Interim Management Statement

Shaftesbury PLC

Interim Management Statement

For the period 1 October 2013 to 6 February 2014

SHAFTESBURY REPORTS CONTINUED STRONG DEMAND, HIGH OCCUPANCY AND FURTHER ACQUISITIONS IN CORE LOCATIONS

Current trading

London's West End continues to be a popular destination for domestic and international visitors as well as Londoners. Despite exceptionally adverse weather conditions over the Christmas and New Year period, visitor numbers and spending, particularly in our restaurants, cafes and bars, have been resilient.

With continuing strong demand for all uses our portfolio remains substantially fully let, and our numerous refurbishment and reconfiguration schemes are letting quickly on completion. Importantly, the quality and variety of the businesses we are attracting are enhancing the shopping, restaurant and leisure choices across our central West End villages, in line with our long-term management strategy.

Vacancy at 31 December 2013

* based on estimated rental value ("ERV") at 30 September 2013 and ERV of acquisitions completed to 31 December 2013. Total: £106.4 million.

Our mixed-use scheme, in Carnaby, to redevelop the buildings fronting the south side of Foubert's Place and Kingly Street is progressing well and is expected to be completed in phases from early 2015. The scheme will provide 32,500 sq. ft. of space including 7,500 sq. ft. of retail on Foubert's Place, a flagship restaurant of 6,500 sq. ft. on Kingly Street, 10,000 sq. ft. of offices over three floors and twelve apartments. The scheme's ERV of £2.0 million is £1.6 million above pre-scheme rental income.

The ERV of other schemes underway at 31 December 2013 was £3.2 million, equivalent to 3.0% of total ERV. This included one large shop (ERV > £100,000 p.a.) and 10 small shops. Of the five restaurants and cafes being refurbished, two are under offer. Offices under refurbishment included 11,000 sq. ft. (ERV: £0.7 million) in Ganton Street, Carnaby, of which £0.5 million is under offer. Other schemes also included the creation and refurbishment of 24 apartments, which we expect to complete over the coming six months.

The ERV of available to let space was £1.8 million (30.9.2013; £2.5 million), of which £0.3 million was under offer. The twenty three available shops included four large shops (ERV: £0.5 million). Of the fourteen apartments available to let, six were under offer.

Acquisitions

In the period ended 31 December 2013, we acquired five properties at a total cost of £10.5 million and agreed terms to acquire a further three properties totalling £9.25 million. In the wholly owned portfolio the completed acquisitions, in Charlotte Street and Chinatown, included two shops, one restaurant, one bar and five apartments. In addition, our Longmartin joint venture bought in a long leasehold interest on 7,500 sq. ft. of office space within its existing ownership.

Finance

Total debt at 31 December 2013 was £611.8 million, an increase of £6.6 million since 30 September 2013, and our undrawn committed facilities totalled £84.2 million (30.9.2013: £90.8 million). The weighted average maturity of our facilities was 5.8 years.

Taking into account our £360.0 million long-term interest rate swaps, the average cost of debt at 31 December 2013 was 5.25% (30.9.2013: 5.07%). Our marginal cost of borrowing was around 1.85%.

The fair value deficit of our long-term interest rate swaps fell over the first quarter by £11.2 million to £84.6 million.

As previously reported, we are progressing the refinancing of bank facilities which are due to mature in 2016. Our intention is further to improve the maturity profile of our debt and secure new long-term sources of finance.

In November 2013, we entered into a new £125 million five-year revolving credit facility with Lloyds Bank plc. This replaced an existing £125 million facility with the bank which was due to expire in April 2016.

Discussions to refinance a further £100 million of bank debt continue and, as previously advised, we currently expect this will involve the termination of just under one third of our interest rate swaps. Based on the mark-to-market valuation at the end of December, this would equate to a reduction of approximately 10p in EPRA NAV per share.

Board changes

As previously announced, Gordon McQueen, our Senior Independent Director and Chairman of the Audit Committee, retires from the Board at the conclusion of the 2014 Annual General Meeting being held today, 7 February 2014. He is to be succeeded as Senior Independent Director by Jill Little and as Chairman of the Audit Committee by Dermot Mathias. Jill Little will step down as Chairman of the Remuneration Committee, to be replaced by Sally Walden.

7 February 2014

For further information:

About Shaftesbury

Shaftesbury PLC is a Real Estate Investment Trust, which invests exclusively in London's West End. Our wholly owned portfolio, which extends to over 13 acres of freeholds, now includes 330 shops and 234 restaurants, bars and cafés, which together account for 70% of its current income. The 386,000 sq. ft. of offices and 470 apartments in the wholly owned portfolio provide 17% and 13% respectively of its current income. In addition, we have a 50% interest in the Longmartin joint venture with The Mercers' Company, which 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.

Forward-looking statements

This document may contain certain 'forward-looking' statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements.

Any forward-looking statements made by or on behalf of Shaftesbury PLC speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Shaftesbury PLC does not undertake to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

Information contained in this document relating to Shaftesbury PLC or its share price, or the yield on its shares, should not be relied upon as an indicator of future performance.

Ends.