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 £297.40 million (as at 31.03.14)
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 31 March 2014, the Net Asset Value per share of the Company was 79.9 pence, an increase of 3.8 per cent over the quarter and a total return of 5.4 per cent. The Company’s property portfolio increased in value by 2.0 per cent on a like for like basis. The value of the portfolio stood at £281.5 million following two property sales in the quarter. The portfolio produced an income yield of 1.8 per cent, which together with capital growth of 1.9 per cent delivered a total return of 3.7 per cent over the quarter.

Offices produced the largest contribution to performance returning 4.8 per cent. Rest of UK offices delivered 5.5 per cent and West End offices 4.9 per cent. Industrial property returned 3.9 per cent but returns from retail property lagged delivering 2.8 per cent.

The largest contribution to returns came from 1-2 Lochside Way, Edinburgh Park, Edinburgh where the Company completed a new lease with HSBC Bank plc. The existing lease under which HSBC pay £837,380 per annum expires on 30 August this year. A new ten year reversionary lease has been granted at a rent of £699,616 per annum, with 12 months’ rent free, subject to a tenant’s break after five years conditional on a 12 month rent penalty. The value of the property has increased delivering a 14.7 per cent return over the quarter.

The Company has continued to dispose of smaller lot sized properties and completed the sales of Unit 1, King George Close, Romford and Swift House, Cosford Lane, Rugby for £2.45 million and £5.25 million respectively.

Currently the average weighted lease expiry profile is 8.0 years with the void rate of 6.3 per cent.

As at 31 March 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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