
Ordinary Shares

Price (p)	112.00
Released NAV	134.36
Yield	5.00
Discount	-16.64

Prices correct as of close 2008-11-17 Source: Trustnet

Sigma Shares

Price (p)	43.25
Released NAV	61.19
Yield	1.97
Discount	-29.32

Prices correct as of close 2008-11-17 Source: Trustnet

For Ordinary Shares

September 2008
Two weeks into October the remarkable events of September seem an age away. For the record, real estate stocks declined across the globe in the month dragged down by fears of the future drought in credit and by the implications for tenant demand of the upcoming recession. UK property companies outperformed falling only 4.97%. Their long term debt and long lease profiles provide a degree of balance sheet and revenue stability currently missing from other UK financial sectors. European (ex UK) stocks fell 11.46% in Sterling terms. French and Dutch stocks performed well but there were huge falls in Austria, Germany and Sweden where the returns were minus 48%, minus 15% and minus 17% respectively, caused in part by concerns over high leverage and short leases profiles. The benchmark price return was minus 9.21%. The Ordinary share NAV fell 7.21% and the share price declined by 9.75%. The directly held property in the Ordinary share portfolio was revalued at the end of September and showed an average decline of 7.7% (£5.3m) from the March 2008 figures. The impact of this decline is included in the NAV result for the month. The comparable IPD monthly index capital decline for the six months was -10%. Equity portfolio turnover was modest at £7.5m with £4m of sales with a UK bias and £3m of purchases mainly on the Continent. Gross cash was around £77m at the month end. I continue to remain cautious of the market. The Ordinary Share portfolio now has 10% net cash and its equity investments are concentrated in liquid stocks with below average leverage supporting high quality portfolios. A lot of stocks are looking very cheap on historic numbers, but the effects of the world liquidity crisis will change many economic fundamentals to an extent that is very unclear at present.