UK Commercial Property REIT Background

UK Commercial Property Trust was launched in September 2006, registered as a Guernsey investment company and has a full listing on the London Stock Exchange (FTSE 250).

The initial offering raised £530m and the proceeds were used to acquire a portfolio of properties from closed life funds held by Phoenix Group Holdings.

Similar exercises were undertaken in February 2007 and October 2009, whereby separate property portfolios were purchased from Phoenix life funds. These transactions were financed by further share issues of £360m and £111m respectively and in the case of the latter, in conjunction with the partial drawdown of a £80m Lloyds Group plc debt facility secured in June 2008.

In January 2010, a further £150m shares were issued to finance further dividend accretive acquisitions and portfolio initiatives. Further share issuance took place throughout 2014.

On 29 May 2018 shareholders voted in favour of the Company converting to a UK REIT and changing its name to UK Commercial Property REIT Limited. These changes took effect from 1 July 2018.

Prime, diversified portfolio with modest gearing

Since launch, the Company has adopted a conservative approach to gearing (the lowest in its immediate peer group), which has helped preserve value in difficult market conditions and ensured an attractive share price total return relative to the FTSE All Share REIT Index. The current maximum gearing limit is 25%. At the same time, the Company has maintained a strong bias towards prime, institutional quality properties. This portfolio continues to support an attractive yield for shareholders.

Creating value

The Company has successfully completed a range of asset management initiatives across the portfolio and has consistently delivered an attractive return for shareholders underpinned by a consistent income return.

Risk Warning
Risk warning
The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Investors should review the relevant Key Information Document (KID) brochure prior to making an investment decision.
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