Interim Management Statement

SHAFTESBURY PLC

Interim Management Statement

For the period 1 October 2010 to 10 February 2011

Shaftesbury PLC is a Real Estate Investment Trust with a unique strategy of investing only in the busiest and liveliest districts at the heart of London's West End. Our wholly owned portfolio covers more than eleven acres, extends to over 1.5 million sq. ft. and includes retail, leisure, office and residential accommodation. With more than 300 shops and almost 200 restaurants, bars and cafes in our portfolio, these uses now account for over 70% of our rising income and an even higher proportion of our expected rental growth.

Our Joint Venture with The Mercers' Company, in which we have a 50% interest, owns 1.9 acres in Covent Garden, with almost 270,000 sq. ft. of commercial and residential space. This investment includes the recently completed St Martin's Courtyard scheme which is now almost fully let and is making an important contribution to our income.

Our portfolio benefits from a very prosperous local economy. The unique and diverse attractions of London's West End continue to attract large numbers of domestic and overseas visitors. Despite severe weather conditions in December, the West End remained busy throughout the Christmas trading period and into the New Year. Consequently demand remains strong for all of our uses, and especially for shops and restaurants.

As well as assisting tenants to expand or relocate, we continue to identify new retail and restaurant concepts to introduce into our villages. Our current challenge is to secure vacant possession to accommodate these applicants as we still have very little space to let.

Vacant commercial space at 31 January 2011 (wholly owned portfolio)

* As at 30 September 2010

At 31 January 2011 the total estimated rental value of our wholly owned vacant commercial space amounted to £2.9 million per annum. Of this two-thirds (£1.9 million per annum) was under construction and comprised principally a new retail and office development at 36-39 Carnaby Street.

The estimated rental value of commercial space ready to let and not already under offer was only £0.8 million per annum, equivalent to 1.1% of the estimated rental value of the commercial elements of our wholly owned portfolio. We still have no larger shops (rental value over £100,000 per annum) ready to let, although our two new shops at 36-39 Carnaby Street should be available this autumn.

The vacant restaurant under refurbishment is in Chinatown. It was purchased in January 2011 with vacant possession - a rare opportunity in this village.

Of the 24,000 sq. ft. of vacant offices, only 8,000 sq. ft. was ready to let. 11,000 sq. ft. was under construction or refurbishment and 5,000 sq. ft. was subject to change of use applications, principally to residential accommodation.

Our residential accommodation continues to be very popular and occupancy at 31 January 2011 was about 98%. We have 26 new apartments under construction with an estimated rental value of over £0.6 million per annum. Subject to obtaining planning consents, we have also identified potential for at least 40 more units principally by conversion from smaller and older office space.

Construction of St Martin's Courtyard, part of our Joint Venture with The Mercers' Company, has recently been completed. By rental value, 94% of the commercial space is now either let or under offer. We are confident that the final phase of 21 new apartments, which has only just been handed over by the contractor, will let quickly.

St Martin's Courtyard lettings status at 31 January 2011*

*Shaftesbury has a 50% interest in these figures

Acquisitions

Investment activity in the West End is returning to more normal levels, with competitive bidding from a broad range of potential purchasers. Since 1 October 2010 we have bought properties at a total cost of £30 million. They include five with restaurant and leisure uses and four shops, with offices and residential on upper floors, located in Covent Garden, Chinatown, Soho and Charlotte Street. All of these properties, whilst producing a satisfactory initial income, offer us medium term opportunities for improvement. We have agreed terms on a number of other acquisitions which are now in solicitors hands.

Whilst the timing of purchases is unpredictable, we anticipate a further increase in activity over the next twelve months.

Finance

At 31 January 2011 the amounts drawn from our £575 million of committed bank facilities totalled £486 million. We have long term interest rate hedging in place for £360 million of this debt, at fixed rates between 4.59% and 5.15% (weighted average rate 4.87%). Taking this hedging into account, the average all-in cost of our bank debt at 31 January 2011 was 4.62%. Including our £61 million of Debenture borrowings, the overall cost of debt was 5.00%.

Long term interest rates have risen since 30 September 2010. As a result, there has been a substantial reduction in recent months in the non-cash mark-to-market deficit of our interest rate derivatives, which at 31 January 2011 stood at £40.9 million, compared with £80.5 million at the last year end.

Succession

Jonathan Lane's retirement as Chief Executive during 2011, after which he will become Deputy Chairman, was announced on 30 November 2010. We have now engaged an executive recruitment consultant to assist the Board in the process which will lead to the appointment of his successor later this year. This selection process will involve the consideration of both internal and external candidates.

Prospects

The UK economy faces considerable uncertainty in the period ahead, which is affecting consumer confidence and spending nationally. In contrast, London's West End continues to draw an ever greater number of visitors, underpinning an already prosperous and resilient local economy. Against this background, we are confident that continuing strong demand for accommodation throughout our villages will be reflected in rising rental income and out-performance in capital values.

Contacts:

11 February 2011

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.