Property investment firm shrugs off shareholder concerns over directors

The chair of Leicester-based property investment firm Custodian Property Income REIT has shrugged off concerns over the re-election of two directors earlier this year – despite a sizeable shareholder revolt.

David MacLellan, chairman of the company, said he is “satisfied” that Ian Mattioli – CEO of sister firm Mattioli Woods – and Elizabeth McMeika – chair of Nichols and non-executive director of Dalata Hotel Group and McBride – were not too busy to carry out their roles effectively.

Custodian Property Income REIT’s shareholders voted 41.6% and 23.7% respectively against Mattioli and McMeikan re-election as directors at the firm’s AGM in August.

However, MacLellan said in a London Stock Market Exchange update on Wednesday (December 6) that their experience was welcomed.

The statement said: “These institutional shareholders applied stricter internal voting policies than Institutional Shareholder Services which allow fewer ‘mandates’ and their voting policies do not acknowledge the generally lower time commitments as Directors of investment companies or companies of a relatively small size.

“The Nominations Committee is satisfied with Ian and Elizabeth’s attendance and responsiveness to the demands of being directors of the company. I believe additional roles offer directors helpful insight and experience which benefits the Boards on which they sit and I do not intend to ask my colleagues to reduce their additional roles.”

Meanwhile, the statement also revealed that Custodian Property Income REIT’s property portfolio valuation has seen a marginal 0.6% decline to £609.8m (31 March 2023: £613.6m)

Richard Shepherd-Cross, managing director of the company’s discretionary investment manager, said: “Our smaller-lot specialism has consistently delivered significantly higher yields without exposing shareholders to additional risk.”