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 2025 and 2024 but has been disclosed as 2026 and 2025 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 30 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 five 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 2026 the Company’s UK-based portfolio consisted of 174 assets across five sectors: industrial, retail warehouse, high street retail, office, and other. We manage 52 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 meters, 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 52 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).

 Data trends

In 2026, the Company saw overall downward trends in its environmental data, particularly in electricity, fuel, and scope 1 and 3 GHG emissions.

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 2026.

Total absolute electricity consumption (Elec-Abs) in 2026 rose by 10.1%, reaching 51,019 MWh compared to 46,355 MWh in 2025. This increase is primarily due to the integration of 29 new assets during 2025.  Furthermore, the 2026 data reflects enhanced accuracy resulting from broader data coverage across the portfolio, as prior estimations were replaced with actual metered data, thereby strengthening the reliability of the reported figures.

Like-for-like electricity (Elec-Lfl) also decreased by 1.8%, with a consumption of 34,469 MWh in 2026, compared with 35,083 MWh in 2025. The difference between absolute and like-for-like consumption indicates the impact of portfolio changes on overall energy use.  Absolute tenant consumption increased by 15.9% from 41,613 MWh in 2025 to 48,243 MWh in 2026, while shared services consumption decreased by 41.5% from 4,742 MWh to 2,776 MWh.  On a like-for-like basis, tenant areas consumed 32,339 MWh in 2026 compared to 31,174 MWh in 2025 (a 3.7% increase), while shared services decreased by 45.5% from 3,909 MWh to 2,130 MWh.

Total whole building absolute (Fuels-Abs) fuel consumption increased marginally by 2.2% in 2026 to 31,076 MWh from 30,398 MWh in 2025.  Again, these increases can be partially attributed to the introduction of 29 new assets to the portfolio in 2026.

Our energy intensity figures increased by 9.0% from 153 kWh/m2 in 2025 to 167 kWh/m2 in 2026 (Energy-Int). This increase was primarily driven by Industrial properties (+14.4% to 151 kWh/m2) and Other properties (+11.1% to 311 kWh/m2), while office properties improved by 8.3% to 162 kWh/m2.

Greenhouse gas (GHG) emissions

Despite increases in energy consumption in 2026, our absolute location-based scope 1 emissions (GHG-Dir-Abs) decreased by 17.2%, recording 482 tCO2e in 2026 down from 582 tCO2e in 2025.  Scope 2 (GHG-Indir-Abs) emissions decreased significantly by 33.5% from 1,019 tCO2e in 2025 to 677 tCO2e in 2026.  This reduction in scope 2 emissions demonstrates the positive impact of our energy management initiatives and potential improvements in the carbon intensity of grid electricity.  Our absolute emissions for scope 3 (GHG-Indir-Abs) increased by 9.6% to 15,148 tCO2e in 2026 from 13,817 tCO2e in 2025, relating specifically to our tenants’ operations.  GHG intensity (GHG-Int) recorded an increase of 5.1% from 32 kgCO2e/m2 in 2025 to 33 kgCO2e/m2 in 2026.  Our portfolio GHG emissions have been calculated using 2025 and 2026 Scope 2 location-based conversion factors provided by the International Energy Agency (IEA) for electricity and Scope 1 fuel emissions using 2025 and 2026 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

Total absolute water consumption (Water-Abs) for the portfolio decreased by 9.2%, from 167,328 m3 in 2025 to 151,935 m3 in 2026.  This reduction in absolute consumption is partly attributable to changes in the portfolio’s composition, including the disposal of two sites during 2025 that previously reported water data.

Like-for-like water consumption showed a reduction of 12.1%, decreasing from 105,120 m3 in 2025 to 92,164 m3 in 2026.  Water consumption intensity improved by 9.9% from 341 litres/m2 in 2025 to 308 litres/m2 in 2026.  The reduction was observed across most property types, with industrial properties showing the largest absolute decrease from 83,669 m3 to 76,206 m3

Waste

While waste has been classified as immaterial for SECR reporting purposes, Custodian Property Income REIT continues to report this metric within EPRA as part of our commitment to comprehensive sustainability disclosure and best practice.  The Company’s waste data only accounts for 2% of our total portfolio.  We do not estimate waste data, therefore, the data we disclose is based on actual waste management reports.  At the reporting sites, we saw a total waste decrease of 90.1%, with 372 tonnes recorded in 2025 and 37 tonnes recorded in 2026.  Only 4 sites have waste reported in 2026 compared to 13 in 2025.  In 2026, 18% of our waste was recycled (7 tonnes), compared to 19% (70 tonnes) in 2025.  The majority of waste in 2026 was sent to landfill at 38% (14 tonnes), compared to 65% (241 tonnes) in 2025.  Hazardous waste classified as “other” and diverted from landfill totalled 16 tonnes (44% of total waste) in 2026, compared to 55 tonnes (15% of total waste) in 2025. This resulted in an overall waste diversion rate of 62% (23 tonnes) in 2026, compared with 35% (130 tonnes) in 2025.

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

Building certifications

We track EPCs across our portfolio as an indicator to demonstrate the efficiency of our assets.  The Company’s Investment Manager, Custodian Capital Limited, is continuously reviewing and undertaking new assessments of any EPCs that are older than five years and below C rating, noting a C rating may become the minimum standard for new leases under the Minimum Energy Standard (MEES) in 2027.  There has been an improvement in EPC ratings in 2026 compared to the previous year.  In 2026, 9% of the portfolio (17 assets) are now rated A, increasing from 7% (12 assets) in 2025. 92% of the portfolio is now rated from A-C – an improvement from 88% of the portfolio in the previous year.

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 2026 (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 2026.

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 five non-executive directors, 40% 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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