Investor presentation Results for the year ending 31st December 2019 - PowerPoint PPT Presentation

Investor presentation Results for the year ending 31st December 2019

Disclaimer & Important Notice This presentation(hereinafter"this document")has been preparedby Yew GroveREIT plc (the "Company“ or “Group”) for informationpurposes only. This document has been prepared in good faith but the information contained in it has not been independently verified and does not purport to be comprehensive. This documentis neither a prospectusnor an offer nor an invitationto apply for securities. Nothing contained in this document shall form the basis of any contract or commitment whatsoever. No representation or warranty, express or implied, is given by or on behalf of the Company, its group companies, or any of their respective shareholders, directors, officers, employees, advisers, agents or any other persons as to the accuracy, completeness, fairness or sufficiency of the information, projections, forecasts or opinions contained in this document. In particular, the market data in this document has been sourced from third parties. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in any of the information or opinions in this document and neither the Company and its group companies nor any of their respective employees, officers, directors, advisers, representatives, agents or affiliates, shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Certain information contained in this document has been obtained from published and non- published sources prepared by other parties, which in certain cases have not been updated to the date hereof. While such information is believed to be reliable for the purpose used in this document, the Company does not assume any responsibility for the accuracy or completeness of such information and which has not been independently verified by the Company. Except where otherwise indicated herein, the information provided in this document is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. Forward-lookingstatements This document contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements speak only as at the date of this document. The Group will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events,circumstances, unanticipatedevents,new informationor otherwiseexcept as requiredby law or by any appropriateregulatory authority. THIS DOCUMENT DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SUBSCRIPTION OR SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR ANY SECURITIES NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT TO PURCHASE OR SUBSCRIBEFOR ANY SECURITIES 2

Agenda Introduction 4 Financial Highlights 9 Portfolio & Asset Management 17 Summary & Outlook 26 CharlesPeach Michael Gibbons JonathanLaredo Chief FinancialOfficer Chief InvestmentOfficer Chief ExecutiveOfficer 3

SECTION 1 Introduction Introduction 4

2019 highlights A year of growth ✓ Value of investment properties increased 49% to €115.8m (€141.2m including Millennium Park which completed post year end) ✓ NAV per share of 98.5c (after 4.2c acquisition and share issuance costs) ✓ Current rent roll of €8.9m, with an ERV of €10.1m (€10.6m and €12.7m respectively including Millennium Park) ✓ Total dividend for FY19 of 6.75c per share, even with 48% increase in share count diluting H2 dividends ✓ 100m share issuance programme established, 36.6m shares placed to fund acquisitions ✓ New equity raised was committed within 2 weeks ✓ Entering 2020 with acquisition pipeline of over €120m 5

Yew Grove Only REIT specialising in commercial property outside of Dublin CBD Supportive market backdrop Investment Strategy ✓ Good quality income from a portfolio of Irish commercial real estate in ✓ Ireland was the fastest growing economy in Europe in 2019 1 select locations outside Dublin’s CBD ✓ Approx. 50% of recent FDI job creation has been outside Dublin 2 – Project ✓ Focus on office and industrialassets Ireland 2040 supports targeted regional growth ✓ High quality tenant list: Irish government entities, state bodies, ✓ Dublin CBD rents have exceeded pre crisis highs, elsewhere rents large enterprises, IDA Ireland supported and other FDI are mostly still below the level required to trigger construction companies and are rising, driven by a supply demand mismatch ✓ Active asset management to drive value ✓ Opportunities to acquire assets at levels significantly below replacement cost ✓ Internallymanaged REIT with shareholder alignment: 4% of equity held by management Attractive opportunity & pipeline Active growth plan ✓ Ex- CBD market is very significant, c. €13bn ✓ Raised €111.5m in equity and € 49.1m 3 in debt since ✓ Competition for assets is growing but the market is still June 2018 IPO institutionally under invested and available yields are still ✓ Ongoing 100m share issuanceprogrammefrom July attractive 2019 of which c. 63m still to be issued. ✓ Market recovery and end of CGT exemption means that many ✓ Attractive pipeline of available assets to continue to scale owners want to redeploy capital into their businesses by selling the business properties ✓ Yew Grove has a high profile with property owners and agents for transacting efficiently 1 – Source: Goodbody 6 2 – IDA data, 2013 to 2018. Approx 58% of FDI job creation in 2018 was outside Dublin 3 – Increase in debt facility announced on 3 March 2020

Strong fundamental backdrop The opportunity for Yew Grove remains significant …with an equal share between Dublin and ex-Dublin 1 Strong FDI inflows continue… 10,125 9,455 New IDA job announcements 8,994 8,690 8,436 Location of inflows 6,718 6,759 5,901 Ex-Dublin 49% Dublin 51% 2012 2013 2014 2015 2016 2017 2018 2019 Non CBD rents are still significantly below replacement cost and vacancy and take up rates reflect a healthy market ▪ Vacancy rates across the country are at multi-year lows, with €45 larger floor plate, Grade A (and equivalent) with higher take up/lower vacancy €33 +50% +8% €25 ▪ In the principal IDA parks there is virtually no vacancy +25% €30 €30 €20 ▪ Across the regional cities, the major shift is from secondary buildings into larger Grade A space, with an Dublin Core+ Regional Regional city increase in specific take up Current €psf €psf required to trigger construction Source: IDA, Goodbody 7 1. Average split of job announcement between Dublin and ex-Dublin since 2012

Significant opportunity outside Dublin CBD Income investors underinvested relative to the opportunity Partly because provincial lot sizes are smaller Investors in Irish market under allocated outside CBD 30 % Allocation in average portfolio Office - Dublin 2 €45.2m 25 20 Office - Central Dublin €43.1m 15 Office - Dublin 1 3 & 7 €38.3m 10 5 Office - Dublin 4 €24.2m 0 Office - Provincial €15.1m Office - Rest of Dublin €10.0m Total Provincial Office - Outside Dublin CBD Industrial - Dublin Keeping yields high relative to Dublin CBD Target market is vast and under serviced 13.8 13.7 Office - Provincial 6.6% Irishindustrial 5.2 Office - Rest of Dublin 6.0% market Value €bn Office - Dublin 4 5.3% Non-Dublin CBD 8.5 Office - Dublin 1 3 & 7 5.1% office market Office - Central Dublin 4.5% Dublin CBDoffice Yew Grovetarget market market Office - Dublin 2 4.4% 8 Source: Goodbody, MSCI, Cushman & Wakefield

SECTION 2 Financial Highlights

Portfolio and income growth in 2019 Increasing portfolio operational leverage driving earnings growth Property value €m ▪ Property portfolio grew by € 38 million (+49%) over the year €115.8 from €77.9 million to €115.8 million €90.5 €77.9 ▪ The Millennium Park acquisition increases this to €141.1 million (+22%) End Dec 2018 End June 2019 End Dec 2019 Annualised rent roll €m ▪ Contracted rental roll grew by € 2.6 million (+42%) over the year, €8.9 from €6.3 million to €8.9 million €7.5 €6.3 ▪ The Millennium park acquisition brings this to €10.6 million (+19%) End Dec 2018 End June 2019 End Dec 2019 Administrative costs €m ▪ Administrative costs excluding financing were similar to 2018 in €1.8 €1.8 H1, falling to 67% of that amount in H2 €1.2 ▪ The Millennium Park acquisition is expected to increase costs by substantially less than the 19% increase in rent roll End Dec 2018 End June 2019 End Dec 2019 10