Net Asset Value(s)

To:  Company Announcements

Date:  29 July 2015

Company:  F&C UK Real Estate Investments Limited

Subject:  Net Asset Value

Net asset value

The unaudited net asset value per share of F&C UK Real Estate Investments Limited (“FCRE”) as at 30 June 2015 was 97.0 pence. This represents an increase of 4.0 per cent from the net asset value per share as at 31 March 2015 of 93.3 pence.

The net asset value is based on the external valuation of the Group's property portfolio prepared by DTZ Debenham Tie Leung Limited.

The net asset value is calculated under International Financial Reporting Standards ("IFRS").

The net asset value includes all income to 30 June 2015 and is calculated after deduction of all dividends paid prior to that date.  It does not include a provision for the dividend for the quarter to 30 June 2015 which is expected to be paid in September 2015.

Share Price

The share price was 99.5 pence per share at 30 June 2015, which represented a premium of 2.6 per cent to the NAV per share announced above. The share price total return for the quarter was -1.7 per cent.

Breakdown of NAV movement

Set out below is a breakdown of the change to the unaudited net asset value per share calculated under IFRS over the period from 31 March 2015 to 30 June 2015.

	Pence per share	% of opening NAV
Net asset value per share as at 31 March 2015	93.3
Unrealised movement in valuation of property portfolio (including the effect of gearing)	3.5	3.8*
Movement in interest rate swap valuation	0.5	0.5
Movement in revenue reserves	(0.3)	(0.3)
Net asset value per share as at 30 June 2015	97.0	4.0

* The un-geared increase in the valuation of the property portfolio over the quarter to 30 June 2015 was 2.6%.

The net gearing as at 30 June 2015 was 29.7%#

# Bank debt (less net current assets, excluding swap liability) divided by fair value of investment properties

Portfolio Analysis	£m	% of portfolio as at 30 June 2015	% capital value movement  in quarter
Offices	97.1	28.8	2.0
West End	24.8	7.4	3.3
South East	36.8	10.9	2.6
Rest of UK	35.5	10.5	0.5
Retail	71.4	21.2	1.5
West End	6.1	1.8	3.9
Rest of London	6.9	2.0	2.6
South East	19.9	5.9	0.9
Rest of UK	38.5	11.5	1.3
Industrial	90.2	26.7	4.4
South East	89.1	26.4	4.4
Rest of UK	1.1	0.3	-
Retail Warehouse	78.8	23.3	2.4
Rest of London	8.5	2.5	6.9
Rest of UK	70.3	20.8	1.9
Total Property	337.5	100.0	2.6

Property Purchases and Sales

On 7 May 2015, IRP Holdings Limited, a subsidiary of FCRE, sold 40 Yorkshire Street, Rochdale for £350,000 which was consistent with its valuation as at 31 March 2015. There were no other purchases or sales in the quarter.

Summary Balance Sheet

	£m	Pence per share	% of Net Assets
Property Portfolio per Valuation Report	337.5	144.3	148.7
Adjustment for lease incentives	(5.6)	(2.4)	(2.4)
Fair Value of Property Portfolio	331.9	141.9	146.3
Cash	4.7	2.0	2.1
Trade and other receivables	6.9	2.9	3.0
Trade and other payables	(7.0)	(3.0)	(3.1)
Interest-bearing loan	(103.0)	(44.0)	(45.4)
Interest rate swap	(6.6)	(2.8)	(2.9)
Net Assets at 30 June 2015	226.9	97.0	100.0

The property portfolio will next be valued by an external valuer during September 2015 and the net asset value per share as at 30 September 2015 will be announced in October 2015.

Enquiries:
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Tel: [phone]
Fax: [phone]

Ian McBryde
Scott Macrae
F&C Investment Business Ltd
Tel: [phone]
Fax: [phone]