Davy Irish Property Fund | Quarterly Report – Q2 2020 1 | 5

Davy Irish Property FundQ2 2020 Report 3 Months to 30 June 2020

€242m1,2

Gross Asset Value

-6.71%Capital Return – Q2

€13,718NAV per Unit

-5.78%Total Return – Q2

+0.92%Income Return – Q2

Q2

Key Fund Metrics

1 This figure has been rounded by Davy2 Gross Asset Value means the Net Asset Value of the Fund plus borrowings

All data refers to Unit Class D (Distributing) - Sedol Number 9795233

All performance figures are for the period ending 30 June 2020 3 and 5 year figures show the annual average performance for those periods

These figures are net of fees. Capital Return represents Net Asset Value (NAV) excluding dividends. Income Return represents dividends distributed.

Sources: Northern Trust and J&E Davy

Welcome to the Quarterly Report for the Davy Irish Property Fund (“DIPF” or “the Fund”)

Overview ■ Overall Fund performance is down 4.88% for the year to date

and down 5.78% for the quarter.

■ Gross Asset Value (GAV) at 30 June 2020 is €242m, as compared to €257m at the end of Q1 2020.

■ Q2 dividend per unit is €135.87 and €803.07 for the rolling 12 months to 30 June 2020.

■ The Fund continues to deliver strong income. The annualised quarterly dividend is at 3.8%.

■ The Fund vacancy rate across all assets is currently at 3.07% by value.

Quarterly Report

€169m1

Net Asset Value

Warning: Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. The income you get from this investment may go down as well as up.

Warning: Forecasts are not a reliable indicator of future results.

Capital Income Total return

QTR on QTR -6.71% 0.92% -5.78%

YTD -7.20% 2.32% -4.88%

1 yr p.a. -10.11% 5.26% -4.85%

3 yrs p.a. -2.71% 5.05% 2.34%

5 yrs p.a. 1.99% 5.64% 7.63%

10 yrs p.a. 6.63% 5.75% 12.38%

Fund Performance – Unit Class D

Real Estate

Davy Irish Property Fund | Quarterly Report – Q2 2020 2 | 5

The Fund's bid unit price at 30 June 2020 was €13,718. This reflects a decrease of 6.71% in the unit price of the Fund for the quarter. The distribution yield for the quarter was 0.92% giving a total return of -5.78%.

The external valuers, Savills have continued to include the Royal Institution of Chartered Surveyors (RICS) valuation material uncertainty clause in the quarter end valuations report. This is reflecting market uncertainty caused by the global Covid-19 pandemic. The inclusion of this clause is being instructed by RICS and is being included in all property fund valuations being carried out since the Covid-19 restrictions began.

During the quarter the country and the economy experienced near total shut down as the government implemented strict lock down measures in an attempt to limited to spread of COV19. All businesses except essential services were asked to cease trading and the population remained at home. During the period we spent a significant amount of time working to support our tenants across all sectors, in particular our retail tenants. We managed to keep Nutgrove Shopping Centre opening through the entire shut down allowing all those retailers in the centre considered essential to stay open and continue to trade in a safe and responsible manner. Over recent weeks government restrictions have been lifted on a phased basis and all retailers able to trade under new government guidelines are back open. Office and industrial tenants are slowly returning to fuller capacity with many implementing maximum workforce numbers while work from home is still wide spread.

During the period rent collection has been a particular focus of the Fund Manager. The Fund has collected 97% of the billed rent during the period from the office and industrial tenants while the rent collection from retail tenants was at 55% of rent billed. Overall the Fund collected 77%. This was particularly strong during the period when lock down was at it most extreme.

The asset valuation across the portfolio have been impacted by the period of the lock down and impact the economic hibernation. Retail assets are down 11% while this office and industrial assets have been devalued 1.6% and 2.8% respectively. We believe that our external independent valuers have fully reflected the impacts of the shutdown to date in the valuation write down during this quarter. We have a clearer pathway to the economy opening up and should see rental recoveries increase during the second half of this year. During second half of the year the Fund will also look to recover unpaid Q2 rents which will further boost recoveries and drive income distribution.

Performance

Warning: Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. This product may be affected by changes in currency exchange rates.

Warning: Forecasts are not a reliable indicator of future results.

Fund Performance – 2014 to 20182015 2016 2017 2018 2019

Capital Return 20.7% 8.7% 0.8% 2.3% -2.95%

Income Return 3.6% 4.7% 4.5% 4.8% 5.67%

Total Return 24.3% 13.4% 5.4% 7.1% 2.72%

These figures are net of fees and represent calendar year performance for unit class D.Capital Return represents Net Asset Value (NAV) excluding dividends. Income Return represents dividends distributed.Source: Northern Trust & J&E Davy

Davy Irish Property Fund | Quarterly Report – Q2 2020 3 | 5

Warning: Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. If you invest in this product, you may lose some or all of the money you invest.

Warning: Forecasts are not a reliable guide to future performance.

All data correct as at 30 June 2020 Source: J&E Davy unless otherwise statedAll data refers to Unit Class D (Distributing) - Sedol Number 9795233

Source Net Asset Value NAV - Northern Trust*WAULT = weighted average unexpired lease term Vacancy Rate by Value of the Fund

Office7 properties

197,564 sq ft

22 tenants

Retail16 properties

184,243 sq ft

90 tenants

Industrial4 properties

183,148 sq ft

11 tenants

Office 48%

Retail 45%

Industrial 7%

Dublin 95%

Outside Dublin 5%

Portfolio Breakdown Geographical Split

The distribution of net Q2 income was declared at the end of the quarter and will be distributed during July. This distribution equates to €135.87 per unit and brings the income distributed for the rolling 12-month period to €803.07 per unit or 5.26%.

The Fund is established as an open-ended fund with limited liquidity. The Manager will endeavour to redeem a redemption request as quickly as possible and it is expected that a

redemption request will be fully dealt with within three years. Although it is intended that a certain number of Units will be redeemed on each Redemption Date occurring during this three-year period, there is no guarantee that a minimum number of units will be redeemed on any given Redemption Date during this three-year period. The eventual redemption proceeds may differ from the redemption price at the date of redemption notification.

Distributions

Top 3 Holdings

Size 111,000 sq ft Ownership 67% Tenants Multi Tenanted. Anchored by

Tesco, Dunnes and PenneysWAULT 4.4 Years

Nutgrove Shopping Centre

Size 36,000 sq ftOwnership 75.91%Tenants Multi TenantedWAULT 5.92 Years

Percy Place

Size 44,000 sq ftOwnership 100%Tenants MetLife, MedtronicWAULT 5.97 Years

20 On Hatch

Davy Irish Property Fund | Quarterly Report – Q2 2020 4 | 5

Back to the Office; Working from Home or Living at WorkDuring that first flush of remote-working novelty, as we unfolded our laptops in the living room the new normal seemed too good to be true. Productivity up, job satisfaction through the roof. Overheads down, commuting gone altogether. And little loss of connectivity thanks to platforms like Teams, GoToMeeting, and of course Zoom.

The #WFH movement gathered momentum when tech behemoths including Facebook and Google confirmed that most of their employees would continue working remotely for the remainder of this year. Twitter chief Jack Dorsey then went a step further, announcing that his employees could work from home “indefinitely”.

All this, inevitably, led to a slew of headlines predicting the ‘death of the office’. These claims are likely to prove premature. While most companies in Ireland and elsewhere continue to exercise a remote-working policy, many are now actively looking at re-opening their offices and getting back to work.

This is not because working from home is not working out. Some fatigue has undoubtedly set in, which is only to be expected if you’ve spent the past 12 weeks sitting at your kitchen table. But the (enforced) experiment has largely been a success and remote or flexi-working is here to stay in some form. This is reflected in Cushman & Wakefield’s findings that 73 percent of surveyed employees believe their company should embrace some level of working from home.

The bigger issue is that companies – almost all companies – need a physical space in which to gather and work together. If you are assembling car parts or selling cups of coffee, this is obvious. But even the tech giants, pioneers of the remote-working movement, employ engineers who need to be in the company lab. We believe there will always be a need for office space. This need for office space appears to be particularly prevalent amongst the younger generations making up the work force. This is due to the increased likelihood that Millennials and Gen Z employees will encounter inadequate home workspaces. Lack of suitable space in apartments and security issues emanating from house mates over hearing confidential conversations drives this inadequacy. This disproportionate demand for office space for this cohort of the workforce was reflected in Cushman & Wakefield’s recent report which found 70 percent of Gen Z and 69 percent of Millennials have experienced challenges in working from home, compared to 55 percent of Baby Boomers.

A less tangible but no less important driver of going back to work is the X factor generated by people coming together to collaborate. This is the main reason offices were built in the first place. Human beings are social animals, and mankind’s best work on this planet has generally come about as part of a team. The negative impact which remote working is having on this crucial element of the office experience is clearly evident in Cushman & Wakefield’s findings that just under 50% of surveyed employees feel connected to their colleagues when working from home.

Office life will return because it’s hard to develop a relationship with someone you’ve never met. It’s hard to win or work out a business deal when you’re looking into a screen. It’s hard to get a sense of someone, be properly at ease, when you’re not in the same room. Working together means being together.

This is not to say office life will simply re-boot as it was before. The idea of putting thousands of people into the same building at the same time is under review. Companies may implement hybrid working policies that allow people to work remotely when it suits and that ensure everyone can adhere to a stringent set of post-pandemic health and safety measures.

One such measure, of course, will be social distancing. As beleaguered restaurateurs are finding out, as former Google CEO Eric Schmidt has pointed out, the need to maintain social distance in the workplace may place an even bigger premium on office space going forward. (“My guess is we’ll have more demand for office space, not less,” Schmidt told CBS News in May). Since COV19 we are seeing circumstance where work floorplans are being redesigned to accommodate more space around the work stations and a move away from hotdesking and thus reducing the overall density levels.

Consider too that office life is about more than just workers sitting at their desks. Entire economies have been shaped around the flow of people to and from our central business districts. There is a lot riding on commercial property, from taxes to transport systems to takeaway sandwiches.

The Irish success story has been founded on a diverse and educated workforce, a business-friendly environment, and a surging tech sector, none of which are going anywhere. We have a recovery to get on with and commercial property has a part to play in that. Office life may be changing but reports of its death are greatly exaggerated.

Davy Irish Property Fund | Quarterly Report – Q2 2020 5 | 5

While the media discourse surrounding the so called “new normal” working experience has been dominated by a strict dichotomy between office and remote working, there has been a lack of discussion regarding the collaborative potential of the different work environments. Rather than compelling organisations to make swift, definitive decisions surrounding the future of the workplace, the ongoing pandemic has brought to light the enhanced optionality and efficiency of a hybrid model of office and remote working. There now exists a significant opportunity for companies to begin the strategic integration of office and remote working into a “Total Workplace Ecosystem”. In this “Total Workplace Ecosystem”, the workplace may no longer be a single location but an ecosystem of different locations and experiences to support convenience, functionality and well-being. Be prepared to hear the phrase Hub and Spoke a lot!

So, while it appears that the Covid-19 pandemic may in fact signal the end of the office as we know it, it is not for the reasons some commentators have suggested. Rather than leading to a widespread reduction in the utilisation of office space, this pandemic is instead likely to alter how the office space is viewed by organisations. For many, there will be a shift away from the traditional view of the office as a functional destination necessary for the performance of work towards a more collaborative view of the office as being just one element, albeit an integral one, in the entire workplace ecosystem. This modified understanding of the role of the office will provide office spaces with new purpose as places to provide inspiring destinations that strengthen cultural connection, learning, bonding with customers and colleagues, and foster creativity and innovation.

Warning: Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. The income you get from this investment may go down as well as up.

Warning: Forecasts are not a reliable guide to future performance.

Davy Irish Property Fund | Quarterly Report – Q2 2020 6 | 5

J & E Davy, trading as Davy and Davy Real Estate, is regulated by the Central Bank of Ireland. J & E Davy is a member of Euronext Dublin and the London Stock Exchange. In the UK, J & E Davy is authorised by the Central Bank of Ireland and authorised and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our authorisation and regulation by the Financial Conduct Authority are available from us on request. Davy Global Fund Management Limited, trading as Davy Global Fund Management, is regulated by the Central Bank of Ireland. In the UK, Davy Global Fund Management is authorised by the Central Bank of Ireland and is subject to limited regulation by the Financial Conduct Authority (“FCA”). In Luxembourg, Davy Global Fund Management is authorised by the Central Bank of Ireland and is subject to limited regulation by the Commission de Surveillance du Secteur Financier (“CSSF”). Details about the extent of our authorisation and regulation by the FCA and CSSF are available from us upon request.

Dublin Office Davy House 49 Dawson Street Dublin 2 D02 PY05Ireland +353 1 679 7788 dublin@davy.ie

Belfast Office Donegall House 7 Donegall Square North Belfast BT1 5GB Northern Ireland +44 28 90 310 655 belfast@davy.ie

Cork Office Hibernian House80A South MallCorkT12 ACR7Ireland +353 21 425 1420 cork@davy.ie

Galway Office 1 Dockgate Dock Road GalwayH91 K205 Ireland +353 91 530 520 galway@davy.ie

London Office Dashwood House 69 Old Broad Street London EC2M 1QS United Kingdom+44 207 448 8870london@davy.ie

@DavyGroupwww.davy.ie/real-estate/dipf

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This quarterly report is intended as a summary of activity and performance for the specified period. It is strictly for information purposes and is not intended to be a comprehensive list of all activities of the Fund or an invitation to invest. It is not a recommendation or investment research and is classified as a marketing communication in accordance with the European Union (Markets in Financial Instruments) Regulations 2017. It does not constitute an offer or solicitation for the purchase or sale of any financial instrument, trading strategy, product or service and does not take into account the investment objectives, knowledge and experience or financial situation of any particular person. Investors should be aware that the Manager & Alternative Investment Fund Manager (‘AIFM’) (Davy Global Fund Management) is a wholly owned subsidiary of the Investment Adviser and Distributor (J&E Davy) and the Directors of the Manager / AIFM may also be Directors of the Investment Adviser and Distributor; both companies are part of the J&E Davy Holdings Group. Our conflicts of interest management policy is available at www.davy.ie.