SIR.L Regulatory News (SIR)

23 July 2019

Secure Income REIT Plc

(the "Company"/ the "Group")

Secure Income REIT Announces £347 million Disposal of Eight Private Hospitals

The Board of Secure Income REIT Plc announces today the sale of a portfolio of eight of its nineteen private hospitals let to Ramsay Health Care Limited for a gross consideration of £347 million. The assets sold represent 31% of Ramsay hospitals owned by the Company, at their 31 December 2018 valuations.

The purchaser is Medical Properties Trust, the US specialist healthcare REIT capitalised at some US$7.8 billion. The occupational leases have a current net rent payable of £16.0 million per annum. Unconditional contracts for the sale of the eight subsidiary companies that hold the properties have been exchanged and completion is scheduled for 16 August 2019.

The eight hospitals sold are Ashtead, Berkshire Independent, Euxton Hall, Mount Stuart, North Downs, Renacres, Rowley and Winfield.

The impact of the disposal on the Group with effect from completion of the sale will be to:

·; reduce the Group's net debt by approximately £316 million which will reduce the Group's Net Loan to Value Ratio from 43.0% at 31 December 2018 to 33.5% on a pro forma basis, adjusting only for the disposal;

·; increase EPRA NAV per share by an estimated 6.9 pence per share after payment of estimated debt redemption costs payable at completion and all other costs of sale, together estimated at £32.4 million;

·; increase uncommitted cash by over £170 million to in excess of £200 million on a pro forma basis; and

·; increase the Weighted Average Unexpired Lease Term of the Group's portfolio by 0.3 years.

Whilst the disposal will temporarily reduce the Group's EPRA EPS, with an estimated annualised reduction of some 2.7 pence per share, the Board intends to pay special quarterly dividends out of the net proceeds to restore the cash distributions to their pre disposal levels until such time as the proceeds are redeployed.

Chairman Martin Moore commented:

"We believe that shareholders are best served by our active approach to portfolio management, recycling capital where it is prudent and advantageous to do so. This attractive offer, which represents a 19% premium above the December 2018 valuation, allows shareholders to realise some upside while still retaining a core holding of 11 high quality acute hospitals, worth £643 million at their 31 December 2018 valuations, let to Ramsay Health Care Limited, one of the world's largest private healthcare companies.

"We remain alert to opportunities to redeploy the capital raised when appropriate and, in the meantime, will top up shareholders' income returns to the pre-transaction levels."

The Group's results for the six months ended 30 June 2019 are expected to be announced on 4 September 2019.

For further information on the Company, please contact:

About Secure Income REIT Plc

Secure Income REIT specialises in generating long term, inflation protected, secure income from real estate investments. Its investment strategy is designed to satisfy investors' growing requirements for high quality, safe, inflation protected income flows.

At 31 December 2018, the Group's investment property portfolio was valued at £2.3 billion, producing £125 million per annum of rental income from long term leases with a weighted average unexpired term to expiry of 20.9 years with no breaks. All rental income is subject to fixed uplifts or RPI upwards only rent reviews. The Group's portfolio comprises key operating assets let to strong businesses in defensive sectors with high barriers to entry. The RPI-linked rent reviews and fixed rental uplifts combine with fixed cost debt to drive healthy dividend growth, creating attractive and predictable returns.

The Company is advised by Prestbury Investments LLP which was adviser to Max Property Group plc until August 2014, when all of the assets of Max Property Group plc were sold to Blackstone Group. Prestbury Investments LLP is a partnership of real estate and finance professionals including Nick Leslau, Mike Brown, Tim Evans, Ben Walford and Sandy Gumm.

The Company's Board is chaired by Martin Moore together with three further independent Directors: Leslie Ferrar, Jonathan Lane and Ian Marcus, as well as three members of the Prestbury Team: Nick Leslau, Mike Brown and Sandy Gumm.

The Company is a UK REIT which floated on the AIM market of the London Stock Exchange in June 2014.

The Company's LEI is 213800M1VI451RU17H40

Further information on Secure Income REIT is available at www.SecureIncomeREIT.co.uk.