Home Reit Regulatory News (HOME)

31 August 2021

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended). This announcement has been authorised for release by the Board of Directors.

HOME REIT plc

("Home REIT" or the "Company")

TRADING UPDATE

The Board of Home REIT plc (ticker: HOME), which funds the acquisition and creation of high-quality properties across the UK that are dedicated to providing accommodation for homeless people, is pleased to provide a trading update for the Company for the period from 28 February 2021 to 31 July 2021.

Portfolio Update

The Company's portfolio, including the recent acquisition of properties detailed below, has been valued on an individual property basis by Knight Frank LLP, its independent valuer, at £328 million (as at 31 July 2021). As at 31 July 2021, the portfolio had an average valuation net initial yield of 5.57 per cent.

Net Asset Value

The portfolio valuation increase results in an estimated unaudited EPRA net tangible assets ("NTA") and IFRS net asset value ("NAV") of 104.6 pence per share as at 31 July 2021. This represents an increase of 6.8 per cent. since IPO.

This growth in NAV combined with dividends paid results in an EPRA NTA / NAV total return of 8.5 per cent. since the Company's IPO in October 2020.

As at 31 July 2021, the Company had uncommitted cash and cash equivalents of £35 million, all of which has been allocated.

Acquisitions

In the period since the Company's announcement of 3 June 2021 to 31 July 2021, the Company has acquired or unconditionally exchanged on 10 portfolios comprising 108 high quality properties (the "Properties") located across England, for an aggregate purchase price of £33.2 million (including acquisition costs).

Following the acquisition of the Properties, the net proceeds of the Company's £240 million IPO and over 70 per cent. of its £120 million 12-year debt facility have been fully invested. The remainder of the Company's debt facility, totalling £35 million, has been fully allocated to an identified pipeline of properties.

The Properties have added a further 511 beds to the portfolio, in line with the Company's strict investment criteria, providing much needed accommodation for vulnerable homeless people across England. They are let at low and sustainable rents, on new, unbroken, long term, full repairing and insuring leases to 8 different specialist registered homeless charities, providing them with sought-after long-term security of tenure. The leases are subject to annual upward-only rent reviews, index-linked to the Consumer Prices Index, with an annual collar and cap of 1 per cent. and 4 per cent. respectively.

As at 31 July 2021, the Company provided beds for 3,846 people in 711 properties, leased to operating partners at low and sustainable average rents of £91 per week. The Company's portfolio is diversified across 81 different local authorities and 21 tenants, with the following geographical exposure (by asset acquisition value):

· London: 19.4%

· Yorkshire and the Humber: 13.4%

· South West: 12.1%

· North East: 12.0%

· East Midlands: 11.5%

· West Midlands: 10.9%

· North West: 9.9%

· South East: 6.0%

· East: 4.8%

Jamie Beale, Partner at Alvarium Home REIT Advisors Limited, said:

"In the ten months since our IPO in October last year, we have efficiently deployed the capital available to us in line with our investment strategy, which focuses on working with highly specialist operators to provide critically needed accommodation to people at risk of homelessness. As a result, we have continued to meet our objectives, ensuring a positive social impact for some of the most vulnerable members of society, while also delivering a strong performance on behalf of our investors, remaining well on track to reach our dividend target.

"We are closely monitoring an active pipeline of acquisition opportunities as we look to grow our capacity and, further to the Company's announcement on 20 July 2021 regarding a potential equity issue, look forward to updating the market shortly."

FOR FURTHER INFORMATION, PLEASE CONTACT:

The Company's LEI is: 213800A53AOVH3FCGG44.

For more information, please visit the Company's website: www.homereituk.com

About Home REIT plc

Home REIT plc seeks to contribute to the alleviation of homelessness in the UK, whilst targeting inflation-protected income and capital returns, by funding the acquisition and creation of a diversified portfolio of high-quality accommodation assets across the UK which are dedicated to providing accommodation to homeless people. The accommodation assets are let or pre-let on very long (typically 20 to 30 years) leases, containing inflation-linked or fixed uplift rent review provisions, to registered charities, housing associations, community interest companies and other regulated organisations which have a proven operating track record in providing low-cost accommodation to homeless people and which receive housing benefit or comparable support from local or central government to fund the provision of such accommodation to homeless people.

There is a critical need for further accommodation for homeless people in the UK, due to an increasing homeless population and a lack of available and affordable high-quality, fit-for-purpose stock to address the problem. Local housing authorities are under a statutory duty to secure accommodation for individuals who are unintentionally homeless and in priority need but current accommodation for homeless people is limited in quantum and often sub-standard and uneconomical.

The Company focuses on investing in and creating well-located properties that provide a sustainable level of rent for the tenant. Within the homeless accommodation assets, there is a focus on care, support, training and rehabilitation to provide vulnerable homeless people with the skills and confidence to find long-term accommodation and enable them to reintegrate back into society. Savings are expected to be made to local authorities and other providers of accommodation to homeless people via lower rents versus more expensive alternative accommodation.

The Company is listed on the premium segment of the Official List of the UK Financial Conduct Authority and its Ordinary Shares were admitted to trading on the main market of the London Stock Exchange, premium segment, on 12 October 2020.