Introduction

Custodian Property Income REIT plc (“the Company” or “Custodian Property Income REIT”) recognises the significance of disclosing our environmental, social, and governance (“ESG”) information, and we chose to align our reporting with the considered industry-leading, European Public Real Estate Association’s (“EPRA”) Sustainability Best Practices Recommendations (“sBPR”). This enables the Company to provide potential investors with transparent insights into our ESG performance, while also facilitating benchmarking against our peers, and setting clear objectives to achieve continued progress. We are pleased to have received an EPRA sBPR Gold Award for the fourth consecutive year in 2024 and we aim to retain this recognition.

In alignment with our Streamlined Energy and Carbon Reporting (“SECR”) statement, EPRA sBPR data relates to the calendar years 2024 and 2023 but has been disclosed as 2025 and 2024 respectively, due to the Company’s March accounting reference date.

Our EPRA sBPR disclosure includes:

  1. Overarching Recommendations
  2. Sustainability Performance Measures (please see our accompanying data tables)

Materiality

The scope of our EPRA sBPR data disclosure was influenced by our application of materiality. Custodian Property Income REIT undertook a materiality assessment to review the applicability of the full set of EPRA sBPR indicators. Based on professional judgement, each indicator was assessed in terms of its impact on the Company and its importance to our stakeholders.

This calculation resulted in an overall score, which determined if an issue was material.

As part of our EPRA sBPR disclosures and associated materiality assessment, we have defined Custodian Property Income REIT’s organisational boundary in line with the Greenhouse Gas (“GHG”) Protocol. We have taken the operational control approach, and this has played a fundamental role in the materiality assessment. The Company is an externally managed real estate investment trust which has no direct employees. The Investment Manager is Custodian Capital Limited (“the Investment Manager”), which has 33 employees, and Custodian Property Income REIT has operational control over neither the Investment Manager nor its employees. The Social Performance Measures determined immaterial are in relation to employees, thus they are not relevant for reporting at the Custodian Property Income REIT level.

In addition, the Company does not have district heating and cooling and it is, therefore, not an applicable reporting metric.

Using this organisational boundary, the following Sustainability Performance Measures are determined to be immaterial for Custodian Property Income REIT:

  • Total district heating and cooling consumption (DH&C-Abs)
  • Life-for-like total district heating and cooling consumption (DH&C-LfL)
  • Employee gender diversity (Diversity-Emp)
  • Gender pay ratio (Diversity-Pay)
  • Training and development (Emp-Training)
  • Employee performance appraisals (Emp-Dev)
  • Employee turnover and retention (Emp-Turnover)
  • Employee health and safety (H&S-Emp)

However, as Custodian Property Income REIT does have its own Board of Directors, which consists of six non-executive directors, we have chosen to report on gender, diversity and the gender pay ratio of the Company’s Board members to enhance our transparent reporting with our stakeholders.

Overarching Recommendations

Organisational boundaries

The Company takes an operational control approach. At 31 March 2025 the Company’s UK-based portfolio consisted of 151 assets across five sectors: industrial, retail warehouse, high street retail, office, and other. We manage 34 of these directly with a mixture of landlord-controlled utilities.

Coverage

Due to the nature of our business and operational control, we have varying amounts of data coverage across the different utilities. We recorded an increase in data coverage through the implementation of automated metrers, access to aggregated utility data using Arbnco, and regular tenant engagement.

Coverage for each Performance Measure is disclosed in our accompanying data tables.

Estimation of landlord-obtained utility consumption

In instances where data is missing or unavailable, estimations have been applied. Different estimation methodologies are used depending on whether the data is missing (e.g., one month of the year) or unavailable (e.g., data we were not able to obtain). For missing data, we estimate based on historical data and figures from other months throughout the year. For data that was unavailable, we use benchmarking factors recommended by the Carbon Risk Real Estate Monitor (“CRREM”) tool and floor area. We have maintained detailed records of all instances of estimation, which are stored within our internal records. Our waste data is not estimated as it is based on actual measurements from waste reports and invoices.

We have disclosed the proportion of total data estimated for each Performance Measure in the accompanying data tables.

Boundaries – reporting on landlord and tenant consumption

We have 34 multi-let assets directly managed by the Company, with a combination of landlord and tenant control across all utilities. In the accompanying data tables, we report electricity figures by landlord-controlled, ‘shared services’, and tenant-controlled areas, ‘tenant areas’. The data for other energy sources, such as intensity, fuels, water, and GHG is reported as ‘whole building’ figures as it is difficult to separate these services from the common area usage.

Normalisation

As the Company is a REIT, primarily investing in real estate, floor area is an appropriate denominator to normalise energy and water consumption and GHG emissions as an intensity metric and is consistent with the SECR guidelines recommendations for the property sector.

Disclosure on own offices

Custodian Property Income REIT does not have any direct employees and, therefore, does not occupy an office.

Segmental analysis

We have chosen to report our data by sector type (i.e., industrial, retail warehouse, high street retail, office and other), consistent with our financial reporting. As all our assets are within the UK, an analysis by geography is not applicable.

Third Party Assurance

The Company does not conduct third party assurance.

Sustainability Performance Measures

Through the Board, Custodian Property Income REIT encourages the Investment Manager to act responsibly in the areas we can influence as a landlord, working with tenants to improve their assets’ environmental performance to minimise their impact on climate change. The Company monitors and reports on environmental key performance indicator (“KPI”) targets quarterly (internally) and annually (externally). This helps Custodian Property Income REIT assess and improve its performance and implement various initiatives such as energy efficiency, green energy procurement, tenant engagement and ESG due diligence.

For more information on the Company KPIs, please see our 2025 Asset Management and Sustainability Report (ESG Reports – Custodian Property Income REIT plc).

2025 Data trends

In 2025, the Company saw overall downward trends in its environmental data, particularly in electricity, fuel, and scope 1 and 3 GHG emissions. We also demonstrated a decrease in water consumption.

Furthermore, as we continue our ESG journey, we are implementing a multitude of actions across our portfolio to maintain reduced utility usage and GHG emissions as we work toward meeting our operational net zero carbon target of 2050.

Energy

Custodian Property Income REIT has an ongoing commitment to reduce energy consumption across our portfolio with various initiatives implemented in 2025.

Total absolute electricity (Elec-Abs) in 2025 decreased by 2.5%, with a consumption of with a 42,325 MWh in 2024 compared with 41,247 MWh in 2025, with like for like electricity (Elec-Lfl) seeing a 19.3% reduction, i.e., a consumption of 33,001 MWh in 2025, compared with 40,895 MWh in 2024. The introduction of LED lamps in the car parks at our Crewe – Phoenix Leisure Park, Grove Park, Sheldon, and Shrewsbury sites reduced electricity at these assets. We also saw an overall decrease in tenant consumption, from 40,184 MWh in 2024 to 37,910 in 2025, despite the installation of temporary electric heaters to compensate for the main gas heaters which had stopped working at our Weymouth site.

Total whole building absolute (Fuels-Abs) fuel consumption decreased in 2025 to 24,785 MWh from 26,814 MWh in 2024. The 7.6% decrease in our total absolute (Fuels-Abs) consumption and the -7.1% reduction in our total like-for-like fuel (Fuels-Lfl) consumption is a result of an ongoing project in which we work with various sites to reduce both their gas and electricity consumption. At our Perth site, we carried out works to improve efficiency and prevent leaks, and we installed a new heat plate, which significantly reduced gas consumption. Similarly, at our Carlisle site, we saw a reduction in tenant gas use which can be attributed to servicing the gas heating, resulting in a more efficient system, and greater awareness of utility consumption by employees leading to behavioural changes.

The decreases in electricity and fuel consumption led to a reduction in energy intensity figures of 2.2%, with 146 kWh/m2 recorded in 2024 and 143 kWh/m2 recorded in 2025 (Energy-Int).

Future refurbishment and capital expenditure plans should result in asset efficiency and reductions in energy use, not only contributing to our net zero journey but also keeping properties fit for purpose and in line with tenant demand.

 

Greenhouse gas emissions

Decreases in electricity and fuel consumption in 2025 led to our absolute location-based scope 1 emissions (GHG-Dir-Abs) also experiencing lower consumption as we recorded a 15% drop with 548 tCO2e in 2025 down from 645 tCO2e in 2024. Scope 2 (GHG-Indir-Abs) emissions increased 70% from 442 tCO2e in 2024 to 717 tCO2e in 2025. A number of factors contributed to this large variation in consumption between the two years. The installation of automated meters led to access to Arbnco data across 20 sites improving data coverage. We did actual readings rather than estimations of gas at our York Menzies Distribution site and tenant water consumption at Shrewsbury, and in Weymouth we had to use temporary electric heaters as the main gas heating had stopped working. Our Weymouth site also recorded some overnight working in 2024. It should be noted that Scope 2 (GHG-Indir-Abs) does not include tenant emissions consumption. Our absolute emissions for scope 3 (GHG-Indir-Abs) decreased by 1.4%, relating specifically to our tenants’ operations. GHG intensity (GHG-Int) conversely recorded an increase of 2.5%. Our portfolio GHG emissions have been calculated using 2023 and 2024 Scope 2 location-based conversion factors provided by the International Energy Agency (IEA) for electricity and Scope 1 fuel emissions using 2023 and 2024 location-based conversion factors provided by CRREM.

As we continue to actively engage with our tenants and implement more efficiency measures, we aim to see GHG emissions reduce in the coming years.

Water

In 2025, we saw a 10.4% decrease in our overall absolute whole building water consumption (Water -Abs), with 168,883 m3 of consumption recorded in 2024 and 151,300 m3 recorded in 2025. There was also a 12.8% like-for-like whole building water consumption (Water-Lfl) decrease in 2025.  Water intensity (Water-Int) also decreased by 8.3% with 357 m3 reported in 2024 and 327 m3 in 2025.

We aim to obtain more data as we strengthen our relationships with tenants through more transparent communications and by creating a streamlined plan with property managers for collecting data quarterly.

Waste

The Company’s waste data only accounts for 8% of our total portfolio (13 assets). We do not estimate waste data, therefore, the data we disclose is based on actual waste management reports. At the 13 sites, we saw a total non-hazardous waste increase of 471%, with 77 tonnes recorded in 2024 and 440 tonnes recorded in 2025, due to improved data coverage and quality. In 2025 14% of our tenants’ waste was recycled, or 84 tonnes, and the remaining was sent to landfill; while in 2024 tenants recycled 24% or 30 tonnes, with the remainder sent to landfill. In 2025, 73 tonnes, or 12% of our tenants’ total waste was deemed hazardous and diverted from landfill, and 21 tonnes or 16% of our total hazardous waste was diverted from landfill in 2024. This resulted in an overall hazardous waste diversion rate of 163 tonnes or 27% in 2025, compared with 51 tonnes or 40% in 2024.

As our portfolio providing waste data did not see any changes over the reporting year, our like-for-like figures are the same as absolute figures (Waste-LfL).

We aim to promote more diversion efforts across our portfolio and encourage our tenants to practice responsible waste management.

Building certifications

All units in our portfolio have an Energy Performance Certificate (“EPC”) rating, and our only self-developed asset has been certified BREEAM New Construction ‘Excellent’.

During the past year, the Company has updated EPCs at 15 units across 11 properties where existing EPCs had expired. Through completing different refurbishments, we have increased our overall number of EPC ‘A’ and EPC ‘B’ certificates from 2024. Further refurbishment plans should result in all properties achieving an EPC rating of ‘A’-‘D’ by December 2025, supporting our achievements towards meeting our environmental targets.

We track EPCs across our portfolio as an indicator to demonstrate the efficiency of our assets. The  Investment Manager is continuously reviewing and undertaking new assessments of any EPCs that are older than five years and below ‘C’ rating.  A ‘B’ rating is due to become the minimum standard for new leases under the Minimum Energy Standard (MEES) in 2030.

 

Social

The Company is responsible for conducting health and safety assessments on 34 of our assets, all of which underwent annual fire risk assessments and health and safety inspections in 2025 (H&S-Asset). There were no reported incidents of non-compliance (H&S-Comp).

We do not report on the assessments conducted on properties controlled by our tenants.

Community engagement

Custodian Property Income REIT is committed to supporting local communities through our ESG strategy. Although we do not have asset-level community engagement programmes defined by the EPRA sBPR (Comty-Eng), we are dedicated to engaging constructively with tenants and local government to ensure we support the wider community through local economic and environmental plans and strategies, and play our part in giving employers safe places of business that promote tenant well-being. See more on the Board’s commitment to community engagement in the Custodian Property Income REIT Annual Report 2025.

Governance

Custodian Property Income REIT’s Board reviews the investment objectives at least annually to ensure they remain appropriate to the market in which the Company operates and are in the best interests of shareholders.

The Board (Gov-Board) comprises six non-executive directors, 33% of whom are female (Diversity-Emp). The Board has a positive approach to diversity and, where possible, each time a director is recruited, at least one of the shortlisted candidates is female and at least one of the shortlisted candidates is from a minority ethnic background. Our members are paid according to their role on the Board. This explains the gender pay difference as there is an uneven number of men to women in their respective roles (Diversity-Pay).

For additional information on our Board selection (Gov-Select) and how we mitigate conflict of interest (Gov-CoI), please see our accompanying data tables:

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