
Ordinary Shares

Price (p)	150.00
Published NAV	166.80
Yield	1.56
Discount	-10.23

Prices correct as of close 2010-07-29. Last Published NAV is as at the previous business day. Source: Trustnet

Sigma Shares

Price (p)	66.00
Published NAV	86.30
Yield	1.36
Discount	-23.76

Prices correct as of close 2010-07-29. Last Published NAV is as at the previous business day. Source: Trustnet

For Ordinary Shares

May 2010
May was a month of heightened concern across the world and a particularly glum period for the Eurozone. The Ordinary share class capital only NAV fell 9.18% while Ordinary share price declined 7.83%. The Ordinary share Benchmark fell 9.06% and the share class and benchmark total returns were equal at -7.81%.

As the month progressed the fiscal fears that enveloped Greece in April, fanned out across the Eurozone. The Euro was hammered and the old arguments about the currency’s long term existence re-emerged. The inevitable reaction across the Continent has been a series of austerity proposals which it is hoped will assuage bond investors but which certainly slow economic growth and damage business and consumer confidence. The new UK coalition government was greeted with greater enthusiasm than we expected and its task of cutting the deficit will made more digestible by these European events.

This change in the economic outlook over the next two years, and the renewed threat of a double dip in GDP, has been the major factor behind the decline in all share prices. In addition the real estate industry has to worry that commercial banks will have to make room for sovereign debt losses by cutting back on new property lending and by speeding up on foreclosure of breached loans. If there is less to borrow and more stock coming to market, buyers, it is argued will wait and see leaving and capital value growth will go into reverse. Aside from fiscal affairs there is also concern that proposed new regulations may adversely impact the giant German open-ended property fund industry, whose members have been important players in the recent investment market revival in both Central London and Paris. The silver lining to recent events is that interest rates hikes are even less likely in the next twelve months and that a cheaper Euro will stimulate Eurozone exports and help offset the weakness in labour markets. It was quiet month for transactions. Overall net spend was some £3m. Net debt shrank from £40m to £36m as dividend receipts in May totaled some £7m. The final results for the financial year to end March 2010, published on June 2, are available on the web site. The annual report is due to be posted to shareholders in the third week of June.