For immediate release


PRESS RELEASE

F&C UK Real Estate Investments Limited shows robust returns as market recovery broadens

Company obtains UK-REIT status

LONDON, 24 February 2015 - F&C UK Real Estate Investments Limited ('the Company') has today announced in its interim results for the six months to 31 December 2014, a period of robust performance.

The Company's net asset value ('NAV') per share total return for the six month period was 11.9 per cent with strong share price total return of 15 per cent. The shares were trading at a premium to the NAV of 3.5% at the period end.
The first interim dividend for the year ending 30 June 2015 of 1.25 pence per share was paid in
December 2014, with a second interim dividend of 1.25 pence per share to be paid on 31 March
2015. It is expected that the Company will continue to pay quarterly dividends at this rate, the equivalent of 5 pence per share per annum.
The Company's portfolio recorded further capital growth during the six month period, with overall values increasing by 6 per cent. Industrial properties witnessed the highest capital returns at 8.7 per cent, followed by Offices which increased in value by 6.9 per cent. The property with the largest increase in capital value was 1-2 Lochside Way, Edinburgh, which saw an uplift of 23.5 per cent on the back of an improving market and the lease renewal with the tenant HSBC plc. The portfolio delivered an income return of 2.8 per cent over the six month period.
The period to December 2014 saw the Company approved to enter the UK REIT regime, with effect from 1 January 2015. By obtaining UK-REIT status, the Group is no longer subject to UK income tax on the profits and gains from their qualifying property rental business provided that it meets certain conditions. This effectively reduces the burden of taxation for most shareholders.
Commenting on the outlook for the UK Commercial Property sector, fund manager Ian McBryde said:
"The recovery of the commercial property market is broadening beyond London and the past six months saw the yield gap between prime and secondary narrowing. The approaching UK election and possible EU referendum, together with global economic and political uncertainty, may act to temper performance over the coming five years, with rental growth becoming a more important factor in performance. However, property yields remain attractive against the risk free rate, and with interest rates expected to stay low for some time, the outlook for property remains favourable."
The Company's net gearing level, as at 31 December 2014, was 30.7 per cent. Since the period end, the Company has issued 3 million Ordinary Shares at a 4 per cent premium to the prevailing NAV.

www.fandc.com

Highlights of F&C UK Real Estate Investments Limited interim results, for the six months to 31 December 2014, include:

Share price total return of 15.0 per cent

Net asset value per share total return of 11.9 per cent

Net asset value per share total return since launch* of 98.4 per cent

Dividend of 2.5 pence per share for the period

Dividend yield of 5.3 per cent as at 31 December 2014

About F&C UK Real Estate Investments Limited:

The Company's investment objective is to provide ordinary shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified UK commercial property portfolio

The Company 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

F&C UK Real Estate Investments Limited is managed by Ian McBryde at F&C REIT in

London

The Company is benchmarked against the Investment Property Databank ('IPD') Quarterly

Index

ENDS

The full results statement is attached. For more information, please call the F&C press office on +44 (0) 20

3727 1888 or email fandc.sc@fticonsulting.com.

Notes to Editors

*Launch date: 1 June 2004

F&C REIT Asset Management

F&C REIT is an entrepreneurial, institutionally-partnered force in commercial property and manages a global portfolio worth £7.2bn * on behalf of a wide range of individuals, professional investors, property trusts and institutional clients.

F&C REIT's investment team uses both detailed proprietary and external research, sophisticated forecasting and strategic analysis to find market inefficiencies and opportunities - across property sectors, countries, types and tenants.

F&C REIT offers a comprehensive, integrated range of real estate fund management services with a network of offices spanned across four countries: Germany (Munich), India (Mumbai), Ireland (Dublin), and the UK (London).

* As at 5.2.2015. Some assets under management are recorded at their acquisition cost, reflecting the basis on which income is generated for F&C REIT by these assets.

About F&C Investments, a part of BMO Global Asset Management

F&C is focused exclusively on managing money for its clients. It manages assets for a combination of insurance clients, institutional investors, intermediaries and private individuals. F&C invests across all major asset classes - equities, fixed income and property - and has specialist expertise in asset allocation, alternative investments, liability driven investments, multi-manager, private equity funds and Environmental Social and Governance (ESG) Investing. The F&C Group includes F&C REIT, a global real estate asset manager.



www.fandc.com

F&C has a strong footprint in the U.K. and the rest of Europe with assets under management of approximately £83 billion as at June 30, 2014. F&C has a rich heritage that dates back almost 150 years and can be traced back to the founding in 1868 of the Foreign & Colonial Investment Trust.

BMO Global Asset Management, of which F&C Investments is the European hub, is a global investment organisation providing investment management, retirement, and trust and custody services to institutional, retail and high net worth investors, from 24 offices in 14 countries to clients across five continents. BMO Global Asset Management has £169 billion assets under management as at September 30 2014. BMO Global Asset Management is a part of BMO Financial Group (NYSE:BMO), a fully diversified financial services organization with C$522 billion total assets and more than 47,000 employees as of October 31,

2014.

Disclaimer

Past performance should not be seen as an indication of future performance. The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. The information, opinions estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time. F&C Group Companies may from time to time deal in investments mentioned herein on behalf of their clients. F&C Management Limited is authorised and regulated by the Financial Conduct Authority FRN: 119230 F&C Management Limited is a member of the F&C Group. The F&C Group is wholly owned by BMO Global Asset Management (Europe) Limited, which is itself a wholly owned subsidiary of the Bank of Montreal. F&C, the F&C logo, REO and the 'reo' logo are registered trademarks of F&C Asset Management plc. F&C Investments and the F&C Investments logo are trademarks of F&C Management Limited. © Copyright F&C Management Limited 2015. All Rights Reserved. Neither this document nor any part of it may be reproduced by any party whether by photocopying or storing in any medium by electronic means or otherwise without the prior approval of F&C Management Limited.

F&C Management Ltd accepts no liability in respect of the information or any views expressed herein which may be subject to change without notice at any time.



www.fandc.com

distributed by