Annual Report. Standard Life Investments Global Real Estate Fund Annual Report & Accounts for the year ended 30 April 2018

Transcription

1 Annual Report Standard Life Investments Global Real Estate Fund Annual Report & Accounts for the year ended 30 April 2018

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3 Contents 1 Trust Profile and Information* 3 Statement of Manager s Responsibilities 3 Manager s Statement* 4 Statement of the Trustee s Responsibilities in Respect of the Scheme and Report of the Trustee 5 Independent Auditor s Report to the Unitholders 6 The Registrar of the Trust 7 Investment Report* 9 Comparative Tables 20 Portfolio Statement* 24 Financial Statements 29 Notes to the Financial Statements 53 Distribution Tables 59 Treatment by Corporate Unitholders 60 Alternative Investment Fund Disclosures * These items comprise the Manager s Report for the purposes of the rules contained in the Collective Investment Schemes sourcebook ( the Sourcebook ).

4 Trust Profile and Information Launch Date 13 October 2005 Benchmark IPD Direct/MSCI World Real Estate Custom Index Objective The objective of the Trust is to provide income, with some capital appreciation over the longer term. Policy The policy of the Trust is to invest predominantly in global commercial property and property-related equities, property investment companies, other property collective investment schemes and cash. Potentially at any time up to 80% of the Trust s assets may be held in immoveable property. Non-Sterling denominated assets may be hedged back to Sterling. Risk Profile The Trust is intended for investors who wish to participate in the opportunity to achieve income with the potential of some capital appreciation over the longer term by investing in an actively managed portfolio of predominantly commercial property and property-related equities, property investment companies, other property collective investment schemes and cash. The diversified nature of the portfolio makes it suitable for investors wishing to achieve a broad spread of exposure to international property and property-related instruments and cash. While the level of income provision is likely to be relatively stable, the investor must be able to accept significant temporary losses to capital and the possibility of fluctuations in the income level due to the volatile nature of markets, and should therefore have an investment time horizon of at least 5 years. Other Information The Trust may hold overseas immoveable property either directly or indirectly through an intermediate holding vehicle or a series of intermediate holding vehicles. These intermediate holding vehicles may take the form of limited companies or limited partnerships. Reporting dates Interim Annual XD dates Interim Annual Payment dates Interim Annual 31 October 30 April 1 August, 1 November, 1 February 1 May 31 March, 30 September, 31 December 30 June Standard Life Investments Global Real Estate Fund 1

5 Trust Profile and Information (Continued) Standard Life Investments Global Real Estate Fund Manager Directors of the Manager Secretary of the Manager Trustee Standard Life Investments (Mutual Funds) Limited 1 George Street Edinburgh EH2 2LL A S Acheson S Campbell S A Fitzgerald J Lowe L Scott D E Thomas S Wemyss H Kidd Citibank Europe plc UK Branch 1 North Wall Quay Dublin 1 Independent Auditor Registrar Investment Adviser Standing Independent Valuers KPMG LLP Saltire Court 20 Castle Terrace Edinburgh EH1 2EG Standard Life Investments (Mutual Funds) Limited 1 George Street Edinburgh EH2 2LL Standard Life Investments Limited 1 George Street Edinburgh EH2 2LL CB Richard Ellis Limited Henrietta House Henrietta Place London W1G 0BE Keeping you informed You can keep up to date with the performance of your investments by visiting our website aberdeenstandard.com. Alternatively, if you would rather speak to us, please call (+44 (0) if outwith the UK) between 8:30am and 5:30pm Monday to Friday. 2 Standard Life Investments Global Real Estate Fund

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8 Independent auditor s report to the unitholders of Standard Life Investments Global Real Estate Fund ( the Trust ) Opinion We have audited the financial statements of the Group and Trust for the year ended 30 April 2018 which comprise the Consolidated Statement of Total Return, the Consolidated Statement of Changes in Net Assets Attributable to Unitholders, the Consolidated Balance Sheet, the Trust Statement of Total Return, the Trust Statement of Changes in Net Assets Attributable to Unitholders, the Trust Balance Sheet, the Consolidated and Trust Cash Flow Statement, the Related Notes and Distribution Tables and the accounting policies set out on pages 29 to 31. In our opinion the financial statements: give a true and fair view, in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, of the financial position of the Group and the Trust as at 30 April 2018 and of the net revenue and the net capital gains on the property of the Group and Trust for the year then ended; and have been properly prepared in accordance with the Trust Deed, the Statement of Recommended Practice relating to Authorised Funds, and the COLL Rules. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) ( ISAs (UK) ) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Group and Trust in accordance with, UK ethical requirements including the FRC Ethical Standard. We have received all the information and explanations which we consider necessary for the purposes of our audit and we believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Going concern We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at least twelve months from the date of approval of the financial statements. We have nothing to report in these respects. Other information The Manager (Standard Life Investments (Mutual Funds) Limited) is responsible for the other information presented in the Annual Report together with the financial statements. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work: we have not identified material misstatements in the other information; and in our opinion the information given in the Manager s Report for the financial year is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where under the COLL Rules we are required to report to you if, in our opinion: proper accounting records for the Group and Trust have not been kept; or the financial statements are not in agreement with the accounting records. Manager s responsibilities As explained more fully in their statement set out on page 3, the Manager is responsible for: the preparation of financial statements that give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Group and Trust s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group and Trust or to cease operations, or have no realistic alternative but to do so. Auditor s responsibilities Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC s website at The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the Trust s unitholders, as a body, in accordance with Rule of the Collective Investment Schemes sourcebook ( the COLL Rules ) issued by the Financial Conduct Authority under section 247 of the Financial Services and Markets Act Our audit work has been undertaken so that we might state to the Trust s unitholders those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Trust and the Trust s unitholders as a body, for our audit work, for this report, or for the opinions we have formed. Hugh Harvie for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants Saltire Court 20 Castle Terrace Edinburgh EH1 2EG 31 August 2018 Standard Life Investments Global Real Estate Fund 5

9 The Registrar of the Trust The Manager is the Registrar of the Standard Life Investments Global Real Estate Fund. The Manager has delegated certain aspects of the registrar s operational duties to DST Financial Services International Limited ( DST Limited ). Prior to 14 August 2017, DST Limited was known as International Financial Data Services Limited ( IFDS Limited ). The Registrar is responsible to the Trustee for the maintenance of a register of unitholders in the Trust. The register can be inspected free of charge at the offices of DST Limited at DST House, St Nicholas Lane, Basildon, Essex, SS15 5FS. The Registrar is also responsible for the distribution of the tax vouchers to unitholders at the addresses recorded on the register. 6 Standard Life Investments Global Real Estate Fund

10 Investment Report Trust Manager: James Britton Market Review Signs of steady improvement in the global economy proved supportive for global real estate markets over the last year. While performance differed between markets, from a sector perspective industrials led the way. Increased demand for logistics assets was a key factor, as retailers changed their supply chain models in response to the ongoing trend for consumers to buy goods via the internet. Conversely, this meant the retail sector struggled in many markets, not least the UK, particularly high street retailers. Listed real estate markets also delivered generally positive returns over the year, despite a poor start to Increasing confidence that economic growth was taking hold in Europe helped the continent s listed real estate markets. By contrast, the US listed real estate market underperformed given concerns over the impact of rising interest rates. In Asia, anxiety over the future path of US interest rates drove volatility. Despite this, most markets performed well over the year. Singapore was a prime example, helped by the residential, office and industrial markets at various stages of recovery. Investment Activity We added one property to the portfolio over the last year and sold two assets. In October, we completed the purchase of a fully let logistics unit in Veghel, the Netherlands, for 29.5 million. This property is in a sector that we rank highly and it has performed well since purchase, adding significant value. With robust returns expected from the sector over the next few years, we believe this asset will deliver further strong performance. We sold two assets in Perth, Australia. As a result, the Trust s void rate fell from over 13% to less than 2%. The sale also increased cash held within the Trust to over 10%. However, we are evaluating a number of purchase opportunities within the Australian industrial sector. We also made a due diligence trip to Sao Paolo and we are in discussions with our former joint venture partner to re-establish our relationship with a view to investing in this market. Meanwhile, we continued to add value through active management of the existing portfolio. This included re-letting the ground floor retail unit at the Nishi-Shinbashi asset in Tokyo. This letting maintained the building s occupancy at 100% and resulted in an uplift in the property s value. In Europe, we completed a 10-year lease extension with a tenant at the Trust s retail warehouse park in Olomouc, Czech Republic. Again, the letting had a positive impact on the asset s valuation. Having substantially restructured the listed real estate portfolio during 2017, we made further changes in early In Europe, we reduced Spanish-focused REIT Merlin and bought Colonial, which has an office portfolio focused on Madrid and Paris. In the US, we reduced exposure to Mid-America Apartment because of issues following its merger with Post Properties. Instead, we invested in Equity Residential because of the upside potential given its discounted share price versus net asset value. Performance With effect from 1 October 2014, the Trust s benchmark changed from the IMA Property Sector to the more representative IPD Direct/MSCI World Real Estate Custom Index. The new benchmark data is available three months after quarter end, and Trust and benchmark return figures are therefore only available to the end of March In Q1 2018, the Global Real Estate Fund returned -1.2% (retail accumulation share class) compared to the return from the IPD Direct/MSCI World Real Estate Custom Index over the same period of -3.1%. The Trust s underweight position in listed markets, circa 17% versus the benchmark position of 33% (listed markets were impacted by fears of increasing inflation and a wider return of stock market volatility in early 2018), drove this outperformance. Over the last 12 months, the Trust has returned 1.9% versus a return of -2.3% for the IPD Direct/MSCI World Real Estate Custom Index. Factors contributing to this outperformance included the strength of returns generated by the direct portfolio. The Melbourne asset increased in value by 23% in 2017 and continued to perform well in the first few months of The recently acquired Dutch logistics asset and Dublin office assets also significantly increased in value. In addition, there was a change to the Trust s pricing basis from bid to mid, which added circa 1.4% to unit price performance (the Trust s pricing basis subsequently reverted back to bid in May 2018). Outlook and Future Strategy In the UK, we prefer high quality, higher-yielding industrial-type assets and resilient, high quality retail assets located in areas with a lack of competition. Elsewhere in Europe, expectations have not changed dramatically despite political uncertainty; core markets are forecast to produce attractive risk-adjusted returns supported by low development and accommodative monetary policy. Meanwhile, recovering markets continue to experience a rebound, generating higher absolute returns. Expectations for continued US economic expansion amid low supply should continue to drive rental growth across most property types and markets. Gateway office markets continue to attract wellheeled foreign buyers and support pricing, although both tenant demand and asset performance are stronger on the West Coast than the East. In Asia, we prefer industrial assets underpinned by e- commerce. Developed Asia office assets are generally close to the peak in their cycle. The exceptions are Singapore offices, which are entering a new up cycle. Strategy Following the sale of the two Perth assets, we are looking to reinvest the proceeds into the Australian industrial sector. We are also in the process of re-establishing the partnership with Wise Capital (former directors of Eccelera) in order to make acquisitions in the Sao Paulo office market. In the short term, we intend to keep currency hedges in place albeit it would not be economic to hedge out the Brazilian Real should we invest in this market. Standard Life Investments Global Real Estate Fund 7

11 Investment Report (Continued) Cautionary note It should be remembered that past performance is not a guide to future performance. The value of investments may go down as well as up and, therefore, investors may not get back the amount originally invested. 8 Standard Life Investments Global Real Estate Fund

12 Comparative Tables Retail accumulation Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.87) (0.84) (0.72) Return after operating charges* Distributions (1.99) (1.57) (1.30) Retained distributions on accumulation unit Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges 2.88% 10.11% 6.59% Other information Closing net asset value ( 000) 37,414 41,523 42,071 Closing number of units 67,165,493 76,700,243 85,569,003 Operating charges**** 1.59% 1.59% 1.57% Direct transaction costs*** 0.00% 0.04% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. Standard Life Investments Global Real Estate Fund 9

13 Comparative Tables Institutional accumulation Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.64) (0.61) (0.52) Return after operating charges* Distributions (2.17) (1.56) (1.32) Retained distributions on accumulation unit Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges 3.24% 10.65% 7.30% Other information Closing net asset value ( 000) 41,223 44,848 42,188 Closing number of units 68,044,725 76,432,743 79,548,111 Operating charges**** 1.07% 1.07% 1.05% Direct transaction costs*** 0.00% 0.03% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. 10 Standard Life Investments Global Real Estate Fund

14 Comparative Tables Retail income Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.60) (0.62) (0.55) Return after operating charges* (0.19) Distributions (1.38) (1.16) (0.97) Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges -0.49% 10.01% 6.36% Other information Closing net asset value ( 000) 3,243 3,045 3,487 Closing number of units 8,622,909 7,771,743 9,511,604 Operating charges**** 1.59% 1.59% 1.57% Direct transaction costs*** 0.00% 0.03% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. Standard Life Investments Global Real Estate Fund 11

15 Comparative Tables Institutional income Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.44) (0.45) (0.40) Return after operating charges* (0.16) Distributions (1.50) (1.15) (1.00) Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges -0.37% 10.66% 7.18% Other information Closing net asset value ( 000) 25,530 26,876 23,621 Closing number of units 62,245,347 62,987,109 59,651,759 Operating charges**** 1.07% 1.07% 1.05% Direct transaction costs*** 0.00% 0.02% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. 12 Standard Life Investments Global Real Estate Fund

16 Comparative Tables Standard Life income+++ Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.05) (0.05) (0.04) Return after operating charges* Distributions (2.12) (1.54) (0.83) Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges 0.54% 12.03% 10.68% Other information Closing net asset value ( 000) 12,119 16,136 8,562 Closing number of units 20,994,161 27,105,564 15,706,769 Operating charges**** 0.09% 0.09% 0.07% Direct transaction costs*** 0.00% 0.03% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. +++ From launch of the unit class on 9 November Standard Life Investments Global Real Estate Fund 13

17 Comparative Tables Institutional regulated income Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.27) (0.27) (0.23) Return after operating charges* Distributions (1.60) (1.23) (1.02) Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges 0.13% 11.10% 7.67% Other information Closing net asset value ( 000) Closing number of units 2,271 2,271 2,271 Operating charges**** 0.62% 0.62% 0.60% Direct transaction costs*** 0.00% 0.02% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. 14 Standard Life Investments Global Real Estate Fund

18 Comparative Tables Standard Life accumulation Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.11) (0.10) (0.08) Return after operating charges* Distributions (2.35) (1.75) (1.31) Retained distributions on accumulation unit Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges 3.84% 11.13% 7.96% Other information Closing net asset value ( 000) 38,631 29,383 37,791 Closing number of units 59,041,732 46,633,070 66,653,530 Operating charges**** 0.17% 0.17% 0.15% Direct transaction costs*** 0.00% 0.03% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. Standard Life Investments Global Real Estate Fund 15

19 Comparative Tables Insitutional regulated accumulation Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.38) (0.37) (0.31) Return after operating charges* Distributions (2.25) (1.60) (1.29) Retained distributions on accumulation unit Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges 3.68% 10.95% 7.67% Other information Closing net asset value ( 000) 151, , ,151 Closing number of units 239,602, ,280, ,842,226 Operating charges**** 0.62% 0.62% 0.06% Direct transaction costs*** 0.00% 0.03% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. 16 Standard Life Investments Global Real Estate Fund

20 Comparative Tables Platform 1 accumulation Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.81) (0.78) (0.67) Return after operating charges* Distributions (2.54) (1.46) (1.58) Retained distributions on accumulation unit Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges 2.11% 10.81% 7.18% Other information Closing net asset value ( 000) 75,061 61,337 40,077 Closing number of units 106,892,845 89,196,248 64,582,577 Operating charges**** 1.17% 1.17% 1.15% Direct transaction costs*** 0.00% 0.03% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. Standard Life Investments Global Real Estate Fund 17

21 Comparative Tables Platform 1 income Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (0.68) (0.69) (0.61) Return after operating charges* Distributions (2.12) (1.83) (1.42) Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges 0.02% 10.67% 7.09% Other information Closing net asset value ( 000) 13,252 13,499 14,904 Closing number of units 23,103,193 22,697,704 26,905,231 Operating charges**** 1.17% 1.17% 1.15% Direct transaction costs*** 0.00% 0.03% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. 18 Standard Life Investments Global Real Estate Fund

22 Comparative Tables Institutional A accumulation+++ Change in net assets per unit 30 April April April 2016 (Restated++) (Restated++) pence per unit pence per unit pence per unit Opening net asset value per unit Return before operating charges* Operating charges** (1.11) (1.07) (0.98) Return after operating charges* Distributions (2.13) (1.77) (0.35) Retained distributions on accumulation unit Closing net asset value per unit *after direct transaction costs of:*** Performance+ Return after charges 1.53% 10.88% 3.84% Other information Closing net asset value ( 000) Closing number of units 2,200 2,200 2,200 Operating charges**** 1.92% 1.92% 1.90% Direct transaction costs*** 0.00% 0.04% 0.00% Property operational costs 0.59% 0.82% 0.67% Prices Highest unit price Lowest unit price ** The operating charges include all costs borne by the Trust, except for direct transaction costs. *** The direct transaction costs are made up of; fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and securities exchanges as well as transfer taxes and duties. In line with the requirements of the 2014 SORP for authorised funds, direct transaction costs are stated after the proportion of the amounts collected from dilution adjustments in relation to direct transaction costs. These costs might appear positive or negative depending upon the timing of the investment activity within the Trust. **** The operating charges percentage shows the annualised operating expenses of the unit class as a percentage of the average net asset value of the class over the same period. + The performance figures are calculated by taking the value of the unit class per the financial statements compared to the value per the financial statements in the prior year. This figure may differ from the performance figure quoted in the Investment Report. The Investment Report performance figure is calculated using the last available published price for a given unit class in the period compared to the equivalent for the prior period. The published price may contain an adjustment for dilution in accordance with the Trust pricing policy, while the price per the financial statements values the Trust on a bid-price basis. The financial statements unit class valuation is based on close of business market prices on the last day of the period, again this may differ from the intra-day pricing point of the Trust which is used in the published unit class price. ++ The prior years net assets attributable to unitholders has been restated and all relevant figures have been amended accordingly. Please refer to note number 22 for further details. +++ From launch of the unit class on 29 January Standard Life Investments Global Real Estate Fund 19

23 Portfolio Statement as at 30 April 2018 Market Percentage value of total Holding Investment 000 net assets Equities (14.70%) 66, European Equities (ex UK) (2.84%) 14, France (1.08%) 4, ,551 Gecina 2, ,370 Unibail-Rdamco 2, Germany (0.49%) 4, ,517 Deutsche 2, ,957 LEG Immobilien 2, Spain (1.27%) 5, ,552 Hispania Activos 2, ,830 Merlin Properties 2, Japanese Equities (1.21%) North American Equities (10.07%) 46, ,851 American Tower 3, ,625 Avalonbay Communications 1, ,334 Digital Reality 1, ,852 Douglas Emmett 1, ,518 Duke Realty 3, ,422 Equinix 1, ,792 Equity Lifestyle 2, ,965 Equity Residential 1, ,818 Essex Property Trust 1, ,505 Federal Realty 2, ,381 Hilton Worldwide 4, ,292 Hudson Pacific Properties 1, ,208 Marriott International 2, ,765 MAA 1, ,484 Prologis 5, ,472 Regency Centers 2, ,349 Simon Properties 3, ,108 SL Green Reality 1, ,430 Vornado Realty 2, Standard Life Investments Global Real Estate Fund

24 Portfolio Statement as at 30 April 2018 (Continued) Market Percentage value of total Holding Investment 000 net assets Pacific Basin Equities (0.58%) 5, ,311,678 Capitaland Commercial Trust 1, ,648 City Developments 2, ,175 Link Real Estate 2, UK Equities (0.00%) ,215,951 Hirco* ,200,000 Hirco Holdings Limited Convertible Stock* Collective Investment Schemes (2.44%) 12, ,858,319 Standard Life CNAV Sterling Liquidity Fund*** 12, Unregulated Collective Investment Schemes (7.24%) 21, ,000 Cornerstone Nordic Retail Fund A Class** ,422 Cornerstone Nordic Retail Fund C Class** 3, ,423,142 Pradera Central & Eastern Fund** 9, ,982 Saffron India Real Esate Fund** 8, Direct Property Investments Held Through Subsidiaries (63.63%) 266, Australian Direct Property Investments (16.12%) 31, St. Kilda Road, Melbourne 31, European (ex UK) Direct Property Investments (36.34%) 190, Czech Republic (6.25%) 28, Futurum Retail Park, Varenska Street, Ostrava 10, Hana Retail Park, Kafkova Street, Olomouc 17, Ireland (11.89%) 55, & 5 Custom House Plaza, Dublin 33, Fleming Court, Fleming Place, Dublin 21, Standard Life Investments Global Real Estate Fund 21