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

operating 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. £137m1

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.

TravelodgeHotels15% Merlin

Theme Parks34%

RamsayHospitals

49%

OrpeaHospitals

2%

Ramsay Hospitals

51%

OrpeaHospitals

3%

TravelodgeHotels13%

Merlin UK Theme Parks27%

Merlin German Theme Parks

6%

Hospitals:

Theme Parks:

Budget Hotels:

Overall:

31 December 2017 Financial Highlights

6

▪ 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 EPS1

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

over 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

£1

2.0

m

£1

5.1

m

£1

6.1

m£7.0m

£14.0m

Dec 2016 June 2017 Dec 2017

184.5p258.5p 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-17EPRA NAV per share Dividends per share

9

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

5.9p6.6p

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

13.1p14.0p

0.0p

2.6p

11.3p13.6p

Dec-14 Dec-15 Dec-16 Dec-17

New Acquisitions

Warwick Castle

▪ Leisure portfolio:

▪ £224m gross cost

▪ Manchester Arena, The Brewery at Chiswell Street, 17 Travelodge Hotels & 18 Stonegate Pubs

− WAULT c.18.0 years1

− 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 years1

− 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

over £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 Hotels57%

Brewery13%

StonegatePubs6%

Manchester Arena24%

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 Centre7 Selfridges8 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 RoomQueen 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

opportunities

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 AnalysisAttractive portfolio diversified by location, type and value

Location

Top 50% by purchase cost1 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

12 Ilminster

13Leeds Central

14Medway M2

15Plymouth Derriford

16Heathrow Heston M4 Eastbound

17Towcester Silverstone

18Brentwood East Horndon

19Great Yarmouth Acle

20Reading M4 Westbound

21Lincoln Thorpe on the Hill

22Frimley

23York

24Chippenham Leigh Delamere M4 Eastbound

25 Inverness

26Reading M4 Eastbound

27Canterbury Whitstable

28Bracknell

29Widnes

30St Clears Carmarthen

31Stoke Talke

32Okehampton Sourton Cross

33Liverpool Docks

34Swansea M4

35Cirencester

36Birmingham Hilton Park M6 Southbound

37Perth

38Birmingham Frankley M5 Southbound

39Milton Keynes Old Stratford

40Warrington

41Bedford Wyboston

42Stratford Alcester

43Alfreton

44Birmingham Sutton Coldfield

45Telford Shawbirch

46Stafford M6

47Stirling M80

48Oswestry

49Bournemouth

50Peterborough Alwalton

51Chester

52Pontefract Ferrybridge A1/M62

53Middlewich

54Dundee

55Leeds

56Nottingham, Wollaton Vale

57Chippenham Leigh Delamere M4 Westbound

58Birmingham

59Birmingham Oldbury

60Cambridge Swavesey

61Coventry

62Basildon, Wickford

63Liverpool, Aigburth

64Stonehouse

65Plymouth Roborough

66Macclesfield Adlington

67Barnsley

68Scotch Corner Skeeby

69Edinburgh Musselburgh

70Cardiff Llanedeyrn

71Stoke on Trent

72Leicester

73Preston Chorley

74Derby

75Carlisle Todhills

76Grantham, South Witham

22

TravelodgeA 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, GloucesterFaradays, Nottingham

The Bedford Arms, SouthamptonSlug and Lettuce, Southsea

Slug and Lettuce, FarnhamThe 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 2017Hotels portfolio

at cost1

Leisure portfolio

at cost2

Equity Issue (net

of 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

28

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 HotelsLeisure 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

Yield1

• 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 Type1

Healthcare43%

Theme Parks22%

Theme Park Hotels

5% Existing Hotels10%

New Hotels11%

Brewery3%

Stonegate1%

Manchester Arena

5%

12

14

16

18

20

22

Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23

Dis

trib

uti

on

s p

er

sh

are

(p

en

ce

)

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.

365.0392.8 406.0

431.7460.1

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

0

100

200

300

400

500

600

Net LTV

Pe

nc

e p

er

sh

are

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

Total Return Outlook

33

EPRA NAV plus Dividends on Base Case1

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

CurveRPI 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

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:

✓ offer 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. £137m1

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

Timetable1

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

of 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

LiverpoolManchester

Sheffield

London

Leeds

Cambridge

Bristol

United Kingdom

Birmingham

42

The Merlin Leisure Portfolio

4

GermanyHamburg

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 hotel4

Overview

Valued at £595.2m1

at 31 December 2017 valuation

representing 34% of current portfolio generating £32.7m of

passing rent2.

• 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 UK3

• 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 ManchesterSheffield

London

Leeds

Bristol

United

Kingdom

Birmingham

Cambridge

The Existing Hotels Portfolio

43

Location (by value)

Property type (by value)

City centre34%

Edge of town17%

City roadside

22%

Roadside27%

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 East29%

East2%

East Mids9%

West Mids4%

South West15%North

5%

North West17%

Scotland19%

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

over year

31 Dec

2017

Change

over year

31 Dec

2017

Change

over 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 Dec944.5 +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 ShareEPRA 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

£000Pence 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 BasementOffice 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-17Annual uplifts indexed to RPI for 25 years 1% -

5% pa20 £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-175 yearly rent reviews linked to RPI 1%-3%

compounded annually20 £12,950,000 5.00%

Pubs14 public houses let to Stonegate

Pub CompanyJun-17

Annual CPI reviews 1% - 4% until 2024. Five

yearly index linked reviews thereafter22.5 £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 - £45m3.8% -

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-17Yearly RPI linked increases. Completion not due

until March 201824.5 £32,500,000 4.32%

OfficesAbcam Building, Cambridge

Biomedical CampusMar-17

5 yearly RPI linked reviews with a cap and collar

of 2% -4%20 £61,325,000 4.85%

Student

Accommodation

Hughended Student Village, High

WycombeFeb-17

Annual RPI linked reviews and a cap and collar

of 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 HotelsTravelodge, 12-14 West St

BrightonOct-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 HotelsTravelodge, Liverpool – John

Lennon AirportAug-17 5 yearly uncapped RPI; collar and cap of 1%-4% 25 £7,590,000 5.25%

Budget HotelsPremier Inn, Birmingham Waterloo

StAug-17 5 yearly CPI 20 £26,600,000 4.12%

Budget HotelsTravelodge, Lytham St Annes,

BlackpoolAug-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 31Excess of

£50m3.35%

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

of 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 MarcusRemuneration Committee Chair and

Senior Independent Director

Leslie Ferrar, CVO

Audit Committee ChairMartin 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 ChairmanMike 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

0

25

50

75

100

Dec-1997 Dec-1998 Dec-1999 Dec-2000 Dec-2001 Dec-2002 Dec-2003

Ind

ices R

eb

ased

to

P

restb

ury

NA

V P

er

Sh

are

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

of 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

0

250

500

750

1,000

1,250

1,500

Dec-1986 Dec-1988 Dec-1990 Dec-1992 Dec-1994 Dec-1996

Reb

ased

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

Avera

ge

NA

V T

ota

l re

turn

pe

r S

ha

re

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connection therewith (together, the “Presentation”) is confidential. Reliance upon the Presentation for the purpose of engaging 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 (the

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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 Australia, Canada, Japan or the Republic of South Africa. This Presentation should

not be distributed in or into the United States of America (or any of its territories or possessions) (together, the “US”) other than to “qualified institutional buyers”

(“QIBs”) as such term is defined in Rule 144A under the United States Securities Act of 1933, as amended (the “Securities Act”).

The Ordinary Shares have not been, and will not be, registered under the Securities Act or under the securities laws of any other jurisdiction, and are not being

offered or sold (i) directly or indirectly, within or into the US, Australia, Canada, Japan 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, Australia, Canada, Japan or the Republic of South Africa, unless such offer or sale would qualify for an

exemption from registration under the Securities Act and/or any other applicable securities laws.

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Disclaimer

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended

(“MiFID II”); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the

“MiFID II Product Governance Requirements”), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any “manufacturer” (for the

purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the Ordinary Shares have been subject to a product approval

process, which has determined that the Ordinary Shares to be issued pursuant to the Placing are: (i) compatible with an end target market of retail investors and

investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution

channels as are permitted by MiFID II (the “Target Market Assessment”).

Notwithstanding the Target Market Assessment, distributors should note that: the price of the Ordinary Shares may decline and investors could lose all or part of their

investment; the Ordinary Shares offer no guaranteed income and no capital protection; and an investment in the Ordinary Shares is compatible only with investors

who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of

evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market

Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Placing. Furthermore, it is noted that,

notwithstanding the Target Market Assessment, Stifel will only procure investors who meet the criteria of professional clients and eligible counterparties.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b)

a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the Ordinary Shares.

Each distributor is responsible for undertaking its own target market assessment in respect of the Ordinary Shares and determining appropriate distribution channels.

The Company is under no obligation to update or keep current the information contained in this Presentation or to correct any inaccuracies which may become

apparent, and any opinions expressed in it are subject to change without notice. Neither the Company nor any of its directors, officers, employees or advisers accept

any liability whatsoever for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection therewith.

The Presentation contains forward-looking statements. These statements relate to the future prospects, developments and business strategies of the Company.

Forward-looking statements are identified by the use of such terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or variations

or similar expressions, or the negative thereof. The forward-looking statements contained in the Presentation are based on current expectations and are subject to

risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or

uncertainties materialise, or if any underlying assumptions prove incorrect, the Company's actual results may vary materially from those expected, estimated or

projected. Given these risks and uncertainties, certain of which are beyond the Company's control, potential investors should not place any reliance on forward-

looking statements. These forward-looking statements speak only as at the date of the Presentation. Except as required by law, the Company undertakes no

obligation to publicly release any update or revisions to the forward-looking statements contained in the Presentation to reflect any change in events, conditions or

circumstances on which any such statements are based after the time they are made.

Stifel, which is authorised and regulated in the United Kingdom by the FCA, is acting as bookrunner and nominated adviser connection with the matters referred to

herein, and will not be responsible to anyone other than the Company for providing the protections afforded to its clients, nor for providing advice in relation to the

contents of the Presentation or any transaction or arrangement referred to herein.

Apart from the responsibilities and liabilities, if any, which may be imposed on Stifel by the FSMA or the regulatory regime established thereunder, Stifel accepts no

responsibility whatsoever, and makes no representation or warranty, express or implied, in relation to the contents of the Presentation, including its accuracy,

completeness or verification or for any other statement made or purported to be made by it, or on behalf of it, the Company, the directors, the Investment Adviser or

any other person in connection with the Company, the Ordinary Shares or the matters referred to herein, and nothing in the Presentation is or shall be relied upon as

a promise or representation in this respect, whether as to the past or future. Stifel accordingly disclaims all and any liabi lity whether arising in tort, contract or

otherwise (save as referred to above), which it might otherwise have in respect of the Presentation or any such statement.