LONDON & ASSOCIATED PROPERTIES PLC RESULTS FOR 12 MONTHS TO 31 DECEMBER 2014 London & Associated Properties (LAP) is a fully listed focused UK shopping centre and retail property specialist. HIGHLIGHTS * Accounts of Bisichi Mining PLC consolidated into LAP's for first time following new accounting standard * RBS corporate facility replaced with £45m non-recourse loans * Restructured loan portfolio leaves LAP in strong financial position * Total property portfolio valued at £250m, including properties under management * Property investments performing well reflecting strong investor and occupational demand * Fully diluted net assets now 50.35p per share * Dividend of 0.156p per share recommended - an increase of 25% 'There is strong investor demand for shopping centre and retail property following a recovery in occupational demand. Rental levels for shops found a floor during 2014 and, in many locations, are now showing growth. A tightening of yields has meant that investors have looked outside London with more enthusiasm and provincial locations are in greater demand than for some time. In this environment of low interest rates and attractive risk premia, the value of properties in our portfolio should remain firm,' said Sir Michael Heller, Chairman, and John Heller, Chief Executive. Contact: London & Associated Properties PLC Tel: 020 7415 5000 John Heller, Chief Executive Anil Thapar, Finance Director Baron Phillips Associates Tel: 07767 444193 Baron Phillips chairman and chief executive's statement We are pleased to report on a year of steady progress at LAP. As previously reported, the most significant event of last year was the refinancing of our £ 45 million facility away from the Royal Bank of Scotland to Santander UK PLC. At the same time we closed our associated long-dated swap positions. As a result we are in a much stronger financial position going forward with a less volatile balance sheet. As reported in 2013, Windsor Shopping Centre's sale was completed in January 2014 for £105 million. The sale proceeds were utilised to repay the related bank loan and all group to interest rate derivatives. In March 2015, we also repaid from our cash resources £1.25 million of the £5 million outstanding 2018 debenture stock from Prudential Assurance Co. The total consideration was £1.4 million and this will reduce interest expense by £ 145,000 per annum. As a result of both of these events, LAP's average cost of borrowing now stands at 5.8% (2013: 7.6%) while the Group's borrowing cost is 5.7% (2013: 7.2%). At 31 December 2014 our directly owned properties were valued at £103.7 million, compared to £102.1 million in the previous year. Total assets under management including those of our joint ventures amounted to £250 million (2013: £238 million). Our gross property income for 2014 amounted to £7.1 million (2013: £7.6 million). The Group loss before tax is £2.7 million (2013 profit £1.1 million). The result has, however, been impacted materially by the now terminated interest rate derivatives. Some £1.1 million has been charged in the current year as compared with a credit last year of £4.4 million. Had this been excluded the result this year would have been a small loss of £1.6 million (mainly attributable to short term loss of income in Sheffield and £1.1 million new interest derivatives charge) as compared with an adjusted loss in 2013 of £ 3.3 million. The after tax position is similarly affected by a deferred tax charge of £4.8 million arising as a result of the repayment of interest rate derivatives in the year. There is strong investor demand for shopping centres and retail property following a recovery in occupational demand. Rental levels for shops found a floor during 2014 and, in many locations, are now showing growth. A tightening of yields has meant that investors have looked outside London with more enthusiasm and provincial locations are in greater demand than for some time. In this environment of low interest rates and attractive risk premia, the value of the shopping centres in our portfolio should remain firm. As shareholders know, we have deliberately focused on both major city centres and value-orientated shopping locations. We expect both of these types of rental locations to continue to perform. This year for the first time we have consolidated the accounts of Bisichi Mining into our own, because under new accounting standard IFRS 10 we have effective control of Bisichi. This means that our accounts have been restated for 2013 as well. In reality, there has been no change in the relationship between the companies and Bisichi continues to be managed independently of LAP. While this change means that our accounts contain much more detail about the mining company and its assets and liabilities, there is no material difference to our net asset value. Previously we included only the value of our share of Bisichi's net assets, while we now include the full value of all the assets and liabilities and deduct the amount attributable to the other shareholders.

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