
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

November 2009
Mirroring the main equity markets, real estate shares recovered from the weakness of late October after global policymakers reiterated their commitment to retain loose monetary controls. UK property shares rose by 10% up to mid-month spurred also by news from the direct market. Interim results from both Land Securities and British Land had the numbers in line, but both managements gave rather lacklustre performances in regard to future strategy. This, combined with profit taking and the events in Dubai, brought prices back sharply from mid month so that the sector in both UK and Europe ended down on the month. The EPRA benchmark in Sterling fell 1.38%, the Ordinary share class NAV declined by 1.12% and the share price rose by 1.26%. Looking into 2010, there seems to be consensus that UK property values will rise over the year but not by more than 2-5% due to banks offloading stock from their dud loan books: that Continental values will stabilise and then rise even more modestly; that tenant demand will remain weak across the whole year in all areas and that interest rates (and inflation) will stay very low at least until Q3. Earnings and dividend growth will be absent in the UK and come only from lower finance costs on the Continent. Like all consensuses views these will be wrong - probably in underestimating both value and economic growth in H1 2010 and then underestimating the level of worry that may absorb the market about rate tightening during H2 2010. From what we can see, the banks are sitting on such poor quality stock that it will take years to shift. Net debt in the Ordinary share class rose from £20m to £26m during November as a result of modest net investment in across the Sector. The interim financial results to end September were announced on 25 November and are available on the Trusts website. The interim dividend is unchanged at 2.3p and will be paid on 12 January 2010.