Trading Statement

Shaftesbury PLC

Trading and finance update

For the period 1 October 2015 to 4 February 2016

Highlights

An unrivalled variety and quality of attractions, coupled with a large and important local working population, support the prosperity of London's West End and our centrally-located portfolio.

The weeks leading up to, and throughout Christmas and New Year, are traditionally an exceptionally busy period, bringing additional visitors and spending to the West End. Although national trading reports have been mixed, we have seen in our areas robust footfall numbers and spending. Sustained buoyancy in the local economy underpins continued strong tenant demand across all uses and in each of our locations.

The West End's exceptional choice of shopping is now matched by a wide choice of innovative and affordable dining and leisure options, which today draw visitors and spending in their own right. For Shaftesbury, the importance of rental income from our ownership of 316 shops is now matched by that from our 258 restaurants, cafés, pubs and bars, with each producing 35% of current income.

Vacant space held for or undergoing refurbishment

1. Charing Cross Road/Chinatown and Thomas Neal's Warehouse. ERV reflects the configuration of the space prior to commencement of works.

Space held for or under refurbishment, at 6.5% of total ERV, has increased during the period as we prepare to initiate several large schemes.

In January 2016 we commenced our Charing Cross Road/Chinatown scheme. Totalling 45,500 sq. ft., it will bring major improvements to the area at the east of Chinatown, providing 32,000 sq. ft. of retail on Charing Cross Road, 13,500 sq. ft. of restaurant space fronting Newport Place and Newport Court and a much-improved gateway into Chinatown.

The scheme is expected to cost £10 million. Completion is currently anticipated in mid-2017, and we expect to see growing interest, as the scheme progresses, in the much-improved accommodation it will create.

Other schemes underway at 31 December 2015 involved the reconfiguration and improvement of 9,100 sq. ft. of shops, (ERV: £1.0 million), 8,600 sq. ft. of restaurants and cafes (ERV: £0.4 million), 23,300 sq. ft. of office space (ERV: £1.5 million), and 49 apartments either being created or up-graded (ERV: £1.6 million).

In addition to the routine level of refurbishment activity across the portfolio, we will be starting works on two further important projects in the coming months, which will in the short-term further increase the extent of space we are improving.

We are now well-advanced in securing vacant possession of the Thomas Neal's Warehouse in Seven Dials, and expect to commence works in the next two months . The scheme, which will provide 21,000 sq. ft. of flagship retail space, will cost in the region of £2 million. Completion is anticipated in late 2016. As previously advised, the scheme involves a loss of annual income of £0.8 million, but it will deliver both higher income and wider benefits to our Seven Dials holdings over the medium term.

In January 2016, we received planning consent for the reconfiguration, extension and refurbishment of 57 Broadwick Street, at the eastern gateway to Carnaby. Our scheme for the building provides for:

· the creation of flagship retail space and a restaurant, together extending to 11,000 sq. ft. over the lower floors;

· refurbishment and extension of office space on the upper floors, to provide 20,000 sq. ft. of grade A accommodation; and

· two apartments totaling 2,000 sq. ft.

We expect to commence works in the spring, following the expiry of existing occupational leases in April 2016, with completion in phases from late 2017. The cost of the scheme is currently estimated at £14 million.

Together, these two schemes will increase the amount of space under refurbishment by approximately 2.0% of total wholly-owned ERV (based on rental values at 30 September 2015).

EPRA vacancy at 31 December 2015

With strong occupier demand for all uses across each of our locations, EPRA vacancy in the wholly-owned portfolio, which stood at 2.0% of total ERV at 31 December 2015, continues to be low.

Available to let vacancy at 31 December 2015 comprised 13,200 sq. ft. of retail (ERV: £1.4 million), two restaurants (ERV: £0.4 million), 2,200 sq. ft. of office space (ERV: £0.1 million) and five apartments (ERV: £0.1 million).

Space under offer included one small shop, one restaurant, 500 sq. ft. of offices and two apartments.

Acquisitions

In the period since 1 October 2015, we have acquired properties, totalling £28.4 million, in Seven Dials and Soho. These comprise shops totalling 5,400 sq. ft., 4,700 sq. ft. of restaurants, 2,900 sq. ft. of offices and 2,100 sq. ft. of residential.

The availability of assets to buy which meet our strict criteria continues to be limited but we continue to identify and investigate a number of potential acquisitions.

Finance

At 31 December 2015, total debt, including the Group's 50% share of debt in its Longmartin joint venture, was £725.5 million and our undrawn committed facilities totalled £130.3 million. The weighted average cost of debt was 4.82%, 10 basis points lower than at 30 September 2015. The current marginal cost of borrowing under our unhedged facilities is around 1.5%, so future drawings will reduce the blended cost of debt.

1 Based on nominal value of debt

The fair value of the deficit on our interest rate swaps at 31 December 2015 decreased over the quarter by £5.8 million to £73.4 million.

5 February 2016

For further information:

About Shaftesbury

Shaftesbury PLC is a Real Estate Investment Trust, which owns a unique real estate portfolio extending to 14 acres in the heart of London's West End - a highly popular, sought-after and prosperous destination for visitors and businesses. Our holdings are concentrated in Carnaby, Covent Garden, Chinatown, Soho and Charlotte Street.

Our objective is to deliver long-term outperformance in growth in rental income, capital values and shareholder returns.

We focus on retail, restaurants and leisure in the liveliest parts of the West End. Our portfolio now comprises 574 shops, restaurants, cafés and pubs, extending to 1 million sq. ft., which account for 70% of our current income. In our locations these uses have a long record of occupier demand exceeding their availability. It also includes 421,000 sq. ft. of offices and 529 apartments for rent, which provide 17% and 13%, respectively, of our 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 22 shops, eleven restaurants and cafés, 102,000 sq. ft. of offices and 75 apartments.

Our proven management strategy is to create and foster distinctive, attractive and prosperous locations. Its implementation is supported by an experienced management team with an innovative approach to long-term, sustainable income and value creation and a focus on shareholder returns. We have a strong balance sheet with modest leverage.

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.

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