
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

September 2009
The share prices of the larger European property stocks mostly paused for breath in September. Attention shifted to smaller high risk shares and there were some spectacular gains in Germany and Norway. Actively talked down by officialdom, Sterling declined by 3.7% against the Euro over the month, turning the benchmark price only return of +1.10% in Euros into a +4.94% return in Sterling. The Ordinary share NAV rose 5.08% but the share price fell 0.48% as the discount to the capital only NAV rose from 6% to11.0%. Premiums to broker’s current estimated NAV are now commonplace for the larger UK companies. Such ratings are spurred by industry gossip that the direct market is seeing a deluge of buying interest and a serious paucity of stock. Values for well let buildings are definitely moving rapidly upwards again and this pattern looks set to continue for the rest of the year. As a result we expect to see brokers upgrading 2010 NAV forecasts en masse. Such bullish sentiment is welcome but we have to take care because much of the fuel for this mini-boom comes from the present extraordinary interest rate policy and from a dearth of loan distressed stock which the banks are not releasing onto the market. Both of these are expected to be temporary phenomena. The Ordinary Share class’s direct property portfolio was revalued at £47.1m as at the 30 September, a like for like decline of only 0.475% over the March 2009 valuation figure. We spent a net £13m on investments to leave the fund with net debt of £8m. The unaudited results for the half year to the end of September are due to be announced on Wednesday 25 November.