
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

June 2006
Real estate stocks were able to claw back some of the ground lost in April and May as global markets switched from worrying about inflation to worrying about growth. Our NAV rose 2.64% and this compared with a 2.79% increase in the benchmark index. The share price fell by 1.6% as the discount to asset value rose from 6.9% to 10.8% and the shares went ex the final dividend of 1.9p per share on 28 June. After a further dip in the first half of June, UK property stocks bounced off their lows, aided by a good IPD Monthly result for May and by Land Securities making on-market share purchases at around the 1725p level.

Over the month, UK property shares rose 1.8%. Europe (ex UK) did better with an average gain of 3.6% with Spain gaining strongly following the bid for Colonial and bid speculation in Urbis shares. The European interim results season is about to start and the outlook is generally positive. Fonciere Lyonnais has led the way by announcing a 13% portfolio revaluation and 19.5% NAV growth in the first six months of 2006 on the back of evidence of rental growth returning to the Paris office market combined with a further downward shift of around 25bps in prime French property yields.

For us, one happy result of the recent market disarray has been the disappearance of the IPO queue. Of course we welcome new issues to the market, but the recent deluge of IPO’s has been especially tedious for investors and the quality of some attempted offerings has been woeful. Hopefully sponsors will be more selective when the market returns to greater normality. We did very little trading in the month - the largest transaction was the sale of the BAA holding after the completion of the bidding auction. Net debt was £104m (£110m at the end of May) and on balance sheet gearing was 14.5%. The final dividend of 1.9p per share net will be posted to shareholders on 28 July.