EMPIRIC STUDENT PROPERTY PLC September 2016 AGENDA and PRESENTATION TEAM

EMPIRIC STUDENT PROPERTY PLC September 2016 AGENDA AND PRESENTATION TEAM

Section Page Tim Attlee, MRICS – Founder and CIO  Focus on student residential sector since 2009  The UK Student Jointly responsible for the acquisition, development 3 and investment management activities Accommodation Market  Held senior roles at Knight Frank

 Qualified chartered surveyor

Company Overview and 6 Highlights THE UK STUDENT ACCOMMODATION MARKET THE UK STUDENT ACCOMMODATION MARKET

 There are four key trends driving the growth in the purpose built student accommodation (“PBSA”) market

The UK population is increasing, putting pressure on housing UK Population Projections (m) 75

55 2000 2004 2008 2012 2016 2020 2024 2028 2032 2036 2040

Source: ONS Local authorities are cutting back on HMOs  Given the pressure on housing throughout the UK, local authorities have been attempting to move students out of the traditional “House in multiple occupation” (“HMO”) into PBSAs to provide more housing space for families and workers

Source: Arcadis/EC Harris THE UK STUDENT ACCOMMODATION MARKET (CONT’D)

Student numbers in the UK are growing at a strong rates Growth in student acceptances for Sept 2015 over Sept 2014

11.0%

3.9% 3.6% 1.9%

All Students UK Students EU Students International Students Source: ONS (Non-EU)

University owned housing stock is of poor quality

"As New" Refurbishment  Current university owned PBSA stock is of poor 57,122 quality. Of the 324,532 student beds owned by needed 267,410 universities, only 57,122 are “as new” with the remainder in need of refurbishment or replacement THE UK STUDENT ACCOMMODATION MARKET

Demand for UK Higher Education to UK Higher Education keep rising Applicants vs. Acceptances Total accepted applicants for the academic year 2015/16 reached a new all time high of 532,265 applicants  Government caps on student numbers in the UK have been removed all together in 2015/16 Students 800k  Demand has remained robust throughout the introduction of increased tuition fees in 2012 700k and the weakened economic environment 600k  Number of international students is expected 532,000 – all time high to double globally by 2025 500k  In 2012 the UK was the second largest destination for international higher education 400k with a 13% global share, second only to the 300k USA with a 16% share

 The first six months of 2015 saw a record £3.8 200k billion in student housing transactions, with expected volumes to exceed £5.7 billion by end 100k of 2015, over three times the 2014 total of £1.7 0k billion 1991 1981 2011 1997 1979 1995 1987 1993 1985 1999 2015 1983 2013 1989 2001 2007 2005 2003 2009 Excess Applicants over Acceptances Acceptances

Source: UCAS and JLL Source: UCAS THE UK STUDENT ACCOMMODATION MARKET (CONT’D)

Student Accommodation Yields have Hardened 2015 UK Student Accommodation Yields Nomination Lease Direct Let Trend Agreement Prime London 3.75% 4.50% 4.75% Super Prime Regional 4.25% 4.75% 5.50% Prime Regional 4.50% 5.25% 6.00% Secondary Regional 5.00% 5.75% 6.75%

Growth In Global Student Mobility Source: Savills

Number of students enrolled outside their country of citizenship (m) 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 1975 1980 1985 1990 1995 2000 2005 2010 2025E

Source: Savills, UNESCO Institute for Statistics COMPANY OVERVIEW AND HIGHLIGHTS KEY HIGHLIGHTS

Overview Portfolio development as at 31 December 2015 since 30  Internally managed UK student accommodation REIT June 2015 with 7,389 direct-let beds in operation or under (£mm)(3) development Assets at 30 June 2015 455.2 Portfolio Value New Standing Assets  1.9 Total property portfolio valuation of £455.2 million as at New Forward Commitment Assets 15.7 31 December 2015 with a further £100 million deployed New Forward Funded Assets since the Company’s fundraising in March 2016 80.1 New Development Assets Rent 59.4  Gross annualised rent on operating properties of £25.1 million as at 31 December 2015 with entire operating portfolio fully let(1) 298.1 298.1  Expected gross annualised rent of £46.5 million based on completion of developments and forward commitments in H1 '15 H2 '15 September 2016 (based on 61 operational assets, 5,749 beds in 26 cities) Funds Invested / Committed as at 31 December 2015 (£mm)(3) NAV  NAV of 105.4 pence per share (basic) as at 31 December 600 2015, a 2.1% increase from a NAV of 103.2 pence (basic) as 500 at 30 June 2015 and net of all property acquisition costs 400 Financing 300  Gross equity proceeds raised of over £522 million and agreed debt financing with a diversified group of lenders of 200 c.£200 million(2) 100  New fixed rate term loans agreed with Canada Life (£40 - million) and Mass Mutual (£80 million + £40 million) in order to increase gearing levels towards 35%  Share issuance programme in place (48.7 million shares outstanding) in order to achieve our 10,000 beds target Total funds invested / committed

(1) The Company budgets and models on the basis of 97.5% occupancy. Occupancy or income of the operational portfolio to this level and in excess is considered fully let (2) Including the Group’s share of the debt relating to joint venture developments (3) Valuation based on CBRE valuation as of 31 December 2015 where available or where not, acquisition cost KEY HIGHLIGHTS

Overview Number of Beds  Dividends Beds as at H1 ‘15  6 pence dividend target for the year ending 30 June 2016; Operational now 57% of target thereafter dividend expected to grow by at least the RPI Operational from in 18 months inflation index(1) Sept 16 Market Cap and Indices Operational from 5,686 Sept 17  Current market capitalisation of £569 million and average 742 (2) 10,000 daily trading volume of £1.2 million 3,522 1,726  FTSE All Share index constituent. EPRA Index constituent since March 2016 Portfolio 3,218  The property portfolio currently comprises 75 assets in 27 top university cities and towns, 52 of which were operational and 23 were forward funded or development H1 '15 H2 '15 5yr Target assets  4,256 operational beds, a further 1,726 contracted to be Number of Cities operational during 2016 and a further 1,407 contracted to be operational during 2017 (or 2018) 74% of target in Yields 18 months  The average net initial yield of the operating properties as at 31 December 2015 was 5.8% (6.1% as at 30 June 2015 and average acquisition net initial yield of 6.6%)  Standing asset valuation uplift of 10.3% as at 31 December 35 2015 compared to acquisition price Rent 26  The average rent review increase for the 15/16 academic 20 year was 3.25%(3)  Targeted rent review increase of 2.75% for the 16/17 academic year H1 '15 H2 '15 5yr Target (1) The target dividends stated above are targets only and not forecasts. There can be no assurance that these targets will be met and they should not be taken as an indication of the Company's expected or actual future results (2) Average daily trading volume in 2016 YTD (3) Represents the aggregate increase in gross rent on assets controlled by Empiric in November 2014 KEY DIFFERENTIATORS

 Our target market is what makes Empiric different:  Focused on students from outside the UK and/or beyond their first year of study, at key universities  Investing in mid-sized buildings in city centre clusters

international students in postgraduate students in 437,000 the UK in 2014/15 538,000 the UK in 2014/15

of student population is of students beyond first year undergraduate level 84% outside London 91% have no access to purpose-built accommodation

Student Population with Access to Purpose-built Accommodation(1) 100% Cities with Empiric presence

80%

60% Average proportion of first year 40% students

20%

0% Bath York Stoke Leeds Exeter Bristol Cardiff Oxford Stirling London Hatfield Durham Glasgow Sheffield Brighton Leicester Coventry Liverpool Aberdeen Falmouth Lancaster Newcastle Chichester Edinburgh Cambridge Canterbury St Andrews Manchester Portsmouth Nottingham Birmingham Huddersfield Southampton Bournemouth Kingston on Thames

Source: Empiric, Savills, HESA for 2013/14 academic year List of key cities reflects focus of attention but does not preclude investments in other locations (1) Reflects the 35 top tier university towns and cities targeted by the Company OUR CUSTOMERS

Customers by Year of Study as at 31 Customers by Nationality as at 31 December 2015 December 2015

4th Year and 1st Year 3% = UK Postgraduate 22% UK based first year 31% 33% students aged under 20, minimising overlap with other national student accommodation 2nd Year International 3rd Year companies 20% 25% 69%

Age range of 17 – 63

Bed Count by City as at 31 May 2016 (Total: 7,389) Operational now Operational from Sept 16 Operational from Sept 17

900 771 800 700 440 600 519 354 400 424 500 337 277 382 400 323 283 304 207 280 219 300 179 183 159 109 83 241 204 116 151 200 86 79 120 115 100 44 0 Bath York Leeds Exeter Bristol Cardiff Oxford Stirling London Reading Durham Glasgow Sheffield Leicester Liverpool Aberdeen Falmouth Lancaster Newcastle St Andrew Edinburgh Manchester Portsmouth Nottingham Birmingham Huddersfield Southampton Stoke-on-Trent of Hertfordshire) of Hatfield (University (University Keele)of

(1) Operational from June 2016 (2) Metrovick House operational from July 2016 OPERATIONAL PLATFORM: HELLO STUDENT

 On 24 February, Empiric launched its new operational platform and consumer brand, Hello Student, comprising:  The Hello Student marketing, booking, billing and accounting platform, managed by a dedicated internal team in partnership with CRM, a leading outsourced manager of UK student accommodation  Directly employed accommodation managers (regional and local) based across the UK (first four managers seconded from CRM)  Facilities management and maintenance services provided nationwide by Incentive Facilities Management Group (six sites in operation with roll-out from September 2016)  The Hello Student app to be launched later in 2016 accessing booking, rebooking and facilities management resources, including secondary sales of services and products  Targeting an improvement in net margin of 5% across assets managed through the Hello Student platform by the start of the 2018/19 academic year Empiric’s Development Current: 10,000 Operational Key Management Platform IPO Dec-15 Beds by Sept-18 Workstreams

Brand marketing platform

Build app/FM/brand relationships

Roll out of outsourced managers 1st year of 100% ESP in-house management

2014 2015 2016 2017 2018 2019 2020 Picturehouse apartments, cinema Operational Beds Development Beds ASSET OVERVIEW AS AT 31 MAY 2016

Value / Value / Value / Location Beds Cost Location Beds Cost Location Beds Cost (£m) (£m) (£m) 1 Bristol (College Green) 84 11.4 30 Lancaster (CityBlock 2) 77 6.1 59 Manchester (Ladybarn House) 117 10.3 2 Exeter (Picturehouse) 102 13.1 31 Lancaster (CityBlock 3) 100 8.4 60 York (Lawrence Street) 115 11.1 3 Cardiff (Summit) 87 10.7 32 Leicester (CityBlock 1) 98 6.3 61 Oxford (Stonemason House) 44 4.5 4 Edinburgh (Buccleuch) 86 8.9 33 Leicester (CityBlock 2) 76 5.2 62 Manchester (Victoria Point 1) 98 5.2(4) 21 9 5 Southampton (Brunswick) 173 10.1 34 Liverpool (Art School Lofts) 64 8.1 63 Manchester (Victoria Point 2) 85 4.5(4) 6 Birmingham (Brook) 106 12.9 35 Liverpool (Maple House) 147 12.6 64 Manchester (Victoria Point 3) 85 4.5(4) 7 Glasgow (Willowbank) 178 5.4 36 Liverpool (Chatham Lodge) 50 4.2 65 Manchester (Victoria Point 4) 84 4.4(4) 55 50 57 8 Birmingham (Edge) 77 10.8 37 Liverpool (Hayward House) 74 5.5 66 Manchester (Victoria Point 5) 132 6.9(4) 7 4 42 20 9 Aberdeen (Centro) 56 7.5 38 Liverpool (The Octagon) 19 2.0 67 Manchester (Victoria Point 6) 77 4.0(4) 10 Southampton (London Rd) 46 4.4 39 Liverpool (Grove Street Studios) 28 2.6 68 Sheffield (Trippet Lane) 63 0.8 48 26 11 Nottingham (Talbot Studios) 98 9.9 40 Stoke-on-Trent (Caledonia Mill) 120 5.9 69 Portsmouth (Europa House) 242 21.3 27 51 12 Cardiff (Alwyn) 51 3.9 41 Falmouth (Maritime House) 137 11.0 70 Falmouth (Ocean Bowl) 287 2.3

13 Cardiff (Northgate) 67 6.5 42 Glasgow (Bath Street) 70 8.1 71 Exeter (Well Street) 68 1.5 30 60 29 30 31 75 17 14 98 43 Portsmouth (The Registry) 41 (4) Huddersfield (Kingsmill Studios) 9.2 4.6 72 Leicester (Bede Park) 59 4.9 22 34- 56 (2) (4) 15 Hatfield (Curzon Point) 116 10.4 44 Bath (James Street West) 78 7.7 73 Leicester (136-138 New Walk) 30 2.5 39 14 28 24 (2) (4) 46 16 Exeter (Dean Clarke Lofts) 30 4.7 45 Bath (James House) 169 25.0 74 Leicester (160 New Walk) 17 1.4 62- 59 68 67 Assets 19 11 17 Leeds (Algernon Firth) 111 8.6 46 Sheffield (Portobello House) 134 4.2 75 Leeds (Pennine House) 127 17.8 49 as at 40 32 33 18 London (Halsmere) 79 16.2 47 Exeter (Bonhay Road) 139 2.0 Total 7.389 6 8 72- 33 December 74 2014 19 Nottingham (Talbot Street) 77 2.7 48 Newcastle (Metrovick House) 63 7.4(2) 61 49 15 20 Glasgow (Ballet School) 103 11.7 Nottingham (The Frontage) 162 9.5 3 12 54 13 58 21 Aberdeen (St Peters) 123 9.3 50 Stirling (Forthside) 204 0.7(3) 1 23 18 51-45 22 51 53 44 Leeds (St Marks) 85 7.2 Bath (Canal Bridge) 20 1.8 Assets as at 10 69 71 43 23 Bristol (William & Matthew) 75 3.3 52 Bath (Widcombe Wharf) 40 4.5 June 2015 2 16 5 47 25 24 Manchester (Baptist Chapel) 93 1.0 53 Bath (Piccadilly Place) 47 4.3 41 70 54 (2) 25 Exeter (Library Lofts) 61 7.7 Cardiff (Windsor House) 314 40.0 Standing Assets 26 Newcastle (Claremont Place) 88 11.0(1) 55 Glasgow (George Street) 89 2.5 Forward Committed Sites 27 Durham (St Margaret’s) 109 5.6 56 Sheffield (Provincial House) 107 2.0 Assets as at 28 Huddersfield (Oldgate) 179 4.7 57 St Andrews (Ayton House) 241 25.1 December 2015 Development / Forward Funded Sites 29 Lancaster (CityBlock 1) 30 2.0 58 Reading (Saxon Court) 83 13.0 Assets completing by September 2017, all other assets will be operational in 2016

Note: asset valuations from CBRE as at 31 December 2015 (2) Purchase price to be paid on completion of the (4) Total purchase price pro-rated by bed count (1) Asset valuation from CBRE as at 30 June 2015 acquisition across portfolio (3) Purchase price of the land on acquisition STANDING ASSET NET INITIAL YIELD ANALYSIS AS AT 31 DECEMBER 2015

(2) Current NIY Acquisition NIY Yield on Cost 9.6% 9.5%

8.5% 8.2%

Average Acquisition NIY: 6.6%(1)(3)

7.5% 7.5% (1) Average Current NIY: 5.8%

7.5%

7.0% 7.0% 7.0%

6.9%

6.8% 6.7% 6.7%

6.6% 6.6% 6.6% 6.5% 6.5% 6.5% 6.5% 6.4%

6.4% 6.4% 6.4% 6.4% 6.4%

6.3% 6.3% 6.3% 6.3% 6.3% 6.3% 6.5% 6.3% 6.1% 6.1% 6.1%

5.9%

5.8%

5.5% 6.4%

6.3% 6.3% 6.3%

6.2% 6.2%

6.2% 6.2% 6.2% 6.1% 5.5% 6.1% 6.1% 6.1% 6.0% 6.0% 5.9% 5.9% 5.9% 5.9% 5.9%

5.3% 5.9% 5.9% 5.9% 5.8% 5.8% 5.8% 5.7% 5.8% 5.7% 5.7% 5.7% 5.6% 5.9% 5.7% 5.7% 5.4% 4.5% 5.3% Cardiff (Alwyn) Leeds (St Marks) Cardiff (Summit) Aberdeen (Centro) Cardiff (Northgate) London (Halsmere) Bath (Canal Bridge) Birmingham (Edge) Birmingham (Brook) Bath (Piccadily Place) Bath (Piccadily Exeter (Picturehouse) Glasgow (Bath Street) Leicester (CityBlock 1) Leicester (CityBlock 2) Bristol (College Green) Leeds (Algernon Firth) Lancaster (CityBlock 1) Lancaster (CityBlock Lancaster (CityBlock 3) Lancaster (CityBlock Lancaster (CityBlock 2)Lancaster (CityBlock Hatfield (Curzon Point) (Curzon Hatfield Glasgow (Ballet School) (Ballet Glasgow Durham (StDurham Margaret's) Liverpool (The (The Octagon) Liverpool Bath (Widcombe Wharf) Liverpool (Maple House) (Maple Liverpool St Andrews (Ayton House) (Ayton St Andrews Exeter (Dean Clarke Lofts) Portsmouth (The Registry) Southampton (London Rd) (London Southampton Liverpool (Chatham Lodge) Liverpool (Art School Lofts) School (Art Liverpool Liverpool (Hayward House) (Hayward Liverpool Nottingham (Talbot (Talbot Studios) Nottingham Falmouth (Maritime Studios) (Maritime Falmouth Stoke-on-Trent (Caledonia Mill) Liverpool (Grove Street Studios) Street (Grove Liverpool Huddersfield (Kingsmill Studios) (Kingsmill Huddersfield Southampton (Brunswick House) (Brunswick Southampton

Note: Includes forward funded or development assets which became operational under Empiric’s ownership (1) Weighted by value (2) Brunswick House yield represents yield on Empiric owned 50% share (3) Average acquisition NIY of 6.4% excluding forward funded and development assets DEVELOPMENT AND FORWARD FUNDED ASSETS

 Strong pipeline of forward funding and development opportunities to deliver new purpose built accommodation  Attractive yield on cost implying c.20+% uplift to completion Forward Funding Buccleuch Street, Edinburgh Proposed beds (studio/ 86  The Company acquires the site apartments) (47/39)  Acquired in July 2014, part of a listed former cinema building, directly and funds the project in Completion date Jun-16 stages while receiving interest located on Buccleuch Street, Edinburgh on instalments made  The project is in a sought after location next to the University of Yield on cost 8.0% Edinburgh  The risk of cost and program Yield on completion 5.75% Proposed beds (studio/ overruns rests with the third Kingsmill Studios, Huddersfield 98 (90/8) apartments) party developer  Acquired in November 2014, the asset became operational in September 2015 Completion date Sep-15  The project is in a prime location close to the University of Yield on cost 8.22% Huddersfield Yield on completion 6.25%

RevCap Development Development Assets Joint Venture

Joint Venture Headline Terms Willowbank Primary School, Glasgow Yield on cost 9.0%  20% promote over 20% IRR,  Former Willowbank Primary School, planning approval has been Yield on completion 6.0% split 60%/40% to Empiric received for the development of a scheme comprising a mix of studio, two and three bed apartments Proposed beds (studio/ 178  3.5% of costs fee paid to apartments) (121/57) Empiric quarterly through life Completion date Sep-16 of project Brunswick House, Southampton Yield on cost 9.6%  Empiric has a ROFR on all JV  Project comprises the redevelopment of a commercial office development assets property into direct-let, premium student accommodation Yield on completion 5.9%  The project is located in central Southampton, close to Proposed beds (studio/ 173 Southampton Solent University and between the city centre and the University of Southampton apartments) (89/84)  The asset became operational in September 2015 Completion date Sep-15