Portfolio update

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


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

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

•      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

Date: 13-02-2020 09:00:00
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