Secure Income REIT Plc Preliminary results for the six months ended - PowerPoint PPT Presentation

Secure Income REIT Plc Preliminary results for the six months ended 30 June 2017 18 September 2017 www.SecureIncomeREIT.co.uk

Disclaimer The information contained in these slides and communicated verbally to you, including the speech(es) of the presenter(s) and any materials distributed at or in connection therewith (together the “Presentation”) is confidential. Reliance upon the Presentation for the purpose of engagin g in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of the Presentation, they should seek independent advice from a person who is authorised for the purposes of the Financial Services and Markets Act 2000, as amended or otherwise suitably authorised if in another jurisdiction and who specialises in advising on investments of this kind. Any investment decision should not be made based on the content of the Presentation alone. The Presentation has been prepared by, and is the sole responsibility of, the “Company” (Secure Income REIT plc). No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of Stifel Nicolaus Europe Limited (“ Stifel ”), the Company or Prestbury Investments LLP (the “Investment Adviser”) or any of their respective shareholders, directors, employees, advisers, agents or affiliates or any ot her person as to the fairness, accuracy or the completeness of the information or opinions contained herein, and to the extent permitted by law, no responsibility or liability is accepted by any of them for any such information or opinions. Notwithstanding the aforesaid, nothing in this paragraph shall limit or exclude liability for any representation or warranty made fraudulently. The Presentation has not been approved by the Financial Conduct Authority and does not constitute or form part of an admission document, listing particulars, a prospectus or a circular relating to the Company, nor does it constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any ordinary shares in the Company (the “Ordinary Shares”). Further, neither the Presentation nor a ny part of it, or the fact of its distribution, shall form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract for Ordinary Shares. The Presentation includes illustrative returns based on certain assumptions relating to an extended future period and, accordingly, there is no guarantee that actual returns, if any, can be achieved at or near the levels set out in this Presentation. The estimates and assumptions underlying the illustrative returns are inherently uncertain, are based on events that have not taken place and are subject to economic, competitive and other uncertainties and contingencies beyond the Company’s control. The illustrative returns have been prepared by the Company and should be read in conjunction with the assu mptions included in this Presentation. It is emphasised that the illustrative returns, which are unaudited, do not constitute any form of forecast, whether of cash, profit or otherwise. Past performance is not a reliable indicator of future results. The value of shares or income from them may go down as well as up. The distribution of the Presentation in jurisdictions other than the United Kingdom may be restricted by law and persons into whose possession the Presentation comes should inform themselves about and observe any such restrictions. In particular, neither the Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons in Canada, Japan, Australia or the Republic of South Africa. The Presentation should not be distributed in or into the United States of America (or any of its territories or possessions) (together the “US”). The C ompany’s Ordinary Shares have not been, and will not be, registered under the US Securities Act of 1933, as amended or under the securities laws of any other jurisdiction, and are not offered or sold (i) directly or indirectly, within or into the US, Canada, Japan, Australia or the Republic of South Africa or (ii) to, or for the account or benefit of, any US persons or any national, citizen or resident of the US, Canada, Japan, Australia or the Republic of South Africa. Note on forward looking statements This document includes forward looking statements which are subject to risks and uncertainties. You are cautioned that forward looking statements are not guarantees of future performance and that if risks and uncertainties materialise, or if the assumptions underlying any of these statements prove incorrect, the actual results of operations and financial condition of the Group may differ materially from those made in, or suggested by, the forward looking statements. Other than in accordance with its legal or regulatory obligations, the Company undertakes no obligation to review, update or confirm expectations or estimates or to release publicly any revisions to any forward looking statements to reflect events that occur or circumstances that arise after the date of this document. 2

1. Introduction: Nick Leslau 2. June 2017 financial highlights: Sandy Gumm 3. Portfolio and June 2017 valuation: Mike Brown 4. Market conditions and outlook: Nick Leslau Thorpe Park

Secure Income REIT Plc  Established and substantial, sector agnostic UK REIT investing only in real estate let on long leases 1 portfolio of 81 key operating assets let to financially strong businesses  £1.72bn  Highly predictable returns and growth from fixed and upwards only, uncapped, RPI linked rental uplifts and long term fixed rate debt  Strong governance with highly experienced independent directors: Martin Moore, Leslie Ferrar, Jonathan Lane & Ian Marcus  Managed by the Prestbury team:  closely aligned with shareholders via their holding in the Company of 16.7% worth c.£136m  over 30 years’ track record in successful real estate investment and financing 1 External valuation of existing portfolio at 30 June 2017 (EUR/GBP exchange rate of € 1:£0.8779 on £104.7m of German investment property) 4

Secure Income REIT Plc Delivering strong total returns Performance in the 3 years since listing in June 2014   NAV per share up 104% Net LTV down from 80% to 51%   Dividends initiated in 2016 – annualised DPS now 14p per Market capitalisation up 175%  share (3.9% on June ‘17 EPRA NAV) Like-for-like portfolio value up 33% Total Accounting Return 6.6p 5.3p 355.5p 323.6p 300.2p 282.8p 275.3p 258.5p 184.5p Jun-14 Dec-14 Jun-15 1 Dec-15 Jun-16 Dec-16 Jun-17 Dividends per share EPRA NAV per share Adjusted EPRA EPS Dividends and DPS Net Loan to Value £8.1m 76.5% £7.6m £7.6m 6.7p £6.7m 5.9p 61.5% £5.3m 59.5% 5.4p 51.0% 2.9p 14.0p 13.3p 13.1p 11.8p 11.8p 0.5p -0.3p 1 1 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Jun-14 Jun-15 Jun-16 Jun-17 Annualised dividends per share Dividends paid 1 Pro forma figures for the completion of the sale of Madame Tussauds and the refinancing of the Group’s entire debt which occurred subsequent to 5 the balance sheet date

June 2017 Results Reading Hospital

30 June 2017 Results 30 June 2017 31 December 2016 % change Unaudited Audited • Net Assets ↑ 10.3 % £813.3m £737.4m • EPRA Net Asset Value ↑ 10.3 % £823.0m £745.9m • EPRA Net Asset Value per share ↑ 9.9 % 355.5p 323.6p • EPRA NAV per share growth plus dividends ↑ 2.2pp 11.9% 9.7% • Net LTV ↓ 2.5pp 51.0% 53.5% 30 June 2017 30 June 2016 % change Unaudited Unaudited 1 • Adjusted EPRA EPS ↑ 24.1% 6.7p 5.4p • Dividends per share 6.6p - n/a  Portfolio valuation up 4.8% since 31 December 2016 to £1.72 billion  Rents up by 2.7% by 30 June 2017 and by 3.0% including July’s increases  £95.2m passing rent at 30 June 2017 – weighted average lease term 22.7 years without break  Total shareholder return for the period 11.7%  Covered dividend now annualised at 14p per share – 3.9% on EPRA NAV 1 Adjusted to exclude rental income in excess of cash rents received as a result of the accounting requirement to spread the impact of fixed rental uplifts 7 over the lease term and other non recurring items (see interim statement, note 8)

EPRA NAV progression £m Pence • EPRA NAV at 31 December 2016 745.9 323.6 • Property revaluation: • Healthcare 33.0 14.3 • UK Leisure 26.3 11.4 33.0p per • German leisure (constant currency) 5.9 2.6 share • Hotels 10.9 4.7 • Adjusted EPRA earnings 15.4 6.7 • Incentive fee - (1.4) • Irrecoverable VAT on incentive fee (0.3) (0.1) • Currency translation movements & other 1.0 0.3 • Dividends (15.1) (6.6) • EPRA NAV at 30 June 2017 823.0 355.5 up 9.9% • EPRA NAV uplift 77.1 31.9 • Dividends paid 15.1 6.6 • Total Accounting Return 92.2 38.6 • 11.9% TAR 8

Adjusted EPRA Earnings 6 months to June 2017 6 months to June 2016 £m Pence £m Pence Net rent: Like for like portfolio 39.6 17.2 38.4 21.3 Travelodge 6.9 3.0 - - Net finance costs Like for like portfolio (24.3) (10.5) (24.5) (13.6) Travelodge (0.9) (0.4) - - Admin & corporate costs (5.7) (2.5) (4.2) (2.3) Tax (0.2) (0.1) - - Adjusted EPRA EPS 15.4 6.7 9.7 5.4 +24%  Positive impact of net Travelodge contribution and rental growth on core portfolio 9