Trading Statement

20 August 2013

Public Service Properties Investments Limited

("PSPI", "the Company" or "the Group")

Trading Update for the six months ended 30 June 2013

PSPI (AIM: PSPI), the specialist European real estate investment and financing company, announces a trading update for the six months to 30 June 2013.

Update on strategic review

On 1 March 2013, the Company announced that it had completed the sale of its subsidiaries owning 140 properties leased to the US Postal Service and associated debt. The contract was announced on 20 December 2012 and all conditions were met by 1 March 2013.

On 18 April 2013, in the announcement of the Company's final results, Patrick Hall, the Chairman of PSPI stated that:

"I believe that, absent of any further deterioration in trading conditions for the Company's tenants, the greatest challenges are now behind us. The Group will continue the strategic review of its remaining assets."

Current operations

Following completion of the disposals announced in 2012 and the sale of the US assets referred to above, the Group owns a portfolio of properties in the UK and Germany which generate gross rental income of £7.1 million per annum and finance lease income of £0.9 million per annum. The investment properties, excluding the finance lease asset, have been independently valued at 30 June 2013 at an aggregate value of £85.0 million compared to £84.0 million at 31 December 2012. The half year valuation reflects a reduction of £0.7 million offset by a favourable exchange rate movement of £1.7 million.

Total debt at 30 June 2013 was £34.4 million compared to £32.9 million at 31 December 2012. The increase arises from £1.5 million additional debt following the UK refinancing completed in April 2013, together with the neutral effect of £0.7 million adverse movement in the sterling / Euro exchange rate less £0.7 million amortisation in the first half of the year. The weighted average interest rate is currently 5.0% per annum, and the debt is being amortised at the rate of £1.5 million per annum.

Other matters

The Board will continue to test the market for the Group's assets and address the next round of debt refinancing for the UK assets over the next twelve months. Pending the outcome of these matters, the Board continues to keep its dividend policy under review.

The Company will provide further information and announce its unaudited results for the first six months to 30 June 2013 on 20 September 2013.

For further information please visit www.pspiltd.com or call: