Social Housing Reit (SOHO) Acquisition presentation summary

Strategic acquisition and transaction overview

• Conditional agreement to acquire the Fern senior living portfolio, the UK's largest independent senior living rental portfolio with 2,163 assets valued at £185.3m, at a 6.63% valuation yield.

• Acquisition financed through a mix of shares issued at EPRA NTA, cash, and £92.1m of 17-year fixed-rate debt at 3.46%.

• Transaction completion expected mid-July 2026, subject to shareholder and lender approvals, with rebranding to Living REIT (LIVE).

• Enlarged group gross asset value (GAV) to increase to approximately £831m post-acquisition.

Financial impact and portfolio characteristics

• Expected high single-digit EPS accretion in the first full financial year post-acquisition.

• Net rental income for the combined portfolio projected at £51.5m, with 84% of properties EPC C or above.

• Fern portfolio offers inflation-aligned rents, strong occupancy (97%), and sustainable rent levels.

• Average resident tenure in Fern exceeds five years, with quality, self-contained flats and on-site support.

Market context and strategic rationale

• Acquisition leverages demographic tailwinds, with the UK over-55 population projected to reach 23.9m by 2032.

• National shortage of senior living units is expected to grow, with a 170,000-unit shortfall forecast by 2035.

• Senior living sector valued at £63bn, with increasing shift towards rental models for flexibility and financial security.

• Fern portfolio targets the growing demand for affordable, age-restricted rental housing for those aged 55+.