Trading update

                                       STENPROP LIMITED
                                    (Registered in Guernsey)
                                 (Registration number 64865)
                           LSE share code: STP JSE share code: STP
                                     ISIN: GG00BFWMR296
                                ("Stenprop" or the "Company")

                                       TRADING UPDATE

25 October 2019

Stenprop, the UK multi-let industrial property company, today publishes a trading update for
Q3 2019, the period from 1 July 2019 to 30 September 2019.

Continued leasing success and significant rental growth

Multi-let industrial (MLI) portfolio lettings:

-    We completed 22 new lettings and 9 lease renewals generating £ 648,142 of contractual
     income over 104,633 sq ft. The average rental uplift on the previous passing rent was
     21% on new lettings (Q2 2019: 24%) and 19% on lease renewals (Q2 2019: 16%). The
     average rental incentive given across all new lettings and renewals was 2.5 months on
     a 5.08-year average term
-    The average rent on the MLI portfolio is now £5.14 /sq ft (Q2 2019: £5.08/sq ft),
     reflecting a 1.2% increase in passing rent from the previous quarter. The current passing
     rent is 7.8% below the average estimated rental value of the portfolio of £5.57/sq ft (Q2
     2019: £5.50/sq ft)
-    The vacancy rate stands at 6.1% (excluding the space currently under refurbishment at
     Coningsby Park, Peterborough), up from 5.5% as at the end of Q2 2019.
-    The most significant transactions completed were a letting of 27,000 sq ft at Compass
     Industrial Park in Liverpool on a five-year term with three months' rent free and a letting
     of 21,000 sq ft at Eurolink 31 in Wakefield for a 10-year term with three months' rent

Attractive MLI acquisitions

-    We acquired eight MLI estates for an aggregate purchase price of £23.9 million,
     reflecting an average capital value of £75/sq ft:
         • comprising 317,923 sq ft with an average occupancy rate of 92% and 89
           tenants; and
         • providing an additional £1.6 million of rental income, averaging £5.54/sq
-    We acquired the freehold interest in a 3,000 sq ft unit on our existing Holbrook
     Enterprise Park, Sheffield, further consolidating our ownership of the estate

Non-MLI portfolio performs in line with business plan

-    We completed six lettings, totalling 34,421 sq ft, which will provide total annual rent of
     £380,655; the average term on the new lettings was 5.2 years
-    The vacancy rate stands at 1.0%, down from 1.2% as the end of Q2 2019

Paul Arenson, CEO of Stenprop, said:

“The MLI occupational market remains strong with demand outstripping supply. Lease
incentives remain limited and we are realising significant rental uplifts when leases are

“We have also had a good quarter of individual MLI acquisitions after an unusually quiet start
in the first quarter of the financial year. There was marginally less competition in the market
over the period, largely as a result of the UK’s political instability.

Finally, we continue to make progress on the development and implementation of our
Industrials operating platform. Over the quarter we commenced a substantial upgrade of our
financial and customer engagement systems, which we expect will deliver material cost and
efficiency gains in due course, as well as supporting our serviced-industrial business plan”.

Stenprop is continuing its transition into a focused UK MLI company, with the aim of
becoming the UK's leading MLI business. Stenprop has set out a transition plan which
involves transitioning the portfolio to at least 60% MLI and reducing overall leverage to a
loan-to-value (LTV) ratio of no more than 40% by March 2020, with the plan to transition to
100% MLI over the following 12 to 24 months.

At 30 September 2019, MLI comprised 45%(1) of Stenprop's portfolio and the LTV was 42%1.
When unrestricted cash is added to this measure the overall LTV was 39%(2).

The financial information on which this trading update is based has not been reviewed or
reported on by the Company's external auditors.

    1. These figures are based on our 31 March 2019 valuations adjusted for subsequent acquisitions and
       disposals and changes in foreign exchange rates.
    2. Calculated as gross borrowing less unrestricted cash, divided by gross asset value based on our 31
       March 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
Charlotte Dale

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

Date: 25/10/2019 08:00:00
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