
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

October 2009
A flat month for property shares overall, but inter-month pricing swung between plus 5% and minus 4%, as global economic data veered from weak to strong and vice-versa. Background property market news was positive with plenty of stories in the UK of frustrated buyers pushing up pricing and widening their buying criteria to include less prestigious buildings and income from short leases. Individual stock performance had no clear trend; big stocks generally outperformed for once with both Unibail and Land Securities rising over 5%. But British Land underperformed after it confirmed longstanding rumours of the sale of a 50% interest in the Broadgate estate. Such sales are no longer seen as good news – the market wants those companies who have had rights issues to invest some of their cash, not add to the pile. A return to decent short term NAV growth is now well discounted in UK property share prices and is starting to impact Continental pricing. We think the Q1 2010 round of NAV results will be better than current forecasts. The 2010 concern is going to be on earnings and dividends, as tenant demand show little sign of any upturn as yet and cash flow growth is still hard to foresee. The Ordinary Share NAV declined 0.62%, the share price rose 1.27% and the share class benchmark fell 0.42%. Over the month I spent some £12m net on equities including reopening an investment in Songbird when the rights rump was placed. Net debt at the month end was £20m equivalent to gearing of 4.4%.