
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 2007
After a weak performance in May, real estate stocks became thoroughly rattled by the sharp back-up in US long Treasury Bonds at the beginning of June; while general equity markets recovered their poise later in the month, property stocks ended June without bouncing. Over the month, the NAV fell by a disappointing 10.6% while the benchmark index in Sterling fell 10.4%. The share price, which went ex the 2.4p final dividend on 27 June, fell by 11.01%. Commercial property has taken a pasting in the financial press over the past few weeks as journalists have vied with each other to predict an imminent “slump” in the asset class. The truth is, as usual, less prosaic. Inflation numbers in the UK do not make happy reading and interest rate expectations are rising. This is bound to have an impact on immediate investor demand, even though inflation protection is one of the qualities that draws investors to real estate. Currently, initial yields are rising for secondary retail and industrial property outside the South East, but in London and in parts of the South East rental growth is driving prices higher. On the stock market, the leading UK shares are now trading at 20%+ average discounts to asset value, a rating which already takes account of value declines that have not occurred. During June, shareholders received details of the launch of the new Sigma share class and the EGM to approve this issue will follow on from the AGM on 24 July. Meanwhile, over the month we sold £31m of equities, concentrating our disposals on stock with UK retail and residential exposure. We spent £12m buying back 5.35m shares, bought a £6.8m office building in Milton Keynes with an initial yield of 6.25% and reduced net debt from £86m to £73m.