Net Asset Value(s)

To:                 Company Announcements

Date:              19 July 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 30 June 2016 was 99.2 pence. This represents an increase of 0.1 per cent from the net asset value per share as at 31 March 2016 of 99.1 pence.

The net asset value is based on the external valuation of the Group's property portfolio prepared by Cushman & Wakefield. The Valuation Certificate explicitly stated as at 30 June 2016:

“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.”

This Company has a closed ended structure and is not under any pressure to sell properties.

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

The net asset value includes all income to 30 June 2016 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 2016 which is expected to be paid in September 2016.

Share Price

The share price was 88.5 pence per share at 30 June 2016, which represented a discount of 10.8 per cent to the NAV per share announced above. The share price total return for the quarter was -8.5 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 2016 to 30 June 2016.

	Pence per share	% of opening NAV
Net asset value per share as at 31 March 2016	99.1
Unrealised movement in valuation of property portfolio (including the effect of gearing)	0.2	0.2*
Movement in revenue reserves	(0.1)	(0.1)
Net asset value per share as at 30 June 2016	99.2	0.1

* The un-geared increase in the valuation of the property portfolio over the quarter to 30 June 2016 was 0.1%.

The net gearing as at 30 June 2016 was 29.1%#

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

Portfolio Analysis	£m	% of portfolio as at 30 June 2016	% capital value movement  in quarter
Offices	96.0	28.3	(0.4)
West End	25.9	7.6	-
South East	35.4	10.5	(0.4)
Rest of UK	34.7	10.2	(0.9)
Retail	69.2	20.4	(0.3)
West End	7.5	2.2	1.4
Rest of London	6.9	2.0	-
South East	17.7	5.2	0.1
Rest of UK	37.1	11.0	(0.9)
Industrial	95.6	28.2	1.4
South East	95.6	28.2	1.4
Retail Warehouse	78.4	23.1	-
Rest of London	8.5	2.5	-
Rest of UK	69.9	20.6	-
Total Property	339.2	100.0	0.1

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	339.2	142.1	143.3
Adjustment for lease incentives	(5.4)	(2.3)	(2.3)
Fair Value of Property Portfolio	333.8	139.8	141.0
Cash	11.9	5.0	5.0
Trade and other receivables	7.0	2.9	3.0
Trade and other payables	(7.2)	(3.0)	(3.0)
Interest-bearing loans	(108.8)	(45.5)	(46.0)
Net Assets at 30 June 2016	236.7	99.2	100.0

The property portfolio will next be valued by an external valuer during September 2016 and the net asset value per share as at 30 September 2016 will be announced in October 2016.

This announcement contains inside information.

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]

Peter Lowe
Scott Macrae
F&C Investment Business Ltd
Tel: [phone]
Fax: [phone]