Q3 2026 Portfolio Performance Announcement

Below you will find our Q3 2026 performance announcement. This includes an LHX update, updated financial information on all properties, individual unit details, property disposals, dividends and other important information for investors.

To ensure that all clients have the opportunity to consider this announcement, the Exchange will be suspended as usual, for 3 working days, re-opening at 10am on Tuesday 10 November 2026.

Important upcoming dates

Today's announcements

1. LHX update

2. Portfolio performance

3. Dividend distributions

4. LHX Mortgage Bonds

5. Shareholder votes

6. Capital distributions

7. Property development loans

8. Properties with fire safety issues

9. Upcoming quarterly announcements

1. LHX update

We were pleased to announce in Q3 that Gulf Islamic Investments Group (GII) acquired a majority stake in LHX following receipt of formal approval from the Financial Conduct Authority (FCA). GII is a leading global Sharia-compliant alternative investment group in the GCC, with c.US$3.5 bn of assets under management across private equity, real estate, private credit and financial services. We prepared a detailed FAQ covering this announcement available here.

The property team sold 19 residential units in Q3 2026, amounting to £3.32m in property value, with a further 2 units sold in October. As a consequence £670k of mortgage finance was repaid across our portfolio during the last quarter, reducing interest costs across the portfolio, with the total portfolio mortgage loan-to-value (LTV) currently at 35%. Moreover, there are a further 47 residential units currently under offer.

We completed 4 members' voluntary liquidations in Q3, with a further 2 completed in October and we repaid a further two Bridging Finance Investments, Goodway Road and Idmiston Road, with returns for investors at 9.72% and 9.25% respectively.

We have further offerings launching in the coming weeks and months - all eligible investors will be notified of the scheduled launch time and date via email.

As ever we value your feedback, so please do not hesitate to get in touch with us via [email protected] if you have any comments or questions.

2. Portfolio performance

Today (5 November 2026) we have published updated financial information for every property, including net income, mortgage details and the net cash position. You can find this information at the top of each property's respective investment page, in the 'Financials' section.

The 'Unit Details' section, a tab within the 'Financials' section on each property's investment page that provides detailed information on a unit-by-unit basis, has been updated today to reflect the latest status of every unit and contracted rent for let units. This tab is updated monthly and allows you to track sales progress for all properties voted for sale as part of their 5-year anniversary sales process.

All other information is updated to 30 September 2026.

Residential portfolio unit status

The table below gives a summary of unit status by category across the residential portfolio at 30 October 2026. The changes exhibited over time continue to highlight the focus on selling residential units, as we seek to repay mortgages and fulfil shareholder mandates to sell properties following their 5-year anniversary votes.

Residential Unit sales

There were 19 residential units in Q3 2026, amounting to £3.32m in property value, with a further 2 units sold in October.

Clients can see the performance of agreed and completed sales in the Individual Unit Details of each property and on our Selling Record.

Mortgage debt

The average interest rate across our mortgaged portfolio stands at 6.7%, which remains unaffordable for the majority of residential properties. The cost of servicing mortgage debt erodes rental income and is the primary reason for dividend suspension across the portfolio.

We are continuing to pay down mortgage debt wherever possible, predominantly through unit sales, and £670k of mortgage finance was repaid across our portfolio during the last quarter. The total portfolio mortgage loan-to-value (LTV) is currently 35%.

3. Dividend distributions

Information on dividends for all properties can be found on each of the property's investment pages on the website.

4. Bridging Finance Investments

The Goodway Road, Solihull Bridging Investment's term recently completed (8 October), with investors achieving a total return of 9.72% and the Idmiston Road, London Investment's term completed yesterday (4 November), with investors achieving a total return of 9.25%.

We have further Bridging Investments launching in the coming weeks - you can register for early access on the Bridging Finance Investments page.

The Bridging Finance Investments and their rates are presented below:

5. LHX Mortgage Bonds

Following recent unit sales in Mortgage Bond properties there will be further repayments in the coming weeks.

The Mortgage Bonds and their rates, which increased today by 0.25% in line with the rise in the Base Rate, are presented below. Please note the next Bank of England base rate decision is coming up on 17 December and any change to the base rate will be immediately passed directly on to bondholders, changing the per annum interest rate for each of our Mortgage Bonds:

* Indicates partial repayment of capital with interest following unit sales.

View Mortgage Bonds page

6. Shareholder votes

There are currently no ongoing shareholder votes.

Your Dashboard, sets out those properties in which you are a shareholder with ongoing votes when live and all shareholders will be notified via email.

7. Capital distributions

The following capital distributions occurred in Q3 2026:

The Warehouse, Chester: The Company was placed into members' voluntary (solvent) liquidation on 21 October; with a cash distribution made the same day to shareholders' LHX accounts.

Riverside House, Bourne End: The Company was placed into members' voluntary (solvent) liquidation on 21 October; with a cash distribution made the same day to shareholders' LHX accounts.

Blackfords Court, Cannock: The Company was placed into members' voluntary (solvent) liquidation on 19 August; with a cash distribution made the same day to shareholders' LHX accounts.

Prospect Court, Market Drayton: The Company was placed into members' voluntary (solvent) liquidation on 29 July; with a cash distribution made the same day to shareholders' LHX accounts.

Keogh House, Swindon: The Company was placed into members' voluntary (solvent) liquidation on 29 July; with a cash distribution made the same day to shareholders' LHX accounts.

Further information on the MVL process can be found here.

8. Property development loans

Proseed is providing updates on an ad hoc basis once information is provided to them. You can find the information on the outstanding loans on their respective investment pages here.

9. Properties with fire safety issues

We are working to help resolve outstanding fire safety issues where possible and the government is continuing to address the issues across the UK. Our power to progress the situation is limited in our capacity as a leasehold owner of a small number of flats within a larger block. However, where fire-safety issues have previously emerged and we are the freeholder we have been able to proceed to undertake the necessary works and resolve the issues.

The following properties have had their fire safety issue(s) recently resolved, valuations are being undertaken and 5-year anniversary votes have either recently been undertaken or are scheduled to occur post receiving the new valuation:

• The Heights, West Bromwich
• Terence House, Newcastle upon Tyne
• Premier House, Edgware
• Vista Tower, Stevenage

We have three properties that remain impacted, with remedial works in various stages of completion - please read the latest update on each affected property's Latest Update section:

• Picture Works, Nottingham
• Hamilton House, Liverpool
• Sherringham Court, Hayes

10. Upcoming quarterly announcements

5 November 2026 - market closed from 10 am that day until 10 am, 10 November 2026

5 February 2026 - market closed from 10 am that day until 10 am, 10 February 2026

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If you have questions about these announcements, please email us at [email protected]

Best wishes,

The LHX team