2015 HALF YEAR RESULTS

SHAFTESBURY 2015 HALF YEAR RESULTS

EXTENSIVE ASSET MANAGEMENT ACTIVITY DELIVERS GROWING INCOME AND FURTHER VALUE CREATION

Shaftesbury PLC ("Shaftesbury") today announces its results for the six months ended 31 March 2015.

Growth in income, earnings, dividend and NAV

§ Net property income1 up £2.3 million (6.3%) to £38.7 million (six months ended 31.3.2014: £36.4 million).

§ EPRA earnings increased by 11.2% to £17.9 million (six months ended 31.3.2014: £16.1 million). EPRA earnings per share increased by 1.6% to 6.4p (six months ended 31.3.2014: 6.3p).

§ Interim dividend per share of 6.825p (six months ended 31.3.2014: 6.5p), an increase of 5.0%.

§ EPRA NAV increased by 8.7% over six months to £7.75 per share, after a reduction of 10p per share for the cost of terminating swaps. Increase for 12 months to 31.3.2015: 30.0%.

§ Net asset value return for six months ended 31.3.2015: 9.6%; increase for 12 months to 31.3.2015: 32.2%.

Growth in rental and capital values2

§ Portfolio valued at £2.86 billion, like-for-like capital value return: +8.0% (6 months) and +24.0% (12 months).

§ Total portfolio ERV increased by £5.0 million to £123.6 million at 31.3.2015 (30.9.2014: £118.6 million). Like-for-like ERV growth over six months: +3.4%; increase for 12 months to 31.3.2015: +7.4%.

§ Portfolio reversion has grown by £2.7 million to £27.8 million, 29.0% above current income.

§ Equivalent yield compression of 16 basis points to 3.84% in the wholly-owned portfolio and 24 basis points to 3.86% in the Longmartin joint venture.

Strong demand across all villages and for all uses

§ EPRA vacancy2 at 31.3.2015: 2.6% of ERV, of which 1.9% was under offer.

§ Commercial lettings, lease renewals and rent reviews (rental value: £8.9 million) concluded in the wholly-owned portfolio at an average 2.8% above 30 September 2014 ERV and 10.0% above ERV at 31 March 2014.

Continued investment in our portfolio

§ Acquisitions totalling £25.8 million in the period in Carnaby, Covent Garden, Soho and Charlotte Street.

§ Redevelopment and refurbishment schemes in the six months to 31 March 2015 across 121,000 sq. ft. (6.9% of wholly-owned floor space). Capital expenditure in the period1: £14.3 million (31.3.2014: £10.0 million).

§ Our major scheme fronting Foubert's Place and Kingly Street, Carnaby, has recently completed. All the 24,500 sq. ft. of commercial space is let or under offer. Marketing of the twelve apartments has commenced.

§ Planning application submitted for the reconfiguration of our substantial holding fronting Charing Cross Road, Newport Court and Newport Place, at the eastern boundary of Chinatown. Proposed scheme provides 32,000 sq. ft. of retail and 13,500 sq. ft. of restaurant space.

§ Plans for a 32,900 sq. ft. mixed-use scheme at 57-59 Broadwick Street, Carnaby, are progressing. Planning application expected to be submitted shortly.

§ We continue to identify further schemes and asset management initiatives to unlock value.

Refinancing to extend weighted average maturity and reduce weighted average cost of debt

§ New £130 million fifteen-year term loan arranged at a fixed interest rate of 3.2% p.a.

§ £100 million revolving credit facility, due to mature in 2016, repaid and cancelled.

§ Interest rate swaps on a notional principal of £70 million terminated at a cost of £28.1 million.

§ Weighted average maturity of debt2: 8.7 years (30.9.2014: 7.1 years).

§ Weighted average cost of debt2: 4.63% (30.9.2014: 5.11%)

§ Committed unutilised facilities: £99.6 million.

§ Conservative gearing (loan-to-value ratio2: 24.0%).

1 Wholly-owned portfolio. Comparative figures re-stated to take into account the change in accounting policy on the implementation of IFRS 11 "Joint Ventures". See page 8 for further information.

2 Includes 50% of the Longmartin joint venture.

Brian Bickell, Chief Executive, commented:

"This has been another period of good progress for Shaftesbury with extensive asset management activity across our portfolio delivering growth in earnings, dividends and value. Our combined portfolio is now valued at £2.86 billion.

Across our unique portfolio, located in the heart of the West End, the buoyant local economy is reflected in continuing strong demand for space in our carefully-curated locations, high occupancy levels and sustained growth in current and prospective rental income.

We continue to identify schemes and opportunities throughout our ownerships to improve the configuration, and income and capital value potential, of the space we offer. In particular, we are making good progress with our major schemes in Chinatown and Carnaby, which, are not only valuable in themselves but will bring, as with many of our other initiatives, long-term compound benefits to our nearby holdings.

Against this background, and with our experienced, enthusiastic and entrepreneurial management team, we are confident that our portfolio will continue to deliver good returns for shareholders through our proven strategy for this unique business."

21 May 2015

For further information:

There will be a presentation to equity analysts at 9.30 am on Thursday 21 May 2015, at The London Stock Exchange, 10 Paternoster Square, London EC4M 7LS.

There is a dial-in facility for the presentation. Analysts and investors are welcome to participate. The facility can be accessed by calling +44 (0)203 139 4830. The PIN code is 33620190#. The presentation document is available on the Group's website www.shaftesbury.co.uk. A recording of the conference call will be available on the Group's website www.shaftesbury.co.uk following the meeting.

About Shaftesbury

Shaftesbury PLC is a Real Estate Investment Trust, which owns a unique real estate portfolio extending to 14 acres in the heart of London's West End - a highly popular, sought-after and prosperous destination for visitors and businesses. Our holdings are concentrated in Carnaby, Covent Garden, Chinatown, Soho and Charlotte Street.

Our objective is to deliver long-term outperformance in growth in rental income, capital values and shareholder returns.

We focus on retail, restaurants and leisure in the liveliest parts of the West End. Our portfolio now comprises 583 shops, restaurants, cafés and pubs, extending to 1 million sq. ft., which account for 72% of our current income. In our locations these uses have a long record of occupier demand exceeding their availability. It also includes 422,000 sq. ft. of offices and 509 apartments for rent, which provide 16% and 12%, respectively, of our current income.

In addition, we have a 50% interest in the Longmartin joint venture with The Mercers' Company, which has a long leasehold interest in St Martin's Courtyard in Covent Garden. Extending to 1.9 acres, it includes 22 shops, eleven restaurants and cafés, 102,000 sq. ft. of offices and 75 apartments.

Our proven management strategy is to create and foster distinctive, attractive and prosperous locations. Its implementation is supported by an experienced management team with an innovative approach to long-term, sustainable income and value creation and a focus on shareholder returns. We have a strong balance sheet with modest leverage.

Forward-looking statements

This document may contain certain 'forward-looking' statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements.

Any forward-looking statements made by, or on behalf of, Shaftesbury PLC speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Shaftesbury PLC does not undertake to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

Information contained in this document relating to Shaftesbury PLC or its share price, or the yield on its shares, should not be relied upon as an indicator of future performance.

Highlights

1 Comparative figures re-stated to take into account the change in accounting policy on the implementation of IFRS 11 "Joint Ventures". See page 8 for further information.

2 Including 50% share of the Longmartin joint venture.

3 Pro-forma LTV at 31.3.2014 to reflect refinancing transactions completed after the Balance Sheet date and the completion of property acquisitions exchanged before 31.3.2014.

4 Adjusted in accordance with EPRA Best Practice Recommendations.

5 Like-for-like, measured against previous year end ERV.

6 Shaftesbury Group data (other than total shareholder return) derived from financial results.

7 Like-for-like.

Half-year results

INTRODUCTION

This has been another period of good progress for Shaftesbury with extensive asset management activity across our portfolio delivering growth in earnings, dividends and value. Our combined portfolio is now valued at £2.86 billion.

The status and enduring popularity of London's West End as a world-class visitor destination, a premier location for a wide range of domestic and international businesses, and a place to live, supports its dynamic and flourishing economy.

Across our unique portfolio, located in the heart of the West End, the buoyant local economy is reflected in continuing strong demand for space in our carefully-curated locations, high occupancy levels and sustained growth in current and prospective rental income.

OUR BUSINESS

We own an unrivalled real estate portfolio, extending to 14 acres in the heart of London's West End, clustered in villages in the iconic areas of Carnaby, Covent Garden, Chinatown, Soho and Charlotte Street.

Our 583 shops, restaurants, cafés, pubs and leisure uses, across 1 million sq. ft. on the lower floors of our buildings, together provide 72% of current income, whilst the upper floors generally comprise offices or apartments, or a mix of both.

Our objective is to deliver long-term outperformance in growth in rental income, capital values and shareholder returns. With the concentration of our ownerships, we are able to implement a comprehensive, long-term management strategy to improve our buildings and locations. We curate and foster lively destinations which bring footfall and prosperity for our tenants, supporting sustained growth in rental income and adding value to our assets.

The key aspects of our management strategy are:

§ ensuring our locations respond to ever-changing tastes and expectations through our leasing strategies and tenant-mix policies to encourage new retail, restaurant and leisure formats and operators;

§ improving and reconfiguring our buildings to provide more efficient accommodation for occupiers and, where possible, maximise valuable retail, restaurant and leisure space; and

§ improving the public realm in and around our areas to increase pedestrian capacity and raise the quality of local streetscapes.

LEASING ACTIVITY

We concluded transactions in the wholly-owned portfolio with a rental value of £11.2 million during the six months ended 31 March 2015, of which commercial transactions totalled £8.9 million and residential lettings and renewals were £2.3 million. Rents for commercial uses were, on average, 2.8% above ERV at 30 September 2014 and 10.0% ahead of ERV twelve months ago. Our share of letting activity in the Longmartin joint venture was £0.3 million over the half year.

Available to let vacancy has remained below 1% throughout the period, and where space has become available it has, on average, been let within one month.

Retail - 36% of CURRENT INCOME (Wholly-owned portfolio)

Tenant demand continues to be strong both from domestic and international retailers. International demand has been mainly from North American and European brands and we are seeing strong interest from UK brands opening new concept stores or flagships. In addition, it is pleasing to note that we have seen a number of existing tenants who have expanded, relocated, or taken second sites, particularly in Carnaby, our largest retail area. The breadth of demand from retailers seeking a presence in our locations allows us to introduce new brands and concepts to maintain a fresh and interesting retail mix.

During the six months to 31 March 2015, we completed seventeen new shop lettings, renewed ten leases and concluded five rent reviews in the wholly-owned portfolio, with a combined rental value of £3.6 million.

RESTAURANTS, CAFÉS, PUBS AND LEISURE - 36% OF CURRENT INCOME (Wholly-owned portfolio)

With resilient visitor numbers in our villages, and the growing popularity for eating out, restaurants, cafés and leisure choices in the West End are increasingly becoming a destination and footfall driver in their own right. Occupier demand remains at historically high levels. We are currently seeing particularly strong interest from the independent sector, including established street-food concepts, start-ups seeking their first site and existing small restaurant groups with new ideas and creative partners. Such operators are of particular interest and relevance to our villages, broadening their dining and leisure offer with innovative concepts, which bring both customer and social media interest.

The availability of space to satisfy this demand remains low, the result of long-term restrictive planning policies and the reluctance of operators to relinquish sites other than for significant premiums.

We continue to identify opportunities to secure possession of restaurants within our portfolio which had in the past been let on long leases, providing tenants with security of tenure at the end of the term. This is allowing us to improve the configuration of space on the lower floors, attract new operators on more beneficial terms, including turnover-related rent increments, as well as releasing valuable upper floors for other uses. In our sought-after locations we regularly receive numerous competitive offers for available units and our restaurant space is often pre-let in advance of completion of works.

During the period, we completed leasing transactions with a rental value of £3.9 million in the wholly-owned portfolio, including ten new concepts, four renewals and eight rent reviews.

OFFICES - 16% OF CURRENT INCOME (Wholly-owned portfolio)

Strong demand for smaller office accommodation, coupled with constrained supply of this type of space in the West End generally, and our locations in particular, is continuing to drive rental growth and a reduction in tenant incentives. We have seen a number of tenants expanding within our estate, or renewing their leases. When space does become available, pre-letting is commonplace. The mix of office occupiers in our locations is broadening with more financial businesses seeking space away from their traditional areas, coupled with new media, creative and IT companies of all sizes.

During the period, we concluded twelve lettings, eight renewals and three rent reviews in the wholly-owned portfolio, extending to 25,000 sq.ft. of space, with a rental value of £1.4 million.

RESIDENTIAL - 12% OF CURRENT INCOME (Wholly-owned portfolio)

The West End is a popular place to live, with its wide variety of attractions and lively atmosphere. Demand to rent our modestly-priced apartments continues to be strong and they let quickly whenever they become available. Of our 509 apartments, 23 were under construction and 37 were being upgraded at 31 March 2015.

During the six months ended 31 March 2015, we completed lettings and renewals totalling £2.3 million in the wholly-owned portfolio.

Improving our buildings

A high level of refurbishment activity continues across our portfolio, with schemes undertaken in the period extending to 121,000 sq.ft. (6.9% of floor space in the wholly-owned portfolio). Capital expenditure totalled £14.3 million.

Our major scheme in Carnaby, fronting Foubert's Place and Kingly Street, has just completed. It comprises 7,500 sq. ft. of retail space, a 6,500 sq. ft. restaurant, 10,500 sq. ft. of office accommodation and twelve apartments. The total scheme cost £14.8 million and the ERV at 31 March 2015 was £2.2 million, £1.8 million above pre-scheme levels. Since 31 March 2015, the restaurant and 3,500 sq. ft. of office space has been let. All of the retail accommodation and the remaining office space is under offer. Marketing of the new apartments has just commenced.

Other larger projects underway, or completed, in the period included further improvements to Kingly Court, reconfigurations of retail, restaurant and pub space, office refurbishments, and numerous residential conversions and refurbishments.

FUTURE SCHEMES

Charing Cross Road/Newport Place, Chinatown

In April 2015 we submitted a planning application to reconfigure and refurbish our substantial mixed-use retail, restaurant and bar ownership on the eastern boundary of Chinatown, which has extensive frontages to Charing Cross Road, Newport Court and Newport Place.

Our proposals involve the reconfiguration of space to provide approximately 32,000 sq. ft. of retail space, on Charing Cross Road, together with. The refurbishment of the block will bring significant benefits to Chinatown as a whole and will create much-improved quality of space for occupiers. Already recognised as one of the busiest parts of London's West End, Chinatown and Charing Cross Road are expected to see even greater footfall when Crossrail opens in late 2018.

As well as providing a contiguous retail frontage on Charing Cross Road of some 330 ft., the scheme will materially enhance Newport Court, creating an attractive gateway into Chinatown. The relocation of restaurant space to Newport Place, where Westminster City Council are progressing plans to create a traffic-free public square, will create an enhanced dining destination within Chinatown.

Subject to planning and other consents, we anticipate commencing works early in 2016, with completion in mid-2017. We currently estimate the cost of the scheme to be in the region of £10 million.

57-59 Broadwick Street

We are advancing our plans for this prominent building on the eastern boundary of Carnaby. Broadwick Street, already an important pedestrian route through Soho, linking Carnaby and Berwick Street, is expected to benefit from the opening of Tottenham Court Road Crossrail station's western ticket hall on Dean Street, currently under construction.

Since its acquisition in March 2014, we have investigated options to reconfigure and extend the building. Our proposals now provide for the creation of large retail units over the lower floors, extension and refurbishment of the remaining office space and the creation of new apartments. These plans will add c. 8,000 sq. ft. to the existing floor space of 24,900 sq. ft. We have completed the pre-application consultation process and expect to submit a formal planning application shortly.

Subject to planning consent, we expect to commence works in early 2016 and, in the interim, we have extended the existing occupational leases to January 2016. Currently, we expect the cost of our enhanced plans to be in the region of £14 million.

INVESTING IN, AND IMPROVING, THE PUBLIC REALM

Investment in the public realm in and around our villages is an important catalyst for improving footfall.

We are providing financial support for Westminster City Council's scheme to upgrade streetscapes along Upper St Martin's Lane, adjacent to St Martin's Courtyard, which will improve the southern gateway to Seven Dials, and also for their scheme to improve Wellington and Russell Streets in the Opera Quarter. Discussions for improvements to Rupert Street, south of Shaftesbury Avenue, are continuing.

Completion of the resurfacing of Carnaby Street is expected in June 2015. Later this year we expect to fund an upgrade of Foubert's Place, the busiest entrance from Regent Street into Carnaby.

We are continuing to explore, with Camden Council, improvements to Earlham Street, which connects to Cambridge Circus, and which, we believe, will bring benefits to this important western gateway into Seven Dials.

A public consultation began in April on major improvements to Cambridge Circus, an important and busy junction, to relieve pedestrian congestion and improve connectivity between Soho and Seven Dials. Subject to the consultation, we understand works could commence by the end of 2015.

VACANCY AT 31 MARCH 2015

Our mixed-use scheme on Foubert's Place and Kingly Street, Carnaby, completed in early May. All the commercial space (ERV £1.8 million) is already let, or is under offer.

Other space held for, or under refurbishment, at 31 March 2015 (ERV £4.0 million) comprised nine shops, five restaurants/cafés and 26,000 sq. ft. of offices. Two of the restaurants (ERV: £0.4 million) are part of our Charing Cross Road/Newport Place project, where we have secured possession in anticipation of our major refurbishment, expected to commence in 2016. In addition, 48 apartments were under construction or being upgraded.

EPRA vacancy at 31 March 2015 was £3.3 million (2.6% of ERV), of which £2.4 million (1.9% of ERV) was under offer. The ERV of available-to-let vacancy, which totalled £0.9 million (0.7% of ERV), comprised two large shops (ERV: £0.6 million), three small shops (ERV: £0.1 million), 1,700 sq. ft. of office space (ERV: £0.1 million) and six apartments (ERV: £0.1 million).

Acquisitions

During the six months to 31 March 2015, we acquired seven properties at a total cost of £25.8 million, in Soho, Charlotte Street, Covent Garden and Carnaby. These useful additions to our portfolio comprised two shops, two restaurants, two cafés, a vacant pub, 4,950 sq. ft. of office space and eight apartments.

These acquisitions, which produced an average net initial yield of 2.0%, complement our existing, extensive ownerships and offer the potential for good rental and capital growth opportunities through a combination of asset management and refurbishment schemes.

We continue to seek new acquisitions, concentrating on buildings in and around our villages which have a predominance of, or potential for, retail, restaurant and leisure uses and which provide potential for future rental growth, either individually or through combination with our existing ownerships. As ever, supply of buildings which fit these strict investment criteria remains limited, with existing owners reluctant to sell assets in these exceptionally prosperous and resilient areas.

PORTFOLIO VALUATION

Our portfolio, including our 50% share of the Longmartin joint venture, has been valued at 31 March 2015 at £2.86 billion, producing a surplus on revaluation of £203.9 million. The ungeared like-for-like capital value return for the six months ended 31 March 2015 was 8.0%, bringing the increase in capital values over the past year to 24.0%.

1 Like-for-like

2 Group's 50% share

The growth in the valuation of our property assets over the period reflects growth in actual and prospective rents, together with yield compression of sixteen basis points in the wholly-owned portfolio and 24 basis points in the Longmartin joint venture.

Sustained growth in both actual and potential income is the key to the long-term growth in property values. Over the six months ended 31 March 2015, our annualised current income has increased by £2.3 million from £93.5 million to £95.8 million, to which acquisitions contributed £0.5 million.

Our valuers' estimate of the rental value of our portfolio ("ERV") increased by £5.0 million over the period and now stands at £123.6 million (30.9.2014: £118.6 million). Excluding the impact of acquisitions, which contributed £0.9 million to the total, the like-for-like increase was £4.1 million (3.4%), bringing the total over the past twelve months to 7.4%.

Our valuers have included £3.0 million in respect of potential income from future schemes, principally our large proposed schemes at Charing Cross Road/Newport Place and 57-59 Broadwick Street. This estimate of income is largely based on the existing space and does not take fully into account additional income which could be generated by schemes which have yet to receive planning consent.

The total reversion across the wholly-owned portfolio and our interest in Longmartin now stands at £27.8 million, 29% higher than the annualised current rent. Of this, £6.2 million of the reversion is contracted and will be realised as rent-free periods expire. Vacant property at 31 March 2015, including schemes in hand, accounts for £9.5 million, which will be realised as schemes complete and become income-producing.

£9.1 million of our reversionary potential should be realised through the normal cycle of rent reviews, lease renewals and lettings. Shops, restaurants, cafés, pubs and leisure uses account for 66% of this uncontracted reversion. These uses have, in our locations, demonstrated a long history of sustained demand and restricted supply, underpinning their growth prospects. We remain confident that through our proven long-term management strategy, we shall not only realise this potential additional income, but also deliver further additional long-term sustained rental growth. Where possible, we seek to accelerate the realisation of this potential income through securing vacant possession of under-rented space.

The yield reduction we have seen in this, and recent periods, reflects strong investor appetite for real estate assets which offer both security and growth prospects, coupled with growing sources of finance at historically low rates. In our locations, the limited availability of properties to acquire, and the prospects for long-term income growth in the West End's dynamic and diverse local economy, underpin the increase in values reported by our valuers.

A key aspect of our long-term strategy is to improve the quality of the accommodation we offer, through reconfiguring buildings and converting space to create better, more efficient trading space, and implementing changes to introduce more valuable uses where possible. Over the longer-term, this, combined with our proven management strategy to create and foster distinctive and popular destinations, improves the value of our portfolio.

DTZ, independent valuers of our wholly-owned portfolio, note that our portfolio has:

§ an unusual concentration of holdings in sought-after West End locations; and

§ a predominance of retail, restaurant, café and leisure uses, for which occupier demand has a long history, and continuing prospect, of exceeding availability in the West End.

They also comment on the extent to which, under RICS Valuation Professional Standards, they are permitted to combine or "lot" parts of our portfolio. They continue to advise us that, in their view, some prospective purchasers may consider a wider combination of some parts of the portfolio, or the entire wholly-owned portfolio itself, to have a greater value than currently reflected in their valuation, prepared in accordance with RICS valuation standards.

Results

We have made further good progress over the first half of this year with growth in NAV, earnings and dividends.

Change of accounting policy for the Longmartin joint venture

The group is adopting IFRS 11 'Joint Arrangements' for the first time this year. This standard removes the proportionate consolidation option that was previously available under IAS 31 'Interests in Joint Ventures' and instead requires us to account for the joint venture using the equity method. The consequence is that we now include the Group's net equity interest in Longmartin as a single line item in both the consolidated balance sheet and consolidated income statement, rather than proportionally consolidating the Group's share of assets, liabilities, income and expenses on a line-by-line basis. Loans, interest and management fees between the Group and Longmartin are no longer eliminated on consolidation.

Whilst this change in accounting policy does not affect the net asset position nor profit after tax, it does alter the line-by-line analysis in the primary statements and, as such, the prior year comparatives have been restated accordingly. The following financial commentary is based on the IFRS position.

Growth in EPRA earnings

Profit after tax for the six months ended 31 March 2015 was £180.2 million (31.3.2014: £118.3 million). Over the same period, EPRA earnings increased by 11.2% to £17.9 million (31.3.2014: £16.1 million) and EPRA EPS was 6.4p (31.3.2014: 6.3p). The smaller relative increase in EPRA EPS, compared with that for EPRA earnings, reflects the increased weighted average number of shares in issue this year, following our share placing in March 2014.

1. Re-stated for the change in accounting policy detailed above

During the period, rental income increased by £3.0 million to £44.8 million (31.3.2014: £41.8 million). The like-for-like increase was 3.6%, as we continue to crystallise the reversionary potential of our portfolio. Acquisitions contributed £1.5 million to the increase.

Irrecoverable property charges were £6.1 million (31.3.2014: £5.4 million), representing 13.6% of rents receivable (31.3.2014: 12.9%). The increase is largely due to the high level of irrecoverable costs at our ownership fronting Charing Cross Road/Newport Court/Newport Place, where there are only short-term inclusive leases and licences in place, ahead of our planned development. On a like-for-like basis, excluding this property, irrecoverable costs were 12.0% of rents receivable (31.3.2014: 12.9%).

Net property income was £38.7 million, up 6.3% on the same period last year (31.3.2014: £36.4 million).

Administrative expenses, excluding the charge for equity-settled remuneration, totalled £5.0 million (31.3.2014: £4.5 million). The increase was largely due to staff costs and higher office occupation costs in the period, following our relocation in February 2014. A provision has been included for annual bonuses of £0.7 million (31.3.2014: £0.6 million). The charge for equity-settled remuneration was £1.5 million (31.3.2014: £1.7 million). This included a non-cash accounting provision of £1.1 million (31.3.2014: £1.4 million) and a charge for employer's National Insurance of £0.4 million (31.3.2014: £0.3 million).

The wholly-owned portfolio's valuation surplus was £183.2 million (31.3.2014: £91.0 million), principally driven by like-for-like ERV growth of 3.3% and yield compression of sixteen basis points.

Net finance costs (excluding the change in fair value of our interest rate swaps) increased by £0.4 million to £15.2 million (31.3.2014: £14.8 million) and includes an accelerated write-off of unamortised deferred loan issue costs totalling £0.2 million.

Excluding interest rate swaps which were cancelled in the period at a cost of £28.1 million, the like-for-like fair value deficit on our interest rate swaps increased by £37.5 million to £88.2 million, following a sharp fall in long-dated interest rates in the period.

Our share of post-tax profit from the Longmartin joint venture increased by £8.9 million to £17.5 million (31.3.2014: £8.6 million) largely due to:

§ an increase in net property income of 11.5% to £2.9 million (31.3.2014: £2.6 million).

§ a revaluation surplus of £20.7 million (31.3.2014: £10.0 million) with like-for-like ERV growth of 4.8% and yield compression of 24 basis points.

§ an increase in the tax charge of £2.1 million to £4.3 million (31.3.2014: £2.2 million), principally the result of a deferred tax charge on the revaluation surplus.

As a REIT, the Group's activities are largely exempt from corporation tax and, as a result, there is no tax charge in the period (31.3.2014: £Nil).

Increased EPRA net asset value

EPRA NAV per share increased by 62p (8.7%) to £7.75 over the period (30.9.2014: £7.13). This increase included contributions of 66p per share and 7p per share from the revaluations of the wholly-owned portfolio and the Longmartin joint venture property respectively. The cost of terminating interest rate swaps in March 2015 reduced NAV by 10p per share. EPRA profits of 6.4p per share were offset by the final dividend (6.6p per share).

1. re-stated for the change in accounting policy detailed above

2. pro-forma, net of £29 million cost of terminating swaps in April 2014

CASH FLOWS AND NET DEBT

Net debt increased by £66.5 million to £618.0 million over the period (30.9.2014: £551.5 million). The major cash flows were:

§ Acquisitions and capital expenditure (£38.0 million)

§ Interest rate swap termination costs (£28.1 million)

§ Operating cash inflow (£20.4 million)

§ Dividend payment (£20.5 million)

The surplus funds raised by our debt refinancing in March 2015 were used to fund the swap termination costs and facility arrangement costs.

INTERIM DIVIDEND

Your directors are pleased to declare an interim dividend of 6.825p per share, an increase of 5.0% on last year's interim dividend of 6.5p. The interim dividend, which will be paid on 3 July 2015, will be paid entirely as an Ordinary Dividend.

We aim to maintain steady growth in dividends, reflecting the long-term trend in our income and cash earnings. In determining the level of the interim dividend, the Board has taken into account the non-cash accounting charge in the period for equity-settled remuneration of £1.1 million, which reduced the reported profit and the accelerated write-off of unamortised deferred issue costs, totalling £0.2 million, following the refinancing in March 2015.

FINANCE

In March we arranged a new £130.0 million fifteen-year secured term loan with Aviva Commercial Finance at a fixed interest rate of 3.2% p.a. throughout the term. The loan is repayable in full at maturity in March 2030.

On drawing the loan from Aviva, we cancelled a £100.0 million revolving credit facility, which was due to expire in September 2016. Additionally, we terminated £70.0 million of interest rate swaps at a cost of £28.1 million.

We are investigating options to refinance the remaining £50.0 million debt facility maturing in 2016, which is currently undrawn. This will provide an opportunity to increase our committed facilities. Our weighted average debt maturity at 31 March 2015 was 8.7 years (30.9.2014: 7.1 years).

At 31 March 2015, our loan-to-value ratio stood at 24.0% (30.9.2014: 23.6%) and we had £99.6 million of committed undrawn facilities (30.9.2014: £139.4 million). The weighted average cost of debt was 4.63%, 48 basis points lower than at 30 September 2014. The marginal cost of drawings under our committed facilities is around 1.7% (30.9.2014: 1.55%), and so, as further drawings are made, the average cost of debt will reduce further. If our facilities had been fully drawn at 31 March 2015, the weighted average cost of debt would have been 4.26%. Following the cancellation of the £100 million revolving credit facility, the average margin on our drawn variable-rate bank facilities has increased to 1.31% (30.9.2014: 1.11%) and this would rise further to 1.38% if all facilities were fully drawn (30.9.2014: 1.24%).

1. Based on nominal value of debt

2. Shaftesbury Group's 50% share

3. Based on EPRA net assets

4. Including non-utilisation fees on undrawn bank facilities

LOOKING FORWARD

London's widely-acknowledged status as a leading global destination brings great prosperity and long-term prospects. Within the West End, trading conditions continue to be buoyant, and the regeneration being stimulated by major projects such as Crossrail will continue to attract businesses and visitors. In our locations, the strength of demand is evident across all uses, allowing us to introduce new retail, restaurant and leisure concepts and operators to our villages and establish new rental tones.

Although occupancy levels are high, we continue to identify schemes and opportunities throughout our ownerships to improve the configuration, and income and capital value potential, of the space we offer. In particular, we are making good progress with our major schemes in Chinatown and Carnaby, which, are not only valuable in themselves but will bring, as with many of our other initiatives, long-term compound benefits to our nearby holdings.

Against this background, and with our experienced, enthusiastic and entrepreneurial management team, we are confident that our portfolio will continue to deliver good returns for shareholders through our proven strategy for this unique business.

Brian BickellChief Executive

Christopher WardFinance Director

21 May 2015

PORTFOLIO ANALYSIS

1 Shaftesbury Group's 50% share

BASIS OF VALUATION

Notes

1. The fair values at 31 March 2015 (the "valuation date") shown in respect of the individual villages are, in each case, the aggregate of the fair values of several different property interests located within close proximity which, for the purpose of this analysis, are combined to create each village. The different interests within each village were not valued as a single lot.

2. Current income includes total annual actual and 'estimated income' reserved by leases. No rent is attributed to leases which were subject to rent-free periods at the valuation date. Current income does not reflect any ground rents, head rents nor rent charges and estimated irrecoverable outgoings at the valuation date. 'Estimated income' refers to gross estimated rental values in respect of rent reviews outstanding at the valuation date and, where appropriate, ERV in respect of lease renewals outstanding at the valuation date where the fair value reflects terms for a renewed lease.

3. ERV is the respective valuers' opinion of the rental value of the properties, or parts thereof, reflecting the terms of the relevant leases or, if appropriate, reflecting the fact that certain of the properties, or parts thereof, have been valued on the basis of vacant possession and the assumed grant of a new lease. Where appropriate, ERV assumes completion of developments which are reflected in the valuations. ERV does not reflect any ground rents, head rents nor rent charges and estimated irrecoverable outgoings.

4. The percentage of current income and the percentage of ERV in each of the use sectors are expressed as a percentage of total income and total ERV for each village.

5. Average unexpired lease length has been calculated by weighting the leases in terms of current rent reserved under the relevant leases and, where relevant, by reference to tenants' options to determine leases in advance of expiry through effluxion of time.

6. Where mixed uses occur within single leases, for the purpose of this analysis, the majority use by rental value has been adopted.

7. The initial yield is the net initial income at the valuation date expressed as a percentage of the gross valuation. Yields reflect net income after deduction of any ground rents, head rents and rent charges and estimated irrecoverable outgoings at the valuation date.

8. The initial yield ignoring contractual rent free periods has been calculated as if the contracted rent is payable from the valuation date and as if any future stepped rental uplifts under leases had occurred.

9. Equivalent yield is the internal rate of return, being the discount rate which needs to be applied to the expected flow of income so that the total amount of income so discounted at this rate equals the capital outlay at values current at the valuation date. The equivalent yield shown for each village has been calculated by merging together the cash flows and fair values of each of the different interests within each village and represents the average equivalent yield attributable to each village from this approach.

10. The tone of rental values and yields is the range of rental values or yields attributed to the majority of the properties.

11. All commercial floor areas are net lettable. All residential floor areas are gross internal.

12. For presentation purposes some percentages have been rounded to the nearest integer.

13. The analysis includes accommodation which is awaiting or undergoing refurbishment or development and is not available for occupation at the date of valuation.

Unaudited Group Statement of Comprehensive Income

for the six months ended 31 March 2015

Unaudited Group Balance Sheet

as at 31 March 2015

Unaudited Group Cash Flow Statement

 for the six months ended 31 March 2015

 Unaudited Group Statement of Changes in Equity

 for the six months ended 31 March 2015

Notes to the half year results

for the six months ended 31 March 2015

1. GENERAL INFORMATION

The condensed consolidated half year financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 30 September 2014 were approved by the Board of directors on 27 November 2014 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.

The condensed half year financial statements have been reviewed, not audited.

Basis of preparation

These half year financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34, Interim Financial Reporting, as adopted by the European Union. They should be read in conjunction with the annual financial statements for the year ended 30 September 2014, which have been prepared in accordance with IFRSs as adopted by the European Union.

Going concern

The directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the condensed half year financial statements.

CRitical judgements, assumptions and estimates

The preparation of these half year financial statements requires the Board to make judgements, assumptions and estimates that affect amounts reported in the Statement of Comprehensive Income and Balance Sheet. Such decisions are made at the time the financial statements are prepared and adopted based on the best information available. Actual outcomes may be different from initial estimates and are reflected in the financial statements as soon as they become apparent.

The directors consider the valuation of investment property to be critical because of the level of complexity, judgement or estimation involved and its impact on the financial statements. The Group uses the valuations performed by its external valuers, DTZ Debenham Tie Leung Limited, as the basis for the fair value of its investment properties. Knight Frank LLP value the investment properties owned by the Longmartin joint venture.

The valuation of the Group's property portfolio is inherently subjective due to, amongst other factors, the individual nature of each property, its location and the expected future rental income. As a result, the valuations the Group places on its property portfolio are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of volatility or low transaction flow in the commercial property market. The investment property valuations contain a number of assumptions upon which DTZ Debenham Tie Leung Limited and Knight Frank LLP make a number of assumptions in forming their opinion on the valuation of our investment properties, which are detailed in the basis of valuation on page 13. These assumptions are in accordance with the RICS Valuation Standards. However, if any assumptions made by the external valuers prove to be incorrect, this may mean that the value of the Group's properties differs from their valuation reported in the financial statements, which could have a material effect on the Group's financial position.

Certain statements in this half year report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward looking statements.

The Group undertakes no obligation to update any forward looking statements whether as a result of new information, future events or otherwise.

2. ACCOUNTING POLICIES

CHANGES IN ACCOUNTING POLICIES

The accounting policies adopted are consistent with those of the previous financial year except as described below:

IFRS 11 Joint arrangements - IAS 31, Interests in Joint Ventures has been replaced by IFRS 11 Joint arrangements. The Group has joint control over Longmartin Properties Limited by virtue of its 50% share in the equity shares of the company and requirement for unanimous consent by both parties over decisions related to the relevant activities of the arrangement. As a result the Group has assessed Longmartin Properties to be a joint venture under IFRS 11.

Under IAS 31 the Group accounted for its share of its joint venture's results and balance sheet using proportional consolidation. IFRS 11 precludes the use of proportional consolidation, with equity accounting being the only permitted option. The Group's net interest in its joint venture is now disclosed as a single line item on both the Group Statement of Comprehensive Income and Group Balance Sheet. Accompanied by this the Group Cash Flow Statement excludes cash flows generated by the joint venture but now includes loans received/(advanced) and dividends received in separate line items.

The impact on the Group Statement of Comprehensive Income and the Group Balance Sheet is purely presentational and does not affect the Group's reported net assets nor profit after tax. The cash and cash equivalents number in the Group Cash Flow Statement is reduced by the Group's share of cash held in the joint venture.

As the impact of the transition to IFRS 11 has a material impact on the presentation of the Group's financial statements the prior period figures have been restated. The tables below show the impact of the change in accounting policy on the Group Statement of Comprehensive Income, the Group Balance Sheet and Group Cash Flow Statement.

Impact on Group Statement of Comprehensive Income

Impact on Group Balance Sheet

Impact on Group Cash Flow Statement

NEW ACCOUNTING STANDARDS AND INTERPRETATIONS

a) The following interpretations and amendments to standards are mandatory for the first time for the financial year beginning 1 October 2014: