Company Announcements

18 October 2021

Home REIT plc

("Home REIT" or the "Company")

£166.4 MILLION OF ACQUISITIONS FOLLOWING OVERSUBSCRIBED EQUITY ISSUE

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 to homeless people, announces that it has deployed £166.4 million of the proceeds raised in the Company's significantly oversubscribed £350 million equity issue in September 2021 (the "Initial Issue").

In less than one month following the Initial Issue, the Company has acquired 23 portfolios comprising 366 high quality properties located across England and Wales (the "Properties") for an aggregate purchase price of £166.4 million (including acquisition costs).

The purchase of the Properties was made from the Company's attractive c. £400 million acquisition pipeline, which has been under due diligence and legal negotiation since earlier this year. This pipeline was in an advanced stage of preparation ahead of the equity raise and assembled through the Investment Adviser's deep network of relationships, according to the specific need within each local authority area.

The Properties have added a further 1,850 beds to the portfolio bringing the total to just under 5,700, whilst further growing the geographic diversification of the portfolio across every region of England and including the Company's first acquisition in Wales. The acquisitions adhered to the Company's strict investment criteria, providing much needed accommodation for vulnerable homeless people across England and Wales. They are let on an average lease length of 25 years at low and sustainable rents, on new, unbroken, long term, full repairing and insuring leases to 12 different specialist registered homeless charities, including three that are new to the tenant base, 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.

Each of the Properties is immediately income producing and the blended net initial yield of the Company's portfolio following the acquisition of the Properties is ahead of expectations.

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

"Since announcing the results of its oversubscribed equity issue, the Company has been busy responsibly investing the proceeds into the pipeline of properties identified, efficiently deploying a sizeable portion of the funds into a portfolio generating long-term income on sustainable rents. Importantly, this latest tranche of Properties will enable us to increase the amount of high quality accommodation we can provide members of society facing homelessness, working alongside our charity partners and local authorities, as we enter the colder months."

The Company's combined portfolio to date

·   High quality, much needed accommodation for vulnerable, homeless people, providing critical housing solutions for people fleeing from domestic abuse, those faced with homelessness due to poverty, people suffering from drug and alcohol abuse and mental health issues, prison leavers and ex-servicemen.

·   Low and sustainable average weekly rents of under £95 per week, providing significant savings to local authorities compared to less suitable alternative accommodation

·  Let 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 the homeless and 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.

·    All the rent payable by Home REIT's tenants is funded by support from local and central government.

·    Housing nearly 5,700 people in 1,077 properties.

·    Following the acquisition of the Properties, the Company's portfolio is further diversified across 92 different local authorities and 24 tenants (23 charities and 1 housing association), with the following geographical exposures (by asset value):

o London: 15.1%

o East Midlands: 15.1%

o Yorkshire and the Humber: 12.0%

o North East: 11.3%

o North West: 10.2%

o South West: 9.9%

o West Midlands: 9.5%

o South East: 9.2%

o East: 6.7%

o Wales 1.0%

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.