Secure Income REIT Plc 9 March 2018 www.SecureIncomeREIT.co.uk - - PowerPoint PPT Presentation

Secure Income REIT Plc

9 March 2018

www.SecureIncomeREIT.co.uk

2

Secure Income REIT Plc is a specialist UK REIT, selectively investing in key

• perating real estate assets in defensive sectors that provide long term rental

income with inflation protection. As at 31 December 2017 it owned a £1.77 billion portfolio of 81 high quality assets let to financially strong businesses. An investment in the Company offers secure, growing income streams and strong foundations for sustainable capital growth, while continuing to deliver attractive risk adjusted returns for shareholders over the long term.

• 1. Introduction
• 2. December 2017 financial highlights
• 3. New acquisitions:

− The Manchester Arena − The Brewery − Stonegate Pubs − Travelodge Hotels − Financing & Pro Forma Enlarged Group NAV

• 4. Enlarged Portfolio Analysis

Warwick Castle

4

Secure Income REIT Plc

▪ The current portfolio of 81 properties is valued at £1.77bn ▪ Let to substantial businesses in defensive sectors ▪ Long WAULT of 22.2 years with no breaks ▪ 58% subject to fixed annual uplifts averaging 2.8% p.a. and 42% to uncapped, upwards only RPI reviews ▪ The Company has delivered strong Total Accounting Returns of 26% p.a. since listing in June 2014 ▪ The Company has an experienced board, chaired by Martin Moore and with Leslie Ferrar, Jonathan Lane and Ian Marcus along with Nick Leslau, Mike Brown & Sandy Gumm from the external investment adviser, Prestbury ▪ The Prestbury team has a track record of outperformance over many years and is closely aligned with shareholders with a c. £137m

1 stake – one of the largest management stakes in the sector.

1 £137 million held at 9 March valued at the Placing Price

5

Existing Portfolio

Multi sector portfolio underpinned by strong tenant covenants

Portfolio total passing rent £95.7m at 31 December 2017 from 81 key operating assets with income security from strong operating businesses underpinning £1.77bn of property value ▪ 49% of rent guaranteed by Ramsay Health Care Limited: £7.2bn market capitalisation ASX 50 company and one of the top five private hospital operators in the world ▪ 2% of rent guaranteed by Orpea SA, mental health and aged care specialists, listed on Euronext with £5.6bn market capitalisation ▪ 34% of rent guaranteed by Merlin Entertainments Plc: FTSE 250 company with £3.8bn market capitalisation: second largest visitor attractions company in the world and largest in Europe ▪ 15% of rent guaranteed by Travelodge Hotels Ltd: a well- capitalised business with financial year 2017 revenue growth of 6.6% to £637.1m and an increase in EBITDA to £112.4m; one of the UK’s top two budget hotel brands ▪ 58% of rent subject to fixed minimum annual uplifts averaging 2.8% p.a. until at least 2037, 42% to uncapped upwards only RPI uplifts

Portfolio Value December 2017: £1.77bn

Sources: Market data as at 1 March 2018 using AUD/GBP exchange rate of A$1:£0.56423 and EUR/GBP exchange rate of €1:£0.88826 For further information please see Appendix 2, pages 41 to 43

Portfolio Rent December 2017: £95.7m p.a.

Travelodge Hotels15% Merlin Theme Parks 34% Ramsay Hospitals 49% Orpea Hospitals 2% Ramsay Hospitals 51% Orpea Hospitals 3% Travelodge Hotels 13% Merlin UK Theme Parks 27% Merlin German Theme Parks 6%

Hospitals: Theme Parks: Budget Hotels: Overall:

31 December 2017 Financial Highlights

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▪ Total shareholder return and total accounting return for the year 18.7% 31 December 2017 31 December 2016 % change

• Net Assets

£860.6m £737.4m ↑ 16.7%

• EPRA Net Asset Value

£870.8m £745.9m ↑ 16.7%

• EPRA Net Asset Value per share

370.4p 323.6p ↑ 14.5%

• EPRA NAV per share growth plus dividends

18.7% 16.5% ↑ 2.2pp

• Net LTV

49.6% 53.5% ↓ 3.9pp 31 December 2017 31 December 2016 % change

• Adjusted EPRA EPS

1

13.6p 11.3p ↑ 20.4%

• Dividends per share (commenced Aug 2016)

13.6p 5.8p n/a

• Annualised DPS at year end

14.0p 11.8p ↑ 19.1%

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

• ver the lease term and other non recurring items (see slide 47)

EPRA NAV Progression

7

£m Pence

• EPRA NAV at 31 December 2016

745.9 323.6

• Valuation uplifts:
• Healthcare

51.6 22.4

• UK Leisure

33.2 14.4

• German leisure (constant currency)

7.8 3.4

• Travelodge Hotels

32.3 14.0

• Net results

31.4 13.7

• Incentive fee
• (7.4)
• Irrecoverable VAT on incentive fee

(1.6) (0.6)

• Currency translation movements

1.4 0.5

• Dividends paid

(31.2) (13.6)

• EPRA NAV at 31 December 2017

870.8 370.4

up 14.5%

▪ Portfolio valuation up 7.8% since 31 December 2016 to £1.77 billion ▪ Passing rents up 3.3% like-for-like to £95.7m at 31 December 2017 ▪ Valuation net initial yield 5.1%: 22bps yield compression on portfolio since December 2016

7.6% uplift since December ’16 at constant currency £124.9m

For further information please see page 45 for the detailed Dec 2017 property valuation uplift

Adjusted EPRA Earnings

8

2017 2016 £m Pence £m Pence Net rent: Like for like portfolio 80.5 34.9 77.9 40.9 Travelodge (from Oct 2016) 13.9 6.0 2.4 1.1 Net finance costs Like for like portfolio (49.1) (21.2) (49.2) (25.7) Travelodge (from Oct 2016) (1.9) (0.8) (0.4) (0.2) Admin & corporate costs (11.9) (5.1) (9.1) (4.8) Tax (0.3) (0.2)

• Adjusted EPRA EPS

31.2 13.6 21.6 11.3

+20%

▪ Positive impact of 3.3% rental uplifts resulting in Adjusted EPRA EPS growth and therefore dividend growth ▪ Fully covered quarterly dividends with in-built uplifts providing inflation protection

£12.0m £15.1m £16.1m £7.0m £14.0m

Dec 2016 June 2017 Dec 2017 184.5p 258.5p 275.3p 282.8p 300.2p 323.6p 355.5p 370.4p

• 75p

25p 125p 225p 325p 425p Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 EPRA NAV per share Dividends per share

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Delivering Strong Total Returns

Total Accounting Return Dividends and DPS ▪ NAV per share up 113% ▪ Like-for-like portfolio value up 36% Adjusted EPRA EPS ▪ Net LTV down from 80% to under 50% ▪ Annualised DPS 14p per share (3.8% on Dec ‘17 EPRA NAV) Net Loan to Value

5.9p 6.6p

1

7.0p

69.7% 61.0% 53.5% 49.6% Dec-14 Dec-15 Dec-16 Dec-17

• CAGR since Mar

2016 secondary placing 27.4% p.a.

• CAGR since Oct

2016 placing 25.7% p.a. 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 the balance sheet date

Performance since listing in June 2014

11.8p 13.1p 14.0p 0.0p 2.6p 11.3p 13.6p Dec-14 Dec-15 Dec-16 Dec-17

New Acquisitions

Warwick Castle

▪ Leisure portfolio: ▪ £225m gross cost ▪ Manchester Arena, The Brewery at Chiswell Street, 17 Travelodge Hotels & 18 Stonegate Pubs − WAULT c.18.0 years

1

− NIY 5.9% − 72% of rents with RPI reviews; 26% with fixed reviews; 2% upwards only open market reviews − 100% occupational leases on FRI terms ▪ Hotels portfolio: ▪ £212m gross cost ▪ 59 Travelodge Hotels − WAULT c.23.5 years

1

− NIY 6.1% − 100% of rents with uncapped upwards only five yearly RPI reviews − 100% occupational leases on FRI terms ▪ £436m gross cost ▪ Placing to raise £315.5m at Pro Forma EPRA NAV of 365.0p per share ▪ £128.7m of new non-recourse debt at 30% loan to cost and expected 3.4% p.a. ▪ Management & board investing £5.25m cash at the placing price bringing the value of their aggregate holding to

• ver £143m at the placing price

Delivering on our growth strategy: Two simultaneous off-market acquisitions

11

1 WAULT is calculated from 9th March 2018 and excludes any rent-free incentives Travelodge Hotels 57% Brewery 13% Stonegate Pubs 6% Manchester Arena 24%

Total Acquisitions by Cost

12

Acquisitions: Benefits for the Group

▪ Dividend accretive: post acquisition dividend yielding 4.3% on placing price ▪ Material deleveraging: from 49.6% to 45.8% ▪ Total returns: base case outlook c. 10% p.a. over the next 5 years1 ▪ Long term secure income: − WAULT of 21.7 years2 − Rent subject to upwards only RPI reviews increases from 42% to 51%. − 48% of rents subject to fixed uplifts with the remaining 1% subject to upwards only open market reviews − 70% of rent subject to annual uplifts (as opposed to five yearly) ▪ Value-enhancing asset management opportunities ▪ Increases EPRA NAV to c. £1.2bn

1 EPRA Net Asset Value growth plus dividends. See assumptions on page 38 2 WAULT is calculated from 9th March 2018 and excludes any rent-free incentives

Manchester Arena

14

Manchester Arena

▪ Strategic 8 acre long leasehold property1 on top of Manchester Victoria Railway and Metrolink station, close to prime retail, restaurants, leisure and NOMA regeneration scheme ▪ UK’s largest indoor arena by capacity at 21,000 seats and ranked 2nd in the UK and 4th globally by ticket sales ▪ Arena let to SMG – (the world’s largest venue management company), unexpired term 27 years, passing rent £3.68m p.a. with annual RPI reviews (collared at 2%-5% p.a.) − leading global venue manager with 40+ years of experience − 25 years of uninterrupted EBITDA growth averaging 8% p.a. − 239 venues globally − 16m tickets sales annually − Acquired for $1bn in December 2017 by Onex, VC with over $30bn under management ▪ 160,000 sq. ft of offices & leisure space, 1,000 space multi-storey car park and advertising hoardings ▪ In addition to SMG, let to Serco, Manchester City Council, Unison, JCDecaux and Teamsport, combined passing rent £2.71m p.a. ▪ Potential additional income generation from asset management ▪ £5.75m net income p.a. contracted to rise to £5.92m p.a. on expiry of lease incentive with a WAULT of c. 18 years2 ▪ Next SMG rent review on 15 June 2018 anticipated to take net income over £6m p.a.

1 176 year leasehold with 10% of rents received payable to Network Rail 2 WAULT is calculated from 9th March 2018 and excludes any rent-free incentives

15

Manchester Arena – Aerial View

1 Manchester Arena 2 NOMA Estate 3 Old Boddington Brewery Site 4 National Football Museum 5 Printworks 6 Manchester Arndale Centre 7 Selfridges 8 Harvey Nichols

The Brewery at Chiswell St, London EC1

17

The Brewery at Chiswell St, London EC1

▪ 66,000 sq ft (GIA) predominantly freehold investment1 ▪ Largest catered events venue in the City of London − 9 function rooms − 700+ dinner capacity in the main event space, only behind Grosvenor House and Park Lane Hilton − Well located: Crossrail station within 5 minutes walk (Moorgate entrance to Liverpool Street) ▪ Winner of two London Venue Awards 2016 ▪ Let to specialist venue operator until July 2031 at £3.4m p.a. rising five yearly 2.5% p.a. compound ▪ Asset management opportunities

1 The property is predominantly freehold and part 999 year lease from 2006

18

The Brewery at Chiswell St, London EC1

Upper Sugar Room Queen Charlotte Room The Porter Tun Room King George III Room James Watt Entrance

Travelodge Hotels

Travelodge Bath Central

20

Travelodge Hotels

▪ 76 hotels1 let to Travelodge Hotels Ltd - gross cost £245.5m − WAULT of 23.1 years2 − Rent of £15m p.a. subject to 5 yearly upward only uncapped RPI reviews ▪ Largest lot sizes in Bath, London Morden, London Park Royal, Heathrow Heston, Reading, Dartford and Birmingham ▪ 50% by value in 17 locations average lot size c.£7m ▪ 50% by value average lot size c.£2m ▪ 58% freehold/virtual freehold; 28% long leasehold; 14% short leasehold3 ▪ Adding to existing hotels portfolio provides opportunity for portfolio rationalisation and asset management

• pportunities

1 59 in Hotels portfolio and 17 in Leisure portfolio 2 Calculated from 9th March 2018 3 Analysis by value; short leasehold refers to properties with less than 80 years unexpired

21

Travelodge Portfolio Analysis

Attractive portfolio diversified by location, type and value

Location

Top 50% by purchase cost

1 Bath Central 2 London Wimbledon (Morden) 3 Heathrow Heston M4 Westbound 4 Reading Central 5 London Park Royal 6 Dartford 7 Birmingham Central 8 Cambridge Fourwentways 9 York Tadcaster 10Arundel Fontwell 11Southampton Eastleigh 12Ilminster 13Leeds Central 14Medway M2 15Travelodge Plymouth Derriford 16Bath Central 17London Wimbledon (Morden) 18Heathrow Heston M4 Eastbound 19Towcester Silverstone 20Brentwood East Horndon 21Great Yarmouth Acle 22Reading M4 Westbound 23Lincoln Thorpe on the Hill 24Frimley 25York 26Chippenham Leigh Delamere M4 Eastbound 27Inverness 28Reading M4 Eastbound 29Canterbury Whitstable 30Bracknell 31Widnes 32St Clears Carmarthen 33Stoke Talke 34Okehampton Sourton Cross 35Liverpool Docks 36Swansea M4 37Cirencester 38Birmingham Hilton Park M6 Southbound 39Perth 40Birmingham Frankley M5 Southbound 41Milton Keynes Old Stratford 42Warrington 43Bedford Wyboston 44Stratford Alcester 45Alfreton 46Birmingham Sutton Coldfield 47Telford Shawbirch 48Stafford M6 49Stirling M80 50Oswestry 51Bournemouth 52Peterborough Alwalton 53Chester 54Pontefract Ferrybridge A1/M62 55Middlewich 56Dundee 57Leeds 58Nottingham, Wollaton Vale 59Chippenham Leigh Delamere M4 Westbound 60Birmingham 61Birmingham Oldbury 62Cambridge Swavesey 63Coventry 64Basildon, Wickford 65Liverpool, Aigburth 66Stonehouse 67Plymouth Roborough 68Macclesfield Adlington 69Barnsley 70Scotch Corner Skeeby 71Edinburgh Musselburgh 72Cardiff Llanedeyrn 73Stoke on Trent 74Leicester 75Preston Chorley 76Derby

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Travelodge

A leading UK Hotel Brand

▪ UK’s second largest hotel brand by number of hotels and rooms ▪ Excellent market position with some 19m customers, 558 hotels and over 42,000 rooms at 31 December 2017 ▪ Results for the year ended 31 December 2017: − Revenue up 6.6% from £597.8m to £637.1m − EBITDA up 2.1% from £110.1m to £112.4m − RevPAR1 growth 0.7pts ahead of competitive segment − Cash £95m and £50m undrawn revolving credit facility ▪ Well invested modernised hotel portfolio ▪ Well balanced approximately even business/leisure customer split ▪ Almost 90% booking direct, with c. 80% through own websites ▪ Low upfront capex leasehold model

1 Revenue per available room

23

Bath Central

Travelodge Hotels

Dartford Cirencester Cambridge Fourwentways London Wimbledon (Morden) Leeds Central

Stonegate Pubs

The Bedford Arms, Southampton

25

Stonegate Pubs

▪ Freehold portfolio of 18 pubs let to or guaranteed by Stonegate Pub Co Ltd, the UK’s largest privately managed pub operator by number of sites - gross cost £29.7m ▪ WAULT of c. 22 years1 with no breaks ▪ Passing rent of £1.96m p.a. subject to five yearly RPI uplifts with 1%- 4% p.a. collar ▪ Average lot size of £1.6m ▪ Stonegate has a Moody’s B2 credit rating and is owned by TDR who have a long experience in the leisure sector including David Lloyds, Center Parcs and Pizza Express ▪ EBITDA has risen to £98m 2 2017 from £70m in 2015

1 Calculated from 9th March 2018 2 In 52 weeks ending 9th April 2017 Source: ONS, OBR

26

Stonegate Pubs

1 Southsea 2 Southampton 3 Farnham 4 London 5 Gloucester 6 Wolverhampton 7 Nottingham 8 Lincoln 9 Liverpool 10 Bolton 11 Preston 12 Huddersfield 13 Brighouse 14 Middlesborough 15 East Boldon 16 South Shields 17 Cramlington 18 Kirkcaldy

The Abbey, Gloucester Faradays, Nottingham The Bedford Arms, Southampton Slug and Lettuce, Southsea Slug and Lettuce, Farnham The Occasional Half, Palmers Green

27

Financing and Pro Forma Enlarged Group NAV

▪ Specific deal funding: − transparency for investors − enhances returns by avoiding cash drag ▪ Issue of 86.4m new shares at pro forma EPRA NAV of 365.0p per share ▪ £128.7m of new secured debt

Dec 2017 Hotels portfolio at cost

1

Leisure portfolio at cost

2 Equity Issue (net

• f costs) Pro forma EPRA NAV

£m £m £m £m £m Investment property 1,770.2 210.0 219.0 2,199.2 Acquisition costs 1.7 5.3 7.0 Write off acquisition costs (1.7) (5.3) (7.0) Debt (967.3) (68.7) (60.0) (1,096.0) Prepaid finance Fees 12.0 1.1 1.3 14.4 Cash 89.1 (144.1) (165.6) 309.7 89.1 Other net assets (33.2) (33.2) EPRA NAV 870.8 (1.7) (5.3) 309.7 1,173.5 EPRA NAV (p/share)

3

370.4 365.0 Net LTV 49.6% 45.8%

1 £5m non-refundable deposit paid at exchange 2 £6m non-refundable deposit paid at exchange 3 Based on 230,536,874 shares currently in issue and 4,588,479 committed to be issued in March 2018; 321,563,353 shares in issue following Placing – see assumption 10 slide 38

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New Debt Facilities

▪ Strong interest from major UK clearing banks & institutions in competitive process ▪ Two new ring-fenced facilities − Five year terms − Expected blended marginal cost expected 3.4% on 30% blended LTC − Significant covenant headroom − Cure rights as usual for SIR facilities − Only limited make-whole payments and pre-payment fees ▪ Floating rate facilities, to be hedged to limit interest rate exposure ▪ Maturities designed to facilitate enlarged group access to debt capital markets in due course Total Hotels Leisure Portfolio (excl. hotels) Total New Debt Cost £243.3m £185.7m £429m Loan principal £68.7m £60m £128.7m Expected interest cost 3.4% p.a. 3.4% p.a. 3.4% p.a. Initial LTV 28.2% 32.3% 30.0% Default LTV 50.0% 50.0% Initial ICR 650% 550% Default ICR 250% 150% Valuation fall to default LTV 44% 35% Income fall to default ICR 61% 73%

Enlarged Group Debt

29

▪ Reduction in net LTV from 31 December 2017 49.6% to 45.8% ▪ Weighted average term to maturity 6.0 years at April 2018 ▪ Weighted average cost c. 4.9% p.a. ▪ Pro forma post acquisition interest cover 2.3x 1 ▪ On base case assumptions2 net LTV expected to further reduce to c. 38% at June 2023

1 Interest cover for these purposes is measured as current passing rent divided by current annualised interest cost 2 See assumptions on page 38

Illustrative Portfolio Valuation and Net LTV at Constant Valuation Yield2

There is no certainty that these illustrative projections will be achieved

38.3% 2,570.9

Enlarged Portfolio Analysis

Heide Park

31

Enlarged Portfolio Data: Key Statistics

1 Existing portfolio at 31 December 2017 independent valuation and acquisition at cost 2 WAULT is calculated from 9th March 2018 and excludes any rent-free incentives

WAULT (years)

2

• Theme Parks

24.4

• Hotels

24.2

• Pubs

21.9

• Hospitals

19.5

• Arena

17.9

• Brewery

13.3 21.7

• Dec 2017

NIY July 2018 Running Yield

1

• Hospitals
• 4.9%

5.0%

• Theme Parks
• 5.1%

5.3%

• Hotels
• 5.8%

5.9%

• Arena

5.6%

• Brewery

6.1%

• Pubs

6.6%

• Total Portfolio
• 5.1%

5.3%

Valuation by Type

1

Healthcare 43% Theme Parks 22% Theme Park Hotels 5% Existing Hotels 10% New Hotels 11% Brewery 3% Stonegate 1% Manchester Arena 5%

12 14 16 18 20 22 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Distributions per share (pence)

RPI Swap Curve + 100 bps RPI Swap Curve Zero or lower RPI growth

32

Illustrative Distribution Outlook ▪ Pay-out ratio of 1x Adjusted EPRA EPS ▪ Following completion of placing and acquisition, dividend to increase to annualised 15.7p per share on

base case assumption: first increased payment expected Q3 2018

▪ Following distribution of enhanced net income, dividend yield of c.4.3% on Placing Price of 365.0p ▪ Illustrative 5 year dividend growth CAGR (2018-2023) on base case assumptions of 5.6% p.a.

1

1 See assumptions on page 38 - There is no certainty that these illustrative projections will be achieved

5 year CAGR Jun 18- 23 6.3% p.a. 5.6% p.a. 3.3% p.a.

365.0 392.8 406.0 431.7 460.1 484.5 15.7 32.2 49.7 68.8 89.3

44.8% 44.0% 43.0% 41.4% 39.7% 38.3%

Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 100 200 300 400 500 600

Net LTV Pence per share

EPRA NAV per share (pence) Accumulated dividends (pence)

Total Return Outlook

33

EPRA NAV plus Dividends on Base Case

1

1 See assumptions on page 38 - There is no certainty that these illustrative projections will be achieved

Total Shareholder Return Scenarios

TSR (Jun 2018 – Jun 2023)

1

Property Valuation Yield (net) RPI curve +1% Base case: RPI Curve RPI curve -1% Zero or lower RPI

• 50 bps

13.8 % 13.2 % 12.6 % 11.3 %

• 25 bps

12.4 % 11.7 % 11.0 % 9.6 % Base case 10.9 % 10.2 % 9.5 % 8.0 % +25 bps 9.4 % 8.6 % 7.9 % 6.4 % +50 bps 7.9 % 7.2 % 6.4 % 4.9 %

34

Attractive growth prospects on steady state portfolio basis

Base case ▪ Base case 10.2% TSR from 30 June 2018 to 30 June 2023 assuming investment at Placing Price and final valuation at EPRA NAV ▪ Assumes a constant valuation yield on the combined portfolio and based on the assumptions on pg.38

There is no certainty that these illustrative returns will be achieved

1 See assumptions on page 38 - There is no certainty that these illustrative projections will be achieved

35

Summary

▪ Exciting proposed new off-market acquisition would: ✓

• ffer 4.3% dividend yield on placing price

✓ further diversify the portfolio ✓ provide estate management opportunities ✓ maintain WAULT of enlarged portfolio at c.22 years ✓ increase EPRA NAV by over a third to c. £1.2bn ✓ increase RPI review exposure from 42% to 51% ✓ reduce LTV from 50% to 46% ✓ generate base case TAR c. 10% p.a. ▪ Consistently strong performance over 3.5 years since listing with a doubling of NAV per share, driving total Accounting Return since June 2014 IPO of 25.9% p.a. ▪ Very resilient portfolio of key operating assets let to strong businesses in defensive sectors with high barriers to entry ▪ RPI & fixed rental uplifts combined with fixed cost debt drives healthy dividend growth, creating attractive and predictable returns ▪ Prestbury’s c. £137m

1 stake provides strong alignment with shareholders – management and

Board investing a further £5.2m at the placing price

1 £137 million held at 9 March valued at the Placing Price

36

Placing Summary

Issuer

 Secure Income REIT Plc  Ticker: SIR  UK REIT, traded on AIM

Placing Price

 Placing of up to 86,438,000 ordinary shares to raise gross proceeds of up to £315.5m  Placing Price of 365.0 pence per share equal to pro forma EPRA NAV per share  New shares entitled to May 2018 dividend

Timetable

1

 Placing opens: 9 March 2018  Placing closes: 11.30am on 26 March 2018  Extraordinary General Meeting to approve increase in share capital: 27 March 2018  Admission and settlement: 29 March 2018

Offer Structure

 Non pre-emptive placing to qualified institutional investors  Outside the US in reliance on Regulation S  Following Admission, the Placing Shares will rank pari passu with existing shares

Sole Bookrunner contact details

Stifel Nicolaus Europe Limited Mark Young 020 7710 7633 David Arch 020 7710 7616 Peter Lees 020 7710 7490 Tom Yeadon 020 7710 7480 Neil Winward 020 7710 7460 Rob Tabor 020 7710 7669

1 The times and dates above may change. Any such change will be notified by announcement through a Regulatory Information

• Service. References to time are to London time. The timetable above assumes that the resolutions are passed at the General Meeting without

adjournment

Appendix 1: Assumptions and Glossary

Travelodge Manchester Central

Assumptions

1. Employs RPI swap curve at 27 February 2018, averaging inflation increases of 3.3% p.a. over the period 2. Constant property valuation yield at 31 December 2017 external valuation yields for existing portfolio and 6.0% yield on acquisition cost for new acquisitions 3. Only fixed uplifts included on Ramsay leases: ignores potential for further uplifts from open market reviews 4. Other than the target portfolios referred to in this presentation, no purchases or sales of properties or lease

• variations. Target portfolio acquisitions assumed to close on 1 April 2018.

5. 31 December 2017 exchange rate (€1:£0.8873) used throughout illustrative periods (Euro denominated EPRA net assets amount to c.5.1% of the whole at 31 December 2017 and estimated c.3.8% on a pro forma basis after acquisition) 6. Valuation yield shift on sensitised valuation scenarios occurs on last day of calculation period 7. Expected cost of funds (five year swap rate) on new debt 1.38% – will not be fixed by way of hedging until after purchase contracts are unconditional 8. The investment advisory agreement between SIR and Prestbury expires in June 2022 with no renewal rights on either side. The returns illustrations assume that the existing arrangements continue unchanged beyond that date 9. In October 2022 the existing leisure loan facility matures. At that time the loan principal will be £372.5m at 31 December 2017 Euro exchange rate and the base case property valuation as at 31 December 2017 valuation yield and Euro exchange rate is estimated at £702.3m. The illustrative returns assume that the existing loan continues on the same terms 10. Pro forma EPRA NAV per share is calculated as 230.5m shares currently in issue plus 4.5m to be issued in March for the 2017 Incentive Fee plus 86.4m for the placing 11. The Company raises gross proceeds of £315.5 million from the Placing

38

Glossary

39

DPS Dividends per share DSCR Debt service cover ratio, measured as rental income divided by payments due to lenders (comprising interest or interest plus amortisation as specified in relevant credit agreement) EPRA European Public Real Estate Association EPRA EPS A measure of EPS designed by EPRA to present underlying earnings from core operating activities EPRA NAV A measure of NAV designed by EPRA to present the fair value of a company on a long term basis by excluding items such as interest rate derivatives held for long term benefit, net of deferred tax EPS Earnings per share, calculated as the earnings over a period, after tax, attributable to members of the parent company divided by the weighted average number of shares in issue over the period Net Initial Yield Annualised net rents on investment properties expressed as a percentage of the investment property valuation, less purchasers’ costs Prestbury Prestbury Investments LLP, the investment adviser to the company Loan To Value or LTV The outstanding amount of a loan expressed as a percentage of property value NAV Net asset value Net LTV LTV calculated on the gross loan amount and any other secured liabilities, less cash balances Running yield The anticipated Net Initial Yield at a future date, taking account of any rent reviews in the intervening period, Existing Portfolio at 31 December 2017 independent valuation and acquisition at cost TAR Total Accounting Return: the movement in EPRA NAV over a period plus distributions paid in the period, expressed as a percentage of EPRA NAV at the start of the period TSR Total Shareholder Return: the movement in share price over a period plus distributions paid in the period, expressed as a percentage of the share price at the start of the period WAULT Weighted average unexpired lease term

Warwick Castle

Appendix 2: Existing Portfolio Details

41

The Healthcare Portfolio

 19 private hospitals valued at £896.2m at 31 December 2017 representing 51% of current portfolio value generating £46.9m

• f passing rent

 Well located throughout England – 51% by value in South East  Let on individual fully repairing and insuring leases with a term to expiry of 19.4 years at December 2017 without break clauses  Rent increases by at least 2.75% p.a. throughout the lease term in May each year  Guaranteed by Ramsay Health Care Limited

Ramsay Healthcare Portfolio Net Initial Yield of 4.8% as at 31 December 2017

 Let to a UK subsidiary of Groupe Sinoué on a fully repairing and insuring lease for 26.6 years  Central London’s only private psychiatric hospital – located in Lisson Grove, near Marylebone station  Rent increase of 3.0% in May each year  Guaranteed by Orpea SA  Valued at £48.2m at 31 December 2017, representing 3% of total portfolio value generating £2.0m of passing rent

London Psychiatric Hospital

Ashtead Hospital Duchy Hospital Euxton Hall Hospital Fitzwilliam Hospital Fulwood Hospital Mount Stuart Hospital Nightingale Hospital North Downs Clinic 2 1 3 4 5 6 7 8 Oaklands Hospital Oaks Hospital Pinehill Hospital Reading Hospital Renacres Hospital Rivers Hospital Rowley Hospital Springfield Hospital 10 9 11 12 13 14 15 16 West Midlands Hospital Winfield Hospital Woodland Hospital Yorkshire Clinic 18 17 19 20

Ramsay Health Care Portfolio London Psychiatric Hospital

20 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 1 7 Liverpool Manchester Sheffield London Leeds Cambridge Bristol United Kingdom Birmingham

42

The Merlin Leisure Portfolio

4 Germany Hamburg Berlin Munich Hanover Düsseldorf Frankfurt Nuremberg Alton Towers Theme Park and Alton Towers Hotel Thorpe Park Warwick Castle 1 2 3 Heide Park Theme Park and Heide Park hotel 4

Overview

 Valued at £595.2m

1 at 31 December 2017 valuation

representing 34% of current portfolio generating £32.7m of passing rent

2.

• UK (82% by value):

− Alton Towers Park and Hotel, Thorpe Park, Warwick Castle − Alton Towers and Thorpe Park are 2 of top 3 theme parks in the UK

3

• Germany (18% by value):

− Heide Park attractions and hotel

• Visitor attractions account for 82% of passing rent and

hotels 18%  Individual fully repairing and insuring leases with:

• Average unexpired lease term of 24.5 years
• Upwards only uncapped RPI-linked rent reviews every

June for the UK portfolio

• Fixed annual increases of 3.34% every July for the German

properties  Guaranteed by Merlin Entertainments Plc

1 Includes £107.8m of German assets valued in Euros and translated at €1 : £0.8873 2 Includes £6.3m of rent from German assets denominated in Euros and translated at €1 : £0.8873 3 The Global Attractions Attendance Report 2016

Leisure Portfolio Net Initial Yield of 5.1% as at 31 December 2017

1 2 3 Liverpool Manchester Sheffield London Leeds Bristol United Kingdom Birmingham Cambridge

The Existing Hotels Portfolio

43

Location (by value) Property type (by value)

City centre 34% Edge of town 17% City roadside 22% Roadside 27%

Overview

 Valued at £230.6m at 31 December 2017 valuation representing 13% of current portfolio generating £14.1m of passing rent ▪ 55 Hotels with 3,096 rooms − Key assets in Manchester, Oxford & Edinburgh: average lot size £21.7m − Remaining 52 properties: average lot size £3.2m  25.4 year weighted average unexpired lease term ▪ no unexpired lease shorter than 20 years ▪ no break clauses  Five yearly upwards only RPI rent reviews  Purchased in October 2016 for £192.6m contract price off £13.7m income at completion; yield of 7.0%  Each hotel let to Travelodge Hotels Ltd – one of the UK’s leading hotel brands with c. 19m customers p.a.. Trading in the UK, Ireland and Spain with 558 hotels and over 42,000 rooms as at 31 December 2017

Hotel Portfolio Net Initial Yield of 5.8% as at 31 December 2017

South East 29% East 2% East Mids 9% West Mids 4% South West 15% North 5% North West 17% Scotland 19%

Florence Nightingale Hospital

Appendix 3: 31 December 2017 Financial Information

December 2017 Property Valuation Uplift

1 Using valuer’s assessments of RPI of 2.5% at next uplift and taking no account of any open market uplift on Ramsay Hospitals

Healthcare Merlin Leisure Travelodge Hotels Total

31 Dec 2017 Change

• ver year

31 Dec 2017 Change

• ver year

31 Dec 2017 Change

• ver year

31 Dec 2017 31 Dec 2016 Change £m £m £m £m £m Rent at 31 Dec 48.9 +2.8% 32.7 +4.1% 14.1 +3.2% 95.7 92.6 +3.3% Values: England 944.5 +5.8% 487.4 +7.3% 186.8 +16.6% 1,618.7 1,507.3 +7.4% Scotland

• 43.7

+15.4% 43.7 37.9 +15.4% Germany at constant FX

• 104.3

+8.1%

• 104.3

96.5 +8.1% Euro rate movement

• 3.5
• 3.5
• Fair value at

31 Dec 944.5 +5.8% 595.2 +8.1% 230.5 +16.3% 1,770.2 1,641.7 +7.8% 2017 2016 2017 2016 2017 2016 2017 2016 Net Initial Yield 4.9% 5.0% 5.1% 5.3% 5.8% 6.5% 5.1% 5.3% Running Yield at July 20181 5.0% 5.3% 5.% 5.2% WAULT 19.6 20.6 24.5 25.5 25.4 26.3 22.2 23.1

45

▪ £967.3m of secured credit in four ring-fenced facilities ▪ All facilities are non recourse with substantial headroom on financial covenants ▪ All facilities have cash cure rights and SIR has £60m uncommitted cash as at 31 December 2017 that could, if necessary, be deployed for covenant cure

Financing as at 31 December 2017

46

Healthcare Healthcare Leisure Travelodge Principal at 31 December 17 £217.8m £309.1m £380.4m1 £60.0m Assets in security pool 9 11 6 55 Fixed rate 4.29% 5.30% 5.68% 2.71% Annual cash amortisation £1.0m £3.2m None yrs 1 – 5 £3.8m Oct 2020-2022 None Final repayment Sept 2025 Oct 2025 Oct 2022 Oct 2023 LTV cash trap headroom n/a 27% 20% / 25%3 35% / 42%3 LTV default headroom 35% (Sept 19)2 31% n/a 48% DSCR4 cash trap headroom 30% 18% n/a 65% DSCR default headroom 41% 30% n/a 71%

1 Includes £64m of Euro denominated loans at 31 December 2017 (EUR/GBP exchange rate of €1:£0.8873) 2 Not tested until Sept 2019 3 First stage partial cash sweep to lender, second stage full cash sweep to lender 4 Debt Service Cover Ratio

47

Unaudited Supplementary Information

EPRA Earnings Per Share and Adjusted Earnings Per Share EPRA Earnings Per Share

2017 2016 £000 £000 EPRA Earnings Per Share Basic earnings attributable to shareholders 137,240 92,329 EPRA adjustments: Investment property revaluation (113,428) (72,181) Other income (171) German deferred tax on investment property revaluation 1,437 1,766 EPRA earnings 25,078 21,914 Other adjustments: Rent smoothing (11,443) (12,783) Incentive fee 17,575 10,457 Costs of share placing 2,007 Adjusted EPRA earnings 31,210 21,595 2017 2016 Pence per share Pence per share EPRA EPS 10.9 11.5 Diluted EPRA EPS 10.7 11.3 Adjusted EPRA EPS 13.6 11.3 Diluted adjusted EPRA EPS 13.3 11.1

EPRA NAV Per Share

2017 2017 2016 2016 £000 Pence per share £000 Pence per share Basic NAV 860,577 373.3 737,423 324.5 Dilution from shares issued for incentive fee (7.3) (4.6) Diluted NAV 860,577 366.0 737,423 318.9 Deferred tax on investment property revaluations 10,238 4.4 8,496 3.7 EPRA NAV 870,815 370.4 745,919 323.6

EPRA Triple Net Asset Value Per Share

2017 2017 2016 2016 £000 Pence per share £000 Pence per share EPRA NAV 870,815 370.4 745,919 323.6 Adjustment to reflect fair value of fixed rate debt (38,024) (16.2) (43,211) (18.8) Deferred tax on German investment property revaluations (10,238) (4.4) (8,496) (3.7) EPRA Triple NAV 822,553 349.8 694,212 301.1

48

Unaudited Supplementary Information

EPRA Cost Ratio excluding non-cash items

2017 2016 £000 £000 EPRA gross rental income 105,818 93,154 Rent smoothing adjustments (11,443) (12,783) EPRA gross rental income excluding non-cash items 94,375 80,371 EPRA costs 29,513 21,622 Incentive fee settled in shares (16,015) (9,359) EPRA costs excluding non-cash items 13,498 12,263 EPRA Cost Ratio excluding non-cash items 14.3% 15.3%

EPRA Cost Ratio

2017 2016 £000 £000 Revenue 106,930 93,214 Tenant contributions to property outgoings (1,112) (60) EPRA gross rental income 105,818 93,154 Non-recoverable property expenses 27 32 Administrative expenses 28,984 20,975 Corporate costs 502 615 Direct vacancy costs EPRA costs 29,513 21,622 EPRA Cost Ratio 27.9% 23.2%

EPRA Net Initial Yield

2017 2016 £000 £000 Annualised rental income based on cash passing 95,682 92,568 Non-recoverable property operating expenses (27) (32) Annualised net rents 95,655 92,536 Property at external valuation 1,770,164 1,641,701 Allowance for purchaser's costs 119,479 110,818 Grossed up investment property portfolio valuation 1,889,643 1,752,519 EPRA Net Initial Yield and Topped Up Net Initial Yield 5.1% 5.3%

Appendix 4: Additional Data

50

Additional Enlarged Portfolio Data: Key Statistics

The Arena Martin House – Part Basement Office space Manchester Victoria Station Car Park

RPI-linked reviews 51% Fixed uplifts 48% Open market reviews 1% RPI-linked reviews: Hotels 23% UK Theme Parks 22% Arena 4% Pubs 2% Fixed reviews: Hospitals 40% German Theme Parks 5% The Brewery 3% Open market reviews: Arena 1%

Review Type by Rent

27.2 % 19.2 % 13.6 % 12.3 % 8.2 % 5.0 % 4.8 % 3.5 % 3.4 % 2.5 % South East West Mids Greater London North West South West North Germany East Mids East Scotland

Value by Region

51

SMG

• SMG is the leading global manager of venues with 40+ years of experience and 25 years of

uninterrupted EBITDA growth averaging 8% p.a.

• 239 venues globally, 15 in Europe providing 20% of gross profit. 83 stadiums & arenas with

1.4m seats, 70 convention centres with 20m sq. ft of space, 66 theatres plus 176 F&B venues.

• 33,000 events p.a. include the world famous Super Bowl, NBA, Rolling Stones, U2, Beyonce

concerts

• 16m tickets sales annually, US$79m adj. EBITDA, 98% renewal rate, av. client tenure 12

years, 74% RFP win rate for new clients

• Onex acquired SMG for US$1 billion in December 2017 with US$425m of cash and rollover
• equity. Founded in 1984, Onex is one of the oldest and most established VCs and manages

US$30bn including US$8bn of their own capital. It focuses on partnerships with management and long term investment horizons and has a strong track record and history of capital preservation.

Source: Statistica

52

Recent Long Lease Market Evidence

These tables include a sample of illustrative transactions that the Company is aware of. It does not purport to show all transactions involving the sectors listed.

SECTOR PROPERTY TRANSACTION DATE REVIEW BASIS WAULT PRICE NIY

Leisure Odeon, Derby Nov-17 Annual uplifts indexed to RPI for 25 years 1% - 5% pa 20 £12,600,000 4.89% Leisure David Lloyd, Monks Lane, Newbury Aug-17 5 yearly reviews to RPI 0% - 4% pa 30 £17,585,000 4.49% Leisure Virgin Active, Wandsworth Mar-17 5 yearly rent reviews linked to RPI 1%-3% compounded annually 20 £12,950,000 5.00% Pubs 14 public houses let to Stonegate Pub Company Jun-17 Annual CPI reviews 1% - 4% until 2024. Five yearly index linked reviews thereafter 22.5 £23,000,000 5.50% Pubs 5 pubs let to Spirit or Punch May-17 Fixed increases of 1.25% - 2.5% pa 28 £9,475,000 4.80% Pubs Marstons (various transactions) Jan-16 to Apr-17 Annual RPI with a floor of 1% and a collar of 4% with a tenant buy back option for £1 at the end of the lease 40 £21m - £45m 3.8% - 4.1% Medical Offices Bond House, High Road, Chiswick Dec-17 Annual RPI linked reviews to 2-4% 13.8 £29,000,000 4.00% Retail Tesco, Bristol Aug-17 Annual RPI linked reviews 13.5 £28,500,000 4.90% Retail Sainsbury’s, Bybrook, Ashford Aug-17 Annual RPI linked reviews 21 £80,000,000 4.50% Retail Morrisons, Loughborough Jun-17 Yearly RPI linked increases. Completion not due until March 2018 24.5 £32,500,000 4.32% Offices Abcam Building, Cambridge Biomedical Campus Mar-17 5 yearly RPI linked reviews with a cap and collar

• f 2% -4%

20 £61,325,000 4.85% Student Accommodation Hughended Student Village, High Wycombe Feb-17 Annual RPI linked reviews and a cap and collar

• f 0% -8%

30 £38,750,000 4.35% Holiday Park Park Holidays Portfolio Nov-17 Annual indexed reviews to RPI 1% - 4% 100 £144,700,000 3.01% Holiday Park Park Dean Portfolio May-17 Annual rent reviews in line with RPI 0% - 5% 170 £150,000,000 3.22%

53

These tables include a sample of illustrative transactions that the Company is aware of. It does not purport to show all transactions involving the sectors listed.

SECTOR PROPERTY TRANSACTION DATE REVIEW BASIS WAULT PRICE NIY

Budget Hotels Travelodge, London Tower Bridge Nov-17 5 yearly uncapped RPI 31 £47,000,000 3.58% Budget Hotels Travelodge, Chertsey Nov-17 5 yearly uncapped RPI 22 £7,200,000 4.75% Budget Hotels Travelodge, 12-14 West St Brighton Oct-17 5 yearly uncapped RPI 31 TBC Sub 4% Budget Hotels Travelodge, Tewkesbury Sep-17 TBC 27 £4,665,000 5.50% Budget Hotels Travelodge, Princes St, Swindon Sep-17 5 yearly uncapped RPI 23 £6,300,000 5.50% Budget Hotels Premier Inn, Camberley Sep-17 5 yearly uncapped RPI; capped at 5% 15 £8,500,000 5.00% Budget Hotels Travelodge, Liverpool – John Lennon Airport Aug-17 5 yearly uncapped RPI; collar and cap of 1%-4% 25 £7,590,000 5.25% Budget Hotels Premier Inn, Birmingham Waterloo St Aug-17 5 yearly CPI 20 £26,600,000 4.12% Budget Hotels Travelodge, Lytham St Annes, Blackpool Aug-17 5 yearly RPI 20 £6,700,000 5.67% Budget Hotels Travelodge, Chester Le-Street Aug-17 5 yearly RPI 21 £940,000 5.81% Budget Hotels Travelodge, London Southwark Jul-17 5 yearly, higher of RPI or Market Rent 31 Excess of £50m 3.35%

Recent Long Lease Market Evidence

Appendix 5: Governance

Travelodge Glasgow Central

55

Highly Experienced Board: Independent Directors

Experienced Independent Directors Governance Structure Strongly Aligned with Shareholder Interests

 Board structure

• Chairman highly experienced in long lease sector and independent of managers
• 4 independent non-executive directors (including Chairman)
• 3 management representatives on Board (Nick Leslau, Mike Brown and Sandy Gumm) must be in minority for all decisions

 Senior advisor to KKR and independent Non-Executive Director at SEGRO Plc and F&C Commercial Property Trust  Chairman of M&G Real Estate until 2013 and CEO from 1996 to 2012  Commissioner of English Heritage and a Trustee of the Guildhall School Trust  Past President and board member of British Property Federation  Chartered Surveyor  Past Chairman of the Investment Property Forum and Commissioner

• f The Crown Estate

 Non-Executive Chairman of The Risk Advisory Group  Non-Executive member of HMRC Risk & Audit Committee  Audit Committee member for the Sovereign Grant  Treasurer to TRH the Prince of Wales and the Duchess of Cornwall 2005 to 2012  Former head of international expatriate tax at KPMG  Chartered Accountant  Trustee of the Diocese of Westminster

Jonathan Lane Nominations Committee Chair Ian Marcus Remuneration Committee Chair and Senior Independent Director Leslie Ferrar, CVO Audit Committee Chair Martin Moore Chairman

 Senior Non-Executive Director of The Crown Estate and Town Centre Securities  Senior Adviser to Eastdil Secured, Wells Fargo Securities, Elysian Residences Limited and Work.Life  Member of Redevco NV’s Advisory Board and Trustee of The Prince’s Foundation  Chairman of the European Advisory Board of the Wharton Business School Real Estate Faculty  Former Chairman of the BoE’s Commercial Property Forum. MD and Chairman of the European RE Investment Banking division of Credit Suisse  Past President of the British Property Forum and past Chairman of the Investment Property Forum  Senior Advisor to Morgan Stanley & Chairman of EMEA Real Estate Investment Banking (“REIB”)  Chairman of the board of Grosvenor Europe and member of the advisory board of Resolution Real Estate Advisors LLP  Policy Committee member of the British Property Federation, member of the BoE Commercial Property Forum  Former member of the Government’s Property Unit Advisory Panel and former Director of Songbird Estates  Advisory board member for the University of Oxford Programme for the Future of Cities

56

A Proven Management Team with 130+ Years Combined Experience

Strong Manager Alignment

 Management team members have a strong track record of long-term investment in the companies they have managed (Burford, Prestbury, Helical Bar, Max Property Group Plc)

 Over 35 years’ real estate experience (Secure Income REIT Plc, Max Property Group Plc, Prestbury Group Plc, Burford Holdings Plc)  Extensive Plc board experience both as executive and non- executive  Over 20 years with Prestbury  BSc (Hons) Est Man, FRICS  Over 34 years’ real estate experience in funds and listed companies (Secure Income REIT Plc, Max Property Group Plc, Helical Bar plc, Threadneedle)  Over 8 years with Prestbury  BSc (Hons) Land Man, MRICS  Over 27 years’ experience in finance with extensive Plc board experience (Secure Income REIT Plc, Prestbury Group Plc, Burford Holdings Plc)  9 years with KPMG in Sydney and London  Over 20 years with Prestbury  BEc, CA (ANZ)  Over 27 years’ real estate experience (Secure Income REIT Plc, Prestbury, Jones Lang LaSalle, Hill Samuel Asset Management, MEPC)  Over 15 years with Prestbury  MA Hons (Cantab), MRICS  Over 15 years’ experience in property investment, refurbishment and design  Over 15 years with Prestbury  BSc (Hons) Est Man, MRICS Nick Leslau Prestbury’s Chairman Mike Brown Prestbury’s CEO Sandy Gumm Prestbury’s COO Tim Evans Prestbury’s Property Director Ben Walford Prestbury’s Senior Surveyor

Overseeing an experienced team of finance, property and administrative staff

57

Management Team Strongly Aligned with Shareholders

 Management Team has among the largest shareholdings in the quoted UK Real Estate sector: c.£137m at the placing price  Prestbury exclusively offers all qualifying long lease deals to the Company  Contract term to June 2022 – no renewal rights or termination payment at end of term  Incentive to achieve above target returns via incentive share awards of 20% of above target growth after investor priority returns:

• Target is higher of 10% above year end EPRA NAV and EPRA NAV at time of last incentive share award

(“high watermark”)

• Paid in shares subject to lock-in of 18 – 42 months
• The 2017 results set a new benchmark of 10% total accounting return in 2018 from the 370.4p per share

delivered at 31 December 2017; that is, returns of 37p per share accruing to shareholders during the year before any incentive fee is earned

• Independent Director review of incentive arrangements completed in March 2017; no changes required;

appropriateness of incentive fee structure to be reviewed again in 2019, three years ahead of expiry of the management agreement  Management meets overhead costs and receives advisory fee on sliding scale relative to EPRA NAV: paid in cash quarterly 1.25% p.a. up to £500m, plus 1.0% p.a. between £500m to £1.0bn, plus 0.75% p.a. thereafter

25 50 75 100 Dec-1997 Dec-1998 Dec-1999 Dec-2000 Dec-2001 Dec-2002 Dec-2003 Indices Rebased to Prestbury NAV Per Share 58

A Proven Track Record of Delivering Shareholder Returns

Max Property Group Plc – Average Total Return of 17.1% p.a. (May-2009 – Sep-2014) vs. Peer Group1

De-listing and disposal of majority

• f portfolio

25% p.a. returns

Prestbury Group Plc: Average Total Returns of 25% p.a. (1997 – 2003) Burford Holdings Plc – Total Returns of 34% p.a. (1987 – 1997)

A B C

1 Sources: Data compiled from company announcements and annual reports over the following periods: Max Property Group Plc (May 2009 to September 2014); London & Stamford Property Plc (May 2009 to September 2012); Metric Property Investments Plc (March 2010 to September 2012); LXB Retail Properties Plc (October 2009 to September 2014); LondonMetric Property Plc (January 2013 to September 2014); New River Retail Ltd (September 2009 to September 2014); and Conygar Investment Company Plc (May 2009 – September 2014). LondonMetric Property Plc was not listed as a cash shell but created through the merger of London & Stamford Property Plc and Metric Property Investments Plc which were listed in 2007 and 2010 respectively.

 The Prestbury Team has a strong track record including, between them, the management of three listed real estate investment vehicles, Burford Holdings Plc, Prestbury Group Plc and Max Property Group Plc

Prestbury Team Track Record

250 500 750 1,000 1,250 1,500 Dec-1986 Dec-1988 Dec-1990 Dec-1992 Dec-1994 Dec-1996 Rebased to 100 Burford NAV Progression Peers NAV Progression 34% p.a returns 8.2% p.a returns 14.6x 2.0x

NAV per share Distributions Previous Distributions FTSE 350 Real Estate Index

17.1% 15.6% 9.2% 8.2% 6.6% 6.1% 5.1% Max London Metric (Jan-13 - Sep-14) London & Stamford (May-09 to Sep-12) LXB Metric Retail (Mar-10 to Sep-12) NewRiver Retail Conygar Average NAV Total return per Share

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