UK Commercial Property REIT (UKCM) - February 2021 Year End 2020 - Results Presentation
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February 2021 UK Commercial Property REIT (UKCM) Year End 2020 – Results Presentation Presented by: - Will Fulton, ASI - Graeme McDonald, ASI Picture – Ocado, Hatfield Aberdeen Standard Investments (‘ASI’)
Agenda 01. Overview 02. The Market 03. Financial Highlights 04. Portfolio and Performance 05. Concluding Remarks 1
Overview
UK Commercial Property REIT (UKCM) owns a diversified portfolio of UK real estate assets and aims to deliver an attractive level of
income together with the potential for capital and income growth
The Company has delivered robust returns in an unprecedented economic environment
Asset allocation firmly weighted to the industrial sector with a 58% exposure
Successful asset management has improved occupancy - notably letting Lutterworth on a 15 year lease which reduced void by 35%
Rent collection stronger than anticipated, and has improved each quarter since Spring 2020
Strong balance sheet with considerable financial resources available to invest and low levels of gearing has allowed the Company to pay
out a dividend throughout this pandemic*
Continued Environmental Social Governance (ESG) focus with an EPRA** “Gold” rating for Best Practice
Source: Aberdeen Standard Investments
(* please refer to 31 December 2020 NAV statement for more details; **The European Public Real Estate Association)
2 Past performance is not a guide to future results. The value of investments, and the income
from them, can go down as well as up and you may get back less than the amount invested
Agenda 01. Overview 02. The Market 03. Financial Highlights 04. Portfolio and Performance 05. Concluding Remarks 3
UK Forecasting
A renewed sense of optimism moving into 2021, with a no-deal Brexit averted and a vaccine roll out, is likely to be tempered, at least
initially, by the latest national lockdown
Retail and Leisure remain under significant pressure with the exception of supermarkets which are highly resilient
Industrial sector thriving and set to continue to benefit from accelerating structural changes
Continued measured-risk approach to the portfolio with income sustainability driving returns
Lower for longer interest rate expectations remain in place – supportive of real estate pricing
4
UKCM sector weightings against ASI sub-sector forecast returns
78% of the portfolio is in sectors forecast to outperform
Source: Aberdeen Standard Investments, December 2020. No assumptions around future performance should be made
Forecasts are not a reliable indicator of future results and there can be no guarantee that
5 these will be achieved
Logistics market outlook post-Covid-19
Mixed short-term signals but powerful structural drivers in the long-term
Short-term Economy Demand Supply Investment Relative Returns
performance
indicators
(1-2 years)
Volatile recovery expected E-commerce & groceries up Vacancy being absorbed Massive demand Outperform All Property
Online retail trends accelerated 5 years Investment considerations
Existing supply chains need to adapt
Major investment required by retailers • Intense pricing pressures. We anticipate
Urban fringe and mid-box critical significant volumes of capital to target this
E-commerce sector over the next decade
Long-term Long supply chains carry excessive risk • Urban fringe and mid-box should be most
Performance Labour cost arbitrage less pronounced relevant parts of the market
drivers Automation and robotics game-changing
Boost for major consumption markets • Fierce competition between operators – be
(next decade) Near-shoring certain your tenant is future-proof
• Maximise ESG potential to ensure
Supply chain risk has increased last 10yrs efficiency and employee welfare
Switch focus towards certainty vs. speed
Expected to drive storage requirements • Beware regulation – particularly urban
Will be very cost-sensitive – low rents key
Inventory building
Source: Aberdeen Standard Investments, January 2021
Short term indicators are relative to last 5 year trend, relative returns indicator based on three year outlook vs Global All Property
Forecasts offered as opinion and are not reflective of potential performance. Forecasts are not guaranteed
6 and actual events or results may differ material.
Agenda 01. Overview 02. The Market 03. Financial Highlights 04. Portfolio and Performance 05. Concluding Remarks 7
Financial highlights as at 31 December 2020
Strong Balance Sheet, Low Leverage and Significant Resources
Current combined debt positon
Overall Debt Position
Total debt available £350m
86.7p 2.7p Remaining available £150m
89.8p 3.5p
Weighted Average
8.2 years
NAV per share EPRA earnings Period to maturity
per share
All in rate 2.88% p.a
The combined facilities provide:
• Low LTV / risk
Net: 6.4% • Low cost
£218m* Gross: 15.1% • Good duration
£130m
N: 14.7%
• Flexibility
G: 17.7%
Capital available
to invest
Gearing • Significant covenant headroom
Source Aberdeen Standard Investments, December 2020. Light blue figures represent position
Source Aberdeen Standard Investments, December 2020
at December 2019 * Inclusive of £150m RCF
Past performance is not a guide to future results
8
Financial highlights - NAV
NAV movement year to 31 December 2020
Source: Aberdeen Standard Investments, December 2020
Past performance is not a guide to future results. The value of investments, and the income from
9 them, can go down as well as up and you may get back less than the amount investedFinancial highlights – EPRA Earnings
EPRA Earnings movement year to 31 December 2020
Source: Aberdeen Standard Investments, December 2020
Past performance is not a guide to future results. The value of investments, and the income from
10 them, can go down as well as up and you may get back less than the amount investedAgenda 01. Overview 02. The Market 03. Financial Highlights 04. Portfolio and Performance 05. Concluding Remarks 11
Strategy
To provide shareholders with an attractive level of income with the potential for capital and income growth from
investing in a diversified portfolio of UK commercial property
• Continued focus on rent collection and reducing
Asset •
arrears
Drive down void level
• Enhance lease terms
Management • Engage with retail tenants to create sustainable
lease structures
• Focus on “future fit” modern economy and goods &
Accretive •
services distribution
Continue to explore strong operational opportunities in the
Acquisitions •
•
alternatives sector
Ability to repeat durable income streams
Lot Size target £20-50m
• Exit assets with significant capex requirement
Selective •
and limited return prospects
Selectively reduce retail and leisure exposure
Selling
12ESG Performance and Reporting GRESB 2020 • UKCM 2nd in UK Diversified (listed) peer group • Overall score of 67/100; Two Star rating Trust 2020 ESG Performance Headlines (EPRA sBPR) • EPRA Gold rating September 2020 • 100% of electricity sourced from renewable sources • 100% diversion of waste from landfill Current initiatives • Improve energy data collection at single let assets • Ongoing Solar PV feasibility at several industrial and retail assets. • Investigating potential for biodiversity projects including beehives • Installing enhanced bicycle facilities • Community activities at large format retail / leisure once practicable 13
Portfolio Structure
Portfolio sector weighting (by Market Value) UKCM sector breakdown
Urban Non - Urban
Industrial
60%
Rest of UK (light
Office London green SE)
Source: Aberdeen Standard Investments, Dec ember 2020; MSCI Balanced Quarterly & Monthly benchmark, September 2020
Retail Retail Warehousing High Street (light
Capital value by geography
orange supermarket)
40% 37%
35%
30%
25%
19%
20%
15%
9% 9% 8% 8% Other Cinema Anchored Hotel/Student
10%
5%
5% 5%
Leisure Accommodation
0%
London
West Midlands
Scotland
Yorks and Humber
South West
North East
East Midlands
South East
Source: Aberdeen Standard Investments, December 2020 Source: Aberdeen Standard Investments, Dec ember 2020
14Portfolio Performance to 31 December 2020
UKCM direct portfolio total return outperforming Benchmark
Exposure Total return Income return Capital return
H2 2020
(%) (%) (%) (%)
Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark
Industrial 58 10.3 8.9 1.7 2.2 8.5 6.6
Office 14 -2.5 0.3 2.2 2.2 -4.6 -1.8
Retail 17 -0.8 -1.6 1.9 3.2 -2.7 -4.7
Other (inc. Leisure) 11 -4.5 -0.2 -0.8 2.5 -3.7 -2.7
Total portfolio 100 4.6 2.6 1.5 2.5 3.1 0.1
Source: UKCM, Aberdeen Standard Investments, December 2020 - Benchmark: MSCI UK Balanced Portfolios benchmark to 30 September 2020 + 3 months MSCI UK Balanced Funds
Monthly index to 31 December 2020 . UKCM Figures are gross of Investment management fees, gearing costs and other fund related fees
15
Past performance is not a guide to future results.Rent Collection – Year to 01 January 2021
2020 Rent Collection
Source: Aberdeen Standard Investments, January 2021
Update on 17% Rent Outstanding over the four “COVID”
quarters as at 28/01/2021
Source: Aberdeen Standard Investments, January 2021
16Investment - Sales & Purchases 2020
Sales (5) Purchases (3)
£160m* £74m
£156m
Broadbridge Great Lodge R Park,
1 PBSA, Exeter PBSA, Edinburgh
R Park, Horsham 3 Tunbridge Wells 1 3
• £28m funding • £29.1m funding
• £46.25m** • 5.6% projected NIY • 5.5% projected NIY
• £18.1m
• Ahead of valuation • Strong university • Prime student location
• In line with valuation
• Mitigated short term • Located adjacent to the • High proportion of
• Selling down risk
income risk main campus cluster rooms
retail income
• Construction to • Construction to
complete for 2022/23 complete for 2022/23
academic year M8 Industrial Estate, Glasgow academic year
Eldon House, M8 Interlink Estate •£24.6m
Distribution Portfolio
M8 Industrial Estate, Glasgow •Topped up NIY 5.9%
ASDA Torquay
London•£24.6m Glasgow 2
2 4 •£85.4m
•290,104 sq ft across 20 units
•Topped up NIY 5.9% • £16.6m •Average
•Toppedrent
upofNIY
£5.25 psf
• £40m •290,104 sq ft across 20 units • £25.4m 5.5%
• 290,104 sq ft • NIY 5.25% in •909,030
2021 sq ft
•Crystallized profitrent
•Average fromof £5.25 psf
• Opportunistic & • 15 year income with rent of £5.52 psf
•Average
AM Activity
mitigate void risk indexed reviews
• Strong underlying trade
Source: Aberdeen Standard Investments, January 2021 * Includes Motorpark, Portsmouth, sold for £29.8m in March 2020; ** Less rent guarantee escrow.
17Industrial portfolio: Positive Leasing Activity
Xdock377, Magna Park, Lutterworth
Sector Weighting
• Newly refurbished cross docked facility in a prime
Golden Triangle location
• Let on a new 15 year lease to Armstrong Logistics.
• Agreed a rent of £2.45m per annum
• Mitigated the largest void in the portfolio
Dolphin Industrial Estate, Sunbury on Thames
Sector Occupancy
• High quality multi let urban estate with good
access to the M25
• Let Unit C to Avenue 51 on a 10 year lease with a
break at year 5 for £275,000 pa (£13.00 psf).
• Estate is now fully let and a new rental tone has
been achieved.
• Significant valuation uplift in H2 2020.
Source: Aberdeen Standard Investments,
January 2021
Strategically Positioned – Urban Industrial Engine for Rental Growth
18Portfolio voids (by ERV) – significantly reduced
Ventura Park, Radlett
Remainder all
sectorsLease events over the next 12 months (by annual rent passing)
By rent passing
25 Moorgate,
Compagnie Fruitiere, Gap, Colmore Row,
Dartford Kew Retail Park
UPS, Emerald Park
H Tenens,
Sunbury
Remainder
0.4%Rent bridge
Potential Income Growth
Source: ASI, Dec 2020
Past performance is not a guide to the future. The value of investments and the
21 income from them can fall as well as rise and is not guaranteedAgenda 01. Overview 02. The Market 03. Financial Highlights 04. Portfolio and Performance 05. Concluding Remarks 22
Concluding remarks
UKCM has strong foundations to help it navigate through COVID-19
UKCM continues to have a portfolio aligned to sectors which aim to perform well on a relative basis
given current market conditions – it’s investment focus is firmly on “fit for the future” modern economy
assets
Maintenance of income is a key focus of the Board with a dedicated team at the Investment Manager in
regular contact with tenants
Diversified tenant base helpful in the current environment with a number of large household names
in the top ten such as Ocado and Amazon
The Company has continued to pay a dividend throughout this pandemic and with a further top up
dividend once audited results are announced*.
The Company remains one of the largest diversified REITs with a strong balance sheet, low gearing and
considerable financial resources. Overall UKCM has strong foundations to help it navigate through the
implications of Brexit and COVID-19 and be a beneficiary of the accelerated structural changes taking
place in the UK real estate market.
*(* please refer to 31 December 2020 NAV statement for more details)
Past dividends are not a guide to future dividends
2301
UK Commercial Property REIT
2020 – Results Presentation
Q&A01
UK Commercial Property REIT
2020 – Results Presentation
Data PackUK Commercial Property REIT
Experienced and dedicated fund management team with specialist support
Independent Board
Credit Management Research and
team Strategy team
Monitors financial Lead Manager Global macro
assumptions
health of existing Will Fulton
and prospective Quarterly real
Research / underwriting
tenants estate house view
Deputy Fund Manager
Risk management
Tom Elviss
Development Transactions
team team
Deal structuring Transactions
UKCM Real Estate Team support
Review/ negotiation
of funding David Fleetwood
agreements David Rodger
Sarah MacDougall
Gary Sleator
Finance & Tax
Wider ASI
team
Capabilities
Fund & deal
structuring Multi-Asset Investing
team, Global
Real Estate Finance Management Team
Tax planning Strategy, Global
Graeme McDonald Equity and Fixed
Banking
relationships
Michelle Reid Interest teams
Source: Aberdeen Standard Investments, Dec 20
26Global Performance Signals: Q1 2021
Vaccine offers hope for later in 2021 but first half likely to remain challenging
Performance Current
Outlook Comment
Signals Signal
UK to contract again in Q4 and Q1 after nearly 16% growth in Q3. Until a
Economic
fundamentals vaccine rolled out, lopsided “W” profile to growth expected. Thinness of Brexit
deal to reveal itself over time – financial services remain a concern.
Macro
Margin over bonds Real estate yields drifting outwards where risk has risen; gap narrowing for
securest income. Corp. bond spreads back in line with pre-Covid levels
Monetary policy Emergency cut to 0.1% and an expansion of QE has followed. More QE in
November but vaccine hopes may mean risk of negative rates has faded
Increasing number of segments may already be oversupplied through existing
Supply stock; conversions may offer more hidden supply. But logistics supply arguably
not keeping up with demand, especially in urban areas
Flows of capital Lockdown to hamper recovery in volumes but tentative improvement expected
Real Estate
in H1 2021, although focus of investor demand to remain narrow
Lending Traditional lenders hunkering down and pressured into forbearance; new
lending remains highly constrained with refinancing concerns mounting
Fund flows Flows relatively stable after initial outflows post re-opening. Lockdown could
weaken sentiment; proposed regulatory change a barrier to inflows.
REITs bounced on vaccine news but rental declines are still being priced into
360° view London specialists. Debt fund interest strong, as alternative lenders can
demand healthy margins; may also imply lack of faith in equity component
Sources: MSCI/IPD; Thomson Reuters Eikon; PMA; RCA; CBRE, Investment Association; Aberdeen Standard Investments, January 2021
Key: Trend: Performance signal:
27 Stable Supportive
Upward trend Neutral
Downward trend UnsupportiveIn a low rate environment, lower income yield is evident across asset classes
Real estate yields compare favourably in this environment
Low interest rate environment a global phenomenon Multi asset UK yield comparison
10
Policy Rate (%)
8
9
7
8
6 7
5 6
Yield (%)
4 5
4
3
3
2
2
1
1
0
0
Q1 2003
Q4 2003
Q3 2004
Q2 2005
Q1 2006
Q4 2006
Q3 2007
Q2 2008
Q1 2009
Q4 2009
Q3 2010
Q2 2011
Q1 2012
Q4 2012
Q3 2013
Q2 2014
Q1 2015
Q4 2015
Q3 2016
Q2 2017
Q1 2018
Q4 2018
Q3 2019
Q2 2020
Q1 2021
-1
Q4 2001
Q4 2002
Q4 2003
Q4 2004
Q4 2005
Q4 2006
Q4 2007
Q4 2008
Q4 2009
Q4 2010
Q4 2011
Q4 2012
Q4 2013
Q4 2014
Q4 2015
Q4 2016
Q4 2017
Q4 2018
Q4 2019
Q4 2020
UK 10 YR Gov Yield UK Corp. 10Y Yield (AA)
Ftse 250 (Div Yield) IPD Initial Yield
US ECB (Refi Rate) Bank of Korea BoE BoJ RBA UK Corp. 10Y Yield (BBB) IPD Equivalent Yield
Source: Refinitiv, MSCI, ASI, Jan 21
Source: Refinitv, Various Central Banks, ASI, Jan 21
For illustrative purposes only
Past performance is not a guide to future results.
28ASI Research – 3-Year Total Return Forecasts
Significant dispersion across property segments
Total return forecast (% p.a.), calendar years 2021-23
Supermarkets
London Distribution Warehouses
Rest of SE Distribution Warehouses
Healthcare
London Standard Industrial
Rest of SE Standard Industrial
Build to Rent (Rest of UK)
Rest of UK Distribution Warehouses
Rest of UK Standard Industrial
Build to Rent (London)
Solus Retail Warehouses
Bristol Offices
Edinburgh Offices
Retail Parks
Student Halls
Birmingham Offices
All Property
Rest of UK Offices
Leeds Offices
Manchester Offices
Glasgow Offices
Inner London Offices
Hotels
Rest of SE Offices
Mid Town Offices
City Offices
Dominant Standard Shops
West End Offices
Leisure
Rest of London Shops
Other Standard Shops
Dominant Regional Shopping Centres
Other Shopping Centres
Central London Shops
-8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0%
Source: Aberdeen Standard Investments, January 2021.
29 Forecasts offered as opinion and are not reflective of potential performance.
Forecasts are not guaranteed and actual events or results may differ material.Retail downgrades predominantly focused on rental value decline
Where is the floor? Threat of CVAs is real in fashion and F&B especially
Rental value growth forecast (% p.a.), calendar years, 2021-2023
London Distribution Warehouses
Build to Rent (Rest of UK)
Rest of SE Distribution Warehouses
London Standard Industrial
Build to Rent (London)
Rest of SE Standard Industrial
Rest of UK Distribution Warehouses
Rest of UK Standard Industrial
Student Halls
Healthcare
Edinburgh Offices
Bristol Offices
Manchester Offices
Supermarkets
Birmingham Offices
Rest of UK Offices
Leeds Offices
Glasgow Offices
Inner London Offices
All Property
Hotels
Solus Retail Warehouses
Mid Town Offices
Rest of SE Offices
West End Offices
Retail Parks
City Offices
Leisure
Rest of London Shops
Dominant Standard Shops
Dominant Regional Shopping Centres
Other Standard Shops
Central London Shops
Other Shopping Centres
-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0%
Forecasts offered as opinion and are not reflective of potential performance. Forecasts are not guaranteed and actual
Source: ASI, Jan 21.
events or results may differ material.
For illustrative purposes only
30Portfolio dashboard
Portfolio data Q4 2020 Q2 2020 Rent Collection
Portfolio Value £1,207m £1,219m
Rent Billing Mar June Sept Dec Mar June Sept Dec
Quarter 2019* 2019* 2019* 2019* 2020 2020 2020 2020
Rent collected
99% 98% 99% 93% 77% 83% 85% 84%
No. Properties 36 37 *21 days
No. of Tenancies 183 201
Lease expiry income erosion
Annual Rent Roll £56.3m £59.8m
Estimated Rental
£65.6m £69.6m
Value
Void Rate 6.5% 10.0%
AWULT* 8.9 years 9.7 years
NIY/ RY** 4.3% / 5.1% 4.4% / 5.4%
Gearing (gross) 6.4% (15.1%) 10.5% (18.7%) Source: MSCI, Sep 20. Green: MSCI Benchmark, Orange: Portfolio
Source: ASI, Dec’20
*Average Weighted Unexpired Lease Term
** Net Initial Yield / Reversionary Yield
Past performance is not a guide to future results
31Sector exposure over time
UKCM sector exposure by capital value versus benchmark Industrial
Retail-Industrial
inflection point
Material strategic overweight
position to industrial
Retail
17%
Maintained underweight positon
to retail
Offices
Source: ASI Dec 20 & IPD MSCI, Sep 2020
32Alternatives Portfolio: Rotunda – Asset Repositioning
The Rotunda, Kingston upon Thames
Sector Weighting
11%
Sector Occupancy
• Scheme closed entirely in March 2020 and January 2021.
• 18 year lease extension agreed with David Lloyd at
passing rent
• 15 year lease has been agreed with Odeon who are the
anchor tenant in the scheme
• Tenpin lease extended to 15 years in 2019
• Once stabilised we may look to progress with a significant
refurbishment of the scheme
• Have enhanced WAULT of the scheme and the
refurbishment will re position the asset
Source: ASI, Jan 21 Assisting tenants and creating long term value for Shareholders
33Office portfolio:
Sector Weighting
Sector Occupancy
Source: ASI, Jan 21 Controlled Low Exposure
Forecasts offered as opinion and are not reflective of potential performance. Forecasts are not guaranteed
34 and actual events or results may differ material.Retail portfolio:
Sector Weighting
17%
Shopping Retail
High Street Supermarket Total
Centre Warehouse
Retail percentage nil 67% 18% 15% 100%
Portfolio percentage nil 11% 3% 3% 17%
Sector Occupancy
Source: ASI, Jan 21 Full exit from Shopping Centre Sector and limited High Street exposure
35Portfolio structure
Portfolio sector weighting (by Market Value) Capital value by geography
Source: ASI, Dec ‘20; MSCI Balanced Quarterly & Monthly benchmark Sep ‘20 Source: ASI Dec’20
Detailed sector weighting break down (by Market Value)
Source: MSCI, Sep ’20, ASI Dec’20
36Top 10 assets
By capital value 1 2
Sector Value Band (£m)
1. Ventura Park, Radlett South East Industrial Over 100
3 4
2. Hannah Close, London South East Industrial 60-80
3. Dolphin Estate, Sunbury-on-Thames South East Industrial 60-80
5 6
4. Ocado, Hatfield South East Distribution 60-80
5. Newton’s Court , Dartford South East Industrial 60-80
6. The White Building, Reading South East Offices 40-60 7 8
7. The Rotunda, Kingston-on-Thames Leisure 40-60
8. Kew Retail Park, Richmond Retail Warehouses 40-60 9 10
9. XDock377, Lutterworth RoUK Distribution 40-60
10. Junction 27 Retail Park, Leeds Retail Warehouses 40-60
Source: ASI Dec ‘20
37Top 10 tenants
By contracted rent % of MSCI Risk Band** December Rent Payment
Total
Income *
1. Ocado Retail Ltd 5.4 Low-Medium Paid in Full
2. Amazon UK Services Ltd 4.9 Negligible Paid in Full
3. Total E&P UK Ltd 3.8 Low Paid in Full
4. B&Q 3.3 Low Paying Monthly in Full
5. Cineworld 3.2 Low Unpaid
6. TK Maxx 3.1 Low-Medium Paid in Full (Kew)
/Monthly (Newcastle)
7. Public Sector 3.0 Negligible Paid in Full
8. Warner Bros Studios 3.0 Low Paid in Full
9. Dalata 2.8 Medium-High Paid in Full
10. Palletforce Ltd 2.6 High Paid in Full
Source: * ASI Dec ‘20 **MSCI, Sep ’20
© owned by each of the corporate entities named in the respective logos
38Debt Covenants
Barings 2027 Total debt available £100m Barings 2031 Total debt available £100m
Remaining to draw £0m Remaining to available £0m
Period to Maturity 6.25 years Period to Maturity 10.1 years
Margin 1.25% Margin 1.45%
All in rate 3.03% All in rate 2.72%
LTV/LTV Covenant (based LTV/Covenant (based on
50% / 75% 42.1% / 75%
on historical bank valuation) historical bank valuations)
ICR/Covenant 349% / 200% ICR/Covenant 312% / 200%
Source: ASI, December 20 Source: ASI December 20
ICR Forecast/Covenant 394% / 200% ICR Forecast/Covenant 367% / 200%
Barclays Total debt available £150m Overall Debt Position
Remaining to Draw £150m
Total debt available £350m
Period to Maturity 3.1 years
Margin 1.50% Remaining available £150m
All in rate 2.80%
Period to Maturity 8.2 years
LTV/LTV Covenant (December
0% / 60%
19)
ICR/Covenant 325% / 175% All in rate 2.88%
Source: ASI, December 20
ICR Forecast/Covenant 771% / 175%
Past performance is not a guide to the future.
39
The value of investments and the income from them can fall as well as rise and is not guaranteedNAV and share price performance
Share price Share price premium/discount to NAV
Source: ASI, December’20.
Source: Datastream, 29 January 2021
Past performance is not a guide to the future. The value of investments and the income from them
40 can fall as well as rise and is not guaranteedShare Price & NAV
UKCM Share Price & NAV
Source: Datastream, 29 January 2021
Past performance is not a guide to the future.
41Disclaimer
Risk factors you should consider prior to investing:
• The value of investments and the income from them can fall and investors may get back less than the amount invested.
• Past performance is not a guide to future results.
• Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years.
• The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset
Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV.
• The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult
to realise investments and may lead to volatility in the market price of the Company's shares.
• The Company may charge expenses to capital which may erode the capital value of the investment.
• There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value.
• As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between
the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen.
• The Company invests in real estate which is a relatively illiquid asset class, the valuation of which is a matter of opinion. There is no
recognised market for property and there can be delays in realising the value of assets.
• The value of property may fluctuate as a result of factors outside the Company’s control
• The Company’s ability to generate desired returns will depend on rental income generated and capital values of properties.
• Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends
and certain investors may be subject to further tax on dividends.
• The information contained herein including any expressions of opinion or forecasts have been obtained from or are based upon
sources believed by us to be reliable but are not guaranteed as to their accuracy or completeness.
• Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. You should
obtain specific professional advice before making any investment decision.
42Disclaimer continued
31/12/2020 (%) 31/12/2019 (%) 31/12/2018 (%) 31/12/2017 (%) 31/12/2016 (%)
NAV Total Return -0.9 0.1 4.5 12.2 3.8
Share Price Total Return -19.7 11.3 -2.0 9.4 3.8
MSCI Benchmark Total Return -0.1* 2.1 6.7 10.7 3.7
Source: Aberdeen Standard Investments, 31 December 2020 (*Benchmark: MSCI UK Balanced Portfolios benchmark to 30 Sept 2020 + 3 months MSCI UK Balanced Funds Monthly index to 31 Dec 2020)
Past performance is not a guide to future results
43Disclaimer continued Past performance is not a guide to future results. The value of investments, and the income from them, can go down as well as up and clients may get back less than the amount invested. Real estate is a relatively illiquid asset class, the valuation of which is a matter of opinion. There is no recognised market for property and there can be delays in realising the value of assets. The views expressed in this presentation should not be construed as advice or an investment recommendation on how to construct a portfolio or whether to buy, retain or sell a particular investment. The information contained in the presentation is for exclusive use by professional customers/eligible counterparties (ECPs) and not the general public. The information is being given only to those persons who have received this document directly from Aberdeen Asset Managers Limited or Standard Life Investments Limited (together “Aberdeen Standard Investments”) and must not be acted or relied upon by persons receiving a copy of this document other than directly from Aberdeen Standard Investments. No part of this document may be copied or duplicated in any form or by any means or redistributed without the written consent of Aberdeen Standard Investments. Copyright and database right MSCI IPD and its licensors 2021. All rights reserved. MSCI IPD has no liability to any person for any losses, damages, costs or expenses suffered as a result of any use of or reliance on any of the information which may be attributed to it. The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from marketing) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an ‘as is’ basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the ‘MSCI’ Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).” 44
Disclaimer continued
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licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further
distribution of FTSE Data is permitted without FTSE’s express written consent.
No information, opinions or data in this document constitute investment, legal, tax or other advice and are not to be relied upon in making an investment or other
decision. Subscriptions for shares in UKCM may only be made on the basis of the latest prospectus, relevant Key Information Document (KID). These can be obtained
free of charge from Aberdeen Standard Investments, 1 George Street, Edinburgh, EH2 2LL, Scotland and are also available on www.aberdeenstandard.com
The information contained herein including any expressions of opinion or forecast have been obtained from or is based upon sources believed by us to be reliable but
is not guaranteed as to the accuracy or completeness.
Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the “Owner”) and is licensed for use by
Standard Life Aberdeen*. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be accurate, complete or
timely. To the extent permitted by applicable law, none of the Owner, Standard Life Aberdeen* or any other third party (including any third party involved in providing
and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Neither the Owner nor any other third party
sponsors, endorses or promotes the fund or product to which Third Party Data relates.
* Standard Life Aberdeen means the relevant member of Standard Life Aberdeen group, being Standard Life Aberdeen plc together with its subsidiaries, subsidiary
undertakings and associated companies (whether direct or indirect) from time to time.
Aberdeen Asset Managers Limited is registered in Scotland (SC108419) at 10 Queen’s Terrace, Aberdeen, AB10 1XL, Standard Life Investments Limited is registered
in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL, and both companies are authorised and regulated in the UK by the Financial Conduct Authority.
GB-030221-141853-1
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