Interim Management Statement

18 July 2012

METRIC PROPERTY INVESTMENTS PLC

("Metric" or the "Group" or the "Company")

FIRST QUARTER INTERIM MANAGEMENT STATEMENT 

METRIC CAPITALISES ON INVESTMENT MARKET CONDITIONS ANDASSET MANAGEMENT OPPORTUNITIES

Metric Property Investments plc (LSE: METP), the UK specialist retail REIT, today announces its interim management statement for the period from 1 April to 17 July 2012.

HIGHLIGHTS:

·; Good progress in securing acquisition opportunities with three properties and one development site purchased in the period:

- B&Q units acquired in Londonderry & Camborne on behalf of MIPP for £17.4 million1 and £8.2 million1, respectively, reflecting average net initial yields of 7.4% with 17.2 years average unexpired lease terms.

- Next & Iceland units in Bedford were acquired for £5.7 million, reflecting a net initial yield of 7% with an unexpired lease term of 11.3 years.

- A 90 acre development site was conditionally acquired on the outskirts of St Austell, Cornwall for £5.5 million; Metric is working up a proposal to develop a 158,000 sq ft retail park anchored by a 68,000 sq ft Sainsbury's supermarket.

·; Three lettings exchanged (including former Peacocks unit at Launceston) across 26,000 sq ft, on average leases of 13.3 years (12.0 years to first break). A further six lettings in solicitors hands.

·; Robust investment portfolio metrics:

- Occupancy across the investment portfolio is now 98% (March 2012 97.5%)

- Long average unexpired lease term of 11.8 years (11.1 years to first break)

- Average passing rents remain affordable at £14.70 psf

·; Developments at Bishop Auckland and Cannock progressing well with pre-lettings now at 82% and 87% respectively. Completions due November 2012.

·; Planning applications submitted for a further 69,000 sq ft; for new developments at Berkhamsted (21,000 sq ft), and Bishop Auckland Phase II (27,000 sq ft), and user relaxations at Newry (9,700 sq ft) and Channons Hill, Bristol (10,000 sq ft).

·; Weighted average cost of debt 3.5%, average debt maturity 4.2 years and LTV (including the MIPP joint venture) at 19%. Firepower for Metric & MIPP stands at £80 million and £85 million, respectively.

1. Metric's share at £5.8 million and £2.7 million, respectively

Andrew Jones, Chief Executive of Metric, commented:

"We continue to build on the momentum achieved at the year-end and to execute on deals in a challenging occupier market. The low average rents across the investment portfolio, (£14.70 psf average rent) and our focus on putting retailers at the centre of our portfolio strategy has helped set us apart from the rising vacancies in the general retail property market, especially across high streets and shopping centres where significant lease expiries and continuing retailer administrations have taken their toll.

"We remain well placed to capitalise on distressed opportunities in the investment market. Our strong balance sheet and our access to capital have allowed us to opportunistically take advantage of increased receivership sales. We see this as a primary source of investment product over the coming year."

ACQUISITIONS

The Metric Income Plus Limited Partnership ("MIPP"), our £150 million joint venture with Universities Superannuation Scheme ("USS"), has to date completed six acquisitions, including Londonderry and Camborne during the period, bringing assets under management to £60.5 million, with Metric holding a one third share. The MIPP portfolio benefits from being fully occupied with average unexpired lease terms of 17.2 years. The average yield is 7.3% and 35% of the income benefits from fixed/RPI uplifts.

We announced our first high street acquisition in Berkhamsted at the time of our full year results, where we aim to deliver a 21,000 sq ft development, subject to planning, to be anchored by a new 18,000 sq ft M&S Simply Food. During the current reporting period we have acquired two prime high street units on Midland Road, Bedford. An extensive refurbishment was undertaken after the demise of Woolworths and the units were let in November 2011 to Next and Iceland on 10 and 15 year leases, respectively, at average rents of £22 psf. We acquired the units for £5.7 million in July, reflecting a net initial yield of 7%. This opportunistic purchase was from the receiver at a price reflecting today's market rents, with reversionary potential. In addition, the large unit sizes totalling 36,000 sq ft provide Next and Iceland with the right space configuration to meet their latest and most preferred formats.

On the outskirts of St Austell, we conditionally acquired a 90 acre development site where we plan to develop the site to provide a 158,000 sq ft retail park, anchored by a 68,000 sq ft supermarket, already pre-sold to Sainsbury's. The additional land will be marketed for mixed-use commercial and residential developments. We are working towards submitting a planning application by the end of 2012. The purchase is conditional on obtaining the necessary planning consents and pre-lets on the retail park of at least 60%, based on rental income.

ASSET MANAGEMENT

Occupier transactions

Over the period, we exchanged on three leases representing 26,000 sq ft of space and have a further six in solicitors' hands.

·; At Bishop Auckland, on the back of successful lettings with Boots, M&S, Next, Brantano and Costa Coffee, we have agreed a further letting with Pets at Home. Pre-lets have increased to 82% and we expect to be 100% occupied by practical completion in early 2013.

·; At Milford Haven, we have exchanged contracts with Home Bargains, subject to planning, to occupy the Littlewoods unit where a tenant break option would have been triggered in 2013. Home Bargains has taken a new 15-year lease paying the same rent as the previous passing.

·; At Launceston, we have re-let the Peacocks unit that went into administration, agreeing a new 10-year lease with 99p Stores at the same rent as the previous passing. The park is now 100% let.

Rent collections continue to be strong with 99% of rents being collected within five days of the due date.

Planning

We announced at our full year results that we have submitted planning applications at Bristol (30,000 sq ft to split Focus unit), Berkhamsted (new 21,000 sq ft food store development) and Bishop Auckland Phase II (new 27,000 sq ft Open A1 development).

Furthermore, we received planning consent at Longwell Green, Bristol, held in MIPP, for a new 2,500 sq ft pod unit where we expect to start onsite before the end of the summer, to build a new unit for Costa Coffee.

We have submitted further planning applications at Mansfield (1,600 sq ft new pod unit) and a relaxation of use at Newry (9,700 sq ft) and Channons Hill, Bristol (10,000 sq ft).

FINANCING AND FIREPOWER

The Group's net debt currently stands at £47.1 million with a further £64.0 million of committed undrawn debt facilities. LTV including our MIPP joint venture is 19%. The Group has hedged 68% of its committed facilities. The all in cost of debt today, assuming the facilities were fully drawn, would be 3.5% based on current libor and swap rates. This sits some 310 bps below the average yield on cost of our investment property portfolio.

We are in advanced negotiations for a new £75 million five-year debt facility for MIPP delivering an anticipated cost of debt just above 4%, based on current libor and swap rates.

Including anticipated future debt facilities and committed and earmarked capital expenditure the Group firepower for Metric and MIPP totals circa £80 million and £85 million, respectively.

MARKET UPDATE

The Euro-zone crisis is exacerbating the challenges to the wider UK economy and the property market is by no means immune. The structural changes UK retail is facing at a macro level, combined with the current economic climate have highlighted weaknesses in a number of retailers' business models. Against this backdrop, our value creation model of remaining disciplined, adhering to our bottom-up strategy of focusing on assets that are well-let at affordable rents to retailers who trade profitably, has positioned us well to navigate through these challenges. As the retailer occupier market continues to face turbulence, our ability to leverage both our strong retailer relationships and sector experience to successfully execute deals that improve our income stream is vital. Our long income profile and our ability to improve our exposure to stronger occupier covenants have provided a significant competitive advantage in improving our income returns and supporting our capital values.

-Ends-

For further information, please contact:

Metric Property Investments plc +44 (0)20 7129 7000

Andrew Jones (Chief Executive)

Sue Ford (Finance Director)

Juliana Weiss Dalton (Investor Relations)

FTI Consulting +44 (0)20 7831 3113

Stephanie Highett

Dido Laurimore

Olivia Goodall

About Metric Property Investments

Metric is a UK retail focused Real Estate Investment Trust (REIT) established in early 2010 to invest in retail assets located across the UK. It aims to deliver attractive returns for shareholders through a strategy of increasing income and improving capital values. The occupier sits at the heart of Metric's investment strategy, where retailer demand and occupier contentment are key to driving rents through our asset management programme of leasing, rent reviews, lease renewals, extension and redevelopments.

www.metricproperty.co.uk

Forward looking statements: This announcement may contain certain forward-looking statements with respect to Metric's expectations and plans, strategy, management objectives, future developments and performance, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Certain statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Any forward-looking statements made by or on behalf of Metric speak only as of the date they are made. Metric does not undertake to update forward-looking statements to reflect any changes in Metric's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Nothing in this announcement should be construed as a profit forecast. Past share price performance cannot be relied on as a guide to future performance.