£31.2 Million acquisition of a licensed retirement portfolio

Residential Secure Income plc (“ReSI”) (LSE: RESI), which invests in residential asset classes that comprise the stock of UK social housing providers, is pleased to announce that it has exchanged contracts to acquire a Licensed Rental Homes portfolio comprising 277 properties (the “Portfolio”) for a total consideration of approximately £31.2 million. The acquisition is due to complete on or before 30 May 2018, from when it will immediately be income producing.

The Portfolio is, with minor exceptions, subject to a fully repairing and insuring perpetual licence, which provides an upwards-only RPI linked rental stream. The Portfolio is licensed to First Port, the UK’s largest residential property management group, and used to house the retirement property managers required under headlease obligations.

The Portfolio is concentrated in Southern England and comprises long-leasehold interests (with average remaining term of 116 years) in primarily two bedroom, modern flats. The Portfolio overlaps with the retirement developments included in ReSI’s existing portfolio of 1,358 retirement flats, and will provide operational efficiencies. These retirement developments are focused on independent living and do not include the provision of care services.

The acquisition is being funded from cash resources and will be leveraged after acquisition with long-dated investment grade equivalent debt secured on the Portfolio. The acquisition is being made at a discount to open market value and will, after leverage, deliver an equity return in excess of ReSI’s targets.

FOR FURTHER INFORMATION, PLEASE CONTACT:

ReSI Capital Management Limited

Jonathan Slater

Ben Fry

Mark Rogers

Alex Pilato

+44 (0) 20 7382 0900

Jefferies International Limited

Stuart Klein

Gary Gould

+44 (0) 20 7029 8000

FTI Consulting

Richard Sunderland

Claire Turvey

Richard Gotla

+44 (0) 20 3737 1000

Email: resi@fticonsulting.com

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ReSI Capital Management Limited

21-26 Garlick Hill,

London EC4V 2AU

0207 3820900

resiplc@greshamhouse.com

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ReSI Capital Management Limited is part of the Gresham House Group.

Gresham House

Octagon Point
5 Cheapside
London EC2V 6AA