Net Asset Value(s)

27 April 2016

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

Net Asset Value at 31 March 2016

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 31 March 2016.

Highlights:

• 0.3% NAV total return for the quarter with a marginal decrease in unaudited NAV per share of 0.8% to 86.0p (Dec 2015: 86.7p);

• Portfolio growth of 1.2% during the quarter was offset by an £11.6 million decline in valuation resulting from the surprise increase in Stamp Duty Land Tax ("SDLT") announced in the March Budget and an £8 million reduction in the value of The Parade, Swindon due to BHS's Company Voluntary Arrangement ("CVA") in March, which reduced the portfolio valuation by 0.9% and 0.6% respectively. As a result of these two exceptional factors the portfolio valuation fell by 0.3% (IPD Monthly Index fall of 0.2%) to £1,315.8 million (December 2015: £1,319.6 million).

• Share price total return outperformed the FTSE REIT Index with returns of -1.0% and -5.7% respectively over the quarter; the 4.4% dividend yield as at 31 March 2016 compared favourably to both equities and the FTSE REIT Index which yielded 3.8% and 3.3% respectively;

• Good asset management progress throughout the quarter saw the Company secure 14 new leases with a contracted rent of £1.6 million per annum, with specific highlights including:

• Successful letting of a vacant floor at Eldon House in the City of London to Proclinical, a life sciences recruitment firm, at an annual rent of £266,000 per annum after lease incentives, representing £52 psf, well above the average rental level of £31 psf at the time of acquisition;

• Over £75,000 per annum of additional rent secured at Kew Retail Park, Richmond through rent review settlements which resulted in capital growth of over 2% (£1.2 million) this quarter;

• Void rate of 3.4%, well below the benchmark level of 6.9%*

• Gross gearing of 18.2% (net 13.9%), the lowest in the Company’s peer group, with uncommitted cash of approximately £22 million and a £50 million revolving credit facility available for further investment opportunities;

*Latest IPD Benchmark as at 31 December 2015

Will Fulton, Fund Manager at Standard Life Investments commented:  “In what would otherwise have been a very positive start to the year in terms of portfolio valuation growth, it was disappointing to have this offset by an unanticipated 1% Stamp Duty increase in the Budget and the impact from BHS’s CVA. We are currently assessing the implications of the announcement earlier this week that BHS has gone into administration; however we believe most of the financial impact from their circumstances has already been recognised in our valuation. This does, however, illustrate the importance of having a portfolio like UKCPT’s which is well-diversified by sector, geography and tenant. It is encouraging to see portfolio management initiatives enhance valuations, particularly in West End offices, whilst I continue to seek value investments.”

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 January 2016 to 31 March 2016.

UK Commercial Property Trust Limited	Per Share (p)	Attributable Assets (£m)	Comment
Net assets as at 31 December 2015	86.7	1,127.2
Unrealised decrease in valuation of property portfolio	-0.3	-3.4	Like for like decrease of 0.3% attributable to SDLT change and reduction in value of The Parade, at Swindon as outlined above
Capital expenditure during the period	-0.2	-2.9	Principally relates to ongoing asset management initiatives at Junction 27, Leeds and St. Georges Retail Park, Leicester plus residual  acquisition costs relating to the 2014 purchase of Regent Circus, Swindon
Income earned for the period	1.3	17.5	Equates to dividend cover of 96% for the quarter
Expenses for the period	-0.4	-5.9
Dividend paid on 26 February 2016	-0.9	-12.0
Interest rate swaps mark to market revaluation	-0.2	-3.4	Increase in swap liabilities as  a result of a decrease in the expectation for future interest rates
Net assets as at 31 March 2016	86.0	1,117.1

Sector Analysis

	Portfolio Value as at 31 March 2016 (£m)	Exposure as at 31 March 2016	Like for Like Capital Value Shift	Capital Value Shift (including transactions and new higher SDLT)     (£m)
		(%)	(%)
Valuation as at 31 December 2015				1,319.6
Retail	459.6	35.0	-2.0	-9.1
High St – South East		2.9	-0.9	-0.3
High St – Rest of UK		2.5	4.4	1.4
Shopping Centres		7.7	-9.1	-10.1
Retail Warehouse		21.9	0.0	-0.1
Offices	333.0	25.3	1.5	4.9
City		2.2	0.7	0.2
West End		11.6	4.0	5.9
South East		1.6	-0.9	-0.2
Rest of UK		9.9	-0.7	-1.0
Industrial	395.2	30.0	-0.2	-0.7
South East		22.0	-0.2	-0.5
Rest of UK		8.0	-0.2	-0.2
Leisure/Other	128.0	9.7	0.9	1.1
External valuation as at 31 March 2016	1,315.8	100.0	-0.3	1,315.8

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 31 March 2016. It does not include provision for any unpaid dividends relating to periods prior to 31 March 2016, i.e. the proposed dividend for the period to 31 March 2016.

The NAV per share at 31 March 2016 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 (Dec 2015 – 86.7p).

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.