RNS Number:4214S
UK Balanced Property Trust Ltd(The)
24 November 2003



The UK Balanced Property Trust Limited

Interim Report and
Condensed Consolidated Financial Statements


for the half-year to
30 September 2003




                                                                          Page 1

                     THE UK BALANCED PROPERTY TRUST LIMITED

                              Investment Objective


The investment objective of the UK Balanced Property Trust Limited is to provide
Ordinary Shareholders with a high level of income together with the prospect of
income and capital growth from investing in a diversified portfolio of UK
commerical property.




                                                                          Page 2

                     THE UK BALANCED PROPERTY TRUST LIMITED

                             Directors and Advisers

                                                                                                       
Directors:                                       Property Valuers:                     
Peter Harwood (Chairman)                         Drivers Jonas                         
Nicola Adamson                                   6 Grosvenor Street                    
Peter Le Cheminant                               London W1K 4DJ                        
Francis Malcolm                                                                        
Stephen Vernon                                   CB Richard Ellis                      
                                                 (formerly:Insignia Richard Ellis Ltd) 
Registered Office:                               77 Grosvenor Street                   
Butterfield House                                London W1K 3JT                        
The Grange                                                                             
St. Peter Port                                   Auditors:                             
Guernsey GY1 3NQ                                 Ernst & Young LLP                     
                                                 14 New Street                         
Investment Manager:                              St Peter Port                         
Scottish Widows Investment Partnership Limited   Guernsey GY1 4AF                      
Edinburgh One                                                                          
Morrison Street                                  Tax Advisers:                         
Edinburgh EH3 8BE                                Ernst & Young LLP                     
                                                 10 George Street                      
Financial & Marketing Adviser:                   Edinburgh EH2 2DZ                     
G&N Collective Funds Services Limited                                                  
14 Alva Street                                   Legal Advisers:                       
Edinburgh EH2 8BE                                As to Guernsey Law:                   
                                                 Ozannes                               
UK Transfer Agent:                               1 Le Marchant Street                  
Lloyds TSB Registrars                            St Peter Port                         
The Causeway                                     Guernsey GY1 4HP                      
Worthing                                                                               
West Sussex BN99 6DA                             As to UK Law:                         
                                                 Dickson Minto W.S.                    
Administrator, Secretary                         11 Walker Street                      
and Registrar of the Company:                    Edinburgh EH3 7NE                     
Butterfield Fund Managers (Guernsey) Limited                                           
La Tonnelle House                                As to Property Law:                   
Les Banques                                      Dundas & Wilson C.S.                  
St Sampsons                                      9th Floor, North West Wing            
Guernsey GY2 4BF                                 Bush House                            
                                                 Aldwych                               
Principal Bankers:                               London WC2 B4E                        
The Royal Bank of Scotland plc                                                         
135 Bishopsgate                                                                        
London EC2M 3UR                                                                        


                                                                          Page 3

                     THE UK BALANCED PROPERTY TRUST LIMITED

                              Investment Manager's
                                  Interim Report


Performance

(i)   Net Asset Value (NAV)

      The NAV per share (capital only) has increased by 2.3% from the NAV of
      100.96p at 31 March 2003 to 103.25p as at 30 September 2003.

(ii)  Share Price

      The Company's share price has traded, on average, at around 105.2p over 
      the half-year to 30 September 2003 (Source:Datastream), which is 5.2% 
      above the initial subscription price.

      Over the 6 months to 30th September 2003 the total return on the Company's
      shares has been 10.8% against the FTSE All Share at 19.0% and the FTSE 
      Real Estate at 28.6%. Since launch (to 19 September 2003) the total return 
      on the Company's shares has been 17.3% against the FTSE All Share at 
      -13.3% and the FTSE Real Estate at 3.0%. Over the period the total return 
      on the Company relative to the FTSE All Share was 35.3% and 13.9% relative 
      to the FTSE Real Estate. (Source: Datastream).



                                                                          Page 4

                     THE UK BALANCED PROPERTY TRUST LIMITED

                              Investment Manager's
                           Interim Report (Continued)

(iii) Investment Property Databank (IPD)

      The IPD All Monthly and Quarterly Valued Funds Index provides the 
      benchmark for the Company's property portfolio. Over the last 2 quarters 
      (from 31 March to 30 September 2003) the IPD total return figure for The 
      UK Balanced Property Trust Limited was 5.90%, in comparison to the total 
      return figure for the IPD Index of Monthly and Quarterly Valued Funds of 
      5.30%.

Activity

The second share issue in March 2003 facilitated the purchase of Toronsay UK
Real Estate LP, which included 21 properties.

There have been 3 disposals in the period with a total realisation of #1.0m,
representing a gain of #142,778 on valuation.

In total, 10 leases were formally renewed, retaining #213,000 p.a. of income, 21
rent reviews have been settled, increasing the annual income by #182,000 p.a.,
and 9 units were let, adding #239,000 p.a. to annual income.The portfolio void
rate during the period increased from 3.2% to 3.6%.

As at 30 September 2003 the property valuation was #295.42m, with an annual
income of #22.65m, which represented a running yield of 7.7%. As at 30 September
2003, the Company's portfolio contained 89 properties, diversified across all
three commercial sectors and let to a broad base of tenants.

Investment Background

During the reporting period, upward revisions to official data suggest that the
UK economy may now be growing at close to trend pace. GDP growth in the second
quarter of 2003 was revised up to 0.6% and recent surveys suggest that third
quarter growth may have been even higher at around 0.75%.This level of growth
indicates that full year economic growth could come in at around the 2.0% mark
for 2003, just within the Chancellor's forecast range.

Consumer spending seems to have re-accelerated after slowing down in the early
months of the year, but the main influences on the higher rates of economic
growth have been higher public spending, improved manufacturing output and
better performances from business investment and exports. The improved tone to
the US economy and indications that growth is now becoming more entrenched
outside the US have also helped contribute to the upturn in domestic growth.

Property returns remain firm over 2003. Despite weaker property fundamentals,
capital values remain remarkably strong. Rents are falling in many areas, yet
yields are hardening, being driven by strong interest in commercial property
from geared buyers who are taking advantage of low interest rates.

Although commercial property continues to show favourable levels of returns over
the last decade, the bounce back in global equity markets from their pre-Gulf
War troughs has pushed equity returns ahead of those from commercial property
over the last 12 months. Over longer terms, however, commercial property
continues to outperform equities and bonds.

Within the property market, offices remain the weakest performers, with London
office rents continuing to fall. Although there are tentative signs that the
rate of decline is beginning to level off, we do not expect a rapid recovery in
rental growth in these markets. Retail remains the best performing sector, both
in terms of tenant demand and rental growth.This has driven investment demand,
which has driven up values as yields have generally hardened quite
considerably.The industrial sector has also delvered strong performance numbers,
driven primarily by a hardening of yields.



                                                                          Page 5

                     THE UK BALANCED PROPERTY TRUST LIMITED

                              Investment Manager's
                           Interim Report (Continued)


Outlook

The UK economy appears to be stronger and better balanced than had been
previously expected. Although consumer spending may tail off as the anticipated
interest rate rises and further tax rises begin to hit home next year,
increasing levels of exports and business investment are expected to more than
offset any decline in the rate of growth of consumer spending. With the UK
currently accelerating towards trend rate of growth we anticipate this momentum
continuing into 2004 and the following year. Consequently, we expect the rate of
GDP growth to increase to an above trend rate of 2.8% in both years. We are not
however expecting this bullish view of the economy to be quickly translated into
rental growth. The retail sector is likely to remain the most buoyant in terms
of tenant demand and rental growth over the near term but the office sector, in
particular, will see little rental growth next year and it may be into 2005
before material rises in rents are seen. Both the retail and the office sectors
will benefit from the relative scarcity of new supply coming on stream in the
coming years and rates of rental growth above inflation are expected from 2006.

The Manager's strategy for the Company will be continued activity in the
management of the portfolio, including completion of outstanding rent reviews,
extension of existing short term leases, maximising results on forthcoming rent
reviews, lettings and renewals, reducing the void rate, and consideration of
sales of functionally obsolete properties in order to build up reserves to
re-invest. In addition, available capital will be fully invested in properties
of a suitable size and yield for the portfolio, when available.

While the next twelve months look set to be a challenging time for investors in
property, the Company's carefully selected and well diversified portfolio is
suitably placed to continue delivering income stability and thus anticipated
dividends to its shareholders.



Scottish Widows Investment Partnership Limited
November 2003



                                                                          Page 6

                     THE UK BALANCED PROPERTY TRUST LIMITED

           Unaudited Interim Condensed Consolidated Income Statement
                     for the half-year to 30 September 2003


                                                                                                                      
                                                 Period 1 April to   Period 22 January to    Period 22 January 2002 
                                                 30 September 2003      30 September 2002          to 31 March 2003 
                                                                               (restated)                          
                                                         unaudited              unaudited                   audited 
                                        Notes                  GBP                    GBP                       GBP     
              
Income                                                                                                              
Rental income from investment                                                                                       
properties                                              11,439,107              8,232,099                17,259,950 

Expenditure                                                                                                         
Investment Manager's fee                               (1,671,144)            (1,339,195)               (2,631,804) 
Property expenses                                        (670,627)               (319,477)                (910,077) 
Other expenses                                           (410,497)            (4,005,582)               (5,298,203) 
                                                       (2,752,268)            (5,664,254)               (8,840,084) 

Net operating profit for                                                                                            
the period before finance costs                          8,686,839              2,567,845                 8,419,866 

Interest receivable                                        171,736                205,345                   455,340 
Interest payble and similar charges                    (3,248,701)            (1,681,691)               (3,504,152) 
                                                       (3,076,965)            (1,476,346)               (3,048,812) 

Net profit from ordinary activities                                                                                 
before taxation                                          5,609,874              1,091,499                 5,371,054 

Taxation on profit                                                                                                  
on ordinary activities                                   (150,000)                      -                 (126,299) 

Net profit from ordinary activities                                                                                 
after taxation                                           5,459,874              1,091,499                 5,244,755 

Gain from investments                                                                                               
Realised gain on disposal of                                                                                        
investment properties                                      142,778                722,558                 1,386,057 
Movement in unrealised gain on                                                                                      
revaluation of investment properties                     4,709,927              2,378,438                 4,043,979 
                                                         4,852,705              3,100,996                 5,430,036 

Net profit for the period                               10,312,579              4,192,495                10,674,791 

                                                             Pence                  Pence                     Pence 
Earnings per ordinary share             4                     5.40                    2.79                     7.06 



All items in the above statement derive from continuing operations



                                                                          Page 7

                     THE UK BALANCED PROPERTY TRUST LIMITED

             Unaudited Interim Condensed Consolidated Balance Sheet
                              At 30 September 2003



                                                                                                                   
                                                     30 September 2003   30 September 2002     31 March 2003  
                                                                                (restated)                  
                                                             unaudited           unaudited           audited 
                                             Notes                 GBP                 GBP               GBP 
Non-current assets                                                                                           
Freehold properties: at market value             5         267,640,000         193,920,000       263,485,000 
Leasehold properties: at amortised cost          5          25,482,181          21,318,949        25,566,588 
                                                           293,122,181         215,238,949       289,051,588 

Current assets                                                                                               
Debtors and prepayments                          6           6,200,906           1,204,659         6,092,353 
Cash and cash equivalents                                    6,203,096          13,335,332         7,980,692 
                                                            12,404,002          14,539,991        14,073,045 

Total assets                                               305,526,183         229,778,940       303,124,633 

Non-current liabilities                                                                                      
Bank loan                                        7       (100,162,949)        (71,800,000)     (100,132,486) 
Interest rate swap liability                     7         (6,672,238)         (5,675,501)       (8,482,772) 
Deferred income tax liabilities                              (150,000)                   -          (62,299) 
                                                         (106,985,187)        (77,475,501)     (108,677,557) 

Current liabilities                                                                                          
Creditors                                        8         (8,042,294)         (7,750,172)      (12,200,130) 
Income tax payable                                                   -                   -          (21,702) 
                                                           (8,042,294)         (7,750,172)      (12,221,832) 

Total liabilities                                        (115,027,481)        (85,225,673)     (120,899,389) 

NET ASSETS                                                 190,498,702         144,553,267       182,225,244 


Equity                                                                                                       
Share capital                                    9          47,780,250          37,500,000        47,780,250 
Share premium                                    9         142,403,475         111,161,273       142,403,475 
Revenue reserves                                10         (3,295,526)         (1,533,501)       (4,905,745) 
Capital reserves                                11           3,610,503         (2,574,505)       (3,052,736) 

TOTAL EQUITY                                               190,498,702         144,553,267       182,225,244 


                                                                 Pence               Pence             Pence 
Net asset value per ordinary share               12              99.67               96.37             95.35 





                                                                          Page 8

                     THE UK BALANCED PROPERTY TRUST LIMITED

    Unaudited Interim Condensed Consolidated Statement of Changes in Equity
                     for the half-year to 30 September 2003


                                                       1 April to      Period 22 January     Period 22 January 2002 
                                                30 September 2003   to 30 September 2002           to 31 March 2003     
                                                                               (restated)                           
                                                        unaudited              unaudited                    audited 
                                                              GBP                    GBP                        GBP 

Opening net assets                                    182,225,244                      -                          - 

Net profit for the period                              10,312,579              4,192,495                 10,674,791 

Issue of ordinary share capital                                 -            150,000,000                191,943,420 
Share issue costs                                               -            (1,338,727)                (1,759,695) 
Movement in unrealised loss on                                                                                      
revaluation                                                                                                         
of interest rate swap                                   1,810,534            (5,675,501)                (8,482,772) 
Dividends paid and declared                           (3,849,655)            (2,625,000)               (10,150,500) 

Closing net assets                                    190,498,702            144,553,267                182,225,244 


                                                            Pence                  Pence                      Pence 
Dividends paid and declared per                              2.01                   1.75                       6.77     
ordinary share                                                                                                      




                                                                          Page 9

                     THE UK BALANCED PROPERTY TRUST LIMITED

          Unaudited Interim Condensed Consolidated Cash Flow Statement
                     for the half-year to 30 September 2003

                                                                                                                      
                                                          1 April to        Period 22 January     Period 22 January 
                                                   30 September 2003     to 30 September 2002      to 31 March 2003 
                                                                                    (restated)                      
                                                           unaudited                unaudited               audited 
                                                                 GBP                      GBP                   GBP     
          
OPERATING ACTIVITIES                                                                                                

Net operating profit for the period                        8,686,836                2,567,845             8,419,866 

Adjustment for:                                                                                                     
Non cash item: amortisation of leasehold                      84,407                   66,527               162,523 
properties                                                                                                          
Increase in operating debtors and prepayments              (108,554)              (1,159,659)           (6,086,353) 
(Decrease)/increase in operating creditors                                                                          
and accruals                                             (1,955,550)                6,785,921             8,401,211 
                                                         (1,979,697)                5,692,789             2,477,381 

Income tax paid                                                    -                        -              (42,298) 

Interest received                                            171,736                  160,345               449,340 
Interest paid                                            (3,229,023)                (719,756)           (3,363,960) 
                                                         (3,057,287)                 (559,411)          (2,914,620) 

Net cash inflow from operating activities                  3,649,852                7,701,223             7,940,329 


INVESTING ACTIVITIES                                                                                                
Purchases of investment properties                         (249,913)            (215,004,480)         (291,582,568) 
Sales of investment properties                               947,617                2,800,000             7,798,493 

Net cash inflow/(outflow) from investing                     697,704            (212,204,480)         (283,784,075) 
activities                                                                                                          


FINANCING ACTIVITIES                                                                                                
Proceeds from issue of ordinary share capital                      -              148,661,273           191,943,420 
Less: directly attributable set up costs                           -                        -             (334,724) 
Draw down of bank loan                                             -               71,800,000           100,700,000 
Bank loan arrangement fees                                         -                        -             (609,258) 
Dividends paid                                            (6,125,152)             (2,622,684)           (7,875,000) 

Net cash (outflow)/inflow from financing                  (6,125,152)            217,838,589           283,824,438 
activities                                                                                                          

(Decrease)/increase in cash during                                                                                  
the period                                               (1,777,596)               13,335,332             7,980,692 




                                                                         Page 10

                     THE UK BALANCED PROPERTY TRUST LIMITED

   Notes to the unaudited condensed consolidated interim financial statements
                     for the half-year to 30 September 2003


1   Accounting policies

    The financial statements for the half-year to 30 September 2003 have been
    prepared on the basis of the accounting policies set out in the consolidated
    financial statements prepared to 31 March 2003 except that the
    classification of the movement in fair value revaluation of the interest
    rate swap contract was transferred from the Income Statement to the
    Statement of Changes in Equity in the 2002 comparative as it meets the
    criteria for hedge accounting set out in the 31 March 2003 statutory
    financial statements.

    The condensed consolidated interim financial statements have been prepared
    in accordance with International Accounting Standard 34 - Interim Financial
    Reporting.

2   Taxation
                                                                                                                      
                                                        1 April to        Period 22 January    Period 22 January 2002 
                                                 30 September 2003     to 30 September 2002          to 31 March 2003 
                                                               GBP                      GBP                       GBP
 
    Current income tax                                           -                        -                    64,000 
    Deferred income tax relating to origination                                                                         
    and reversal of temporary differences                  150,000                        -                    62,299 

                                                           150,000                        -                   126,299 

3   Dividends

    The first interim dividend of 1.78125p for the year to 31 March 2004 was
    paid on 30 July 2003 to shareholders on the register on 18 July 2003.The
    ex-dividend date was 16 July 2003.

    The second interim dividend of 1.78125p for the year to 31 March 2004 was
    declared on 9 October 2003 and paid on 29 October 2003 to shareholders on
    the register on 17 October 2003.The ex-dividend date was 15 October 2003.
   
4   Earnings per ordinary share

    The earnings per ordinary share is based on the net profit of #10,312,579
    (30 September 2002: #4,192,495 and 31 March 2003: #10,674,791) and on
    191,121,000 ordinary shares (30 September 2002: 150,000,000 and 31 March
    2003: 151,203,008), being the weighted average number of ordinary shares in
    issue throughout the period.



                                                                         Page 11

                     THE UK BALANCED PROPERTY TRUST LIMITED

   Notes to the unaudited condensed consolidated interim financial statements
                     for the half-year to 30 September 2002


5   Investment properties 

                                                                                                                      
                                                                           30 September    30 September        31 March
                                                                                   2003            2002            2003 
                                                                                    GBP             GBP             GBP
 
    Freehold properties                                                                                                 
    Cost of freehold properties on hand at period start                     259,441,021               -               - 
    Cost of freehold properties purchased                                             -     191,017,392     264,635,672 
    Additions                                                                   249,913       2,556,687       1,217,785 

    Total cost                                                              259,690,934     193,574,079     265,853,457 
    Disposals at cost                                                         (804,840)     (2,032,517)     (6,412,436) 

    Cost of freehold properties on hand at period end                       258,886,094     191,541,562     259,441,021 
    Surplus on revaluation                                                    8,753,906       2,378,438       4,043,979 

    Market value of freehold properties on hand at period end               267,640,000     193,920,000     263,485,000 


    Long leasehold properties                                                                                           
    Cost of leasehold properties on hand at period start                     25,729,111               -               - 
    Cost of leasehold properties purchased                                            -      20,645,300      25,588,382 
    Additions                                                                         -         740,176         140,729 

    Total cost                                                               25,729,111      21,385,476      25,729,111 
    Amortisation at period start                                              (162,523)               -               - 
    Amortisation for the period                                                (84,407)        (66,527)       (162,523) 
    Amortised cost of leasehold properties on hand at                                                                   
    period end                                                               25,482,181      21,318,949      25,566,588 


    Reconciliation of property values to the Schedule of Investment Property                                            
                                                               
    Amoritsed cost of leasehold properties on hand at period end             25,482,181      21,318,949      25,566,588 
    Unrealised profit on leasehold properties on hand at period end                                                     
    (not recognised for accounting purposes)                                  2,292,819          56,051       1,373,412 

    Market value of leasehold properties on hand at period end               27,775,000      21,375,000      26,940,000 
    Market value of freehold properties on hand at period end               267,640,000     193,920,000     263,485,000 

    Market value of all properties on hand at period end                    295,415,000     215,295,000     290,425,000 

    The loan finance is secured on the property portfolio 


6   Debtors and pre-payments 

                                                                                                             
                                                                           30 September    30 September        31 March 
                                                                                   2003            2002            2003 
                                                                                    GBP             GBP             GBP
 
    Tenant arrears (net of provision for bad debts)                           6,085,978       1,078,159       5,950,701 
    Other debtors and pre-payments                                              114,928         126,500         141,652
 
                                                                              6,200,906       1,204,659       6,092,353 


7   Bank loan and interest rate swap liability 

                                                                                       
                                                                           30 September    30 September        31 March
                                                                                   2003            2002            2003 
                                                                                    GBP             GBP             GBP 
    Facility                                                                100,700,000      77,800,000     100,700,000 


    The Directors estimate that the fair value of the interest rate swap
    contract at 30 September 2003 is a liability of #6,672,238 (30 September
    2002: liability of #5,675,501 and 31 March 2003: liability of #8,482,772),
    which is based on a discounted cash flow projection using interest rates
    prevailing at the balance sheet date.



                                                                         Page 12

                     THE UK BALANCED PROPERTY TRUST LIMITED

   Notes to the unaudited condensed consolidated interim financial statements
                     for the half-year to 30 September 2002


8   Creditors 

                                                                           30 September    30 September        31 March
                                                                                   2003            2002            2003
                                                                                    GBP             GBP             GBP

    Rental income received in advance                                         4,684,252          10,185       4,796,927 
    Dividends payable                                                                 -               -       2,275,500 
    Investment management fees                                                1,579,473       1,339,195         664,829 
    Property creditors                                                          924,863       1,533,173       1,106,485 
    Due to SWIP                                                                  99,337       2,071,032       1,525,365 
    Other creditors                                                             754,369       2,796,587       1,851,024 

                                                                              8,042,294       7,750,172      12,200,130 
 
 
9   Share capital and share premium 

                                                                                                                      
                                                                           30 September    30 September        31 March 
                                                                                   2003            2002            2003
                                                                                    GBP             GBP             GBP 
    Authorised share capital:                                                                                           
    300,000,000 ordinary shares of #0.25 each, fully paid                                                               
    (30 September 2002: 150,000,000 and                                                                                 
    31 March 2003: 300,000,000):                                             75,000,000      62,500,000      75,000,000 

    Issued share capital:                                                                                               
    191,121,000 ordinary shares of #0.25 each, fully paid                                                               
    (30 September 2002: 150,000,000 and                                                                                 
    31 March 2003: 191,121,000):                                             47,780,250      37,500,000      47,780,250 

    Share premium:                                                                                                      
    Received on the placing of ordinary shares                              144,163,170     112,500,000     144,163,170 
    Less: directly attributable set-up costs                                (1,759,695)     (1,338,727)     (1,759,695) 
                                                                            142,403,475     111,161,273     142,403,475 
 

10  Revenue reserve
                                                                           30 September    30 September        31 March 
                                                                                   2003            2002            2003
                                                                                    GBP             GBP             GBP 

    Opening balance                                                         (4,905,745)               -               - 
    Net profit for the period                                                 5,459,874       1,091,499       5,244,755 
    Dividends paid                                                          (3,849,655)     (2,625,000)    (10,150,500) 

                                                                            (3,295,526)     (1,533,501)     (4,905,745) 

    Rental income accrues evenly over the period 
 

11  Capital reserve  

                                                                                                                     
                                                                           30 September    30 September        31 March 
                                                                                   2003            2002            2003
                                                                                    GBP             GBP             GBP
 
    Opening balance                                                         (3,052,736)               -               - 
    Realised gain on disposal of investment properties                          142,778         722,558       1,386,057 
    Movement in unrealised gain on revaluation of                                                                     
    investment properties for the period                                      4,709,927       2,378,438       4,043,979 
    Movement in unrealised loss on revaluation of                                                                     
    interest rate swap                                                        1,810,534     (5,675,501)     (8,482,772) 
                                                                              3,610,503     (2,574,505)     (3,052,736) 




                                                                         Page 13

                     THE UK BALANCED PROPERTY TRUST LIMITED

   Notes to the unaudited condensed consolidated interim financial statements
                     for the half-year to 30 September 2002


12  Reconciliation of consolidated net asset value per interim financial
    statements to published net asset value

                                                                                                                    
    Total                                                                  30 September    30 September        31 March 
                                                                                   2003            2002            2003
                                                                                    GBP             GBP             GBP
 
    Consolidated net asset value per financial statements                   190,498,702     144,553,267     182,225,244 
    Adjustments:                                                                                                        
    Revenue reserves*                                                                                                   
    Net operating profit for the period                                     (5,459,874)     (1,091,499)     (5,244,755) 
    Unrealised loss on revaluation of interest rate swap                      6,672,238       5,675,501       8,482,772 
    Dividends paid or declared                                                3,404,343       2,625,000      10,150,500 
    Set up costs                                                                      -     (3,786,773)     (4,965,805) 
    International Financial Reporting                                                                                   
    Standards adjustments*                                                                                              
    Unrealised surplus on leasehold properties                                2,208,415          56,051       1,373,412 
    Year end accounting adjustments                                                                                     
    Additions to book costs                                                           -               -           6,520 
    Revaluation of Toronsay Portfolio                                                 -               -         921,000 

    Published net asset value                                               197,323,824     148,031,547     192,948,888 
 

                                                                                                                 
    Per share                                                              30 Sept 2003    30 Sept 2002     31 Mar 2003 
                                                                                  Pence           Pence           Pence
 
    Consolidated net asset value per financial statements                         99.68           96.37           95.35 
    Adjustments:                                                                                               
    Revenue reserves*                                                                                          
    Net operating profit for the period                                          (2.86)          (0.73)          (2.74) 
    Unrealised loss on revaluation of interest rate swap                           3.49            3.78            4.44 
    Dividends paid or declared                                                     1.78            1.75            5.31 
    Set up costs                                                                                 (2.52)          (2.60) 
    International Financial Reporting Standards adjustments*                                                   
    Unrealised surlpus on leasehold properties                                     1.16            0.04            0.72 
    Year end accounting adjustments                                                                            
    Additions to book costs                                                           -               -               - 
    Revaluation of Toronsay Portfolio                                                 -               -            0.48 

    Published net asset value per share                                          103.25           98.69          100.96 


    * The published NAV is calculated on a capital only basis and otherwise in
    accordance with UK accounting standards. In order to reconcile to the
    published NAV it is necessary to add back all revenue reserves and account
    for the effect of International Financial Reporting Standards versus UK GAAP
    differences. All set up costs are deducted from the published NAV.




                                                                         Page 14

                     THE UK BALANCED PROPERTY TRUST LIMITED

                        Schedule of Investment Property
         Ten Largest Investment Property Holdings at 30 September 2003


                                                                                                     
Property                                                    Open market value at 
                                                                    30 September 
                                                                            2003 
                                                                             GBP
 
SITTINGBOURNE,The Forum Centre, Kent                                  12,850,000
WATFORD, Radius, 51 Clarendon Road, Hertfordshire                     11,775,000
BRADFORD, 26 Market Street,West Yorkshire                              8,500,000
SWINDON, Units 1/14, Hillmead Complex,Wiltshire                        8,425,000
PERTH, Phase 3, St Catherines Retail Park                              8,400,000
GUILDFORD, 67/70 North Street & 14/18 Market Street, Surrey            8,050,000
LONDON NW10, 40 Cumberland Avenue, Greater London                      7,725,000
CRAWLEY,The Brunel Centre, Newton Road,West Sussex                     7,375,000
SCARBOROUGH,The Balmoral Centre, North Yorkshire                       7,375,000
STEVENAGE, Longacres House, Six Hills Way, Hertfordshire               7,200,000




                                                                         Page 15

                     THE UK BALANCED PROPERTY TRUST LIMITED

                  Schedule of Investment Property (continued)
                     Geographical and sector classification
                                                                                                               
Sector                                                                      Open market value         % of      
                                                                         at 30 September 2003     Porfolio 
                                                                                          GBP             
Offices-Rest of UK                                                                                    
CHESTER, Chester Business Park, Cheshire                                                              
CREWE, Burford House, 8, Earle Street, Cheshire                                                       
HULL, Priory Park, Saxon Way,West Hessle, Kingston-upon-Hull                                          
LEAMINGTON SPA, Clarendon House, 1/2, Clarendon Square, Warwickshire                                                    
LEEDS,York Towers, 383/387 York Road,West Yorkshire                                                   
LEICESTER, Enkalon House, 86/92 Regent Road, Leicestershire                                           
LEICESTER, Mansion House, 41 Guildhall Lane, Leicestershire                                           
STEVENAGE, Longacres House, Six Hills Way, Hertfordshire                                              
STOCKPORT, Owl House, 57/65 Great Underbank, Cheshire                                                 
SUTTON COLDFIELD, 31/37 Birmingham Road/Duke Street, West Midlands                                                      
SUTTON COLDFIELD, King Edward's Court, King Edward's Square, West Midlands                                              
WATFORD, Radius, 51 Clarendon Road, Hertfordshire                                                     

Total                                                                              43,450,000       14.71% 



Offices-South East                                                                                    
EPSOM, Emerald House, East Street, Surrey                                                             
GODALMING, Berkeley House, 11/13, Ockford Road, Surrey                                                
MILTON KEYNES, Sovereign Court,Witan Gate East, Buckinghamshire                                       
READING, 10 Crown Street, Berkshire                                                                   
REDHILL, Berkeley House, 49/53 High Street, Surrey                                                    
SLOUGH, Focal Point, Stoke Road, Berkshire                                                            
WALTON ON THAMES,Auckland House, New Zealand Avenue, Surrey                                           
WOKING, 76/86 Chertsey Road, Surrey                                                                   
WOKINGHAM,West Forest Gate, Finchampstead Road, Berkshire                                             

Total                                                                              31,940,000       10.81% 


Retail Warehouse                                                                                      
BOSTON, Albyn Retail Park, Grantham Road, Lincolnshire                                                
CARMARTHEN, Stephens Way, Carmerthenshire                                                             
CHESTERFIELD, MFI Unit, Lordsmill Street, Derbyshire                                                  
GRANTHAM, Units A/D, Gonerby Road, Lincolnshire                                                       
LEEDS,York Road,West Yorkshire                                                                        
LONDON E17,Walthamstow Avenue                                                                         
PERTH, Phase 3, St Catherines Retail Park                                                             

Total                                                                              35,960,000       12.17% 




                                                                         Page 16

                     THE UK BALANCED PROPERTY TRUST LIMITED

                  Schedule of Investment Property (continued)
               Geographical and sector classification (continued)


                                                                                                                      
Sector                                                                      Open market value         % of      
                                                                         at 30 September 2003     Porfolio 
                                                                                          GBP             
Shopping Centres                                                                                                    
ROTHERHAM, Old Town Hall, Howard Street, South Yorkshire                                                            
SCARBOROUGH,The Balmoral Centre, North Yorkshire                                                                    
SITTINGBOURNE,The Forum Centre, Kent                                                                                

Total                                                                              22,725,000        7.69% 


Traditional Industrial-Rest of UK                                                                                   
BEDFORD, Elm Farm Industrial Estate, Bedfordshire                                                                   
COVENTRY, Units 7040, 7050 & 7060, Middlemarch Business Park, West Midlands                                             
NEWTON AYCLIFFE,Whesso Building, Heighton Lane, County Durham                                                       
OAKDALE, Unit 17/18 Pen Y Fan Ind. Est.,Willow Road,West Glamorgan                                                  
REDDITCH, Burnt Meadow Road, Moons Moat,Worcestershire                                                              
ST ALBANS, Units 15/18, Brick Knoll Park, Hertfordshire                                                             
SWINDON, Booker Unit, Elgin Drive,Wiltshire                                                                         
SWINDON, Units 1/14, Hillmead Complex,Wiltshire                                                                     

Total                                                                              25,975,000        8.79% 


Traditional Industrial-South East                                                                                   
CHANDLERS FORD, Chandlers Park, Hampshire                                                                           
CRAWLEY,The Brunel Centre, Newton Road,West Sussex                                                                  
LONDON N22, St George's Industrial Estate,White Hart Lane,Wood Green                                                
LONDON NW10, 40 Cumberland Avenue, Greater London                                                                   
LONDON SE 15, Unit 1/3,Wevco Industrial Estate, Sandgate Street Greater London                                      
LONDON SW8, 78, Silverthorne Road, Battersea                                                                        
LONDON W4, Codap House, Chiswick Roundabout, Greater London                                                         

Total                                                                              35,410,000       11.99% 



                                                                         Page 17

                     THE UK BALANCED PROPERTY TRUST LIMITED

                  Schedule of Investment Property (continued)
               Geographical and sector classification (continued)

                                                                                                                  
Sector                                                                      Open market value         % of      
                                                                         at 30 September 2003     Porfolio 
                                                                                          GBP             
Unit Shops-North                                                                                            
ALTRINCHAM, 57/67 George Street, Cheshire                                                                   
BRADFORD, 26 Market Street,West Yorkshire                                                                   
BURY, Lester House, Market Street, Lanacashire                                                              
CHESTERFILED, 29/33 Burlington street, Derbyshire                                                           
CREWE, 55/57, Market Street, Cheshire                                                                       
DUNFERMLINE, 72/76 High Street, Fife                                                                        
ERDINGTON, 210/216 High Street,West Midlands                                                                
HEREFORD, 3/4 Commercial Road, Herefordshire                                                                
LIVERPOOL, 72/82,Walton Vale, Merseyside                                                                    
LIVERPOOL, Arndale House, 89/103 London Road, Merseyside                                                    
ORMSKIRK, 1/10 (16/28) Wheatsheaf Walk (Burscough Street), Lancashire                                       
ORMSKIRK, 33/37 Moor Street, Lancashire                                                                     
SCARBOROUGH, 112 Westborough, North Yorkshire                                                               
SCARBOROUGH,Aberdeen Walk, Bar House,Westborough, North Yorkshire                                           
STAFFORD, 1/7 & 21/24 Market Street & Salter Street, Staffordshire                                          
SUTTON COLDFIELD, 45/57 & 59/63, Birmingham Road,West Midlands                                              
YORK, 26/27 High Ousegate, North Yorkshire                                                                  
YORK, 44/46 Fossgate & Merchant Chambers, North Yorkshire                                                   
YORK, 9 Coney Street, North Yorkshire                                                                       

Total                                                                              44,115,000       14.93% 




                                                                         Page 18

                     THE UK BALANCED PROPERTY TRUST LIMITED

                  Schedule of Investment Property (continued)
               Geographical and sector classification (continued)


                                                                                                              
Sector                                                                      Open market value         % of      
                                                                         at 30 September 2003     Porfolio 
                                                                                          GBP             
Unit Shops-South                                                                                    
BARNSTAPLE, 76 High Street, Devon                                                                   
BASINGSTOKE, 20/24 Wote Street, Hampshire                                                           
CAMBERLEY, 1A High Street, Surrey                                                                   
CAMBERLEY, 35 High Street, Surrey                                                                   
CAMBERLEY, 67/73 Park Street, Surrey                                                                
CHELMSFORD, 49-50 High Street, Essex                                                                
CROYDON, 59/61 North End, Surrey                                                                    
EXETER, 43/45 High Street, Devon                                                                    
GUILDFORD, 67/70 North Street & 14 / 18 Market Street, Surrey                                       
GUILDFORD, 71/72 North Street, Surrey                                                               
HARROW, 38/44 St Ann's Road, Middlesex                                                              
HOUNSLOW, 28/34 High Street, Middlesex                                                              
ILFORD, 102/104 High Road, Essex                                                                    
KINGS LYNN, 43/44 High Street, Norfolk                                                              
LONDON W1, 16 South Molton Street, Greater London                                                   
NORWICH, 24,26 & 28 Prince of Wales Road, Norfolk                                                   
PETERBOROUGH, Britannic House, Cowgate, Cambridgeshire                                              
PORTSMOUTH, 152 Commercial Road, Hampshire                                                          
SITTINGBOURNE, Brewers Yard, St Michaels Road, Kent                                                 
SOUTHEND ON SEA, 21/23 High Street, Essex                                                           
SOUTHEND ON SEA, 25 High Street, Essex                                                              
WATFORD,The Parade, 49/61 High St, Hertfordshire                                                    
WINDSOR, 12 Peascod Street, Berkshire                                                               

Total                                                                              55,840,000       18.91% 


GRAND TOTAL                                                                       295,415,000      100.00% 




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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