POTENTIAL EQUITY ISSUE

20 July 2021

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, CANADA, SINGAPORE, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA, OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL, OR TO ANY NATIONAL, RESIDENT OR CITIZEN OF THE UNITED STATES, AUSTRALIA, NEW ZEALAND, CANADA, SINGAPORE, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA. THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY.

HOME REIT plc

("Home REIT" or the "Company")

FULL INVESTMENT/COMMITMENT OF EQUITY AND DEBT

POTENTIAL 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 the homeless, is pleased to announce that, following further recent acquisitions, the Company has now fully deployed the equity and committed the debt facility raised on and since the Company's IPO. Given the unprecedented need for more high-quality homeless accommodation in the UK, the Board is contemplating a potential further issue of equity.

Potential Equity Issue

At its IPO in October 2020, the Company raised gross proceeds of £240 million, shortly thereafter securing a £120 million debt facility from Scottish Widows. As at the date of this announcement, the Company has invested over £300 million of this capital with the remaining £60 million of debt committed. The Company remains on track to meet its dividend target.

With the entirety of the Company's equity and debt capital now invested or committed, and the critical need for high quality long-term homeless accommodation ever increasing, the Board is assessing a potential future issue of ordinary shares to finance acquisitions from the Company's significant pipeline of investment opportunities.

The Investment Adviser continues to see a strong and significant pipeline of investment opportunities that meet the Company's stringent investment policy and is in advanced negotiations on a number of potential transactions. Based on the identified pipeline and the discussions already underway, the Company believes that the net proceeds of any issue of equity would be substantially invested within approximately 3 to 6 months of admission.

To the extent that the Board resolves to proceed with an issue of equity, any issue of shares will be at a price per share that is accretive to NAV and at a discount to the prevailing share price at the time of announcement.

Further announcements and details regarding any potential equity issue will be made in due course.

Portfolio Update

·    To date, each investment has been immediately income producing and the blended net initial yield of the Company's portfolio following the acquisition of the properties is ahead of expectations.

·    The Company has not seen any impact to its rent collection levels as a result of the Covid-19 pandemic and rates remain at 100% collection.

·    Comprises high quality, much needed, fit for purpose accommodation for vulnerable, homeless people, providing critical housing solutions for women 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.

·    Leased to operating partners at low and sustainable average weekly rents of c.£90 per week.

·    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.

·    Currently houses over 3,648 people in 643 properties.

·    Following the acquisition of the most recent properties, the Company's portfolio is diversified across 81 different local authorities and 19 tenants, with the following geographical exposures (by asset value):

o South West: 12.7%

o East Midlands: 11.9%

o North East: 11.9%

o West Midlands: 11.3%

o London: 19.9%

o North West: 10.9%

o South East: 6.1%

o Yorkshire and the Humber: 10.2%

o East: 5.1%

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

"The Company continues to achieve its objectives and perform strongly, following its IPO in October 2020, driving attractive returns to our shareholders while meeting a vital social need in partnership with our operators. We are providing critically needed accommodation to those at risk of homelessness, let at low, sustainable rents to our tenant partners, who are proven to make a difference to the people they house, care for and support. The requirement for this kind of housing continues to be felt across the UK and, having built a strong pipeline of assets that meet our strict criteria, we are well positioned to be able to help meet this growing demand.

"Our track record of prudent deployment into attractive assets provides a strong platform for future growth and we look forward to delivering further value for our shareholders and a positive social impact for some of the most vulnerable members of society."

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 the homeless. 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 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 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 the homeless 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.

IMPORTANT NOTICE

This announcement is not for release, publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia, collectively, the "United States"). This announcement is not an offer of securities for sale in or into the United States. Further, this announcement is not for release, publication or distribution into Australia, New Zealand, Canada, Singapore, the Republic of South Africa, Japan, any member state of the EEA  or any other jurisdiction where such distribution is unlawful.

The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement does not constitute or form part of, and should not be construed as, any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for any ordinary shares or any other securities nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction. This announcement does not constitute a recommendation regarding any securities.

Alvarium Securities Limited, which is authorised and regulated in the United Kingdom by the FCA, is acting exclusively for the Company and for no-one else and will not regard any other person (whether or not a recipient of this announcement) as its client in relation to the arrangements referred to in this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to its clients, nor for providing advice in connection with the contents of this announcement or on the arrangements referred to in this announcement. Neither Alvarium Securities Limited nor any of its directors, officers, employees, advisers, affiliates or agents accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to, the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of the announcement or its contents or otherwise arising in connection therewith.

This announcement contains forward looking statements, including, without limitation, statements including the words "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. Such forward looking statements involve unknown risks, uncertainties and other factors which may cause the actual results, financial condition, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements speak only as at the date of this announcement and cannot be relied upon as a guide to future performance. The Company, Alvarium Home REIT Advisors Limited and Alvarium Securities Limited expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the rules of the Financial Conduct Authority or other applicable laws, regulations or rules.