
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

February 2006
February saw continued strong momentum in Pan European real estate shares with performance being roughly equal on both sides of the Channel. The Trust’s NAV rose 7.6% versus an increase of 6.6% in the benchmark. The share price rose 13.9% as the discount to NAV at which the shares trade fell from 10.4% to 5.1% (these figures compare with an Investment Trust Sector average discount of around 6.5%).

Almost all companies producing results for calendar 2005 have exceeded expectations particularly at the asset value level. In France a series of good numbers from Unibail, Silic, Fonciere des Regions and Klepierre led French property shares to a gain of 12% on the month, and the single Greek property share in our portfolio, Babis Vovos, rose 21% after its figures. German property shares (which gained 23% in January) failed to join the February party and declined by 2%, as did Austrian property shares which were affected by news of two huge rights issues. In the UK, Hammerson disclosed a 31% increase in NAV for the year to end 2005 beating forecasts handsomely, and the shares rose 9.2%. There were no sales or purchases of direct property in the month, and the Trust’s borrowings declined by £1m to £95.5m giving on balance sheet gearing of 13.4%.

The Budget on 22 March will see the introduction of UK REITs and the announcement of the proposed tax for entry into the REIT regime. The draft REIT legislation produced in December included provisions on gearing and share ownership, which were unexpectedly onerous. The industry remains somewhat sceptical that this Budget announcement will now produce a REIT system which is both obviously workable and attractive to the existing quoted property companies.