7 May 2021

KCR Residential REIT plc

("KCR" or the "Company")

Exercise of Torchlight options and Total voting rights

KCR Residential REIT plc announces that it has received a notice of exercise from Torchlight Fund LP ("Torchlight") in respect of 600,000 options over KCR ordinary shares of 10p each ("Shares") at a price of 19.8079p per Share, calculated by reference to 95% of KCR's average 30-day VWAP prior to the notice.

Following this exercise, Torchlight's interest in the Company shall increase to 9,600,000 Shares, representing 34.08% of the Company's enlarged issued share capital, and 49,400,000 options. As detailed in the Company's announcements on 12 July 2019 and 29 July 2019, shareholders have approved a waiver of the obligations under Rule 9 of the Takeover Code in relation to Torchlight's shareholding increase.

Application has been made to the London Stock Exchange for 600,000 new Shares to be admitted to trading on AIM ("Admission") and Admission is expected to occur on or around 13 May 2021. The new Shares will, upon issue, rank pari passu with the existing Ordinary Shares in the Company.

Following Admission, the Company's enlarged issued share capital will be 28,169,631 Ordinary Shares. The Company holds no Ordinary Shares in Treasury. This figure of 28,169,631 Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Contacts:

Notes to Editors:

KCR's objective is to build a substantial residential property portfolio that generates secure income flow for shareholders. The Directors intend that the group will acquire, develop and manage residential property assets in a number of jurisdictions including the UK.