that can be issued over a 12-month period on a 
non-pre-emptive basis before the Company is required to publish a prospectus 
            ("Limit") from 10% to 20% of the Company's ISC. 
 
  The Pre-Emption Group's Statement of Principles on Disapplying Pre-emption 
    Rights, however, continues to support a Limit of 10%. Accordingly, 26.0m 
 votes against Resolution 12 were received (representing 47.4% of votes cast 
            and 7.4% of eligible votes), largely from shareholders following 
      Institutional Voting Information Service recommendations, based on the 
            Pre-emption Group's guidance. 
 
       At the Company's AGM on 20 July 2017, shareholders voted in favour of 
   dis-applying pre-emption rights in relation to up to 20% of the Company's 
            ISC. 
 
      In the Board's opinion, having the authority to issue up to 20% of the 
    Company's ISC on a non-pre-emptive basis, in line with the revised Limit 
  implemented by the European Securities and Markets Authority, is justified 
       to continue the Company's programme of tap issuance, which allows the 
Company to grow in a cost-efficient manner by avoiding the significant costs 
   of publishing a prospectus and satisfies demand for the Company's shares. 
 
 The Board believes that growing the Company is in the best interests of all 
 Shareholders as it reduces the Company's fixed costs per Ordinary Share and 
  should increase the secondary market liquidity in its Ordinary Shares. New 
   Ordinary Shares will only be issued to new and existing Shareholders at a 
   sufficient premium to net asset value ("NAV") at the point of issue to at 
least cover the issue costs of the new Ordinary Shares and will therefore be 
  accretive to the prevailing NAV for existing Shareholders. Whilst existing 
     Shareholders' voting rights will be diluted, the Directors believe this 
      consideration is outweighed by the flexibility that a larger authority 
          provides and the cost savings associated with not needing to issue 
   subsequent circulars to obtain further authority. The Directors would use 
    this authority only when they consider it to be in the best interests of 
            Shareholders to fund suitable property acquisitions. 
 
   Due to the votes against Resolution 12 only representing 7.4% of eligible 
 votes and based on feedback from Shareholders since the 2018 AGM, the Board 
    currently expects to request approval to dis-apply pre-emption rights in 
            relation to up to 20% of the Company's ISC at the 2019 AGM. 
 
      - Ends - 
 
            For further information, please contact: 
 
          Custodian Capital Limited 
Richard Shepherd-Cross / Nathan         Tel: [phone] 
Imlach / Ian Mattioli MBE 
                                    www.custodiancapital.com [1] 
 
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 GBP10m at 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 GBP10m lot 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 visit www.custodianreit.com [2] and 
            www.custodiancapital.com [1]. 
 
ISIN:           GB00BJFLFT45 
Category Code:  AGM 
TIDM:           CREI 
OAM Categories: 2.2. Inside information 
                3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   5884 
EQS News ID:    714809 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c24dec6d0ea6c746569ddd52de0eca8d&application_id=714809&site_id=vwd_london&application_name=news 
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=44eae66ce326b2005a19503bbab5faed&application_id=714809&site_id=vwd_london&application_name=news 
 

(END) Dow Jones Newswires

August 16, 2018 04:47 ET (08:47 GMT)