
Ordinary Shares

Price (p)	149.40
Published NAV	171.60
Yield	3.89
Discount	-13.84

Prices correct as of close 2010-09-09. Last Published NAV is as at the previous business day. Source: Trustnet

Sigma Shares

Price (p)	66.90
Published NAV	88.60
Yield	2.99
Discount	-25.20

Prices correct as of close 2010-09-09. Last Published NAV is as at the previous business day. Source: Trustnet

For Ordinary Shares

December 2005
All European real estate equity markets produced positive returns in December, continuing the gains in November. The largest country in the index the UK was up 6.5%. Other notably strong performances were Denmark (17%) and Germany (5.4%).
The Trust’s NAV rose by 4.56% just ahead of our Benchmark Index of 4.49%. The share price gained 2.5% over the month.
The UK performance was dominated by the market’s response to the further briefing by the Treasury on the likely structure of a UK REIT. The draft legislation was published by the Treasury on 14 December. This in itself was positive as it indicated that UK REITS might start as early as January 2007. The likely structure would require 75% of assets to be in ‘property rental business’ and would be free of corporate and capital gains tax. However the draft included some negative proposals, in particular a shareholder restriction (no one investor to hold more than 10%) and a conservative gearing proposal (net rental income must be more than 2.5 times finance costs). These two issues, amongst others, will be critical to the industry’s response to the Treasury due later this month. Meanwhile the underlying property investment market continues to strengthen with further yield compression; this was reflected in December’s IPD Monthly Index total return of 2.7% - the strongest monthly gain of the year.
The Trust was pleased to announce completion of the first three lettings at Thames Central, Slough (the largest office building in the direct portfolio) of 11,300 sq ft (17.8% of the building). The initial rent payable is £191,000 pa. Gearing remained unchanged.