
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 2009
European property shares fell 8.2% in February in Sterling which compares to a decline of 15.7% in the Global Real Estate Index. In the UK, where prices dropped by 10.8%, the well signalled rights issues finally arrived but the dividend cuts from Hammerson and Land Securities were worse than we expected. Since the month end Segro has also scraped in with an eye-catching 12 for 1 issue to be sure of securing underwriting. Meanwhile the recession continues to eat away at tenant demand and property buyers, of which there are more around, appear rightly cautious of buying any buildings let on short term leases or to small companies. Empty buildings, of which there are also more around, are generally “problem” assets. Over the month the Ordinary share class NAV declined by 5.28% and the share price fell by 0.72%. The outperformance was chiefly the result of the cash holdings, but the NAV result does also include a £3.5m (1.35p per share) credit for capital account element of the return of VAT incorrectly charged in previous years. Unibail, the largest equity asset in the share class, produced reassuring final results during the month with increased rental cash flow and dividends per share. Its LTV ratio remains way below the sector average (28% versus 48%) and the shares outperformed falling only 4.7% in the period. During the month the share class made modest purchases for around £2m net, including Hammerson’s € bonds of 2016 on a 13% redemption yield. Gross cash was unaltered at £69m as we received £1.5m in dividend income and £1.5m from first instalment of the return of VAT incorrectly charged. We expect further receipts from the return of VAT over the next three months. Shareholders should note that our directly held property was last valued at £56m at the end of September 2008 and will be revalued at the end of March.