Property Manager's Report

31 May 2009

The Charities Property Fund is defensively constructed, has no borrowings and benefits from long leases, relatively strong covenants, good diversification (both regionally and across sectors) and a very low void rate. It has performed well against its peers in the 12 months to March 2009 and, although it posted a negative total return for the period of -23.4%, this was significantly above the average of -27.1% for the IPD PPF All Balanced Funds Index. Whilst it has been disappointing to see commercial property values fall so steeply and so quickly, the Fund is now producing a net yield of 8.8% (compared to the IPD PPF All Balanced Funds Index at 5.9%).