
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

May 2006
Inflation concerns continued to rattle global stock markets in May. Our NAV fell 5.14% and this compared with a 4.75% decline in the our benchmark index. The share price declined by 6.5% as the discount to asset value rose from 5.5% to 7.0%.

UK property shares performed creditably, with a total return of -2.8%, thanks to excellent final results from both Land Securities and British Land. Both companies confirmed that they are likely to apply to be REITs in 2007, as did Hammerson, Liberty International and Big Yellow. In Europe prices generally fell more sharply on the prospect of a further imminent base rate increase.

Overall the month was marked by quite violent daily swings in share prices. On three separate days in May the asset value of the Trust rose or fell by more than 4%. Such volatility reflects uncertainty and the option and derivative activity, and contrasts markedly with activity in the direct property market which continued to be stable and to show further capital growth over the month.

Over the month we were modest net investors. Net debt rose by £9m to £110m and gearing rose to 15.75%. Our sweetest gain was from BAA where we added to the holding at 809p ahead of the final burst of bidding. Our sharpest decline from a major holding was St Modwen which fell by 10%.

We reported our preliminary final results to the Stock Exchange on 23 May and these are available on this site. The annual report is due to be circulated to shareholders around June 20.