Trading Statement

Shaftesbury PLC

Trading statement

For the period 1 October 2014 to 5 February 2015

CONTINUED STRONG DEMAND, FURTHER ASSET MANAGEMENT ACTIVITY AND ACQUISITIONS

London's West End continues to draw unrivalled numbers of visitors, attracted by its world-class heritage, cultural attractions and exceptional choice of shopping. The variety and quality of the West End's restaurants, cafés and bars are becoming increasingly important. They are an integral part of many visits to the West End and are becoming destinations in their own right.

Our strategy is to establish and foster attractive and lively destinations in our central locations in the West End, ensuring our 587 shops, restaurants, cafés and bars provide a wide range of interesting shopping, dining and leisure choices. This proven long-term approach brings to our distinctive areas greater footfall and spending, creating prosperous environments for our tenants, which support sustained rental growth.

In our locations, over the important trading season leading up to Christmas and through to the New Year, visitor numbers have been good, bringing buoyant trading across our shops, restaurants, cafés, bars and pubs.

The unique character of our villages, and the environment we create, continue to attract strong demand across all uses and consequently vacancy levels remain very low. Not only are we seeing new requirements for retail, restaurant, leisure and office space from businesses seeking to establish in our areas, but also from existing tenants wishing to expand their operations. In addition, our apartments let readily to those wishing to live in our vibrant locations.

Asset management activity

We continue to identify and progress a wide range of asset management opportunities across our portfolio, which include both reconfiguration and refurbishment of our buildings, as well as introducing new retail, restaurant and leisure operations and concepts to our locations. These initiatives not only deliver good initial returns, but, by virtue of the concentration of our ownerships, provide long-term benefits which are compounded across our adjacent holdings.

We are advancing our plans for our two major acquisitions made in 2014: Charing Cross Road/Newport Court/Newport Place in Chinatown, and 57-59 Broadwick Street in Carnaby. We are now in detailed discussions with Westminster City Council in advance of submitting formal planning applications for both schemes. Subject to receiving the necessary consents we currently expect to commence on-site in 2016. We currently estimate a total cost of c. £22 million across both schemes.

Further acquisitions

Owners in our locations remain reluctant to sell assets and, therefore, availability remains restricted. However, we have secured six properties, at a total cost of £20.4 million, in Soho, Charlotte Street and Carnaby. This included one shop, two restaurants, two cafés, a vacant pub, 3,100 sq. ft. of office space and eight apartments, four of which were unoccupied. These acquisitions complement our existing, extensive ownerships and offer the potential for improvement to deliver future rental and capital value growth.

Vacancy at 31 December 2014

1. based on estimated rental value ("ERV") at 30 September 2014 and ERV of acquisitions to 31 December 2014.

2. two apartments with a combined ERV of £30,000.

Construction of our mixed-use scheme fronting the south side of Foubert's Place and Kingly Street in Carnaby (ERV: £2.1 million) will be largely completed by the end of March 2015. The 6,500 sq. ft. restaurant is already under offer and the 7,500 sq. ft. of retail and 10,500 sq. ft. of office space are now being marketed. The scheme's twelve apartments will be marketed to rent once completed.

Other schemes in progress at 31 December 2014 (total ERV £3.9 million) comprised:

· Nine small shops (ERV: £0.4 million) and one large shop (ERV: £0.5 million);

· Five restaurants, cafés and bars (ERV: £0.6 million) of which two (ERV: £0.2 million) were under offer;

· Refurbishment of 21,000 sq. ft. of offices (ERV: £1.3 million);

· 42 apartments under construction or being upgraded (ERV: £1.1 million).

The ERV of available space amounted £1.4 million (1.2% of total ERV), of which £0.5 million was under offer and £0.9 million was being marketed.

Finance

Total pro-forma debt at 31 December 2014 was £631.6 million and our undrawn committed facilities totalled £124.2 million. The weighted average cost of debt was 5.02%, 9 basis points lower than at 30 September 2014. The current marginal cost of borrowing under our unhedged facilities is around 1.6%, so future drawings will reduce this average cost of debt.

1 Pro-forma to take into account property acquisition completions in January 2015

2 Based on nominal value of debt

As a result of a significant reduction in long-term interest rates over the quarter, the fair value deficit of our interest rate swaps at 31 December 2014 increased by £27.2 million to £106.0 million.

Discussions are continuing to refinance our remaining 2016 debt maturities, which total £150 million. As part of this, our intention is to secure new long-term, fixed rate facilities which, in the current environment, will benefit from exceptionally low long-term interest rates. As a consequence, it is likely we will terminate certain of our interest rate swaps. With the recent movement in rates, we now estimate this could cost between £30 million and £40 million, a reduction in EPRA net asset value per share of around 10p - 15p, equivalent to 1.5% - 2% of last reported EPRA NAV.

Looking ahead

The appeal and dynamism of London as a place to visit, work and live is recognised both nationally and internationally. At its centre, the West End and our unique portfolio are well placed to benefit from this demand as well as the substantial investment the city is attracting. With the benefit of our local knowledge and innovative approach to managing our assets, we remain confident in the long-term prospects of our business.

6 February 2015

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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 587 shops, restaurants, cafés and pubs, extending to 1 million sq. ft., which account for 72% of our current income. In our locations these uses have a long record of occupier demand exceeding their availability. It also includes 416,000 sq. ft. of offices and 499 apartments for rent, which provide 16% and 12%, 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, ten 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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