BREI.L Regulatory News (BREI)

F&C UK Real Estate Investments Limited Interim Management Statement For the Three-Month Period from 1 July 2014 to 30 September 2014 Investment Objective The investment objective is to provide ordinary shareholders with an attractivelevel of income together with the potential for capital and income growth frominvesting in a diversified UK commercial property portfolio. Performance Summary Total Return * For the three month period ended 30 September 2014 Net asset value per share 5.9% Ordinary share price 9.6% Portfolio total return per IPD 4.4% Investment Property 4.4%Databank UK Quarterly Index FTSE All-Share Index -1.0% Capital Values - 3 months As at As at % Change 30 September 30 June 2014 2014 Net asset value per share 87.1p 83.4p 4.4% Ordinary share price 90.8p 84.0p 8.1% FTSE All-Share Index 3,533.9 3,600.2 -1.8% Premium to net asset value 4.2% 0.7% Net gearing # 31.6% 31.7% 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 net current assets, excluding the swapliability) divided by fair value of investment properties Dividends The fourth interim dividend for the year ended 30 June 2014 of 1.25 pence pershare was paid on 30 September 2014. In the absence of unforeseen circumstancesit is the intention of the Board to maintain quarterly dividends at this rate,giving a total dividend of 5.0 pence per share for the 2014/15 financial year. Review for the Period At 30September 2014, the Net Asset Value per share of the Company was 87.1pence, an increase of 4.4 per cent over the quarter. The Company's propertyportfolio increased in value by 3.0 per cent on a like for like basis. Thevalue of the portfolio stood at £312.3 million following two property sales andone purchase in the quarter. The portfolio produced an income yield of 1.4 percent, which together with a capital growth of 3.0 per cent after taking accountof transaction costs delivered a total return of 4.4 per cent over the quarter. The Company's industrial properties produced the largest contribution toperformance in absolute terms. Rest of UK offices delivered 8.4 per cent andWest End offices 5.3 per cent. Retail property lagged delivering 3.0 per centoverall. During the quarter the Company purchased Building A3, Glory Park, High Wycombefor £6.97 million, reflecting a yield of 7.0 per cent. The office propertyextends to 19,572 square feet and is let to two pharmaceutical tenants. The Company has continued to dispose of smaller lot sized properties andcompleted the sales of 2-3 Pavilion Buildings, Brighton, a bar with officesabove, which sold for £2.5 million, reflecting an initial yield of 6.0 percent; and Unit GP9, Globe Park, Marlow, an empty office of 14,300 square feetbuilding requiring refurbishment, for £1.7 million reflecting a capital valueof £119 per square foot. Currently the average weighted lease expiry profile is 8.25 years and the voidrate has reduced from 5.7 per cent to 5.0 per cent over the quarter. Top Ten Holdings Property Sector 30/09/2014 Percentage of portfolio London W1, 14 Berkeley Street Offices 7.4 Banbury, 3663 Unit, Echo Park Industrial 6.4 Eastleigh, Southampton International Park Industrial 4.1 Rotherham, Northfields Retail Park Retail Warehouse 3.8 Colnbrook, Units 1-8 Lakeside Road Industrial 3.8 York,Clifton Moor Gate Retail Warehouse 3.4 Leamington Spa, 30-40 The Parade& 47/59a Retail 3.3Warwick St Hemel Hempstead, Hemel Gateway Industrial 3.2 Chelmsford, County House, County Square Offices 3.1 Edinburgh, 1-2 Lochside Way, Edinburgh Park Offices 2.8 Total 41.3 Geographical Analysis Location 30/09/2014 30/06/2014 Percentage Percentage of Portfolio of Portfolio South East 43.7 42.9 Yorkshire and Humberside 11.0 11.2 London - West End 9.2 9.1 West Midlands 8.0 8.5 Eastern 6.9 7.0 Scotland 6.2 5.9 Rest of London 4.4 4.5 North West 4.4 4.5 East Midlands 4.0 4.1 South West 1.2 1.3 North East 1.0 1.0 Total 100.0 100.0 Sector Analysis Sector 30/09/2014 30/06/2014 Percentage Percentage of Portfolio of Portfolio Industrial 25.8 25.7 Retail 22.3 23.9 Offices 28.3 26.5 Retail Warehouse 23.6 23.9 Total 100.0 100.0 The Board is not aware of any significant events or transactions which haveoccurred between 30 September 2014 and the date of publication of thisstatement which would have a material impact on the financial position of theCompany. Quarterly and Key Information Further information regarding the Company, including performance since launchand the most recent annual and interim reports, can be found at the Company'swebsiteswww.fcre.co.uk,www.fcre.gg or at www.fandc.com This interim management statement has been prepared solely to provideinformation to meet the requirements of the UK Listing Authority's Disclosure and TransparencyRules. For further information please contact: Ian McBryde/ScottMacraeF&C Investment Business LimitedTel: 0207 628 8000