Interim Management Statement

SHAFTESBURY PLC

Interim Management Statement

For the period 1 October 2011 to 9 February 2012

SHAFTESBURY REPORTS STRONG DEMAND ACROSS ITS WEST END VILLAGES

AS SPOTLIGHT FOCUSES ON LONDON IN 2012

Shaftesbury PLC is a Real Estate Investment Trust, with a strategy of investing exclusively in London's West End. Our wholly owned portfolio, which extends to 121/2 acres of freeholds, now includes 327 shops and 214 restaurants, bars and cafes, which together account for 71% of its current income. The 410,000 sq. ft. of offices and 400 apartments in the wholly owned portfolio provide 19% and 10% respectively of its current income.

In addition, we have a 50% interest in the Longmartin joint venture, which itself has a long leasehold interest in St Martin's Courtyard in Covent Garden. Extending to 1.9 acres, it includes 23 shops, eight restaurants, 102,000 sq. ft. of offices and 75 apartments.

Current trading

Trading in London's West End has been buoyant throughout the important Christmas and New Year period, with resilient visitor numbers and spending. Within our portfolio, occupancy continues at historically high levels and demand is good for all uses.

Vacant commercial space at 31 January 2012 (wholly owned portfolio)

* Estimated rental values as at 30 September 2011

At 31 January 2012 the total estimated rental value of the 54,000 sq. ft. of vacant wholly owned commercial space amounted to £2.6 million, equivalent to 3.4% of our total commercial estimated rental value. Of this total £0.6 million was held for or under refurbishment and £0.4 million was under offer. Offices ready to let included 6,000 sq. ft. in our scheme at 36/39 Carnaby Street, which was completed in December 2011.

In the Longmartin joint venture 10,000 sq. ft. of offices were under refurbishment and one small shop was available to let.

Retail trading and demand for shops across our villages remains good. We are entering a period when a number of retail leases are due to expire. This potential increase in availability of shops to let will create opportunities for us to introduce new retailers and concepts, particularly in Carnaby and Seven Dials.

Demand for restaurant and leisure accommodation continues to be strong, and a number of interesting new concepts have opened in our villages. These new ventures are thriving and add to the unrivalled variety of dining and leisure choices the West End has to offer.

In our locations demand for offices is currently healthy. Within Carnaby, we expect to commence the refurbishment of 24,000 sq. ft. of our more modern offices in the next 12 months. Elsewhere, we continue to identify opportunities to convert smaller offices to residential or other uses.

Our apartments remain virtually fully let, and with sustained good demand, they relet quickly as they become available. We have schemes in hand to create a further 29 apartments.

From the second half of the year we shall be commencing two important projects in Carnaby to meet demand for larger shops. They will affect some 50,000 sq. ft. of existing space and will inevitably give rise to a short term loss of income until the schemes are completed and let.

We will start our first scheme, which is on the north side of Foubert's Place, in summer 2012. By combining existing small shops totalling 5,300 sq. ft. with space currently used as offices at the rear in Lasenby House, we will create three new large shops and two reconfigured smaller units. These units, which will total 10,750 sq. ft., will be available from mid-2013. In addition, we have pre-let the remaining 15,000 sq. ft. of unrefurbished offices on the upper floors of Lasenby House for a term of 30 years to the adjacent Liberty department store. The capital cost of the scheme is estimated to be £4.1 million.

Our second scheme in Carnaby includes the relocation of a restaurant from Foubert's Place to a new 6,500 sq. ft. unit in Kingly Street, to be replaced by 8,500 sq. ft. of retail space. We expect to receive planning consent shortly and start construction in January 2013.

Acquisitions

In the four months ended 31 January 2012, we acquired properties totalling £21.5 million. These purchases, all of which are in Soho, included ten shops and two restaurants.

We continue to investigate a number of potential acquisitions. In our locations the availability of properties to buy is restricted, as owners remain reluctant to sell assets in these prosperous locations. For this same reason, when assets do come for sale, they attract considerable interest from competing purchasers, both domestic and overseas.

Finance

Our financing policy is to ensure our funding reflects the long term nature of our investment strategy.

In January 2012, Longmartin Properties Limited, our 50% joint venture, announced the completion of a £120 million 15 year loan facility, at a fixed rate of 4.43%. The facility was fully drawn at completion and surplus funds are being remitted to us and our partner, The Mercers' Company. This will enable us to repay some £54 million of existing bank indebtedness which will then be available for re-drawing.

Subject to completing this transfer of funds, bank borrowings will total £400 million and we will have committed undrawn facilities of £175 million. After taking into account our long-term interest hedging on £360 million of our bank debt, fixed at an average rate of 4.87%, the average all-in cost of our bank debt will be 5.35%. Including our £61 million Debenture and our share of the Longmartin loan, total drawn debt will be £521 million at an all-in cost of 5.55%. The earliest loan maturities we have are in 2016.

With long term interest rates falling further since 30 September 2011, the non-cash mark-to-market deficit attributable to our interest rate swaps has risen over the period by £21.5 million to £126.1 million. Currently the all-in cost of drawings from the unhedged portion of our floating rate facilities is around 1.75%.

Board changes

Christopher Ward joined the Board as Finance Director in January.

John Emly, a non-executive Director since 2000, retires from the Board today. The Nomination Committee has now commenced the process to recruit an additional non-executive Director.

Prospects

Against a background of continuing economic uncertainty and subdued confidence, London's West End, with its unrivalled combination of attractions and wide appeal, continues to prosper. Although this popularity and prosperity are long established we are never complacent. We use our detailed local knowledge to encourage interest and sustained demand for accommodation in our villages, responding to the ever-changing expectations of current and prospective occupiers and their customers.

2012 is a year of unique challenges and potential opportunities for London and the West End. Hosting three major global events between June and September - the Queen's Diamond Jubilee celebrations, World Pride and the Olympics - presents many logistical and public safety challenges to an already busy and crowded city. This will lead to short term disruption to the usual patterns of life during the summer months. However these events will promote London and the West End to a global audience.

We expect our portfolio, underpinned by the West End's unique features, will continue to deliver long term out-performance in income growth and capital values.

Contacts:

10 February 2012

Forward-looking statements

This document includes statements which are forward-looking in nature. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Shaftesbury PLC to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Ends.