The Trust aims to deliver an attractive level of income together with the potential for income and capital growth from investment in a diversified UK commercial property portfolio. It offers investors prime exposure to commercial property assets.

The Trust was previously named IRP Property Investments Limited. On April 11 2013, enlarged by the acquisition of the ISIS Property Trust the Trust was renamed F&C UK Real Estate Investment Limited.

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Key points

This trust offers exposure to a diverse portfolio of UK commercial property and a high level of income, paid quarterly. Investors can gain exposure to an asset class that is usually not accessible, via a readily realisable vehicle.

Fund facts
Investment manager F&C Investment Business Limited
Launch date 1 June 2004
Total assets £283.2 million (as at 30.06.13)
Currency Sterling
ISIN GB00B012T521
Key dates
Annual general meeting 14 November 2012
Year end 30 June
Dividend payment date(s) March, June, September and December

Fund manager commentary

On 11 April 2013 the Company completed the aquisition of the entire assets of ISIS Property Trust Limited (IPT). This was affected by a Scheme of Reconstruction through which IPT Shareholders received New Shares issued by the Company on a NAV for NAV basis. The Company was also renamed F&C UK Real Estate Investments Limited.

The merged Company resulted in a sizeable increase in the size of the portfolio with an aggregate market value of £276.8 million and a rent roll of £20.1 million giving a net initial yield of 6.9 per cent.

At 30 June the portfolio was valued at £276.6 million, which showed an increase in capital value of £1.19 million or 0.4 per cent on a like for like basis over the valuation of the portfolios at merger. There have been two property sales in the period between merger and 30 June 2013, an industrial property at 6 James Street, York and a unit shop at 67/69 King Street, South Shields which were sold for a combined value of £1.52 million.

Over the year to 30 June 2013, the portfolio returned 4.0 per cent, which reflected an income return of 7.1 per cent, but with a capital fall of 2.9 per cent. The vacancy rate on the portfolio reduced from 3.7 per cent at the time of the merger to 3.2 per cent as at 30 June 2013.

The manager has continued to identify opportunities to extend and re-gear leases in order to add value. As at 30 June 2013 the average weighted unexpired lease term was 7.9 years.

As at 30 June 2013

The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. If markets fall, gearing can magnify the negative impact on performance. A fund investing in a specific country carries a greater risk than a fund diversified across a range of countries. The value of property related securities are likely to reflect valuations determined by professional valuers. Such valuations are the opinion of valuers at a particular point in time and are likely to be revised. Property and property related assets can sometimes be illiquid.

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