The UBS Global Investors Index recorded a total USD return of -2.26% in June. The best performing listed real estate market was Singapore, which recorded a total USD return of -0.23%. North America recorded the lowest total USD return for June (-3.17%). Year to date, the UBS Global Investors Index has recorded a total USD return of 10.17%. The UK has been the strongest market recording a total USD return of 20.16% and Japan was the weakest market recording a total USD return of -6.63%. We recently attended REIT Week (US listed property conference) and the Kempen European Listed Property Conference. There were a number of noteworthy themes spoken about by most of the listed property companies. Across both the US and Europe there has been an uptick in the demand for top quality commercial real estate. This demand is coming from cash rich investors (pension funds, life companies, private equity etc.) looking for a secure cash flow from their investment underpinned by quality assets, good covenants and long term leases. These quality assets are currently attracting huge interest from investors, tenants and lenders; the flip side to this is that poor quality assets are not attracting interest from any of these three. Due to the increased competition for quality assets, listed property companies that have significant development pipelines in good locations could benefit in the future from higher net asset value (NAV) and earnings growth, because they can develop at yields that are more attractive than what they can buy assets at. It must be noted that this higher growth carries development risk. The debt markets have also improved over the last 12 months, with both the availability and pricing of debt improving. The commercial mortgage backed securities (CMBS) market is starting to come back to life and there has been appetite from investors to invest in CMBS. On the whole the mood was positive from both the European and US listed property companies, however there is still some uncertainty around the length and shape of the global economic recovery, with a lot of commentators talking about "lower for longer". This uncertainty was reflected in the markets movements during June; falling sharply post some weak economic numbers particularly in the US and with the uncertainty around Greece and then recovering towards the end of the month as the Greek parliament voted in favor of the austerity package. Currently trading at an estimated forward FAD (funds available for distribution) yield of 5.3% and with reasonable growth, global listed property looks attractive in an environment that appears to be "lower for longer".

The UBS Global Investors Index recorded a total USD return of -0.61% in March. The best performing listed real estate market was Europe ex UK, which recorded a total USD return of 4.37%, with Japan being the weakest market for the month, recording a total USD return of -6.39%.

During the first quarter of 2011, the UBS Global Investors Index recorded a total USD return of 5.50%, Europe ex UK being the strongest with a total USD return of 8.93% and Japan being the weakest with a total USD return of -8.18%.

March was a month that will not be forgotten for a while. There was the tragic earthquake in Japan, the conflict in Libya, rising inflation and increased concerns around Portugal's debt just to name a few. Notwithstanding all of the above, the markets were resilient during the month and although volatility did increase, the S&P 500 ended the month flat. There were also some positive signs coming through, most notably the US employment figures. Unemployment in the US has now decreased for the fourth month in a row, dropping from 9.8% to 8.8% over that period.

Macquarie's Japanese Real Estate Research Team had the following to say post the earthquake "Some of the JREITs (Japanese REIT's) put out a release as early as the day after the quake, with many of them commenting that there were no major damages to their properties. So far, of the 35 JREITs, 30 made some sort of an announcement, of which 19 says that there has not been any major damages to their portfolio, and 11 saying either they are still investigating or have yet to assess the degree of damage. We have also verbally confirmed with the major developers including Mitsui Fudosan, Mitsubishi Estate, Sumitomo Realty and NTT Urban Development that there has been no major damages indentified in their respective portfolios either." Although physical damage to the JREITs and developers has been minimal, it will be the damage to the economy and its ability to recover that will affect these companies going forward.

Global listed property currently trades at an estimated forward FAD (funds available for distribution) yield of 5.35%. This is attractive based on where current 10 year Government Bond yields are

The UBS Global Investors Index recorded a total USD return of 7.00% in December. The best performing listed real estate market was Japan, which recorded a total USD return of 13.47%, with Singapore being the weakest market for the month, recording a total USD return of 4.23%. For 2010, the UBS Global Investors Index recorded a total USD return of 23.51%, Japan was the strongest market recording a total USD return of 48.70% and the UK was the weakest market recording a total USD return of 3.32%.

The Japanese market was boosted during December by the Bank of Japan starting its planned asset investment programme in which they intend to invest 5 trillion Yen (USD 60 billion) in government debt and other assets including REITs. Tokyu REIT, who owns office and retail assets in the Tokyo Metropolitan Area, appears to have been a beneficiary of this investment plan, gaining over 20% in Yen during the month of December.

During December, Simon Property Group (SPG) continued to pursue the potential purchase of Capital Shopping Centers (CSC). Their sudden move to purchase the company was triggered by CSC's proposal to purchase the Trafford Centre in Manchester, if this deal goes ahead, the Peel Group (current owners of the Trafford Centre) would become significant shareholders in CSC. If the Peel Group becomes a large shareholder in CSC, it will make it very difficult and potentially more expensive for SPG to buy CSC. During mid December SPG delivered an indicative all-cash bid for CSC at GBP 4.25 per share, one of the conditions was that CSC did not purchase the Trafford Centre. As a result of this CSC postponed their extra ordinary general meeting until 26 January 2011 at which there would be a vote on the acquisition of the Trafford Centre and SPG have been given until 12 January to make a formal bid. CSC did advise shareholders to reject an offer of GBP 4.25, saying that this price undervalues CSC and that CSC management estimates that the CSC NAV should grow to GBP 6.26 based on their current forecasts. Subsequent to these comments, SPG have stated that they will abandon their bid for CSC, citing a lack of access to due diligence information.

Global listed property looks attractive as it trades at a 3.95% historic dividend yield and a 5.3% historic FAD (funds available for distribution) yield. This compares favorably to the US 10 year Government bond yield of 3.35%.