Interim Management Statement

SHAFTESBURY PLC

Interim Management Statement

For the period 1 April 2011 to 3 August 2011

Shaftesbury PLC is a Real Estate Investment Trust which invests exclusively in the busiest and liveliest districts at the heart of London's West End. Our wholly owned portfolio, which covers more than eleven acres, extends to 1.6 million sq. ft. of retail, leisure, office and residential accommodation. It includes over 500 shops, restaurants, cafes and bars, which currently provide 71% of our rising income.

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, which includes the recently completed St Martin's Courtyard scheme, is now making an important contribution to our income.

With less than a year until the Queen's Diamond Jubilee celebrations and the Olympics, there is intense activity to complete major public realm schemes, particularly those in and around Leicester Square and Piccadilly Circus. Together with improvements to key underground lines currently under way, these schemes will improve access for the growing numbers of visitors to the West End.

As has been widely reported, trading conditions in London's West End remain very healthy. The prosperity of the West End is evident across our Villages, reflected in strong demand for all uses, rental growth and continuing low levels of vacancies. Currently, we still have no larger shops (over £100,000 per annum) or any restaurants which are vacant and not under offer.

Vacant commercial space at 31 July 2011 (wholly owned portfolio only)

* Estimated rental values as at 31 March 2011

At 31 July 2011, the total estimated rental value of wholly owned vacant commercial space was exceptionally low at £2.7 million per annum and totalled 46,000 sq. ft. Our shop and office development at 36-39 Carnaby Street accounted for over 70% of the estimated rental value of £1.9 million attributable to properties held for or under refurbishment. The shops in this scheme are expected to be completed this autumn and the offices by the end of 2011. A number of international retailers with new concepts are interested in the shops.

Of the 17,000 sq. ft. of available commercial space, half was under offer at 31 July 2011, with just 9,000 sq. ft. (estimated rental value £0.4 million) vacant and ready to let.

Whilst shops and restaurants dominate our portfolio, offices remain an important use within each of our Villages, providing some 20% of our rental income. Wherever possible, we seek to improve and extend our larger office space, particularly in Carnaby, which has over half of our wholly owned offices. Elsewhere, we continue to explore conversion of smaller and older office space to residential or other uses.

Our residential accommodation is virtually fully let and demand continues to be good. At 31 July 2011 we had schemes in hand to create eighteen apartments, and have identified further conversions to residential which, subject to planning consent, could add a further 50 units.

Longmartin's vacant commercial space at 31 July 2011*

* Shaftesbury Group has a 50% interest in these figures

** Estimated rental values as at 31 March 2011

*** 31 March 2011 comparative percentages restated

Construction of St Martin's Courtyard, the mixed use scheme within our Longmartin joint venture, was completed in March 2011 and is now virtually fully let. We have only one small shop and one apartment available to let. Once the final restaurant opens and the offices are fully occupied in August, over 800 people will be working or living in and around the Courtyard.

10,000 sq. ft. of offices adjacent to the Courtyard are undergoing refurbishment and we are investigating further schemes within Longmartin's portfolio.

Acquisitions

The availability of properties for sale which are of interest to us in our prosperous locations continues to be restricted, as owners are reluctant to sell. Since 1 April 2011 we have acquired properties totalling £13 million, bringing purchases for this financial year to a total of £55 million. Our acquisitions since 1 October 2010 extend to 66,000 sq. ft. and include thirteen restaurants, seven shops and two office buildings. Several of these properties were acquired with vacant possession and all have potential for improvement and income growth.

We continue to explore further acquisition opportunities.

Finance

At 31 July 2011 the amounts drawn from our £575 million of committed bank facilities totalled £419 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 July 2011 was 5.13%. Including our £61 million of Debenture borrowings, our overall cost of debt was 5.71%.

Short term interest rates are expected to continue at current low levels for some time. At present, the all-in cost of funding that we draw from our unhedged committed facilities is below 1.75%. We are continuing to investigate sources of long term finance to augment our current resources.

Management changes

As announced on 25 May 2011, Brian Bickell, currently our Finance Director, will become Chief Executive on 1 October 2011, at which time Jonathan Lane will become Deputy Chairman.

An executive recruitment consultant has been appointed to assist the Board in recruiting a new Finance Director. We expect this to be an external appointment.

Outlook

The buoyant West End economy, in contrast with subdued trading elsewhere in the UK, reflects London's reputation as the world's best tourist city and the western world's most popular business location.

Whilst the high profile events in 2012 are likely to present considerable challenges, not least to London's transport network, they will also attract extensive publicity and in the years ahead bring more visitors to London. This, together with our own experience and the resilience of current trading, gives us confidence that the prosperity of our Villages and growth in our rental income and dividends will continue.

Contacts:

4 August 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.