Half year results announcement for the six months ended 30 September 2021

Industrials REIT Limited
Formerly Stenprop Limited
Registration number: 64865
Registered office:
Kingsway House, Havilland
Street, St Peter Port, GY1 2QE,
LSE share code: MLI
JSE share code: MLI

Short-Form Announcement:
Half Year Results Announcement for the six months ended 30 September 2021

The publication of this announcement is in line with Johannesburg Stock Exchange requirements.

Highlights for the six months ended 30 September 2021

-  7.5% Like-for-like* portfolio valuation increase for period
- 9.8% Total Accounting Return* for period
- 3.45p Adjusted EPS*
- 13.34p Diluted IFRS* EPS 
- 3.375p Dividend per share, fully covered and maintained
- 20.5% Group LTV*

Financial Highlights

- Total accounting return of 9.8% for the six-month period
  (2020: 6.8%).
- 59.2% increase in diluted IFRS EPS to 13.34 pence
  (2020: 8.38 pence) with adjusted EPS increasing to
  3.45 pence (2020: 3.40 pence).
- Declared covered interim dividend of 3.375 pence per
  share (2020: 3.375 pence) on 1 December 2021, with
  guidance maintained for full year dividend of at least
  6.75 pence.(1)
- 7.4% increase in diluted IFRS net asset value per share
  to GBP1.59 (31 March 2021: GBP1.48).
- 7.5% increase in EPRA Net Tangible Assets ('NTA') per
  share to AGBP1.58 (31 March 2021: GBP1.47).  
- Portfolio valued at GBP574.0 million (31 March 2021:
  GBP582.3 million) reflecting transactions in the period and
  revaluations, with like-for-like valuation growth of 7.5%,
  driven largely by an 8.7% like-for-like multi-let industrial
  ('MLI') portfolio valuation increase.
- Net rental income for the period of GBP15.1 million
  (2020: GBP10.4 million). Profit from operations was
  GBP42.6 million, a 268% increase from GBP15.9 million at
  30 September 2020.
- Diluted headline earnings per share grew 12.8% to 
  3.44 pence (2020: 3.05 pence).

MLI Operational Highlights

Continued rental growth and strong occupier demand

- Four consecutive quarters of 20%  growth in rent at
  lease renewal or upon new letting now recorded.
- 5.0%(2) growth in like-for-like annual passing rent
  (2020: 5.1%), with a 5.1%(2) increase in like-for-like
  annual ERV (2020: 4.2%).
- Occupancy remained robust at 93.9%, up from 93.7%
  at 31 March 2021.
- Strong rent collections with over 95% of invoices billed
  in 2020 now paid and 2021 trending to the same level.

Continued progress in investment strategy with transition to 100% MLI on track

- Seven MLI estates acquired in the period for an
  aggregate purchase price of GBP36.5 million, generating an
  additional GBP2.5 million of rental income per annum.
- Purchases of a further four MLI estates completed post
  period end for GBP23.3 million in total, generating an
  additional GBP1.7 million of annualised rental income.
- Completed the sale of two non-MLI assets in separate
  transactions for GBP82 million in aggregate during the
  period reflecting a 1.4% discount to March 2021
- On 10 November 2021, a contract of sale for the
  Switzerland property, known as Lugano, was signed
  and notarised for CHF12.5 million (GBP9.9 million;
  31 March 2021 book value: GBP12.0 million). We anticipate
  completion in the next few weeks. The balance sheet at
  30 September 2021 reflects this lower sale valuation.
- MLI 92.5% of total portfolio based on valuations as at
  30 September 2021, compared to 74.3% at year end,
  with the Company on track to achieve 100% MLI target
  by 31 March 2022.

*  'Total Accounting Return' is the growth in EPRA net tangible assets per share
   plus dividends paid, expressed as a percentage of EPRA net tangible assets
   per share at the beginning of the period. 'EPS' means earnings per share.
   'LTV' means loan-to-value ratio which is the ratio of total borrowings, less
   unrestricted cash, to the Group's aggregate market value of properties. 'IFRS'
   means International Financial Reporting Standards. 'Like-for-Like' is a change in
   measure for reference data existing in the current and previous period.

1. The directors intend to offer shareholders the option to receive all or part of
   their dividend entitlement by way of a scrip issue of Industrials REIT ordinary
   shares or in cash. A further announcement informing shareholders of the
   salient dates and tax treatment will be released in due course.

2. The 5.0% growth in the like-for-like annual passing rent is restated from 6.7% reported 
   in the Q2 trading update issued by the Company on 29 October 2021. The discrepancy arose 
   as like-for-like data inadvertently included an acquisition from December 2020, which
   formed part of an already owned estate, Capital Business Park in Cardiff.
   The same applies to like-for-like ERV growth which is restated from 6.5%
   to 5.1%.  

Short-Form Announcement

This short-form announcement is the responsibility of the directors and represents a summary of the information contained in the full announcement released
on SENS and the LSE on 3 December 2021 and does not contain full or complete details of the financial results. None of the information contained in this
announcement has been reviewed or reported on by the Company's auditors.

The full announcement can be accessed using the following JSE link: https://senspdf.jse.co.za/documents/2021/jse/isse/MLIE/HY2021.pdf

Industrial REIT Limited's condensed financial statements for the six months ended 30 September 2021 have been reviewed by the Company's auditors BDO LLP
who have provided an unqualified opinion within their review report. The full announcement including the Company's reviewed condensed financial statements is
available on the Company's website: https://www.industrialsreit.com/investor-information/reports-and-presentations/

Copies of the full announcement may be requested at 180 Great Portland Street, London, United Kingdom, and at the office of the sponsor, Java Capital, at
6th Floor, 1 Park Lane, Wierda Valley, Sandton, 2196, Johannesburg, South Africa during office hours at no charge from 3 December 2021 to 10 December 2021.

Any investment decision by shareholders and/or investors should be based on information contained in the full announcement published on SENS and the LSE,
and on the Company's website.

Industrials REIT Limited
3 December 2021

Date: 03-12-2021 09:00:00
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