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
UK Commercial Property Trust
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
nd
ary
/ Sm
all T
ow
n S
ho
ps
Sup
erm
arke
ts
Med
ium
To
wn
Pri
me
Sho
ps
Dis
tric
t Sh
op
pin
g C
entr
es
Ret
ail W
areh
ou
se B
ulk
y P
arks
Maj
or
Cit
y P
rim
e Sh
op
s
Reg
ion
al S
ho
pp
ing
Cen
tres
Ret
ail W
areh
ou
se F
ash
ion
Par
ks
Ret
ail
Oth
er R
oU
K O
ffic
es
2n
d H
and
Cit
y O
ffic
es
Ro
SE O
ffic
es
Gra
de
A R
oU
K O
ffic
es
Gra
de
A C
ity
Off
ices
Wes
t En
d
Off
ice
Ro
UK
Ind
ust
rial
Dis
tr W
areh
ou
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
UK Commercial Property Trust
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
UK Commercial Property Trust
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
UK Commercial Property Trust
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
UK Commercial Property Trust
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
UK Commercial Property Trust
8
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
UK Commercial Property Trust
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
UK Commercial Property Trust
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
UK Commercial Property Trust
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
UK Commercial Property Trust
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
UK Commercial Property Trust
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
UK Commercial Property Trust
15