Portfolio update STENPROP LIMITED (Registered in Guernsey) (Registration number 64865) LSE share code: STP JSE share code: STP ISIN: GG00BFWMR296 ("Stenprop" or the "Company") PORTFOLIO UPDATE 13 February 2020 Stenprop, the UK multi-let industrial property company, today publishes an update on its UK multi-let industrial (MLI) portfolio for the period from 1 October 2019 to 31 December 2019. Continued leasing success and significant rental growth • We completed 33 new lettings and 21 lease renewals, totaling 182,163 sq ft and generating £1.16 million per annum of contractual rental income(1). The average rental uplift on the previous passing rent was 14%(2) for new lettings (previous quarter: 21%) and 12%(2) on lease renewals (previous quarter: 19%). The average rental incentive given across all new lettings and renewals was 2.5 months on an average term to break of 4.2 years (5.2 years to lease expiry) • The average rent on the MLI portfolio as at 31 December was £5.19/sq ft (previous quarter: £5.14/sq ft), reflecting a 1% increase in passing rent from the previous quarter. The passing rent was 7.6% below the average estimated rental value of the portfolio of £5.61/sq ft (previous quarter: £5.57/sq ft) • The vacancy rate as at 31 December stood at 5.8% (excluding Coningsby Park, Peterborough), down from 6.1% as at the end of the previous quarter. The vacancy rate including Coningsby Park was 7.5%, down from 8.5% • The most significant transactions completed were a letting of 18,000 sq ft at Coningsby Park in Peterborough on a five-year term with four months' rent free and a letting of 14,000 sq ft at Link at Huyton Business Park in Liverpool for a 10-year term with zero rent free incentive Acquisitions over the quarter We completed the acquisition of Western Campus Business Park, Strathclyde for £4.6 million. The estate comprises 10 tenants across 44,500 sq ft with an average occupancy rate of 75%. It produces an additional £252,000 of rental income per annum (£7.60/sq ft). Paul Arenson, CEO, said: “Our MLI portfolio has delivered solid rental growth in the quarter providing further confirmation of the favourable supply and demand fundamentals of the sector. We are confident this will continue for the foreseeable future. We are seeking further MLI acquisitions as we progress with the sales of our non-MLI portfolio. We recently announced that we had exchanged contracts for the sale of our Bleichenhof property in Hamburg. When this transaction completes, the MLI component of our property portfolio will be approximately 56%. In addition, we will have the net sale proceeds available for more MLI acquisitions”. At 31 December MLI comprised 46%(3) of Stenprop's portfolio and Stenprop's loan-to- value ratio (LTV) was 44.7%(3). When unrestricted cash is added to this measure our overall LTV was 38%(4). The financial information on which this portfolio update is based has not been reviewed or reported on by the Company's external auditors. (1) Contractual rental income represents the annual income secured from a lease contract ignoring any incentives and break options in the lease. (2) The rental uplifts ignore 4 new lettings at Coningsby Park which have been under refurbishment since acquisition and hence no information on previous passing rent is held. (3) These figures are based on our 30 September 2019 valuations adjusted for subsequent acquisitions and disposals and changes in foreign exchange rates. (4) Calculated as gross borrowing less unrestricted cash, divided by gross asset value based on our 30 September 2019 valuations adjusted for subsequent acquisitions and disposals and changes in foreign exchange rates. For further information: Stenprop Limited 44(0)20 3918 6600 Paul Arenson Julian Carey James Beaumont Numis Securities Limited (Financial Adviser) 44(0)20 7260 1000 Hugh Jonathan Vicki Paine Tavistock (PR Adviser) 44(0)20 7920 3150 James Whitmore James Verstringhe Isabel Wallis Java Capital 27 (0)11 722 3050 (JSE sponsor) About Stenprop: Stenprop is a Guernsey-registered UK REIT. The objective of the Company is to deliver sustainable growing income to its investors. Stenprop's investment policy is to invest in a diversified portfolio of UK multi-let industrial (MLI) properties with the strategic goal of becoming the leading MLI business in the UK. For further information, go to www.stenprop.com. Date: 13-02-2020 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.