Home REIT

19 October 2020

HOME REIT plc

("Home REIT" or the "Company")

ACQUISITION

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 the homeless, is pleased to announce that the Company has acquired a portfolio of five properties located across the North West, North East and Midlands regions of England (the "Properties").

The Properties are recently completed and purpose-built to provide high quality accommodation to vulnerable, homeless people in need of housing, with four of the homes housing women fleeing domestic violence and the fifth home accommodating people leaving prison.

The aggregate purchase price for the Properties is £9 million (including acquisition costs) and each property is immediately income producing, with net initial yields in line with the Company's target level.

Each of the Properties is let at a low and sustainable rental level, averaging £75 per person per week, on new, unbroken 25-year full repairing and insuring ("FRI") leases to specialist registered homeless charities, providing the charities with long term security of tenure. The charities, regulated by the Charities Commission, will provide specialist care, training, support and rehabilitation to the vulnerable homeless people at the Properties.

The rents received under these leases are subject to annual upward-only rent reviews, index-linked to the Consumer Prices Index, subject to an annual cap and collar of 1% and 4%, respectively.

The acquisition of these Properties will enable the Company to become a UK Real Estate Investment Trust ("REIT").

The Company is in advanced legals on a significant pipeline of assets to allow for an efficient deployment of its IPO capital, with further acquisition announcements expected to be made in short order.

Gareth Jones, Partner at Alvarium Home REIT Advisors Limited, said:

"We are pleased to announce the first investments for Home REIT plc and to be investing in high quality accommodation to house vulnerable, homeless individuals in need of housing. The Properties are located in areas where there is a critical need for more homeless accommodation. Each of the Properties is let on low and sustainable rents to a registered charity with a proven operating track record in providing accommodation to the homeless and which receives housing benefit or comparable support from local or central government."

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 will be dedicated to providing accommodation to the homeless. The accommodation assets will be 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 the homeless and which receive housing benefit or comparable support from local or central government to fund the provision of such accommodation to the homeless.

There is a critical need for further accommodation for the homeless 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 the homeless 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 training and rehabilitation to provide individuals 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 the homeless via lower rents versus more expensive alternative accommodation.

Alvarium Home REIT Advisors Limited, the Company's Investment Adviser, is proud to be working in collaboration with Crisis to help support Crisis in ending homelessness.

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.