Dividend, NAV, Return of Capital, Inv. Performance

17 November 2014

Duet Real Estate Finance Limited

("DREF" or the "Company")

Dividend, NAV, Return of Capital, Investment Performance and Outlook

Dividend and NAV

The board of the Company is pleased to announce a dividend of 1.00 pence per Ordinary Share in respect of the quarter to 30 September 2014, payable on 19 December 2014 to those Shareholders on the register as at 28 November 2014. Dividends to date, (including this distribution), on shares issued at the time of the Company's Initial Public Offering, total 23.20 pence per share.

As at 30 June 2014, the unaudited net asset value ('NAV') of the Company was 78.88 pence per share. During the quarter to 30 September 2014, the Company returned an equivalent of 13.62 pence in the form of an issue and redemption of B shares, in addition to paying a dividend of 1.30 pence therefore adjusting NAV to 63.96 pence per Ordinary Share. As at 30 September 2014, the unaudited NAV was 64.78 pence per Ordinary Share.

Portfolio Update

The portfolio of the Master Fund as at 30 September 2014 consisted of 10 assets totalling £178.7m of principal and accrued interest, after impairments, together with the value of foreign exchange hedging derivatives. The portfolio had a blended loan to value ratio of 65.4% (including payment-in-kind interest accrued where applicable), along with a blended cash pay coupon and payment-in-kind coupon of 10.52% and 1.90% respectively. The portfolio provides the income and total return as targeted in the Company's prospectus, whilst maintaining a resilient risk profile, and is detailed in the tables below.

(1) after impairment.

Return of Capital

As previously announced on 23 October 2014, having commenced acceleration proceedings in Q4 2012, settlement has been reached with the borrower of the Master Fund's French Offices loan (Loan 4) resulting in the full repayment of all principal and accrued interest, earning returns in-line with its investment criteria. The Company's share of proceeds realised by the Master Fund totals £10.1 million, equivalent to 13.59 pence per share.

 The board has resolved to return an amount of 14.34 pence per share, equivalent to £10,636,940 based on the current number of shares in issue, via an issue of redeemable B shares to existing shareholders and subsequent redemption of those shares pro rata to their holding at the time of the relevant issue. The amount to be returned covers the above, net of costs, in addition to cash released following a cancellation of part of the Company's undrawn commitment to the Master Fund.

The return of capital will be paid to shareholders on the register at the close of business on 28 November 2014 (the "Record Date"). The ex-date will be 27 November 2014. The B shares will be issued on 2 December 2014 (the "Issue Date"), redeemed on 3 December 2014 (the "Redemption Date") and settlement is intended to be effected on 4 December 2014. Payments of redemption monies are expected to be made either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form).

Following the return of capital, the NAV per share will be reduced by the amount returned and the costs of the redemption, which are not expected to exceed £8,000. Furthermore, the Company may also continue to carry out purchases of its own shares from time to time, subject to regulatory restrictions and in accordance with the Company's general authority to repurchase shares granted by its shareholders at the Company's 2014 Annual General Meeting. Announcements will be made in due course in connection with further returns of capital from the Master Fund.

Adjusting for the return of capital and dividend on a pro forma basis, but not adjusting for any movements in the period from 30 September 2014, NAV per share would be 49.44 pence.

Investment Performance and Outlook

Whilst no longer required to release Interim Management Statements, the board intends to continue to update Shareholders on the Company's investment performance and outlook alongside each NAV update.

The Company raised £76.0m and has, including the dividend payable on 19 December 2014, paid dividends totalling £17.2m and returned capital, including via the B share issue above, totalling approximately £32.1m. The total value to paid in ratio of the Company at 30 September 2014 was 1.132.

The board anticipates that the Company remains on track to provide Shareholders with distributions which, taken over the course of a twelve month period, will be in excess of 7 per cent per annum, based on the issue price as adjusted for returns of capital and impairments.

Investment Adviser anticipates the current trend of earlier repayments to continue as increased liquidity in the financing markets, the ongoing deleveraging through amortisation of most transactions and the generally rising trend in asset values encourage borrowers to refinance or sell the assets that back the remaining loans in the Master Fund.

With regard to the profile of the remaining investments, and as expected, the General Partner of the Master Fund has elected to extend the life of the Fund by one year to 22 December 2015 (the first of two extensions available to the General Partner at its discretion).

For further information, please contact:

DRC Capital LLP +44 (0)20 7042 0600

Dale Lattanzio

Cyrus Korat

Oriel Securities Limited +44 (0)20 7710 7600

Neil Winward

Mark Bloomfield

Tunga Chigovanyika