Net Asset Value(s)

To:                 Company Announcements
Date:              25 April 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 March 2016 was 135.1 pence. This represents a decrease of 0.07 per cent from the audited NAV per share as at 31 December 2015 of 135.2 pence and a NAV total return for the quarter of 1.0 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 March 2016 and is calculated after deduction of all dividends paid prior to that date. As at 31 March 2016 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 130.5 pence per share at 31 March 2016, which represented a discount of 3.4 per cent to the NAV per share announced above. The share price total return for the quarter was -1.8 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 31 December 2015 to 31 March 2016 (including the effect of gearing):

	£m	Pence per share	% of opening NAV per share
NAV as at 31 December 2015	1,080.4	135.2
Unrealised increase in valuation of property portfolio *	0.3	0.0	0.0
Movement in fair value of interest rate swap	0.1	0.0	0.0
Other net revenue	11.0	1.4	1.0
Dividends paid	(12.0)	(1.5)	(1.1)
NAV as at 31 March 2016	1,079.8	135.1	(0.1)

* The ungeared increase in the valuation of the property portfolio over the quarter to 31 March 2016 was 0%, after allowing for capital expenditure and property purchases.

The external valuation of the portfolio fully incorporates the Government’s changes to Stamp Duty Land Tax (SDLT), introduced in the Spring 2016 Budget and effective from 17 March 2016. These changes have negatively impacted upon the value of larger commercial properties. The new arrangement calculates the overall SDLT payable based upon an adjusted banding and this has reduced the SDLT payable on properties below a value of £1.05m but increased it for those above. The SDLT changes do not apply to Scotland. Asset management initiatives and activity within the portfolio mitigated the effect of the SDLT increase.

The net gearing at 31 March 2016 was 19.2%.#

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

Portfolio Analysis – Sector Breakdown

	Market Value £m	% of portfolio as at 31 March 2016	% unrealised movement  in quarter
Offices	540.5	39.8	(0.1)
West End	191.5	14.1	(0.7)
South East	137.4	10.1	(1.6)
Rest of UK	192.2	14.2	(0.1)
City	19.5	1.4	11.3
Retail	357.2	26.3	(0.4)
South East	357.2	26.3	(0.4)
Industrial	195.8	14.4	1.4
South East	45.2	3.3	6.3
Rest of UK	150.6	11.1	0.1
Retail Warehouse	229.3	16.9	(0.2)
Other	35.5	2.6	3.5
Total Property Portfolio	1,358.3	100.0	0.0

Portfolio Analysis – Geographic Breakdown

	Market Value £m	% of portfolio as at 31 December 2015	% unrealised movement  in quarter
West End	482.5	35.5	(0.5)
South East	358.1	26.4	(0.6)
Scotland	177.3	13.1	(0.1)
Midlands	154.1	11.3	0.2
North West	143.9	10.6	(0.1)
Eastern	22.9	1.7	13.6
Rest of London	19.5	1.4	11.3
Total Property Portfolio	1,358.3	100.0	0.0

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	1,358.3	169.9	125.8
Adjustment for lease incentives	(16.0)	(2.0)	(1.5)
Fair Value of Property Portfolio	1,342.3	167.9	124.3
Current Debtors	19.1	2.4	1.8
Cash	54.0	6.8	5.0
Current Liabilities	(26.7)	(3.4)	(2.5)
Total Assets (less current liabilities)	1,388.7	173.7	128.6
Interest-bearing loans	(307.5)	(38.5)	(28.5)
Interest rate swap	(1.4)	(0.1)	(0.1)
Net Assets at 31 March 2016	1,079.8	135.1	100.0

Property Purchases and Sales

There were no 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 June 2016 and it is expected that the unaudited NAV per share as at 30 June 2016 will be announced in July 2016.

Enquiries:

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

Graeme Caton
Winterflood Securities Limited
Tel: [phone]