Net Asset Value(s)

To:                   Company Announcements
Date:                25 January 2016
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 31 December 2015 was 99.9 pence. This represents an increase of 1.7 per cent from the net asset value per share as at 30 September 2015 of 98.2 pence.

The net asset value is based on the external valuation of the Group's property portfolio prepared by Cushman & Wakefield.

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

The net asset value includes all income to 31 December 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 31 December 2015 which is expected to be paid in March 2016.

Share Price

The share price was 101.75 pence per share at 31 December 2015, which represented a premium of 1.9 per cent to the NAV per share announced above. The share price total return for the quarter was 3.0 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 30 September 2015 to 31 December 2015.

	Pence per share	% of opening NAV
Net asset value per share as at 30 September 2015	98.2
Unrealised movement in valuation of property portfolio (including the effect of gearing)	1.5	1.5*
Movement in interest rate swap valuation	0.2	0.2
Net asset value per share as at 31 December 2015	99.9	1.7

* The un-geared increase in the valuation of the property portfolio over the quarter to 31 December 2015 was 1.1%.

The net gearing as at 31 December 2015 was 29.1%#

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

Portfolio Analysis	£m	% of portfolio as at 31 December 2015	% capital value movement  in quarter
Offices	97.3	28.4	0.3
West End	25.9	7.5	1.1
South East	36.1	10.6	(0.3)
Rest of UK	35.3	10.3	0.5
Retail	70.2	20.5	0.6
West End	7.0	2.1	8.5
Rest of London	6.9	2.0	-
South East	18.3	5.3	-
Rest of UK	38.0	11.1	(0.3)
Industrial	95.7	28.0	3.0
South East	94.6	27.7	3.0
Rest of UK	1.1	0.3	-
Retail Warehouse	78.9	23.1	0.1
Rest of London	8.5	2.5	-
Rest of UK	70.4	20.6	0.1
Total Property	342.1	100.0	1.1

Property Purchases and Sales

There were no purchases or sales in the quarter.

Summary Balance Sheet

	£m	Pence per share	% of Net Assets
Property Portfolio per Valuation Report	342.1	143.3	143.4
Adjustment for lease incentives	(5.8)	(2.4)	(2.4)
Fair Value of Property Portfolio	336.3	140.9	141.0
Cash	10.8	4.5	4.5
Trade and other receivables	7.1	3.0	3.0
Trade and other payables	(7.2)	(3.0)	(3.0)
Interest-bearing loan	(108.5)	(45.5)	(45.5)
Net Assets at 31 December 2015	238.5	99.9	100.0

The property portfolio will next be valued by an external valuer during March 2016 and the net asset value per share as at 31 March 2016 will be announced in April 2016.

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]