UK Commercial Property Reit Limited

Net Asset Value • May 6, 2015

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UK COMMERCIAL PROPERTY TRUST LIMITED - Net Asset Value(s)

PR Newswire

London, May 5

6 May 2015 UK Commercial Property Trust Limited ("UKCPT" or "the Company") Net Asset Value at 31 March 2015UK Commercial Property Trust Limited (LSE: UKCM), the largest Guernsey based,UK focused, London listed commercial property investment company, announces itsunaudited quarterly Net Asset Value ("NAV") as at 31 March 2015.Net Asset Value ("NAV")The unaudited NAV per share as at 31 March 2015 was 84.1 pence*, representing anincrease of 1.3% on the audited NAV per share of 83.0 pence as at 31 December2014and a total return of 2.4% in the quarter. The portfolio increased by 1.2%in the quarter on a like for like basis. This compares to an IPD balancedmonthly index funds capital movement of 1.6% over the same period.Analysis of Movement in NAVThe following tables provide an analysis of the movement in the unaudited NAVper share for the period from 1 January 2015 to 31 March 2015 and a sectoranalysis as at 31 March 2015:UK Commercial Property Trust Per Share AttributableLimited (p) Assets (£m)Net assets as at 1 January 2015 83.0 1,078.9Unrealised increase in valuation of 1.2 14.3 1.2% like for likeproperty portfolio increase in property valuationCapital expenditure during the (0.1) (0.5) Relates to costsperiod incurred on Q1 sales and asset management initiatives at The Parade, SwindonIncome earned for the period 1.4 17.6 Equates to dividend cover of 96%. Significant cashExpenses for the period (0.5) (6.1) resources still to invest as detailed below.Dividend paid on 27 February 2015 (0.9) (12.0)Interest rate swaps mark to market (0.0) 0.3 Marginal movementsrevaluation in interest rate expectations.Net assets as at 31 March 2015 84.1 1,092.5Sector Analysis Portfolio Exposure as Capital Capital Value Value as at at 31 Mar Value Shift Shift 31 Mar 2015 2015 (£m) (%) (%) (£m)Valuation as at 31 1,272.3December 2014Retail 537.2 43.4 0.2 1.3High St - South East 9.6 0.1 0.1High St- Rest of UK 2.2 0.8 0.2Shopping Centres 8.9 0.4 0.4Retail Warehouse 22.7 0.2 0.6Offices 268.3 21.6 2.2 5.9London - West End 11.3 1.6 2.2South East 1.7 0.0 0.0Rest of UK 8.6 3.6 3.7Industrial 339.2 27.4 2.1 6.9South East 16.9 2.1 4.2Rest of UK 10.5 2.1 2.7Leisure/Other 92.5 7.5 0.2 0.2Purchase of Car Park 1.8 0.1 0.0 1.8at Regent Circus,SwindonSale of Pall Mall -19.5Court, ManchesterSale of The -29.9Sovereign Centre,Weston-super-MareExternal valuation 1,239.0 100.0 1.2 1,239.0at 31 Mar 15*The NAV per share is calculated under International Financial ReportingStandards ("IFRS") and is unaudited. It is based on the external valuation ofthe Company's direct property portfolio prepared by CBRE Limited. It includesall current period income and is calculated after the deduction of alldividends paid prior to 31 March 2015. It does not include provision for anyunpaid dividends relating to periods prior to 31 March 2015, i.e. the proposeddividend for the period to 31 March 2015.The NAV per share at 31 March 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 liabilities) is 84.7p (Dec 2014 - 83.7p).PortfolioSalesAs previously reported in February, the Company completed the sale of The PallMall Court office building in Manchester for £19.5million and The SovereignShopping Centre, Weston-super-Mare for £29.9million. Both sales allowed theCompany to crystallise valuation uplifts from recent asset management activityand reduce exposure to both the regional office and retail sectors, in linewith strategy, while achieving an overall sale price ahead of valuation.PurchasesOn 6 February, with all relevant conditions satisfied, the Company completed afurther stage payment of £1.8million for the purchase of the car park at RegentCircus, Swindon, which is let at an annual rent of £120,000. One furtherpayment of £2.7million remains to be paid on completion of the letting ofrestaurant units 7/8.VoidsThe Company's void position as at 31 March was 3.2%, compared to 2.6% inDecember 2014. This rise was predominantly due to positive asset managementactivity which should lead to improved income and value in the future. Allowingfor tenant failures through administrations, the void rate could increase to3.9%. However, it should be highlighted that administrations do not alwaysequate to a loss in income or value and both figures remain comfortably belowthe IPD benchmark void rate of 6.8%.Gearing& CashFollowing the debt refinancing detailed below, the blended rate of interestacross all the Group's debt facilities, assuming the revolving credit facility("RCF") remains unutilised, is an attractive 2.89% with gross gearing of 18.6%*(net gearing - 10.5%**) and an average debt maturity of 7.8 years. The Companynow has cash of approximately £120 million available for reinvestment throughacquisitions and tactical asset management initiatives, in line with theCompany's portfolio strategy.On 8 April the Company announced it had taken out a 12 year, £100million loanfrom Cornerstone Real Estate Advisers Europe LLP, a member of the MassMutualFinancial Group. This loan has a fixed interest rate of 3.03% and was used torepay the £80 million Lloyds facility and associated swaps, all of which weredue to expire in June 2015.The Company also announced in April it had taken out a £50 million RCF for fiveyears with Barclays Bank which can be drawn down or repaid at any time, at amargin of 1.5% over LIBOR. As part of this facility, Barclays agreed to reducethe margin on the existing £150 million loan facility by 0.2% to 1.5% overLIBOR and extend the term of the loan to April 2020 from May 2018. The Companyalso repaid the existing swaps and took out a new swap to match the extendedmaturity on this loan.The debt transactions above are not reflected in the 31 March 2015 NAV as theycompleted in April. The effect of these transactions on the 31 March NAV wouldbe minimal.*Gross gearing - borrowings excluding swaps divided by total assets lesscurrent liabilities**Net gearing - borrowings excluding swaps less cash divided by total assetsless current liabilities and cashFor further information please contact:Will Fulton/Graeme McDonald, Standard Life InvestmentsTel: 0131 245 2799/0131 245 3151Edward Gibson-Watt /Oliver Kenyon, J.P. Morgan CazenoveTel: 020 7742 4000Richard Sunderland /Claire Turvey/Clare Glynn, FTI ConsultingTel: 020 3727 1000The above information is unaudited and has been calculated by Standard LifeInvestments Limited.