Net Asset Value(s)

30 October 2015

UK Commercial Property Trust Limited (“UKCPT” or “the Company”)

Net Asset Value at 30 September 2015

UK Commercial Property Trust Limited (LSE: UKCM), the largest Guernsey based, UK focused, London listed commercial property investment company, which is advised by Standard Life Investments, announces its unaudited quarterly Net Asset Value (“NAV”) as at 30 September 2015.

Highlights:

• Unaudited NAV per share increased 0.8% to 86.1p (30 June 2015: 85.4 p) representing a 1.9% total return in the quarter;

• Portfolio valued at £1,255.7 million with a like for like increase (excluding capital expenditure) of 1.4%;

• Gross gearing stood at 18.3% (net 9.8%), the lowest in the Company’s peer group, with cash of approximately £94 million available for reinvestment as part of ongoing portfolio restructuring:

Further portfolio repositioning progress with initiatives including:

• The acquisition of £28.6 million off-market acquisition of Eldon House in the City of London, representing a net initial yield of 4.6% and an equivalent yield of 5.5%.  The asset will benefit from the opening of Crossrail with Liverpool Street Crossrail station just 150m away;

• £67.1 million acquisition of the Ventura Park multi-let industrial estate in Hertfordshire on the M25 through a swap transaction with SEGRO plc, which included the sale to SEGRO of an Asda distribution centre in Northampton for £31.0 million and the payment by UKCPT of £36.1 million from existing cash resources;

• A number of further acquisitions are being actively considered.

Asset management activity continues to add value to the existing portfolio and generated £498,000 of additional rental per annum after lease incentives as well as reducing voids to 2.4%, compared to 3.3% on 30 June 2015, including:

• Negotiated lease surrender of the ground and basement floors at Arlington Street in London’s St James’s and subsequent re-letting to the Starstedt Gallery at a rent of £350,000 pa, significantly ahead of the former rental income for the unit.

• Achieved full occupancy at the Newton’s Court industrial estate in Dartford having secured new lettings ahead of ERV to Steinhoff UK Group and Worldstores Ltd helping to increase value by 5.5% this quarter. 

• At St Georges Retail Park, Leicester, external cladding works continue to improve the property and a new lease has been agreed over the last remaining unit on the park which is now open and trading.  The value of this asset increased by over 4% this quarter. 

Breakdown of NAV movement

Set out below is a breakdown of the change to the unaudited net asset value per share calculated under International Financial Reporting Standards ("IFRS") over the period from 1 July 2015 to 30 September 2015.

UK Commercial Property Trust Limited	Per  Share (p)	Attributable Assets (£m)
Net assets as at 30 June 2015	85.4	1,109.4
Unrealised increase in valuation of property portfolio	1.3	17.2	1.4% like for like increase in valuation of property portfolio
Capital expenditure during the period	(0.4)	(4.7)	Predominantly costs on sales and acquisitions plus expenditure on asset management initiatives including Swindon.
Income earned for the period	1.4	17.2	Equates to dividend cover of 93%. Significant cash resources available to invest as detailed below
Expenses for the period	(0.5)	(6.1)
Dividend paid on 28 August 2015	(0.9)	(12.0)
Interest rate swaps mark to market revaluation	(0.2)	(2.2)	Rise in swap liability as expectation relating to the timing of future interest rate rises was pushed out.
Net assets as at 30 September 2015	86.1	1,118.8

Sector Analysis

	Portfolio Value as at 30 Sep 2015 (£m)	Exposure as at 30 Sep 2015 (%)	Like for Like Capital Value Shift (1)	Capital Value Shift (including transactions (2) (£m)
			(%)
Valuation as of 30 Jun 2015				1,241.7
Retail	463.6	36.9	0.8	(63.8)
High St – South East		3.0	1.1	(67.1)*
High St- Rest of UK		2.2	0.0	0.0
Shopping Centres		8.9	0.4	0.4
Retail Warehouse		22.8	1.0	2.9
Offices	304.4	24.2	1.7	32.7
City		2.2	-	28.3*
West End		11.6	2.0	2.7
South East		1.7	1.4	0.3
Rest of UK		8.7	1.3	1.4
Industrial	390.2	31.1	2.6	45.0
South East		22.9	3.0	74.4*
Rest of UK		8.2	1.5	(29.4)*
Leisure/Other	97.5	7.8	0.1	0.1
External valuation at 30 Sep 15	1,255.7	100.0	1.4	1,255.7

1. Excludes sales, purchases, and capex in the quarter
2. Includes sales, purchases, and capex in the quarter
   (*Includes sales / acquisitions in the quarter)

The NAV per share is based on the external valuation of the Company’s direct property portfolio. It includes all current period income and is calculated after the deduction of all dividends paid prior to 30 September 2015. It does not include provision for any unpaid dividends relating to periods prior to 30 September 2015, i.e. the proposed dividend for the period to 30 September 2015.

The NAV per share at 30 September 2015 is based on 1,299,412,465 shares of 25p each, being the total number of shares in issue at that time.

The EPRA NAV per share (excluding swap liability) is 86.2p (Jun 2015 – 85.3p).

Will Fulton, Fund Manager at Standard Life Investments commented:  “During the third quarter we have continued our efforts to reposition UKCPT’s portfolio for long term income growth, both through our ongoing value accretive asset management activities and through a number of high quality acquisitions.  With £94 million of cash available to deploy we are well placed to execute further transactions and are actively looking at a number opportunities which, like the recent acquisitions of Eldon House and Ventura Park, offer strong potential.

Our gearing remains the lowest in our peer group and, as a vehicle to invest in as we move through the cycle, we are confident that UKCPT is very well positioned to deliver income-based returns as capital growth in the wider market begins to moderate.”

For further information please contact:

Will Fulton / Graeme McDonald, Standard Life Investments
Tel: [phone]

Edward Gibson-Watt / Oliver Kenyon, J.P. Morgan Cazenove
Tel: [phone]

Richard Sunderland / Claire Turvey / Clare Glynn, FTI Consulting
Tel: [phone]

The above information is unaudited and has been calculated by Standard Life Investments Limited.