
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

March 2010
March was marked by a general recovery in equity investor sentiment around the globe, and this helped Pan European property stocks to their best month since last August, though they still trailed the price growth of the general indices. Currencies were a little calmer with the Sterling/Euro rate finishing the month where it started. The Ordinary share benchmark rose 5.7% in Sterling. The Ordinary share NAV increased by 6.4% and the share price rose 3.4% after going ex the accelerated final dividend of 3.45p on 10 March. Economic numbers generally confirmed the outlook for a very slow recovery in European economic activity over 2010 and into 2011. As a result short term fears of either a double-dip in GDP growth or an early rate hike by either EBC or BOE have receded. Surveys continue to show real estate as the most hated sector among European generalist fund managers, raising the prospect of a serious stock shortage if (or when) there is ever a rush to close underweight positions. Advice from the direct property market continues to be generally favorable. Lending margins are shrinking for prime borrowers, big company tenant demand is improving in major city centres, notably London. Investor demand remains strong and capital values continue to inch ahead despite lack of rental growth. The pack of final results over March contained few surprises at either the NAV or EPS level. On average, shares are now generally trading at or very close to current estimated NAVs ahead of the big dividend paying season in April and May. On March 3 the Board announced that the proposed final dividend of 3.45p would be paid as a second interim dividend on April 1 and the shares went ex this payment on 10 March. Over the month, purchases and sales were roughly neutral. The holding of Hammerson Euro bonds was sold at over par and the capital reinvested in Swiss Prime Site equity at a higher yield. Net debt in the share class rose by £9m to £45m as result of the dividend payment. The direct property portfolio was revalued at the end of March at £49.55m to show like for like growth of 5.2% in the six months since September 2009.