Year End 2017 - Results Presentation - UK Commercial Property REIT
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Year End 2017 - Results Presentation
Presented by:
Andrew Wilson, Chairman of UKCPT
Will Fulton, Standard Life Investments
Graeme McDonald, Standard Life Investments
Click to edit Master title style
Click to edit Master subtitle style
This presentation is for professional clients and investment professionals
only and should not be relied upon by retail clients.
Picture: CGI of Maldron Hotel, Newcastle
Agenda • Chairman’s Overview • The Market and 2017 • Financial Highlights • Portfolio and Performance • Chairman’s Concluding Remarks
February 2018
UK Commercial Property Trust
Overview
Market and UKCPT
UK real estate surprised on the upside in 2017, delivering strong total returns, despite the political uncertainty
Following its restructuring in 2015 the UKCPT’s portfolio total return has outperformed the market (MSCI/IPD Monthly
Index) for the second year running
Strategic sales at above valuation, which continued after the period end, have enhanced performance with proceeds being
reinvested into assets in favoured sectors that have secure income characteristics
£8.4m of annualised income secured through 30 new lettings and 38 lease renewals / rent reviews
Strong tenant base with 99% of rent collected within 21 days of due date during 2017
Sustainable and attractive dividend yield, underpinned by a portfolio that also has significant reversionary potential
Income returns will be crucial to future performance
UKCPT well positioned with a strong portfolio, significant cash resources, and low gearing
* Source: Standard Life Investments. 3
** 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
Agenda • Chairman’s Overview • The Market and 2017 • Financial Highlights • Portfolio and Performance • Chairman’s Concluding Remarks
February 2018
UK Commercial Property Trust
Economic Momentum
70 Markit/CIPS UK Purchasing Managers' Index
65
60
PMI Balance
55
50
45
UK Manufacturing PMI UK Services PMI
UK Construction PMI Balance
40
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Feb-12
Feb-13
Feb-14
Feb-15
Feb-16
Feb-17
Dec-11
Aug-12
Dec-12
Aug-13
Dec-13
Aug-14
Dec-14
Aug-15
Dec-15
Aug-16
Dec-16
Aug-17
Dec-17
Oct-11
Oct-12
Oct-13
Oct-14
Oct-15
Oct-16
Oct-17
Apr-12
Apr-13
Apr-14
Apr-15
Apr-16
Apr-17
The economy is holding up better than expected and forecasts are generally resilient
Source: Thomson Reuters Eikon, Standard Life Investments 5
February 2018
UK Commercial Property Trust
Standard Life Investments – UK recession indicator – 12 months ahead from Q3 2017
12 month outlook - low probability of UK recession
Source: Standard Life Investments, January 2018 6
February 2018
UK Commercial Property Trust
UK Investment Volume
80000
UK Investors Overseas Investors
70000
60000
£m
50000
40000
H2
30000
H1
20000
10000
0
UK liquidity expected to continue
Source: Standard Life Investments, January 2018 7
February 2018
UK Commercial Property Trust
2018 Economics and Forecasts
Politics continues to dominate the headlines
The economy is expected to slow this year, recession is likely to be avoided though
Forecasting, we expect relatively modest returns this year and reasonable relative returns thereafter
Despite strong performance to date, industrial property is expected to continue to lead the sectors with
alternatives also doing well
City of London offices and poorer quality retail present most downside risk
The market is rewarding resilient income in good locations with positive fundamentals
BREXIT decreases forecasting confidence level
8
Agenda • Chairman’s Overview • The Market and 2017 • Financial Highlights • Portfolio and Performance • Chairman’s Concluding Remarks
February 2018
UK Commercial Property Trust
Financial Highlights as at 31 December 2017
■ NAV per share of 92.8p (31 December 2016: 86.2p)
■ Strong NAV total return over the year of 12.2% (Q4: 3.4%; H2: 6.5%)
■ EPRA earnings per share (excl deferred tax) has been broadly stable over the year at 3.42p (2017 – 3.43p)
■ Low net gearing of 12.8% (gross gearing of 17.2%), one of the lowest in Company’s peer group at a blended rate of interest
of 2.89% with covenants comfortably met
■ Uncommitted Cash of £59 million and £50 million RCF available*
■ Dividend yield of 4.1%*
Strong Balance Sheet with considerable financial resources available for investment
* As at 30 January 2018 10
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 guaranteedFebruary 2018
UK Commercial Property Trust
NAV Movement for 12 month period to 31 December 2017
Source: Standard Life Investments 11
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 guaranteedFebruary 2018
UK Commercial Property Trust
EPRA Earnings have remained broadly flat in the year
Acquisitions and Successful asset management has been key to maintaining earnings
Source: Standard Life Investments as at 31 December 2017 12
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 guaranteedFebruary 2018
UK Commercial Property Trust
REIT Conversion
■ Base erosion and profit shifting (“BEPS”) legislation reduces the ability of UKCPT to deduct interest for tax purposes and
will affect UKCPT from 2020
■ Proposals in 2017 Budget, if implemented, will mean that Guernsey companies who hold UK commercial property may be
subject to capital gains tax
■ Both these changes would only apply if the Company was not a REIT
■ REIT conversion discussions progressing well with final decision due in Q2, leading to summer conversion
Source: Standard Life Investments, 31 December 2017 13
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 guaranteedAgenda • Chairman’s Overview • The Market and 2017 • Financial Highlights • Portfolio and Performance • Chairman’s Concluding Remarks
February 2018
UK Commercial Property Trust
Portfolio Structure (after Shrewsbury sale)
UKCPT Sector Weighting Relative to Benchmark (%) Sector Weightings - Dec 2017
10%
15
10
36%
5
34%
0
-5
-10
20%
Industrial Offices Retail Other
Industrials Offices Retail Other (leisure)
Source: Standard Life Investments, Benchmark September 2017, UKCPT Portfolio December 2017 adjusted for sale of Shrewsbury 15
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 guaranteedFebruary 2018
UK Commercial Property Trust
Direct Portfolio Performance (12 months to 31 December 2017)
Portfolio Total Return Income Return Capital Growth
exposure
UKCPT Benchmark UKCPT Benchmark UKCPT Benchmark
% Proxy* % Proxy* % Proxy*
% % %
Industrial 35% 19.7 20.0 5.2 5.7 14.5 14.3
Office 19% 11.2 8.7 5.4 4.5 5.8 4.2
Retail 36% 7.8 7.2 5.0 5.6 2.9 1.6
Other (incl Leisure) 10% 6.6 13.2 5.0 5.4 1.7 7.8
Total 100% 12.2 11.1 5.1 5.2 7.1 5.8
ALSO Long Term Outperformance - Annualised Portfolio total return of 5.8% v Benchmark of 4.9%**
*Source: Standard Life Investments, MSCI/IPD Balanced Quarterly & Monthly Benchmark for 9mths to Sep 17 plus MSCI/IPD Monthly Index for
16
3mths to Dec 17 ** Annualised since inception (December 2006)
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 guaranteedFebruary 2018
UK Commercial Property Trust
Direct Portfolio Performance to 31 Dec 2017
Portfolio Benchmark*
14%
12.2%
12%
11.1% 11.1% 11.0%
10%
9.1%
8.6%
8%
5.8%
6%
4.9%
4% 3.5% 3.4%
2%
0%
Q4 1 year 3 years (% p.a.) 5 years (% p.a.) Since Inception**
Outperformance Since Inception - Annualised Portfolio total return of 5.8% v Benchmark of 4.9%**
* Source: Standard Life Investments, MSCI/IPD Balanced Monthly & Quarterly Funds to September 2017 & IPD Monthly for Q4 2017 17
** Since inception date - September 2006
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 guaranteedFebruary 2018
UK Commercial Property Trust
UKCPT portfolio alignment with SLI House View
House View 3yr
Fund weighting
Sector Total Return
December 2017
Forecasts (pa)
Industrials to outperform – UKCPT ‘overweight’ @ 36% exposure South East Industrial
Dist Warehouse (London)
Dist Warehouses (SE ex London)
City of London offices struggle – UKCPT 2.2% exposure Build to Rent (Rest UK) 6.6% 36%
Provincial Industrial
Distribution Warehouses (RoUK)
Rest of South East Offices (ex London)
Pressures in the retail sector rising; Leisure Parks
shopping centres only 4.2% of portfolio after Shrewsbury sale Major City Prime Shops 23%
Grade A Rest of UK Offices
Build to Rent (London)
Resilience and selectivity are key Hotels
Retail Fashion Parks
Regional Shop Centre (>50k m²)
Bulky Parks 23%
Medium Town Prime Shops
Supermarkets
Outer London Offices
Grade A City Offices
Solus Unit
Business Parks 13%
Other Rest of UK Offices
West End Offices
District Shopping Centres
Inner London Offices
Secondary Shops
Grade B City Offices
-1.3% 4%
Positive alignment Secondary Shopping Centres
Source: Standard Life Investments Real Estate Research UK (Draft) House View 3yr Total Returns from Q1 2018
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 118
8February 2018
UK Commercial Property Trust
Investment Purchases
Total investment volume 2017 : £74 million
June 2017
Hartshead House, Sheffield, £20.2 million, 5.0%
fully let to Capita for 22 years with annual RPI inflation linked rent increases
July 2017
Burton upon Trent, £22.2 million, 5.8%
Industrial Unit at Centrum West, Burton Upon Trent
completion of 258,000 sq ft distribution unit development pre-let to
Palletforce for 15 years with 5 yearly RPI inflation linked rent increases
November 2017
Maldron Hotel (Dalata Group plc), Newcastle, £32 million, 5.4%
35 year lease on hotel with ancilliary retail/food unit to let
forward funding, 265 bedroom 4 star city centre
Following these acquisitions 15.2% of UKCPT’s income is in RPI-linked and long
dated income
Hartshead House, Sheffield
Increasing exposure to preferred sectors and longer-dated secure income
Source: Standard Life Investments 19
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 guaranteedFebruary 2018
UK Commercial Property Trust
Investment Sales
Total sales volume 2017: £42 million (c£93 million including Shrewsbury)
January 2017
- 13 Great Marlborough Street, London Soho office, £30.5 million
- ahead of valuation, net initial yield of 3.3%
July 2017 Ensco Office, Aberdeen Gateway, Aberdeen
- Loudwater, High Wycombe industrial warehouse, £4.7 million
- ahead of valuation
December 2017
- Aberdeen Gateway, Ensco office, £6.5 million
- ahead of valuation
January 2018 (exchanged December 2017)
- three Shrewsbury Shopping Centres, approximately £51 million
- sold to Shropshire Council ahead of valuation (post year-end completion)
Charles Darwin Shopping Centre, Shrewsbury
Reducing exposure to assets which were expected to underperform
Source: Standard Life Investments 20
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 guaranteedFebruary
February 2018
2018
UK Commercial Property Trust
Retail Exposure & Structure
Reducing retail with most income risk
Source: Standard Life Investments, Benchmark September 2017, UKCPT Portfolio December 2017 21
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 guaranteedFebruary 2018
UK Commercial Property Trust
Asset Management – Ventura Park, Radlett, London
Radlett 60% let to 11 tenants totalling 576,000 sqft
Well located edge-of-London distribution industrial estate (M25/M1)
Largest unit: 159,000 sqft
Became vacant November 2016; strong investor & occupational demand
Despite muted supply, false start with letting in H1 2017
Extensive £1.2m refurbishment completed Jan 2018
Targeting rent of £8.50 psf, £1.3m pa (42% rental growth from purchase Sept 2015)
Advanced leasing discussions taking place
Value for money drives tenant demand in strong location
Source: Standard Life Investments 22
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 guaranteedFebruary 2018
UK Commercial Property Trust
Asset Management: ex-Argos Warehouse, Lutterworth, Magna Park
Prime distribution unit: 377,000 sqft
Located in one of the UK’s key distribution parks
Close to M1 / M6 / M69 known as ‘Golden Triangle’
As anticipated, unit fell vacant late December 2017 (Argos/Sainsbury’s merger)
Strong investor & occupational demand against muted supply
16 enquiries v 4 competing warehouses in region
Increased efficiency of cross-docked layout should differentiate
Potential rent reversion of 29% (c.£1.9m pa to £2.5m pa / £5.05psf to £6.50psf)
Plus anticipated future capital growth
Full refurbishment commenced (9 month project)
Grade A specification with aesthetic appeal
Total budget of £6.95m less dilapidations receipt
Investing for Income
Source: Standard Life Investments 23
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 guaranteedFebruary 2018
UK Commercial Property Trust
Asset Management: Hannah Close, Neasden, Wembley
Prime urban distribution unit: 180,000 sqft / 10 acres
Close proximity to Wembley Stadium & Wembley Park tube station
M&S plc lease extended in December 2017 from March 2018 to March 2019
Lease removed from Landlord & Tenant Act providing certainty on expiry
Dilapidations settlement pre-agreed with M&S plc
Rent increased by 12% from £2.10m pa to £2.35m pa (c £13.50psf)
Refurbishment plan prepared with project management team
Aim to start on site April 2019
Pre-letting campaign also underway
Exploring longer term alternative use options
Strong urban logistics location with growth potential
Source: Standard Life Investments 24
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 guaranteedFebruary 2018
UK Commercial Property Trust
Key Vacancy* & Lease Events to Dec 2019
Key Vacancy Location Area (sqft) June ’17 Status Dec ’17 Status
Radlett 160,000 Vacant Marketing - good interest. Decision taken to refurbish – just completed;
marketing & in detailed leasing discussions.
Lutterworth 381,000 Vacant Argos tenant but expected to Argos vacated;
relocate. extensive refurbishment underway plus early marketing.
(Event table below represents 61% of income that could expire before Dec 2019 representing 12% of total income**)
Tenant Location Area (sqft) Lease Event June ’17 Status Dec ’17 Status
GAP Kew 10,000 June 2017 Lease renewal in discussion. Renewal terms agreed – with GAP Board to approve.
CFUK Dartford 71,000 Jun 2018 (rolling) Lease renewal terms offered. Lease renewal terms offered.
Toys r Us Leicester 34,000 Apr 2018 In discussion. CVA announced – will vacate April 2018.
M&S Neasden 181,000 Mar 2019 In discussion. Lease extended from March 2018 to March 2019
DHL Radlett 86,000 Jun 2018 (break) Lease re-gear – in discussion. Lease re-gear – in discussion.
Wickes Leicester 26,000 Dec 2018 Lease expiry – will vacate. Lease expiry – will vacate at expiry (building own unit).
Veerstyle Dartford 68,000 Apr 2019 N/A Lease renewal – in discussion.
DSG Leicester 14,500 Nov 2019 N/A Lease renewal – in discussion.
Sony No.15, GMSt 38,500 Nov 2019 (break) N/A Expect to stay
(low rent, refurbished space, and additional 9 month rent free).
Industrial asset management should increase the dividend cover significantly
Source: Standard Life Investments, 31 December 2017; Colour key: Industrial, Retail, Office 25
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
* total void rate 7.6% versus Benchmark 6.8% as at 30 September 2017; ** 31 December 2017, excluding ShrewsburyFebruary 2018
UK Commercial Property Trust
Portfolio has significant reversionary potential
84
82
80 3.1
2.7 2.4
78
76 4.0
Rent (£m)
74
72
6.0 81.3
70
78.2
68
66 2.7
64
62 65.2
60
Portfolio Current Rent Free Vacancies Reversionary Pre Let Over Rented Portfolio ERV Investment of Potential Portfolio
Rent Potential Development Uncommitted cash ERV
- £59m @ 5.25%
Considerable potential to improve earnings
Source: Standard Life Investments as at 31 Dec 17 (all excl Shrewsbury assets) 26
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 guaranteedAgenda • Chairman’s Overview • The Market and 2017 • Financial Highlights • Portfolio and Performance • Chairman’s Concluding Remarks
February 2018
UK Commercial Property Trust
Chairman's Concluding Remarks
UK commercial real estate market returns expected to slow after a period of robust growth but will continue to provide strong income returns
Successful asset management initiatives will be key to driving performance in the next phase of the property cycle
New Board members have proven track record of success in their respective fields and will be valuable additions in helping the Company grow
UKCPT is well positioned to deliver value going forward:
• Positively aligned portfolio of prime assets geared towards secure income generation
• Strong tenant base with good covenants
• Opportunity to deliver successful asset management initiatives, especially in the favoured Industrial sector
• Delivering an attractive and sustainable yield to investors in the current stock market environment
• Strong balance sheet with low gearing and considerable financial resources available
Source: Standard Life Investments as at 31 December 2017 28
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 guaranteedQuestions & Data Pack
February 2018
UK Commercial Property Trust
Selection of UKCPT assets…
INDUSTRIAL RETAIL
OFFICE LEISURE
* Source: Standard Life Investments. 30February 2018
UK Commercial Property Trust
Portfolio Strategy 2017/2018
Sales
Exit assets where there is significant capital expenditure anticipated with limited return prospects, or low long term return prospects
Reduce retail exposure
Purchases
Acquire selective institutional grade assets which retain an income focus:
(a) Longer secure income streams, ideally index-linked, where the entry yield supports dividend cover and the investment prospects are sound;
(b) Well located investments which will either benefit from wider infrastructure improvements delivered by others, such as transport links, and/or require a degree of planned
active management, including limited capital expenditure, to grow rent;
(c) Selective assets where rental growth is anticipated
Preferred asset lot size of £20 million to £50 million
Asset Management Activity
Asset management activity focused on enhancing income;
Control void level
Accept investment into/refurbishment of well placed assets with short term leases expected to generate stronger total return
Overall
Retain prime nature of portfolio for long term sustainable performance and focus on growing income
Source: Standard Life Investments 31
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 guaranteedFebruary 2018
UK Commercial Property Trust
NAV & share price performance
UKCPT NAV return v comparators UKCPT Share Price return v comparators
120.0 120.0
106.3 106.3
100.0 93.4
100.0
83.5
80.3
80.0 76.7 80.0
72.2 73.3 72.5
70.8 70.8 70.8
68.6
63.0 63.0
60.0 60.0 54.0
37.5
40.0 33.3 40.0
29.7 33.3
27.0
21.2
20.0 15.4
12.2 12.0 12.2 13.1 11.0 20.0 14.5 15.4
12.2 13.1
9.4 8.0
0.0
0.0
-4.4
-4.4
-20.0
1 Year 3 Year 5 Year Inception -20.0
1 Year 3 Year 5 Year Inception
UKCPT GIC Sector FTSE REITs FTSE All-Share Index IPD Quarterly Benchmark UKCPT GIC Sector FTSE REITs FTSE All-Share Index
Source: Standard Life Investments, 31 December 2017, Thomson Reuters, 31 December 2017, IPD December 2017) 32
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 guaranteedFebruary 2018
UK Commercial Property Trust
Portfolio Structure
Dec 2017 Dec 2016
Direct portfolio value £1,397.3m £1,280.8m
No of properties 42 42
No of tenancies 343 346
Annualised Rental income* £68.9m £69.4m
Estimated rental value (ERV) ** £83.2m £79.7m
Net Initial Yield 4.5% 4.9%
Reversionary yield*** 5.6% 5.8%
Void levels (% of income and excl dev) 7.6% 3.7%
Gearing (Investment Policy limit 25%) (Net) 17.2% (12.8%) 18.2% (11.4%)
Weighted Average Lease Length (Sep 17) 8.5 years 8.1 years
* Passing rent ** 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 33
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 6.8%
Costs) # Source: all figures Standard Life Investments at Q4 2017 and MSCI /IPD Quarterly & Monthly Benchmark Report Sep 2017 unless otherwise stated
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 guaranteedFebruary 2018
UK Commercial Property Trust
A Diversified Portfolio
(Portfolio sub-structure, Dec 2017 – Post sale of Shrewsbury)
Source: All figures Standard Life Investments at Q4 2017 (adjusted for sale of Shrewsbury) and MSCI Quarterly & Monthly Benchmark Report, 34
September 2017
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 guaranteedFebruary 2018
UK Commercial Property Trust
Industrial Exposure & Structure
11%
36% 12%
25%
74% 24%
Industrial Rest of Portfolio South East Rest of UK Logistics Urban & Light Industrial
Source: Standard Life Investments, Benchmark September 2017, UKCPT Portfolio December 2017 35
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 guaranteedFebruary 2018
UK Commercial Property Trust
Top Ten Assets by Market Value
Top Ten Properties Sector Value Range
Ventura Park, Radlett Industrial £70-100m
Junction 27, Birstall, Leeds Retail Warehouse £70-100m
15 Great Marlborough Street, London Office – West End £50-70m
Great Lodge Retail Park, Tunbridge Wells Retail Warehouse £50-70m
Ocado Distribution Unit, Hatfield Distribution Warehouse £50-70m
The Rotunda Leisure Scheme, Kingston upon Thames Leisure £50-70m
Kew Retail Park, Richmond, London Retail Warehouse £50-70m
The Parade, Swindon Shopping Centres £50-70m
Dolphin Estate, Sunbury-on-Thames Industrial £50-70m
Hannah Close, Neasden Industrial £30-50m
Source: Standard Life Investments, 31 December 2017 36
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 guaranteedFebruary 2018
UK Commercial Property Trust
Low Risk Tenant Base – Top 10 Tenants by Annual Rent
Rank Company Name IPD Risk Band % of Income
1 B & Q plc Negligible 5.8%
2 Public Sector Negligible 4.7%
3 Ocado Retail Limited Low 3.9%
4 Sainsbury’s (incl Argos) Negligible 3.8%
5 Sony Centre Entertainment Negligible 3.1%
6 Marks & Spencer plc Negligible 3.1%
7 DSG Retail Limited Negligible 2.9%
8 Odeon Cinemas Limited Low/medium 2.7%
9 Total E&P UK Limited Negligible 2.7%
10 Cine-UK limited Negligible 2.6%
35.3%
Source: Standard Life Investments, 31 December 2017 37February 2018
UK Commercial Property Trust
UKCPT Debt – Covenants
Barings Facility Barclays Facility Overall*
Amount drawn down £100,000,000 £150,000,000 £250,000,000
Period to Maturity 9yrs 3mths 2yrs 3mths 5.0 yrs
Remaining to draw down £0 £50,000,000 RCF £50,000,000 RCF
Current Margin 1.25% 1.50% -
Current All in rate on drawn down amounts 3.03% 2.80% 2.89%
SWAPs entered N/a £150,000,000 £150,000,000
Current SWAP asset/(liability) end of Dec N/a (£2,090,000) (£2,090,000)
Covenant Reporting & Gearing Levels
LTV - Current 47.3% 30.6% -
Covenant 75% 60% -
Int Cover - Current 437% 439% -
Covenant 200% 160% -
Projected Int Cover - Current 410% 386% -
Covenant 200% 160% -
Low overall net gearing of 12.8% (17.2% gross) at blended rate of 2.89%
Source: Standard Life Investments, December 2017 38
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 guaranteedFebruary 2018
UK Commercial Property Trust
Consistently excellent rent collection and strong tenant base
Rent Q4 Dec 2017 Q1 Mar 2017 Q2 June 2017 Q3 Sep 2017 Q4 2017
Average rent
collection over last
Within 21 Days 99.5% 99.8% 99.6% 99.3% 97.9% 12 months – 99.2%*
Portfolio strongly
ranked for covenant
strength **
* Source : JLL / Standard Life Investments * Within 21 days ** MSCI IRIS, 30 September 2017 39February 2018
UK Commercial Property Trust
The asset class demonstrates a stable track record
41 of last 47 years delivered positive returns
2017
2015
2014
2013
2010
2006
2005
2004
2003
2000
1999
1998
2016 1997
2011 1996 1993
2002 1994 1988
2001 1989 1987
1985 1986 1979
1984 1981 1978
2007 2012 1983 1980 1977
1992 2009 1982 1975 1973
2008 1974 1990 1991 1995 1976 1971 1972
Source: Standard Life Investments 40
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 guaranteedFebruary 2018
UK Commercial Property Trust
Sustainability
Source: Standard Life Investments, 2017 41February 2018
UK Commercial Property Trust
Directors & Investment Manager
Directors
Andrew Wilson, Chairman
Ken McCullagh, Senior Non-Executive Director / Audit Committee Chairman
Michael Ayre
Robert Fowlds (Effective April 2018)
Margaret Littlejohns
Sandra Platts
John Robertson (Retiring March 2018)
Investment Manager
Standard Life Investments
Will Fulton
will.fulton@aberdeenstandard.com - Telephone 0131 245 2799
Graeme McDonald
graeme.mcdonald@aberdeenstandard.com - Telephone 0131 245 3151
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 42February 2018
UK Commercial Property Trust
Advisors
Administrator, Secretary and Registrar Investment Manager Property Valuer
Northern Trust International Fund Standard Life Investments CBRE Limited
Administration Services (Guernsey) Limited
Independent Auditors Guernsey Legal Advisors UK Legal Advisors
Deloitte LLP Ozannes Dickson Minto WS
Maples Teesdale
Principal Banker Principal Lenders Corporate PR Advisor
Barclays Bank Plc Barclays Bank Plc & FTI Consulting
Barings Real Estate Advisers Europe LLP
Corporate Broker Registered Office
J.P. Morgan Cazenove Trafalgar Court
Les Banques
St Peter Port
Guernsey
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 43February 2018
UK Commercial Property Trust
Disclosure
The information shown relates to the past. Past performance is not a guide to the future. The value of investment can go down as well as up.
Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the “Owner”) and is licensed for use
by Standard Life**. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be accurate, complete or timely.
To the extent permitted by applicable law, none of the Owner Standard Life** or any other third party (including any third party involved in providing and/or
compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Past performance is no guarantee of future results.
Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to which Third Party Data relates.
**Standard Life means the relevant member of the Standard Life group, being Standard Life plc together with its subsidiaries, subsidiary undertakings and
associated companies (whether direct or indirect) from time to time."
Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL.
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