Net Asset Value(s)

To:                 Company Announcements
Date:              27 January 2016
Company:        F&C Commercial Property Trust Limited

Subject:          Net Asset Value

Net Asset Value

The unaudited net asset value (‘NAV’) per share of the Group as at 31 December 2015 was 135.3 pence. This represents an increase of 2.6 per cent from the unaudited NAV per share as at 30 September 2015 of 131.8 pence and a NAV total return for the quarter of 3.8 per cent.

The NAV has been calculated under International Financial Reporting Standards (‘IFRS’). It is based on the external valuation of the Group’s direct property portfolio prepared by CBRE Limited.

The NAV includes all income to 31 December 2015 and is calculated after deduction of all dividends paid prior to that date. As at 31 December 2015 no adjustments were required to the NAV in respect of dividends for which the share price had gone ex-dividend.

Share Price

The share price was 134.4 pence per share at 31 December 2015, which represented a discount of 0.7 per cent to the NAV per share announced above. The share price total return for the quarter was -1.7 per cent.

Analysis of Movement in NAV

The following table provides an analysis of the movement in the unaudited NAV per share for the period from 30 September 2015 to 31 December 2015 (including the effect of gearing):

	£m	Pence per share	% of opening NAV per share
NAV as at 30 September 2015	1,053.8	131.8
Unrealised increase in valuation of property portfolio *	28.6	3.7	2.7
Movement in fair value of interest rate swap	0.3	0.0	0.0
Other net revenue	10.4	1.3	1.0
Dividends paid	(12.0)	(1.5)	(1.1)
NAV as at 31 December 2015	1,081.1	135.3	2.6

* The ungeared increase in the valuation of the property portfolio over the quarter to 31 December 2015 was 2.2%, after allowing for capital expenditure and property purchases.

The net gearing at 31 December 2015 was 19.0%.#

# Net gearing: (Borrowings – cash) ÷ total assets (less current liabilities and cash).

Portfolio Analysis – Sector Breakdown

	Market Value £m	% of portfolio as at 31 December 2015	% unrealised movement  in quarter
Offices	541.0	39.9	1.7
West End	192.5	14.2	2.0
South East	139.6	10.3	2.6
Rest of UK	192.1	14.2	0.3
City	16.8	1.2	2.9
Retail	358.0	26.4	4.2
South East	358.0	26.4	4.2
Industrial	193.1	14.3	0.9
South East	22.4	1.7	1.3
Rest of UK	170.7	12.6	0.9
Retail Warehouse	229.6	16.9	1.5
Other	34.3	2.5	2.1
Total Property Portfolio	1,355.9	100.0	2.2

Portfolio Analysis – Geographic Breakdown

	Market Value £m	% of portfolio as at 31 December 2015	% unrealised movement  in quarter
West End	483.7	35.7	3.4
South East	360.3	26.6	2.6
Scotland	177.3	13.1	0.2
Midlands	153.6	11.3	(0.1)
North West	144.0	10.6	2.1
Eastern	20.2	1.5	(0.1)
Rest of London	16.8	1.2	2.9
Total Property Portfolio	1,355.9	100.0	2.2

Top Ten Investments

	Sector
Properties valued in excess of £200 million
London W1, St Christopher’s Place Estate *	Retail
Properties valued between £70 million and £100 million
Newbury, Newbury Retail Park	Retail Warehouse
London SW1, Cassini House, St James’s Street Solihull, Sears Retail Park	Office Retail Warehouse
Properties valued between £50 million and £70 million
London SW19, Wimbledon Broadway	Retail
London W1, 25 Great Pulteney Street	Office
Properties valued between £40 million and £50 million
Uxbridge, 3 The Square, Stockley Park Leonardo Crawley, Crawley	Office Office
Aberdeen, Unit 2 Prime Four Business Park, Kingswells	Office
Aberdeen, Unit 1 Prime Four Business Park, Kingswells	Office

*Mixed use property of retail, office and residential space.

Summary Balance Sheet

	£m	Pence per share	% of Net Assets
Property Portfolio per Valuation Report	1,355.9	169.6	125.3
Adjustment for lease incentives	(15.9)	(2.0)	(1.5)
Fair Value of Property Portfolio	1,340.0	167.6	123.8
Current Debtors	19.6	2.4	1.8
Cash	55.7	7.0	5.2
Current Liabilities	(25.3)	(3.1)	(2.3)
Total Assets (less current liabilities)	1,390.0	173.9	128.5
Interest-bearing loans	(307.4)	(38.5)	(28.4)
Interest rate swap	(1.5)	(0.1)	(0.1)
Net Assets at 31 December 2015	1,081.1	135.3	100.0

Property Purchases and Sales

During the quarter the development of The Leonardo Building at Crawley Business Quarter, Manor Royal, Crawley achieved practical completion. The total consideration of the development was £45.3 million. After Virgin Atlantic’s tenant fit-out and 18 month rent free period, the property will be income producing, generating rental income of approximately £2.5 million per annum, equivalent to a net initial yield of 5.3 per cent.

There were no other sales or purchases during the quarter.

Borrowings

The Group’s borrowings consist of a £260 million loan with a term to 31 December 2024 and a fixed interest rate of 3.32 per cent per annum. The Group also has a £50 million bank loan with a term to 28 June 2017 on which the interest rate has been fixed, through an interest rate swap of the same notional value and duration, at 4.88 per cent per annum.

The Group’s weighted cost of debt is therefore 3.57 per cent per annum.

Key Information

This statement and further information regarding the Company, including movements in the share price since the end of the period and the Group’s most recent annual and interim reports, can be found at the Company’s website www.fccpt.co.uk.

The next quarterly valuation of the property portfolio will be conducted by CBRE Limited during March 2016 and it is expected that the unaudited NAV per share as at 31 March 2016 will be announced in April 2016.

Enquiries:

Richard Kirby
F&C REIT Property Asset Management plc
Tel: [phone]

Graeme Caton
Winterflood Securities Limited
Tel: [phone]