Secure Income REIT Plc Results for the year ended 31 December 2020 www.SecureIncomeREIT.co.uk 1. Introduction Nick Leslau 2. Results Sandy Gumm 3. Portfolio update Mike Brown 4. Outlook Nick Leslau Q&A Secure Income REIT Plc What we do . A specialist UK REIT investing in real estate assets with long term inflation protected rental income Who we are . Experienced board chaired by Martin Moore with Leslie Ferrar, Ian Marcus & Jonathan Lane as independent directors together with Nick Leslau, Mike Brown and Sandy Gumm representing the Management Team . Externally managed by the Prestbury team with its successful track record in real estate and which owns 12.4% of the Company and which invested £5.8m cash in further interests in SIR during 2020 Track record . Established in June 2014 building on a privately owned portfolio carefully selected for secure, long term inflation protected income characteristics, we have built the business since then to deliver 1: . 15.3% p.a. TAR to December 2020 . 12.8% p.a. TSR to 31 December 2020 closing price of 300.0p (and 15.1% p.a. to 354p close on 9 March 2021) . Compares to FTSE EPRA NAREIT UK index of 2.8% p.a. over the period . Dividends paid throughout the pandemic period 1 IRR over the period 3 Secure Income REIT Plc What we own . 161 Key Operating Assets: 159 throughout the UK and 2 in Germany . £1.95bn portfolio valuation at December 2020 independent valuation . £1.2bn / 379.3p EPRA NTA and £192m uncommitted and unfettered cash EPRA NTA per share (pence) at 31 December 2020 Uncommitted cash (& 0.5p other NTA) 59.8 Budget Hotels 81.4 Leisure Healthcare 112.8 125.3 4 1. Introduction Nick Leslau 2. Results Sandy Gumm 3. Portfolio update Mike Brown 4. Outlook Nick Leslau Q&A Results highlights . SIR’s robust balance sheet and strong liquidity enabled us to: . provide tailored support to four of our tenant companies whose businesses suddenly closed in March 2020, providing breathing space for them to stabilise their businesses to better recover post pandemic; . continue to pay dividends during the year; and . leave SIR well positioned to resume its own strong growth trajectory. 6 Results summary: Balance sheet 31 December 2020 30 June 2020 31 December 2019 • Portfolio independent valuation £1,946.9m £1,958.7m £2,083.1m • EPRA NTA £1,229.2m £1,252.0m £1,391.3m • EPRA NTA per share 379.3p 386.4p 429.4p • Net LTV 36.4% 35.3% 31.9% • Uncommitted cash £192.0m £219.6m £234.2m Pence per share EPRA NTA per share 2016 to 2020 440 420 400 380 360 340 320 300 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 7 Results summary: Earnings and returns 2020 2019 • Adjusted EPRA EPS 3.5p 15.3p Principally concessions impact • Dividends per share 15.7p 16.3p Maintained: concessions are temporary • Annualised dividend / EPRA NTA 3.8% 3.9% • Annualised dividend / share price 4.9% 3.9% 4.1% on 9 March 2021 price of 354p • Returns since June 2014 Listing • TAR (IRR over 30 June 2014 EPRA 15.3% p.a. NTA) • TSR (IRR over issue price at listing) 12.8% p.a. FTSE EPRA NAREIT UK 2.8% p.a. Adjusted EPRA EPS Dividends and DPS 16.3p 14.7p 15.3p 15.7p 13.6p 11.3p 10.5p 13.9p 13.6p 2.6p 5.9p 0.0p 3.5p £12.0m £31.2m £41.4m £52.5m £50.8m 2014 2015 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Adjusted EPRA EPS Impact of rent concessions 8 Adjusted EPRA EPS 2020 2019 pence per share pence per share Like for like (LFL) taking account of 2019 hospitals sale and before concessions Rent net of property outgoings before concessions 34.2 33.9 Finance costs (net) (14.9) (15.0) Admin & tax (5.3) (5.3) LFL earnings before concessions 14.0 13.6 Rent concessions (10.5) - LFL portfolio after concessions 3.5 13.6 Earnings from Hospitals sold in 2019: Rent net of property costs - 3.0 Finance costs - (1.3) Adjusted EPRA EPS 3.5 15.3 . Like for like earnings were impacted by the rent concessions: . Adjusted EPRA recognises the rent concessions in the period of cash impact . concessions not spread as required by IFRS which is exacerbated by SIR’s very long leases, resulting in very small adjustments for a very long time 9 Rent concession cash flow impact Actual Contracted H1 ‘20 H2 ‘20 2020 H1 ‘21 H2 ‘21 2021 £m £m £m £m £m £m Hotels CVA reduction (4.8) (9.7) (14.5) (4.3) (4.6) (8.9) Merlin six months rent (8.9) (8.8) (17.7) - 17.7 17.7 deferred to Sept 2021 Pubs rent free for improved (0.5) (0.6) (1.1) - - - lease terms Cash flow rent impact (14.2) (19.2) (33.3) (4.3) 13.1 8.8 Costs of concessions (0.7) - Earnings impact £m (34.0) 8.8 Earnings impact p/share (10.5p) 2.7p . Assuming no further concessions, 2020 is the point of deepest impact of the concessions, with that effect reversing to a positive contribution in 2021 and all rents returning to their original contractual lease terms from January 2022 . Since 30 June 2020, £3.3m of rents temporarily switched to monthly payment but no further rent reductions granted . Collections of post concession rents remained very strong 1 1 Rent collections over the year are summarised at slide 39 10 Rent concession cash flow: temporary impact Contractual rents £m p.a. 140 Merlin recovery exceeds 130 Travelodge concession in 2021 120 Contractual terms have us back 110 on track from January 2022 100 90 2020 cash flow and 80 Adjusted EPRA EPS maximum concessions 70 2019 2020 2021 2022 2023 2024 2025 Annualised rent receivable ex concessions Annualised rent receivable post concessions Expected rents on the basis of contractual terms at 10 March 2021; this is an illustration of contracted revenue, not a profit forecast 11 EPRA NTA per share over the year Distributions maintained as surplus cash used to ride through the concessions impact Rent net of all outgoings contributed 9.6p per share EPRA EPRA NTA per share (pence) 31 Dec 2019 31 Dec 2020 . An EPRA NTA bridge showing first and second half movements is included at slide 40 12 Capital structure at 31 December 2020 . All debt is non recourse in £m structurally ring fenced Portfolio valuation 1,946.9 facilities . Covenant levels designed Gross debt (928.3) with suitable risk adjusted Cash 219.7 headroom and cure rights . Lenders have supported all Other net liabilities (inc rent in advance) (9.1) tenant support measures EPRA NTA 1,229.2 Net LTV 36.4% . £192.0m Uncommitted Cash at 31 Dec 2020, outside of debt structures and net of creditors: . created flexibility in supporting tenants when needed; and . provides a platform for SIR’s return to its growth trajectory 13 Debt resilience: in built protections . Six ring fenced facilities – no recourse to the Uncommitted Cash balance and no cross collateralisation . Financial covenants met throughout the period; consents and waivers granted as required to accommodate rent concessions with full support of our lenders and no other changes to debt terms . In built cash cure rights available (surplus cash can be injected into secured structures to cure breaches) but no need to deploy to date . Covenant headroom designed at loan inception: . Covenant ‘shock absorbers’ did their work in the year, without the need to inject cash or implement any other cures during the year . Looking ahead, as the cash flow low point is now behind us, interest cover and debt service cover covenant headroom at 31 December 2020 is at close to or in some cases better than pre pandemic levels 14 Covenant headroom at 31 December 2020 Value fall from latest valuation to Rent fall to trigger ICR trigger LTV default default Gross Gross debt LTV 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 2 x Travelodge £65.4m 33% 33% 46% 59% 62% facilities (10.6% NIY) (10.4% NIY) (structurally 68% 71% separate) £59.0m 31% 38% 51% (11.4% NIY) (11.1%NIY) Arena, Brewery, £60.0m 34% 32% 39% 57% 71% Pubs (8.8% NIY) (9.0% NIY) Merlin leisure £380.4m 62% No LTV default test No LTV 29% after 27% default test waiver period Healthcare £299.7m 48% 39% 38% 38% 35% (Ramsay & (7.3% NIY) (7.1% NIY) Orpea) Healthcare £63.8m 44% 45% 44% 44% 42% (Ramsay) (8.2% NIY) (8.0% NIY) . Sensitivities are before any mitigating action such as exercise of cash cure rights . Having passed the cash flow low point, headroom is in most cases at least at or near pre Covid levels . Detailed covenant commentary is included at slides 42 to 46 15 Debt cost and maturities . Interest cost fixed throughout the debt term . Weighted average maximum interest cost of 4.9% pa – level with 2019 . Weighted average term to expiry 3.1 years with first maturity in Autumn 2022 . £380 million leisure facility at 5.7% p.a. fixed rate . Continued exploration of optimal capital structure and refinancing approach . considering standalone or wider refinancing options . always seeking to balance protections and debt cost . expect an opportunity to increase cash flow and earnings and thereby increase dividends 16 Cash reserves . Uncommitted cash at 31 December 2020 of £192.0 million is held for: 1. Reserves for application to debt management or tenant assistance 2.