2014 results presentation_-_data_pack_-_12_february_2015

2014 Results Data Pack

Picture: Great Marlborough Street, Soho, London,W1

This presentation is for professional clients and investment professionals only and should not be relied upon by retail clients.

February 15

UK Commercial Property Trust

2 Source: IPD Quarterly Digest, December 2014 Past performance is not a guide to the future. The value of investments and the income from them can fall as well as rise and is not guaranteed

Capital Gain Moderated while Rental Growth Improved in Q4

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

Jun

-01

De

c-0

1

Jun

-02

De

c-0

2

Jun

-03

De

c-0

3

Jun

-04

De

c-0

4

Jun

-05

De

c-0

5

Jun

-06

De

c-0

6

Jun

-07

De

c-0

7

Jun

-08

De

c-0

8

Jun

-09

De

c-0

9

Jun

-10

De

c-1

0

Jun

-11

De

c-1

1

Jun

-12

De

c-1

2

Jun

-13

De

c-1

3

Jun

-14

De

c-1

4

Inve

stm

en

t p

erf

orm

ance

pe

r q

uar

ter

(%)

Yield Impact Rental Value Growth Income Return Total Return

Source: IPD and Standard Life Investment, February 2015 Past performance is not a guide to the future. The value of investments and the income from them can fall as well as rise and is not guaranteed

February 15


3

Income will remain an important component of returns

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

20

11

20

13

20

15

F

20

17

F

%

Income Return Capital Growth

Forecasts

Forecasts

Source: Standard Life Investment, February 2015 Past performance is not a guide to the future. The value of investments and the income from them can fall as well as rise and is not guaranteed

4

Rental growth forecasts improve in line with the economic recovery With office markets ahead of retail and industrial

-2

-1

0

1

2

3

4

5

Seco

nd

ary

Sho

pp

ing

Cen

tres

Ret

ail W

areh

ou

se S

olu

s U

nit

s

Seco

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/ Sm

all T

ow

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ho

ps

Sup

erm

arke

ts

Med

ium

To

wn

Pri

me

Sho

ps

Dis

tric

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op

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entr

es

Ret

ail W

areh

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se B

ulk

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arks

Maj

or

Cit

y P

rim

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op

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Reg

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ho

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Cen

tres

Ret

ail W

areh

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se F

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Par

ks

Ret

ail

Oth

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K O

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and

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Wes

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Off

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Ind

ust

rial

Dis

tr W

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ses

(exc

l Lo

nd

on

)

SE In

du

stri

al

Dis

tr W

areh

ou

ses

(Lo

nd

on

)

Ind

ust

rial

Rental Value GrowthAll Property

Rental Value Growth % p.a. 2015-2017 Retail: 1.1% Industrial: 1.5% Offices: 3.3%

Ren

tal V

alu

e G

row

th F

ore

cast

February 15


Source: Standard Life Investments Past performance is not a guide to the future. The value of investments and the income from them can fall as well as rise and is not guaranteed.

February 15


5

SLI Forecasts

Source: IPD/Standard Life Investments Past performance is not a guide to the future. The value of investments and the income from them can fall as well as rise and is not guaranteed

February 15


6

The asset class demonstrates a stable track record

38 of last 44 years delivered positive total returns

<-20 -20 to -10 -10 to -5 -5 to 0 0 to 5 5 to 10 10 to 20 >20

1990 1992 2007

1995 1982 1983 1984 1985

1991

2001 2002

1981 1986 1989 1994 1996 1997 1998 1999 2000 2003 2004 2005 2006

1988 1993

1987

2008 1974 1976 1975 1980

1971

1978 1979

1973 1977

1972 2009 2012

2014 2015

IPD UK Annual Index Returns forecast

2011

2010

2013

Source: Standard Life Investments as at 31 December 2014, Datastream as at 31 December 2014 Past performance is not a guide to the future. The value of investments and the income from them can fall as well as rise and is not guaranteed.

February 15


7

NAV & share price performance

19

.7 3

4.2

56

.9

44

.5

22

.3

44

.6

90

.0

44

.9

22

.0 3

5.9

60

.7

-7.7

23

.7

93

.3

88

.4

-17

.2

1.2

37.3

51.8 54.7

17

.4

33

.1

63

.6

31

.6

-40

-20

0

20

40

60

80

100

1 Year 3 Year 5 Year Inception

UKCPT FCPTGIC (ex UKCPT and FCPT) FTSE REITsFTSE All-Share Index IPD Quarterly Benchmark

20

.4

55

.2

55

.6

50

.6

18

.8

57

.7

10

1.3

69

.1

19

.2

87

.9

74

.9

5.5

23

.7

93

.3

88

.4

-17

.2

1.2

37

.3 5

1.8

54

.7

17

.4 3

3.1

63

.6

31

.6

-40

-20

0

20

40

60

80

100

120

1 Year 3 Year 5 Year Inception

UKCPT FCPT

GIC (ex UKCPT and FCPT) FTSE REITs

FTSE All-Share Index IPD Quarterly Benchmark

UKCPT NAV total return v comparators UKCPT Share Price total return v comparators

* After Rent Free Periods **Reversionary income: A change in income that will arise following a rent review or renewal of a lease or re-letting of a property***Reversionary yield is the anticipated yield which the initial income yield will move to once the rent reaches the estimated rental value; it is calculated by dividing the ERV by the valuation (allowing for 5.8% Costs) # Source: all figures Standard Life Investments at Q4 2014 and IPD Quarterly & Monthly Benchmark Report Sep 2014

8

Portfolio Structure Dec 2013 Dec 2014 Direct portfolio value £1048.7m £1,272.3m No of properties 41 44 No of tenancies 341 347 Annualised Rental income* £68.5m £71.3m Estimated rental value (ERV) ** £70.0m £76.0m^ Net Initial Yield 5.8% 5.1% Reversionary yield*** 6.3% 5.0% Void levels (% of income and excl dev) 4.4% 2.6% Gearing (Investment Policy limit 25%) 20.7% 17.5% Weighted Average Lease Length 7yrs 11 mths 8 yrs 9 mths

February 15


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31.6%

24.6%

17.4%

7.8%

5.6% 5.4% 5.4%

2.2%

32.0%

27.7%

6.9%

4.2%5.7%

4.4%6.5% 7.1%

0%

5%

10%

15%

20%

25%

30%

35%

London South East South West East Midlands Scotland Yorks/Humber West Midlands North West

Geographical Breakdown

UKCPT

Benchmark

11.2%

5.9%

8.8%

13.8%

23.9%

21.0%

11.1%

4.3%

8.9%

6.5% 6.9%

12.6%

30.1%

15.7%

7.1%

12.1%

0%

5%

10%

15%

20%

25%

30%

35%

0-1 yr 1-2 yrs 2-3yrs 3-5 yrs 5-10yrs 10-15 yrs 15-20 yrs >20 yrs

Lease Expiry Profile

UKCPT

Benchmark

22.1%

11.4% 11.0%

22.2%

26.1%

7.3%

17.5%

19.1%

6.9%

28.3%

18.9%

9.1%

0%

5%

10%

15%

20%

25%

30%

RetailWarehouses

Retail High Street Shopping Centres Offices Industrial Other

Sector BreakdownUKCPT

Benchmark

Source: All figures Standard Life Investments at Q4 2014 and IPD Quarterly & Monthly Benchmark Report Sep 2014

February 15


9

Portfolio Sub-Structure

9.7%

2.2%

9.0%

23.0%

0.0%

11.3%

1.7%

8.4%

16.8%

10.4%

7.6%

9.9% 9.3%

6.9%

17.5%

4.6%

8.0%

9.9%

5.9%

11.2%

7.8%

9.1%

0%

5%

10%

15%

20%

25%

St Retails -South East

St Retails - Restof UK

ShoppingCentres

RetailWarehouses

Offices - City Offices - WestEnd

Offices - SouthEast

Offices - Restof UK

Industrials -South East

Industrials -Rest of UK

OtherCommercial

UKCPT 2014 (Post Year End Sales) Benchmark 2014

Source: Standard Life Investments as at 31 Dec 2014

February 15


10

Top Ten Assets by Market Value

Top Ten Properties Sector Value Range

Junction 27, Birstall, Leeds Retail Warehouse £60-70m

176/206 Kensington High Street, London South East High Street Retail £60-70m

The Parade, Swindon Shopping Centres £60-70m

Great Lodge Retail Park, Tunbridge Wells Retail Warehouse £60-70m

The Rotunda Leisure Scheme, Kingston upon Thames Leisure £50-60m

15 Great Marlborough Street, London Office – West End £50-60m

Kew Retail Park, Richmond, London Retail Warehouse £50-60m

Ocado Distribution Unit, Hatfield Distribution Warehouse £50-60m

Dolphin Estate, Sunbury-on-Thames Industrial £40-50m

St George’s Retail Park, St George’s Way, Leicester Retail Warehouse £30-40m

Source: Standard Life Investments as at 31 Dec 2014

February 15


11

Top Ten Tenants

Ranking Tenant Contracted Rent (after rent free periods

%

1 B & Q PLC 3,984,543.90 5.5%

2 GOVERNMENT 3,667,148.00 5.1%

3 SONY COMPUTER ENTERTAINMENT EUROPE LTD 2,775,488.00 3.8%

4 OCADO LIMITED 2,706,104.62 3.7%

5 DSG RETAIL LIMITED 2,570,868.00 3.6%

6 ARGOS LIMITED 1,926,181.00 2.7%

7 ODEON CINEMAS LIMITED 1,854,839.00 2.6%

8 TOTAL E & P UK LIMITED 1,837,019.30 2.5%

9 MARKS & SPENCER PLC 1,780,000.00 2.5%

10 BRITISH TELECOMMUNICATIONS PLC 1,538,500.00 2.1%

12

Rent collection performance & covenant strength

*Source : JLL, ** Within 28 days ***IPD IRIS 30 Sept 2014

November 14 UK Commercial Property Trust

Portfolio ranked in top quartile for

covenant strength***

Average rent collection over last

24 months – 99.7%**

UKCPT* Q4 Dec

12 Q1 Mar

13 Q2 Jun

13 Q3 Sept

13 Q4 Dec

2013 Q1 Mar

2014 Q2 Jun 2014

Q3 Sep 2014

Q4 Dec 14

Within 7 Days 97.8% 97.3% 95.6% 99.2% 99.5% 98.6% 96.7% 99.3% 98.4%

Within 28 Days 99.9% 99.7% 99.5% 99.5% 99.6% 99.9% 99.7% 99.8% 99.7%

0

10

20

30

40

50

60

70

Maximum High Med-High Low-Med Low Negligible Unscored Ineligible

% o

f co

ntr

acte

d r

en

t

Fund Benchmark

February 15


13

Directors & Advisors

Christopher Hill, Chairman

Ken McCullagh, Audit Committee Chairman

Sandra Platts

John Robertson

Andrew Wilson, Senior Independent Director

Investment Manager

Ignis Fund Managers Limited (a Standard Life Investments company)

Robert Boag [email protected] – Telephone 0131 245 3272

Graeme McDonald [email protected] Telephone 0131 245 3151

February 15


14

Directors & Advisors (Continued)

Administrator, Secretary and Registrar Investment Manager Property Valuer

Northern Trust International Fund Administration Services (Guernsey) Limited

Standard Life Investments CBRE Limited

Independent Auditors Guernsey Legal Advisors UK Legal Advisors

Ernst & Young LLP Ozannes Dickson Minto W.S. Maples Teesdale

Principal Banker Principal Lenders Corporate PR Advisor

Barclays Bank Plc Barclays Bank Plc and Lloyds Banking Group FTI Consulting

Corporate Broker Marketing Advisors Registered Office

JP Morgan Cazenove GR Consulting Trafalgar Court Les Banques St Peter Port Guernsey

Disclosure

This presentation is for professional clients and investment professionals only and should not be relied upon by retail clients. This document does not constitute or form part of any offer or solicitation to issue, sell, subscribe or purchase any investment, nor shall it or the fact

of its distribution form the basis of, or be relied on in connection with, any contract for the same.

Past performance is not a guide to future performance. The value of the investments and any income from them can fall as well as rise and is therefore not guaranteed.

Property investments are relatively illiquid compared to bonds and equities and can take a significant length of time to trade. The value of property is

determined by external valuers and is based on opinion rather than fact. Its value and any income from it can fall as well as rise and is not guaranteed.

Ignis Asset Management is the trading name of the Ignis Asset Management Limited group of companies which includes Ignis Asset Management

Limited, *Ignis Investment Services Limited and *Ignis Fund Managers Limited. Issued by Ignis Fund Managers Limited. Registered in Scotland Number SC101825. Registered Office: 50 Bothwell Street, Glasgow G2 6HR

*Authorised and regulated by the Financial Conduct Authority.

Ignis Asset Management Limited and its subsidiaries are part of the Standard Life Investments group (Standard Life Investments (Holdings) Limited and its subsidiaries).

February 15


15

2014 results presentation_-_data_pack_-_12_february_2015

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