Fundamentum Social Housing REIT PLC

10th March 2023

Fundamentum Social Housing REIT plc

(the "Company" or, together with its subsidiaries, the "Group")

Portfolio Update – Voluntary Liquidation of Lotus Sanctuary CIC

and Breach of Investment Objective

On Friday 3rd March 2023, the Company was advised that one of their tenants, Lotus Sanctuary CIC (“Lotus”) had placed itself into voluntary liquidation, with Begbies Traynor being appointed as the insolvency practitioner.

All leases in place between Lotus and the Group will likely be disclaimed by the liquidator within 14 days of their appointment. This will have the effect of immediately terminating the leases in place with Lotus. Lotus currently accounts for 14.6% of the Group’s contracted rent roll across 2 properties.

The Company's investment adviser, Fundamentum Property Advisers Limited, is working closely with other Housing Associations and specialist management companies to take on the current Lotus leases and allow for the continued services for the supported tenants.

The Company made a valuation adjustment in the December 2022 NAV for all leases with arrears of more than 3 months, to account for the risk of bad debts and potential insolvencies, including the 2 properties leased to Lotus.

On Tuesday 7th March 2023, the Company was advised that one of the properties leased to Lotus was housing private tenants and not social housing tenants. This constitutes a breach of the Company’s investment objective which only allows for the housing of social housing tenants.

The Company's investment adviser, Fundamentum Property Advisers Limited, is working with the various parties involved to ensure this breach is rectified at the earliest opportunity.

The Company will provide an update on the above matters as soon as further information is available.

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

Boston Sponsor Services Limited

2nd Floor

St Mary’s Court

20 Hill Street

Douglas

Isle of Man

IM1 1EU

Telephone + 44 (0)1624 692930