6 July 2021

Extension of share buy-back programme

McKay Securities Plc ("McKay" or the "Company"), the only UK REIT specialising entirely in the South East and London office, industrial and logistics markets, today announces the extension of its share buy-back programme.

On 8 March 2021, the Company announced the launch of a share buy-back programme with a total size of up to £10.0 million, or approximately 5% of the Company's issued ordinary share capital, to run initially from 8 March 2021 until 1 July 2021 (the "Initial Buyback Period"). During the Initial Buyback Period, 1.7 million shares were repurchased at an average price of 220.2 pence and at a total cost of £3.7 million. 92,670,360 shares remain in issue.

Following the general authority to repurchase shares granted by its shareholders at the Company's Annual General Meeting held on 1 July 2021, the Company is now in a position to continue the buy-back programme.

The Company has therefore entered into an extension agreement with Stifel Nicolaus Europe Limited ("Stifel") to continue the share buy-back programme, which is expected to extend until the Company's 2022 AGM, unless completed earlier (the "Extended Programme"). Accordingly, the total size of the Extended Programme shall be up to £6.3 million. If the financial limit of the Extended Programme is reached prior to the 2022 AGM, the Board will consider a further programme to utilise the potential benefit of the full authority granted by the Annual General Meeting, in which case the Company would issue a further announcement.  The extension demonstrates the Company remains committed to its previously stated objective to enhance shareholder value.

The Board will keep the Extended Programme under review to make sure it continues as an efficient and effective means of generating value for shareholders alongside portfolio initiatives and property acquisitions and disposals. While the Company has launched the Extended Programme, there is no certainty on the volume of shares that may be acquired under the Extended Programme and the pace of acquisitions.

The parameters under which the Extended Programme will operate will be in accordance with the Company's general authority to repurchase shares, granted by its shareholders at the Annual General Meeting held on 1 July 2021 and which authorises the Company to purchase a maximum of 9,301,809 shares.

The Extended Programme will also be effected in accordance with the Market Abuse Regulation 596/2014/EU (as in force in the UK and as amended by the Market Abuse (Amendment) (EU Exit) Regulations 2019) (the "Regulation") and Chapter 12 of the UK Listing Rules. Given the level of liquidity in the Company's shares, the Company will retain the ability to exceed the average daily volume restrictions established by the Commission Delegated Regulation 2016/1052/EU (as in force in the UK and as amended by the FCA's Technical Standards (Market Abuse Regulation) (EU Exit) Instrument 2019) (the "Delegated Regulation") and therefore the Extended Programme may not fall within the safe harbour provisions of the Regulation.

In advance of moving into a closed period, the Company will enter into an irrevocable commitment with Stifel to continue the Extended Programme through a non-discretionary mandate, under which Stifel will make purchases of shares within certain pre-set parameters independently of, and uninfluenced by, the Company for the duration of the closed period. Under the terms of the non-discretionary mandate, Stifel would retain the ability to exceed the average daily volume restrictions set out in the Delegated Regulation.

The Company will make further announcements in due course following the purchase of any shares under the Extended Programme. Shares bought back under the Extended Programme will be cancelled.

For further information, please contact:

McKay Securities Plc                           FTI Consulting 

Simon Perkins, CEO                              Dido Laurimore, Talia Jessener

Giles Salmon, CFO                                0203 727 1000

0118 950 2333                                       mckay@fticonsulting.com

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person responsible for release of this announcement on behalf of the Company is Giles Salmon (Chief Financial Officer)

About McKay Securities          

McKay Securities Plc is a commercial property investment company with Real Estate Investment Trust (REIT) status, listed on the main market of the London Stock Exchange.  It specialises in the development and refurbishment of office, industrial and logistics buildings within proven markets of South East England and London.  The portfolio at 31 March 2021 comprised 33 properties, valued at £437.90m, located in established areas, predominantly along the M4 corridor, where McKay has deep expertise, with a focus on growing satellite towns benefitting from strong connectivity to London and robust demand amongst leading occupiers. 

www.mckaysecurities.plc.uk