BREI.L Regulatory News (BREI)

IRP Property Investments Limited

Interim Management Statement

For the Three-Month Period from 1 January 2012 to 31 March 2012

Investment Objective

The investment objective is to provide shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified UK commercial property portfolio.

Performance Summary

Sources: F&C Investment Business Limited, Investment Property Databank ('IPD'), Datastream.

* - All total returns are based on net dividends re-invested

# - Net gearing: Bank debt (less cash) divided by fair value of investment properties

Dividends

The second interim dividend for the year ending 30 June 2012 of 1.8 pence per share was paid on 30 March 2012 and a third interim dividend of 1.8 pence per share is expected to be paid in June 2012. In the absence of unforeseen circumstances it is the intention of the Board to maintain quarterly dividends at this rate, giving a total dividend of 7.2 pence per share for the 2011/12 financial year.

Review for the Period

Property Market Overview

The first quarter of 2012, saw property deliver a total return of 0.8 per cent, as measured by the IPD Quarterly Index. Both capital and rental values came under pressure delivering minus 0.7 per cent and zero respectively during the three month period for standing investments. The slippage has affected most parts of the market but has been more pronounced for shopping centres and is starting to spread to the south-east.

With the UK moving into a technical recession and the problems in the Eurozone persisting, both occupiers and investors remain cautious. Rental growth has been patchy at best and focused on London, occupational demand is largely driven by lease events and void levels have risen. New supply however remains low, constrained by weak occupier demand and restricted finance for development.

Investors continue to favour prime property, tightly defined. There has been some outward pressure on yields especially for retail, in the regions and at the secondary end of the market. Central London has continued to out-perform the regions.

Investment volumes were lower in the quarter, after a strong end to 2011. The market remains driven by overseas buyers who are often focused on larger lot sizes and Central London; elsewhere the market is weaker. The banks are slowly instigating more sales as they reduce their exposure to property but this unwinding still has some way to go.

Portfolio Overview

The value of the Company's portfolio at 31 March 2012 was £164.0 million, and although this was an increase over the quarter from £162.7 million as a result of an acquisition, on a like for like basis, capital values fell by 1.2%.

During the quarter, the portfolio produced an income return of 1.6%, ahead of the benchmark return of 1.4%. Total returns from the portfolio for the period were 0.4% as compared with the IPD Quarterly Universe of 0.8%.

At a sector level, the industrial outperformed returning 1% against 0.9%. The office and industrial sectors broadly tracked the Benchmark returning 1.1% and 1.0% respectively. However relative performance was impacted by weak returns from high street retail.

Across the Portfolio, several value-added lease events completed during the quarter. In the industrial sector the lease of Unit 5 Newcombe Drive, Swindon was extended until 2024 in return for 9 months rent free after which the rent reverts to £111,380 pa. At 12/20 High Street, Wickford the lease expiry date with AON Insurance was extended by a further 2 years to March 2014 thereby increasing the capital value by 2.2%.

There was mixed news from the retail portfolio. Significant contributors include the property at 24 Haymarket, London which is now fully let following the refurbishment and completion of the 3rd and 4th floors adding c £58,700 pa to the rent roll. The lease renewal with Vision Express at 51-53 High Street, Guildford completed for 10 years at £270,000 pa representing a significant uplift on the previous rent of £211,000 pa. However, at Unit 1, Above Bar Church, Southampton, Bon Marche entered into Administration and ceased trading from this unit in January 2012. The rent was £203,500 pa, compared with an ERV of £135,000pa. As a result, the value fell by 38% over the quarter and has had a significant drag on the Company's performance.

In January, the Company completed the purchase of the shop at 25/27 Bridlesmith Gate, Nottingham for £3.1m equating to a net initial yield of 6.1%. The property is let to Hobbs Ltd on a lease that will expire on 11 October 2019. There were no sales of property during the quarter.

At 31 March 2012, the Company's portfolio had a relatively low void rate of 4.1% of ERV compared with the IPD benchmark of 8.3%. The average unexpired lease length was 8.2 years, assuming all breaks exercised.

Top Ten Holdings

Geographical Analysis

Sector Analysis

The Board is not aware of any significant events or transactions which have occurred between 31 March 2012 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Quarterly and Key Information

Further information regarding the Company, including performance since launch and the most recent annual and interim reports, can be found at the Company's website www.irppropertyinvestments.com, or at www.fandc.com .

For further information please contact:

Ian McBryde/Scott Macrae

F&C Investment Business Limited

Tel: 0207 628 8000