Half Year Results for the six months to 30 September 2010

Released: 25/11/2010

Financial Highlights:

• Operating profit for the half year of £1.9m (2009: loss of £3.4m)
• Diluted EPRA net assets per share of 261p (31 March 2010: 272p)
• Gain on revaluation of investment portfolio £9.5m at the half year. After sales, purchases and capital expenditure – up 3.4%
• Group’s share of net rental income of £8.4m (2009: £8.6m)
• Diluted EPRA loss per share of 9.1p (2009: loss of 6.4p)
• Ratio of net borrowings to property portfolio of 47% (31 March 2010: 47%)
• Cash and unused bank facilities of over £85m together with £39m of uncharged property on which funds could be borrowed ensure the Company is well positioned to capitalise on market opportunities
• Reduced administration costs of £3.7m (2009: £4.0m)
• Interim dividend maintained at 1.75p per share (2009: 1.75p)

Operational Highlights:

Active portfolio management to maximise income and preserve and enhance capital value growth potential:

• Ongoing disposals programme, with £97m of sales of mainly non-income producing assets completed or in solicitors’ hands in the year to date.
• Successful letting programme, with over 40 new lettings or renewed leases increasing annualised income by £685,000, compared to £560,000 of rent lost through expiries or breaks.

Establishing a substantial platform for future value creation, with timing of delivery dependent on prevailing market conditions and the securing of appropriate funding structures:

• Over 1m sq ft of office developments in Central London
• 1.2m sq ft portfolio of out of town retail development assets in Poland
• Engaged in the promotion of up to 3,000 residential units in London in existing joint venture partnerships and consortia
• 606 retirement units with planning consent, of which 150 units are already built or under construction.

Commenting on the results, Michael Slade, Chief Executive, said:

“We believe that the investment and trading deals that we are now finding will provide income surpluses, capital gains and trading profits. As the cycle unfolds, the development opportunities we are now pursuing should produce substantial profits. Old fashioned property skills will be to the fore and we believe that the market today offers us the opportunity to produce the outperformance in the future that our shareholders have come to expect.”

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