Net Asset Value

To:                   Company Announcements
Date:                19 July 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 30 June 2016 was 134.1 pence. This represents a decrease of 0.7 per cent from the unaudited NAV per share as at 31 March 2016 of 135.1 pence and a NAV total return for the quarter of 0.4 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 Valuer has explicitly stated that we are in a period of uncertainty following the UK’s decision to exit the EU, including many factors that impact the property investment and letting markets. It has not therefore been possible to gauge the effect of the decision by reference to transactions in the market place and the probability of the valuations exactly coinciding with prices received were the properties to be sold has reduced.

The NAV includes all income to 30 June 2016 and is calculated after deduction of all dividends paid prior to that date. As at 30 June 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 113.8 pence per share at 30 June 2016, which represented a discount of 17.8 per cent to the NAV per share announced above. The share price total return for the quarter was -11.8 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 March 2016 to 30 June 2016 (including the effect of gearing):

	£m	Pence per share	% of opening NAV per share
NAV as at 31 March 2016	1,079.8	135.1
Unrealised decrease in valuation of property portfolio *	(4.5)	(0.6)	(0.4)
Movement in fair value of interest rate swap	(1.5)	(0.2)	(0.2)
Other net revenue	10.5	1.3	1.0
Dividends paid	(12.0)	(1.5)	(1.1)
NAV as at 30 June 2016	1,072.3	134.1	(0.7)

* The ungeared decrease in the valuation of the property portfolio over the quarter to 30 June 2016 was 0.3%, after allowing for capital expenditure and property purchases.

The net gearing at 30 June 2016 was 19.9%.#

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

Portfolio Analysis – Sector Breakdown

	Market Value £m	% of portfolio as at 30 June 2016	% unrealised movement  in quarter
Offices	527.6	38.9	(2.6)
West End	187.6	13.8	(2.4)
South East	134.4	9.9	(2.2)
Rest of UK	186.7	13.8	(2.9)
City	18.9	1.5	(4.1)
Retail	363.9	26.9	1.6
South East	363.9	26.9	1.6
Industrial	200.6	14.8	2.5
South East	47.6	3.5	5.2
Rest of UK	153.1	11.3	1.6
Retail Warehouse	228.2	16.8	(0.5)
Other	35.5	2.6	0.0
Total Property Portfolio	1355.8	100.0	(0.3)

Portfolio Analysis – Geographic Breakdown

	Market Value £m	% of portfolio as at 30 June 2016	% unrealised movement  in quarter
West End	484.7	35.7	0.1
South East	355.8	26.2	(0.7)
Scotland	171.3	12.6	(3.4)
Midlands	157.5	11.7	2.2
North West	142.4	10.5	(1.1)
Eastern	25.2	1.9	10.2
Rest of London	18.9	1.4	(4.1)
Total Property Portfolio	1,355.8	100.0	(0.3)

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 Crawley, Leonardo House, Manor Royal	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	1,355.8	169.6	126.4
Adjustment for lease incentives	(16.1)	(2.0)	(1.5)
Fair Value of Property Portfolio	1,339.7	167.6	124.9
Current Debtors	20.5	2.6	1.9
Cash	43.5	5.4	4.1
Current Liabilities	(22.9)	(2.9)	(2.1)
Total Assets (less current liabilities)	1,380.8	172.7	128.8
Interest-bearing loans	(307.2)	(38.4)	(28.6)
Interest rate swap	(1.3)	(0.2)	(0.2)
Net Assets at 30 June 2016	1072.3	134.1	100.0

Property Purchases and Sales

There were no sales or purchases during the quarter.

Borrowings

As previously announced on 21 June 2016, the Group has agreed amended financing arrangements with Barclays Bank PLC ("Barclays") to the existing £50 million term loan facility between SCP Estate Holdings Limited, a wholly owned subsidiary of the Company, and Barclays which was repayable in June 2017. The amended arrangements extend the repayment date of the £50 million term loan facility to 21 June 2021.  In addition the Board has agreed an additional revolving credit facility of £50 million with Barclays over the same period, to be used for ongoing working capital purposes and to provide the Group with the flexibility to acquire further property should the opportunity arise.

Following this refinancing, the Group's available borrowings comprise a £260 million term loan with Legal & General Pensions Limited, with a maturity date of 31 December 2024, and the £50 million term loan facility provided by Barclays together with the undrawn £50 million revolving credit facility. The current drawn down borrowings amount to £310 million and represent 22.1 per cent of the total assets of the Group as at 30 June 2016.

The Group terminated its existing interest rate hedging arrangements entered into in connection with the Barclays facility at a cost of £1.4 million. The Group has entered into a new £50 million interest rate swap in connection with the extended Barclays term facility which has fixed interest payable at 2.5 per cent. per annum, a reduction on the interest rate of the previous Barclays facility which was 4.9 per cent per annum.

The weighted average interest rate on the Group's total current borrowings is 3.3 per cent. The weighted average interest rate on the Group's total borrowings has therefore fallen by 0.3 per cent. following the refinancing.

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 September 2016 and it is expected that the unaudited NAV per share as at 30 September 2016 will be announced in October 2016.

This announcement contains inside information.

Enquiries:

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

Graeme Caton
Winterflood Securities Limited
Tel: [phone]