2014 results presentation_12_february_2015

Investor Presentation – 12 February 2015 Presented by: Christopher M.W. Hill, Chairman Robert Boag, Standard Life Investments Graeme McDonald, Standard Life Investments

Picture: Ocado Distribution Unit, Hatfield – One of the Company’s best performing assets in 2014

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

Overview Buoyant growth in UK commercial property market in 2014, with property the strongest performer of all the major asset

classes over the period; UKCPT has benefited from a combination of this positive sentiment and asset management initiatives with double digit

percentage growth in NAV and share price in the period; Equity issuance of £81.6million* over the year, first equity issuance since 2010;

Proceeds invested in an efficient and timely manner with £94million of acquisitions in 2014; Company continues to have lowest gearing of its peer group**, and is in a strong financial position ahead of Lloyds

refinancing;

Continued low void rates and strong rent collection performance.

February 2015

UK Commercial Property Trust

2 *Source: Standard Life Investments. ** Guernsey based, London listed Property Investment Companies 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

Financial Highlights

Source: Standard Life Investments 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 2015


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Financial Highlights as at 31 Dec 2014

■ NAV per share of 83.0p as (31 December 2013: 73.1p);

■ Above benchmark NAV & share price total returns over the year;

■ Shares trading at c.6.3% premium to NAV;

■ Gross gearing of 17.5%, lowest in Company’s peer group and well within investment policy limit of 25%;

■ Cash of £63.4million;

■ Dividend yield of 4.2%.

*Source: Standard Life Investments as at 31 December 2014 – based on weighted average number of shares in issue for 2014

February 2015


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NAV Movement for year to 31 December 2014*

83.0

4.0 0.3 0.2 0.1

10.3 0.3

3.9

73.1 70

72

74

76

78

80

82

84

86

88

90

Opening NAV(73.1p)

ValuationIncreases

NAV accretiveshare issue

Net Revenue Dividends paid CAPEX Stamp Duty Costs SWAPmovements

Closing NAV(83.0p)

penc

e pe

r sha

re

*Excluding SWAP liabilities; Source: Standard Life Investments as at 31/12/2014

February 2015


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Strong Balance Sheet

Portfolio Balance sheet

UKCPT balance sheet composition* Other net assets £44m (inc £64m cash for working capital and corporate purposes)

Lloyds 2015 debt £80m

Barclays 2018 debt £150m facility

Portfolio £1,272m Equity

£1,086m

Source: Standard Life Investments as at 31 December 2014

February 2015


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UKCPT Debt Lloyds Facility £80m facility agreed with Lloyds TSB Banking Group in

June 2008;

Current Margin - 60 bps above Libor;

Matures June 2015;

Fully drawn down with interest rates swaps covering full £80m to mitigate interest rate risk;

All covenants comfortably met;

Currently in advanced negotiations to refinance;

Announcement expected in the near future.

Barclays Facility £150m seven year facility agreed in May 2011;

Ratcheted margin depending on LTV levels of between 160-200 bps above Libor;

Fully drawn down at a margin of 170 bps above Libor;

Interest rate swaps covering full £150m to mitigate interest rate risk;

All covenants comfortably met.

Overall gearing of 17.5% at blended rate of 3.85%

Property Review

Source: IPD, Thomson Datastream, Standard Life Investments, January 2015.

February 2015

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■ The top performing asset class over the course of 2014 was Property shares with a substantial gain of 24.3%. Direct property, however, delivered an impressive total return of 17.4% in the year according to the IPD Balanced Monthly & Quarterly benchmark;

■ Commercial property total returns continued to exceed equities, gilts and property shares since the start of the millennium;

■ Overall investment in UK property reached £59.6bn in 2014; Investment in London is still strong and dominated by overseas investors with investment improving in the regions particularly from Institutions;

■ Property has a clear place in a multi-asset portfolio and the stronger yield, lower correlation characteristics remain popular – competition for assets will remain intense.

2014

Property Shares (FTSE All-Share REIT Index) 24.3%

Property 17.4%

Equities 15.6%

Gilts 1.2%

*Source: Standard Life Investments - Jan 14 to date

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Portfolio Strategy

Sales Exit assets where there is significant capital expenditure anticipated

with limited return prospects; Moderate Company`s exposure to high street retail, shopping

centres and regional offices. Purchases Acquire selective institutional grade assets which retain an income

focus with minimal capital expenditure; Remain focused on industrials and alternative sectors for security

and longevity of portfolio income as well as Central/Greater London Offices;

Preferred lot size of £20m to £50m and c5.0% income yield. Asset Management Activity Asset management activity focused on retaining and enhancing

income, particularly in the retail portfolio; Reduction of exposure to voids. Overall Retain prime nature of portfolio for long term sustainable

performance; Focus on income and asset management; Emphasis on growing income.

Sales £53m of sales at or above valuation; £4.8m Rental Income, 3yrs 4mths average lease length; Reduced exposure to regional offices and shopping centres. Purchases £97m invested in prime Industrial and Leisure assets; Total Rental Income £6.2m; Income Yield of 5.9%; Average Lease length 16yrs 5mths, 53% of income benefiting from

guaranteed fixed uplifts. Overall Void rate fallen to 2.6 % compared to benchmark of 6.8%; Average lease length increased; Reweighted portfolio mix Further successful asset management initiatives highlighted later

Portfolio Strategy Progress made to date*

Source: Standard Life Investments as at 31 Dec 2014 (RFP = Rent Free Periods)

February 2015


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Income Summary

£69.5

£71.3

£2.1 £0.2 £0.3

£4.1

£2.6

£1.0

£5.9

£68.5

£65.0

£66.0

£67.0

£68.0

£69.0

£70.0

£71.0

£72.0

£73.0

AnnualisedIncome Dec

2013(after RFP)

New Leases Other ContractsTerminated

Breaks Served Administrations AnnualisedIncome pre sales

and purchases

Sales Acquisitions AnnualisedIncome Dec14(after RFP andpost year end

sales)

£m

87 new leases, including key lettings at Dolphin Ind Estate, Sunbury and Junction 27, Leeds.

Rent reviews, steps and turnover rent

Number of lease surrenders/ expiries linked to successful asset management activity at assets such as The Parade.

Comet at Junction 27 and Tony Roma at Rotunda both of which are now re-let.

Sales at Bristol, Manchester and Weston-super-Mare

Purchases at Aberdeen, Swindon and Dartford

Source: Standard Life Investments

February 2015


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Asset Management crucial to Income and Values Retail and Leisure ■ Lettings to Multi York and Betta Living of former Comet unit at Junction 27 Retail Park Leeds;

■ Pre-let to H&M at The Parade, Swindon. Completion March 2015;

■ Flexible lettings in Weston-super-Mare and Shrewsbury improving net operating income;

■ Letting to Five Guys Burgers at Rotunda, Kingston Upon Thames and Yo Sushi, Kensington High Street.

Office Lease renewal at No 15 Great Marlborough Street at £2.1m pa for 5years;

Lettings and lease re-gears across office portfolio resulting in 100% office occupancy.

Industrial Lettings involving £472k of income at Dolphin Industrial Estate, Sunbury, Gatwick Gate,

Crawley and Emerald Park Bristol;

Rental growth captured at Hatfield and Northampton Distribution Warehouses;

98% Occupancy in Industrial Portfolio.

Five Guys, Rotunda, Kingston

Dolphin Industrial Estate, Sunbury

Source: Standard Life Investments

February 2015


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Portfolio Sales – Portfolio repositioning continues …. ■ Sales totalling £53m of shorter income, capital intensive assets;

■ Opportunity to benefit from improving sentiment in secondary shopping centre and regional office markets and realise proceeds from successful asset management;

■ Secondary Shopping Centres - Sovereign Centre, Weston -super -Mare sold to UK asset manager with US Private Equity client;

■ Regional Offices - Pall Mall Court, Manchester and Freshford/WCA House, Bristol sold to UK Regional Office Funds;

■ Short term impact on income offset by improved overall return prospects for portfolio, once proceeds re-invested, and reduction in capital expenditure requirements.

Pall Mall Court, Manchester

Sovereign Centre, Weston-super-Mare

Source: Standard Life Investments 31 Dec 2014

February 2015


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Acquisitions in line with Portfolio Strategy

Aberdeen Gateway, Aberdeen

■ Purchase of three, fully pre-let, predominantly industrial properties completed for £46.4million;

■ Combined Valuation uplift as at 31 December absorbed overall acquisition costs;

■ £3.0million per annum of income from tenants with secure covenants representing 6.3% net income yield;

■ Average Lease length 18yrs 11 mths with all leases benefiting from guaranteed fixed uplifts 2.75%-3.0% per annum;

■ Long term investment by landlord and tenants, notwithstanding current oil price volatility.

Completed Total building at Aberdeen Gateway

Source: Standard Life Investments as at 31 Dec 2014

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Aberdeen Gateway – Strong asset despite oil price volatility

Unit Area (sq ft) Use Tenant D&B Rating

Rent(pa) Term RR Provisions

Unit A 180,730 Industrial Total E&P Ltd 4A1

£1,837,019 20 years 5yrly Min 3%pa comp or OMV.

Unit C2 25,633 Office Ensco Services Ltd (Guaranteed by Ensco

Plc )

5A1

£506,250 15 years 5yrly fixed at 2.75% pa comp.

Unit D1 60,054 Industrial Tetra Technologies UK Ltd

(Guaranteed by Tetra Technologies Inc)

5A1

£692,500 20 years 5yrly Min 2.75% pa comp or

OMV.

266,417 £3,035,769 Av 18yrs 11 mths

Source: Standard Life Investments as at 31 Dec 2014

February 2015


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Acquisitions in line with Portfolio Strategy (cont) Regent Circus, Swindon

■ Purchase of supermarket and leisure scheme with total commitment of £40.3million;

■ 97,000 sq.ft purpose built family-orientated leisure and supermarket development, 86% pre-let;

■ Will generate £2.2million of income after rent free periods from tenants with secure covenants. Anchored by Morrisons and Cineworld;

■ Average lease length of 18yrs 8mths with cinema lease also incorporating fixed rental increases;

■ Increases exposure in favoured leisure sector.

CGI view of Regent Circus

Source: Standard Life Investments December 2014

February 2015


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Portfolio Strategy Progress – Lease Lengths Pushed Out….

25.8%

13.8%

23.9%

21.0%

11.1%

4.3%

25.6% 24.9%

17.4%

24.2%

4.8% 3.1%

0%

5%

10%

15%

20%

25%

30%

0-3yrs 3-5 yrs 5-10yrs 10-15 yrs 15-20 yrs >20 yrs

UKCPT 2014

UKCPT 2013

Average weighted lease length has increased from 7yrs 11mths to 8yrs 9mths

Source: Standard Life Investments as at 31 December 2014 (adjusted for post year end sales)

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…..Combined with Portfolio Repositioning in Favoured Sectors

9.7%

2.2%

9.0%

23.0%

0.0%

11.3%

1.7%

8.4%

16.8%

10.4%

7.6%

9.9%

2.5%

12.4%

24.7%

0%

11.2%

1.8%

10.1%

15.0%

7.2% 5.1%

0%

5%

10%

15%

20%

25%

30%

High St Retails- South East

High St Retails- Rest of UK

ShoppingCentres

RetailWarehouses

Offices - City Offices - WestEnd

Offices - SouthEast

Offices - Restof UK

Industrials -South East

Industrials -Rest of UK

OtherCommercial(incl leisure)

Sub-Sector Breakdown

UKCPT 2014 (Post Year End Sales) UKCPT 2013

Source: Standard Life Investments January 2015

February 2015


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Market Outlook and Forecasts

■ Another buoyant year in prospect from an investment perspective;

■ Expectations for interest rate increases have been pushed out;

■ Falling oil prices are a welcome boost to consumption; inflation expected to remain at low levels despite uncertainty arising from potential election hiatus and ongoing Eurozone issues;

■ Rental growth momentum has increased as capital growth momentum decelerates – normalisation of returns expected further out;

■ As we continue to move through the cycle our real estate forecasts reflect ongoing positive returns.

Source: Standard Life Investments 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

Summary

Successful year for the Company with above benchmark NAV & share price performance, significant NAV accretive share issuance while maintaining the Company’s premium rating;

Notable progress made in implementing the Company’s portfolio strategy with the purchase of properties in the favoured industrial and leisure sectors, while selling other non-core assets with limited return prospects;

Positive outlook for UK commercial property in 2015 and beyond, especially given ongoing repositioning of portfolio;

UKCPT is now in an excellent position with a growing portfolio of prime assets which, together with considerable financial resources and debt refinancing opportunity, should form the base for future positive performance.

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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).

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2014 results presentation_12_february_2015

Presentations & Public Speaking

uk commercial property

value of investments

uk commercial property

nav movement

opening nav

nav gross gearing

ukcpt debt lloyds facility

swap liabilities source