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 £325.88 million (as at 30.09.14)
Currency Sterling
ISIN GB00B012T521
Key dates
Annual general meeting  
Year end 30 June
Dividend payment date(s) March, June, September and December

Fund manager commentary

At 30 September 2014, the Net Asset Value per share of the Company was 87.1 pence, an increase of 4.4 per cent over the quarter. The Company’s property portfolio increased in value by 3.0 per cent on a like for like basis. The value of the portfolio stood at £312.3 million following two property sales and one purchase in the quarter. The portfolio produced an income yield of 1.4 per cent, which together with a capital growth of 3.0 per cent after taking account of transaction costs delivered a total return of 4.4 per cent over the quarter.

The Company’s industrial properties produced the largest contribution to performance returning 5.7 per cent. Rest of UK offices delivered 8.4 per cent and West End offices 5.3 per cent. Retail property lagged delivering 3.0 per cent overall.

During the quarter the Company purchased Building A3, Glory Park, High Wycombe for £6.97 million, reflecting a yield of 7.0 per cent. The office property extends to 19,572 square feet and is let to two pharmaceutical tenants.

The Company has continued to dispose of smaller lot sized properties and completed the sales of 2-3 Pavilion Buildings, Brighton, a bar with offices above, which sold for £2.5 million, reflecting an initial yield of 6.0 per cent; and Unit GP9, Globe Park, Marlow, an empty office of 14,300 square feet building requiring refurbishment, for £1.7 million reflecting a capital value of £119 per square foot.

Currently the average weighted lease expiry profile is 8.25 years with the void rate has reduced from 5.7 per cent to 5.0 per cent over the quarter.

On the retail side, Units1/2 Above Bar Church, 89 Above Bar was sold for £1.8 million reflecting a yield of 8.6 per cent, but was subject to lease expiries and breaks in 2016/17.

As at 30 Sept 2014

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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