
Ordinary Shares

Price (p)	149.00
Published NAV	170.30
Yield	3.89
Discount	-13.91

Prices correct as of close 2010-09-06. Last Published NAV is as at the previous business day. Source: Trustnet

Sigma Shares

Price (p)	66.70
Published NAV	88.10
Yield	3.00
Discount	-24.69

Prices correct as of close 2010-09-06. Last Published NAV is as at the previous business day. Source: Trustnet

For Ordinary Shares

January 2006
January has given us a strong start to the new year with the NAV and the share price both rising by over 5% - and outperforming the S&P Benchmark, which rose by 4.7% (UK 4.1%, Europe (ex UK) 5.1%). In the UK, background news from the property market continued to be very positive. Strong demand for investment property saw the IPD Monthly total return reach 2.7% in December – the highest monthly number since 1994. In the property share market, the post Xmas sell off lasted only a few days and despite continued criticism of the REIT proposals, shares moved into higher ground with analysts upgrading their NAV forecasts once the IPD numbers were released on 14 January.

In Europe, Germany was the centre of huge interest (particularly from US investors) and the country’s property share index rose 23% in the month led by IVG, the largest German property company which rose 34%. The sudden attraction to German commercial real estate comes despite the problems being faced by the €80 billion open ended fund industry there. Elsewhere, and amongst our largest holdings, Big Yellow Group continued their advance, rising another 19%. We reduced the holding in Metrovacesa following a 10% share price rise at the start of the month, and the holding dropped out of our top ten, to be replaced by Unibail where we added to the holding ahead of what proved to be excellent final results for 2005.

In our direct property portfolio we completed the sale of a small portfolio of let housing in Luton, Leicester and Torquay, for just over £3m (compared with a September 2005 valuation of £2.25m). The proceeds were reinvested in Deutsche Wohnen the quoted German let residential investment business.

The Trust’s borrowing rose £5.5m over the month to £96.5m leaving gearing at 14.6%