THREADNEEDLE UK PROPERTY TRUST

1 FINAL ANNUAL AUDITED REPORT AND financial STATEMENTS. THREADNEEDLE UK PROPERTY TRUST . NOVEMBER 2016. THREADNEEDLE . UK PROPERTY TRUST . THREADNEEDLE UK PROPERTY TRUST Final Annual Audited Report and financial Statements November 2016. Contents TRUST Report Additional Information (Unaudited). Introduction 2 Portfolio Statement 12. Manager's Report 3 Unit Price Performance Bid to Bid Basis 13. Directors' Statement 3 Finance Costs: Distributions per Unit 14. Further Information 15 17. financial Statements Management and Administration 18. Statement of Total Return 4. Statement of Change in Net Assets Attributable to Unitholders 4. Balance Sheet 4. Cash Flow Statement 4. Distribution Table 4. Comparative Table Disclosure 5. Notes to the financial Statements 6 9. Statement of Manager's Responsibilities in Relation to the financial Statements of the TRUST 10. Statement of the Trustee's Responsibilities and Report of the Trustee to the Unitholders of the THREADNEEDLE UK PROPERTY TRUST 10.

2 Independent Auditors' Report to the Unitholders of THREADNEEDLE UK PROPERTY TRUST 11. 1. THREADNEEDLE UK PROPERTY TRUST Final Annual Audited Report and financial Statements November 2016. Introduction The assets and liabilities were transferred to a new PAIF structure, THREADNEEDLE UK PROPERTY Investment Fund through a Scheme of Arrangement on 14th May 2016 and the Fund ceased trading on that date. Accordingly the Fund is no longer a going concern and this is the Final Annual Report for the period 14 May 2016 to 15 November 2016. Columbia THREADNEEDLE Investments has a dynamic, award winning approach to PROPERTY investment. Our experienced investment team has been investing since 1994, and the focus on maintaining high yields has distinguished us from the market. Columbia THREADNEEDLE Investments PROPERTY team has a distinctive investment philosophy which can be summarised in the following five principles: Stock picking is key We believe that specific stock selection within sectors is the primary driver of long-term performance.

3 Our experience, resources and contacts allow us to select the most appropriate and attractively valued properties for our funds while avoiding exposure to PROPERTY shares. A preference for high yielding investments We believe that over the long term, income is the dominant component of PROPERTY total returns. As such, yield is a key focus of our stock selection process. Flexible buyers We do not populate our portfolios with trophy assets, as these frequently offer unappealing yields. Instead, we seek good value and investment potential across all sectors, geographies and lot sizes. Avoid speculative development This kind of activity locks up capital for long periods of time and can be risky. We prefer to buy standing investments with the potential to improve returns. Active asset management unlocks value We work hard to maximise the returns from the properties we own, refurbishing and updating buildings regularly in order to increase capital value and improve rental growth potential.

4 We hope that you find this Annual Report informative. If you have any further queries regarding any aspect of your investment or about other Columbia THREADNEEDLE Investments products, please contact us directly on 0800 068 3000 (8am 6pm Monday to Friday) or speak to your financial adviser. Alternatively, please visit . 2. THREADNEEDLE UK PROPERTY TRUST Final Annual Audited Report and financial Statements November 2016. Manager's Report Investment Objective and Policy The objective of THREADNEEDLE UK PROPERTY TRUST (the Fund or TRUST ). is to obtain a total return based on income and capital appreciation predominantly through investment in certain kinds of real estate, propertyrelated securities, government and public securities and units in collective investment schemes. The Fund will invest primarily in UK commercial real estate. It may also invest in US or Continental European real estate, PROPERTY -related securities, PROPERTY investment companies, collective investment schemes (including other collective investment schemes managed, advised or operated by the Manager or its associates), cash and near cash, warrants, deposits and money market instruments.

5 Derivatives may be used for efficient portfolio management purposes only. Review This report covers the period from 14 May 2016 to 15 November 2016. Status of the TRUST The TRUST is an authorised Unit TRUST Scheme within Section 243 of the financial Services and Markets Act 2000, and is a non-UCITS retail scheme for the purpose of the financial Conduct Authority's Collective Investment Schemes Sourcebook (COLL) as amended from time to time. Other Information Pages 16 to 23 at the back of these Annual Reports and financial Statements form part of the Manager's Report. Directors' Statement In accordance with the requirements of the financial Conduct Authority's Collective Investment Schemes (COLL) Sourcebook, we hereby certify the Final Report and financial Statements on behalf of the Directors of THREADNEEDLE Investment Services Limited. L Weatherup T N Gillbanks Director Director 12 January 2017. 3. THREADNEEDLE UK PROPERTY TRUST Final Annual Audited Report and financial Statements November 2016.

6 financial Statements STATEMENT OF TOTAL RETURN CASH FLOW STATEMENT. for the accounting period 14 May 2016 to 15 November 2016 for the accounting period 14 May 2016 to 15 November 2016. 15 November 13 May 15 November 13 May 2016 2016 2016 2016. Notes 000 000 Notes 000 000. Income Net cash inflow from operating activities 15 49,074. Net capital gains 2 21,145. Revenue 3 77,700 Taxation (8,717). Expenses 4 (24,287). Interest payable and similar charges 5 (1) Capital Expenditure Net revenue before taxation 53,412 Payments to acquire investments (364,608). Taxation 6 (8,605) Receipts from sale of investments 69,940. Net revenue after taxation 44,807 (294,668). Total return before distributions 65,952 Distributions paid (10,711) (16,522). Distributions 7 (57,084). Change in net assets attributable to Financing unitholders from investment activities 8,868 Amounts transferred to other funds (288,671) . Amounts received on creation of units 1,390 347,835.

7 Less: amounts paid on cancellations of units (9,918) (65,838). (297,199) 281,997. Net increase/(decrease) in cash in the period 18 (307,910) 11,164. STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE DISTRIBUTION TABLE. TO UNITHOLDERS for the accounting period 14 May 2016 to 15 November 2016. for the accounting period 14 May 2016 to 15 November 2016 Dividend distribution in pence per unit 15 November 13 May Class 1 Units net accumulation 2016 2016. 000 000 There is no distribution for the period (2015/2016: ). Opening net assets attributable to unitholders 1,366,257 1,055,327 Class 1 Units net income Amounts receivable on the issue of units 321,049 There is no distribution for the period (2015/2016: ). Amounts payable on the cancellation of units (74,267). Class 2 Units net accumulation Amounts transferred to other funds (1,366,257) There is no distribution for the period (2015/2016: ). (1,366,257) 246,782 Class 2 Units net income Dilution levy 15,839.

8 There is no distribution for the period (2015/2016: ). Change in net assets attributable to unitholders from investment activities (see statement of total return above) 8,868. Retained distribution on accumulation units 39,441. Closing net assets attributable to unitholders 1,366,257. BALANCE SHEET. as at 15 November 2016. 15 November 13 May 2016 2016. Notes 000 000. Assets: Fixed assets: Current assets: Investments 1,087,682. Debtors 8 12,464. Cash and bank balances 307,910. Total assets 1,408,056. Liabilities: Investment liabilities Creditors: Distribution payable (10,711). Other creditors 9 (31,088). Total liabilities (41,799). Net assets attributable to unitholders 1,366,257. 4. THREADNEEDLE UK PROPERTY TRUST Final Annual Audited Report and financial Statements November 2016. financial Statements (continued). Comparative Table Disclosure for the period ended 15 November 2016. Class 1 Acc Class 1 Inc 15/11/2016 13/05/2016 15/05/2015 15/11/2016 13/05/2016 15/05/2015.

9 Change in net assets per share Opening net asset value per share Return before operating charges and PROPERTY expenses Operating charges** ( ) ( ) ( ) ( ). PROPERTY expenses** ( ) ( ) ( ) ( ). Return after operating charges and PROPERTY expenses* Distributions on income shares ( ) ( ). Amounts transferred to other funds ( ) ( ) . Closing net asset value per share Retained distribution on accumulation shares *after direct transaction costs of Performance Return after charges Other information Closing net asset value ( '000) 357,861 342,405 18,858 45,244. Closing number of shares 325,557,733 331,810,419 25,316,204 61,635,331. Operating charges** PROPERTY expenses** Direct transaction costs** Prices Highest share price Lowest share price Class 2 Acc Class 2 Inc 15/11/2016 13/05/2016 15/05/2015 15/11/2016 13/05/2016 15/05/2015. Change in net assets per share Opening net asset value per share Return before operating charges and PROPERTY expenses Operating charges** ( ) ( ) ( ) ( ).

10 PROPERTY expenses** ( ) ( ) ( ) ( ). Return after operating charges and PROPERTY expenses* Distributions on income shares ( ) ( ). Amounts transferred to other funds ( ) ( ) . Closing net asset value per share Retained distribution on accumulation shares *after direct transaction costs of Performance Return after charges Other information Closing net asset value ( '000) 557,037 369,551 432,501 298,128. Closing number of shares 463,989,422 330,123,915 519,077,956 366,690,218. Operating charges** PROPERTY expenses** Direct transaction costs** Prices Highest share price Lowest share price ** The Operating charges are represented by the Ongoing Charges Figures (OCF) which is the European standard method of disclosing the charges of a share class of a fund based on the financial period's expenses and may vary from year to year. It includes charges such as the fund's annual management charge, registration fee, custody fees and distribution cost but ordinarily excludes the costs of buying or selling assets for the fund (unless these assets are shares of another fund).