COVID-19 update

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


26 March 2020

Stenprop is today providing an update on the impact of COVID-19 on its business and the measures it is taking to manage the
risks presented by the virus.

Key Points
    • Our focus is on managing cash resources very carefully and maintaining liquidity in the business. We currently have
      £60 million of unrestricted cash reserves.
    • Our overall loan-to-value ratio (LTV) stands at approximately 40.7% based on the most recent property valuations as
      at 30 September 2019 and adjusted for subsequent acquisitions and disposals. When unrestricted cash is deducted
      from loans, the LTV is 29.6%. Total debt stands at £219.9 million. The portfolio weighted average interest rate is 2.61%.
    • Significant headroom exists for both interest cover and LTV loan covenants. LTV covenants allow for an average 33%
      reduction in values from the levels last reported (adjusted for acquisitions and disposals). This measure increases to
      44% when unrestricted cash is included. Loan facilities subject to debt service cover ratio covenants allow for an
      average reduction in net rents of 64%.
    • Last week we completed the refinancing of the loan in relation to the Trafalgar Court property in Guernsey. The
      refinancing will take effect on 31 March 2020. The £28.0 million loan has been extended for two years, maturing on
      31 March 2022.
    • Approximately 57% of our portfolio (by value) comprises 70 multi-let industrial (MLI) estates spread across the UK
      with more than 850 tenants. They are engaged in a very wide range of businesses, serving the needs of their UK
      customers in their local communities or across the country. It is too early to say with any accuracy what the impact
      will be for these occupiers, although clearly some sectors are more directly impacted than others. We have written
      to all of our customers expressing our support and remain in close contact with them.
    • Approximately 18% of our portfolio comprises three daily-needs retail centres in central Berlin, all of which are
      anchored by strong food retailers, and five retail warehouses in Germany, which are let to a bike and ski business.
    • Approximately 13% of our portfolio comprises Trafalgar Court, the largest office building in Guernsey predominantly
      let on a long lease to Northern Trust with more than eight years remaining.
    • 3% of our portfolio comprises a rehabilitation medical facility and health club business in Lugano, Switzerland. This
      has been required to close by order of local government and we are monitoring the position closely.

In this rapidly-evolving situation, we are well placed to respond to the challenges we face. In addition to low leverage and
large cash balances, significant upgrades to our IT infrastructure carried out over the last 18 months have meant that our
staff have adapted well to working from home and continue to collaborate effectively from different locations.

Stenprop remains a financially-sound business with a capital structure which is well placed to cope with a prolonged period
of uncertainty.

For further information:

 Stenprop Limited
 Paul Arenson
                                                                     44(0)20 3918 6600
 Julian Carey
 James Beaumont

 Numis Securities Limited (Financial Adviser)
                                                                     44(0)20 7260 1000
 Hugh Jonathan
 Vicki Paine
                                                                     44(0)20 7920 3150
 Tavistock (PR Adviser)
 James Whitmore
 James Verstringhe

 JSE Sponsor                                                         27(0)11 722 3050
 Java Capital Trustees and Sponsors Proprietary Limited

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: 26-03-2020 09:00:00
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