Risk management

Portfolio diversification across local economic and property sectors is sought by investing in a range of property types and across a number of regions throughout France and Spain.
Currency risk on original equity and dividend on that equity has been substantially hedged out to 2013 through currency swaps (approximately £109 million hedged)
The key features of the Trust’s borrowings are:

No loan to value (“LTV”) covenant test until February 2014 on any of the Trust’s properties.
Long term maturities – French (91% of borrowings) and Spanish (9%) borrowings mature in February 2015.
99% of borrowings have interest rates that are fixed to maturity at a weighted average rate of 5.26% per annum.
Interest cover ratio (“ICR”) covenant is set at 110%.
On the first LTV test date in February 2014, the Trust’s LTV should not exceed 87.5% on a country portfolio basis (with the exception of the Alcatel-Lucent property where it should not exceed 85%). The weighted average loan to value covenant is 86.5%.
The French and Spanish borrowings are independent and are not cross-collateralised.