» A target distribution yield of 6-7% pa » Tax efficient investment for charity

investors » A clear investment strategy for a diverse

real estate portfolio in the primary sectors of industrial, retail and offices.

» Focused on multi-let opportunities which provide a diverse and sustainable income stream

» Delivering a target IRR of 7-9% over a rolling five year period through maintaining and increasing rental income and targeting capital value increases at least in line with inflation

» Utilise the experienced and proven management team’s skill set to actively manage the portfolio and drive returns

» The Fund distribution for this quarter is 1.6786p per unit, equivalent to 6.24% annualised.

» The Fund return since inception is 11.1%, annualised.

» All original seed investor subscriptions have been placed.

» Units have been issued in respect of all but £1m of the £5.8m previously reported subscription commitments. The remaining units are expected be issued imminently.

» The Fund has c.£1.0m available in working capital and is in the late stages of agreeing a £6m revolving working capital debt facility with RBS. A total of £7m is therefore available to acquire investment property. The fund is assessing a number of investment oportunities.

» The vacancy rate in the portfolio has fallen slightly this quarter to 4.70% compared to the 4.80% reported previously. The effects of new lettings in the period have been reduced by new vacancies. Of the 5 units currently vacant in the portfolio 4 are under offer or in solicitors hands. If these leases had completed as at the date of this report the vacancy rate would have been 0.9%.

» The EU referendum concluded UK will leave the EU which has led to an unprecedented period of economic and political uncertainty. However, whilst we are only a short way into uncharted waters investors, after an initial period of volatility, seem to be taking a calmer view. With a new Prime Minister and Cabinet in place we have seen equity markets in certain areas recover although

gilt rates are at record lows and the sterling exchange rate against the US Dollar at a 31 year low. The property market is not immune to this volatility but the markets that DPFC operates in are less volatile than markets like Central London Offices.

» DPFC targets delivering a sustainable distribution yield and the investment operating criteria balances diversity of tenants, location and sector to mitigate volatility and risk and increase the probability of the distribution yield being maintained.

» DPFC is for investors seeking an attractive income yield in the medium to long term. Property values in a dynamic economic environment may increase or decrease but the DPFC business model of diversity and active management serve to amplify the positives and mitigate the negatives of a dynamic market.

» The high level of activity on the portfolio ensures there are opportunities for rents to be increased and values to be improved. This quarter there has seen some excellent leasing and asset management activity which has seen the portfolio value increase and the level of distribution maintained.

» DPFC is well placed to navigate this period of uncertainty and continue to deliver attractive returns to it’s investors.

FUND REVIEW

Vacancy rate once leases are complete for units currently under offer or in solicitors hands

FACTSHEET1st APRIL 2016 - 30th JUNE 2016

Q3

0.9%

FUND OBJECTIVES KEY FUND DATA

HISTORIC TOTAL RETURNS

66.2%

19.6%14.1%

0-5

year

s of

inco

me

5-10

yea

rs

of in

com

e

10-1

5 ye

ars

of

inco

me

£LEASE EXPIRY PROFILE (EXCL BREAK OPTIONS)

1. Earlier of break or expiry

2. TER is calculated as total fund expenses divided by NAV on a stabilised basis assuming £200m fund size. Current TER is 0.88%.

Portfolio value £42.1m

Net asset value £43.2m

Number of assets 8

NAV per unit - FRS102 basis 107.86 p.p.u.

NAV per unit - INREV basis 108.68 p.p.u.

Vacancy rate 4.7%

Weighted average lease length1 4.3 years

May 2016 Distribution paid 1.6786 p.p.u.

Distribution for last 12 months 6.6914 p.p.u.

Year end 30-Sep

Total expense ratio (TER)2 0.67%

SEDOL number BXQ9SB8

ISIN number GB00BXQ9SB85

Period %

3 months 1.5%

6 months 4.1%

12 months 9.8%

Since Inception 11.1%

65.8%

16.1% 17.6%

1.8%Min

imum

Ris

k

Low

er th

an

aver

age

risk

Hig

her

than

av

erag

e ri

sk

Hig

h R

isk

TENANT COVENANTS BY D&B RISK RATING

Ten largest tenants by income

DSG Retail Ltd 15%

Go Outdoors Ltd 7%

Halfords Ltd 5%

Graham Tiso Ltd 4%

Hardware Services Ltd 4%

Valutech Ltd 3%

Ionic Systems Ltd 3%

Gareth John Training Limited 3%

Archive Document Data Storage 3%

Johnan UK Ltd 3%

TOTAL 50%

MAJOR TENANTS

GLOSSARY

PORTFOLIO ANALYSIS BY LOCATION

TARGET TARGET

CURRENT CURRENT

PORTFOLIO ANALYSIS BY SECTOR

This document is provided for information purposes only and may not be reproduced in any form without the express permission of Eskmuir FM Ltd. The opinions expressed here represent the views of the Fund Manager at the time of preparation and should not be interpreted as investment advice.

This report is aimed at existing investors in the Fund. It does not constitute or form part of any offer to issue or sell units in the Fund. The value of an investment and the income from it can fall as well as rise.

10%London

18%South East

15%South West

11%Midlands10%

East

12%North West

8%North East

7%

Yorkshire & Humberside

7%Scotland 2%

Wales

15%South East

23%South West

13%Midlands

13%East

7%North West

9%Scotland

20%North East

NAV per unit Net Asset Value of the Trust prepared at the reporting date divided by units in issue

FRS102 Accounting basis on which accounts are prepared

INREV

European Association for Investors in Non-Listed Real Estate Vehicles. Utilising their reporting recommendations certain costs related to vehicle setup and property acquisition are added back to net assets and amortised over a five year period

SEDOL & ISIN numbers

UK and International identifier of The Diversified Property Fund for Charities as an investment security

D&B Dun & Bradstreet provide data and analysis which is used to determine credit worthiness and relative risk of tenants

p.p.u Pence per unitHistoric Fund Returns

Calculated over the reference period as the sum of closing NAV per unit less opening NAV per unit plus distributions per unit all divided by opening NAV per unit

30%Office

30%Retail

30%Industrial

10%Other

5%Office

27%

Retail (Warehouse)

38%Industrial

30%

Industrial (Trade Park)

FACTSHEET1st APRIL 2016 - 30th JUNE 2016

Q3

Eskmuir FM Ltd, 8 Queen Anne Street, London, W1G 9LD

www.dpfc-eskmuir.co.uk

T. 020 7436 2339 F. 020 7436 2307

Paul Hodgson, Fund Manager

Prepared by Eskmuir FM Limited, Fund Manager to The DPFC and registered as an AIFM with The Financial Conduct Authority under Firm reference number 659240.

Sanne Group Administration Services (UK) Limited is authorised and regulated by the Financial Conduct Authority under Firm reference number 594186.