
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

September 2007
After rising 4% in August, UK property stocks entered September steadily, but the Northern Rock debacle thumped the sector producing a 12% decline at worst and a 7.7% fall over the month. On the Continent prices declined by less than 1% in Euros (and rose 2.2% in Sterling terms). The Benchmark declined 2.4% and the Trust’s NAV fell 3.0% over the month - a result that was better than we might have expected given our UK overweight and the fact that the month-end NAV included the result of the revaluation of the Trust’s directly held properties at the month end. This showed a decline of £1.1m or 1.2% versus the valuation done in mid July. Our relative performance did benefit by having virtually no exposure to the leading decliners on the Continent – Denmark (-17.5% in euro) and Spain (-9.3% in euro). Gloom continues to pervade UK media comments on everything connected with residential and commercial property markets. Against the background of buoyant general equity markets in both Europe and the US, it is hard to visualise the predicted imminent collapse of house prices, consumer demand, commercial tenant demand, and of all reasonable property lending facilities which some UK share prices are now starting to discount. The trust’s September investment activity was modest. We continued to sell down stocks with UK residential exposure, notably Grainger and Minerva and lightened holdings in retail investors, Hammerson and Corio. On the buy side, we bought back 1.42m shares at an average of 202.17p and added to holdings in Derwent Valley, the West End office specialist, and in Unibail. Net debt fell modestly and gearing is now down slightly to around 5%. The Trust is a dedicated investor and will remain so. I can only repeat what we said last month, that we have taken a decision to bed down the portfolio in what we think are low risk assets. The events of September and the general market’s reaction to them indicate that we may have more surprises in store before the year end.