Total Return Capital Growth Rental Growth

-1.5% (-0.1%) -2.8% (-0.2%) Offices 1.5% -6.4% (-0.1%) -6.9% (0.0%) Retail

10.9% 3.4% (0.1%) 1.9% (-0.4%) Industrial 9.6% -0.8% (-0.3%) -3.3% (0.0%)

(Figures in brackets are the results for the month). Total capital value of the portfolio is #72.4m,

consisting of 36 properties.

WITH a total return of 1.5% per annum Scotland's office sector showed

the greatest improvement in May, according to the Richard Ellis Scottish

Monthly Index which is prepared exclusively for The Herald.

Office capital values declined very slightly over the month, causing

annual capital growth to improve to -6.4% per annum. Yields and rental

values remained stable. The retail sector continued its steady ascent,

achieving 10.9% in the year to end May. But total return in the

industrial sector dropped slightly to 9.6%, reflecting a marginal

capital decline of 0.3% on the previous month. The All Property total

return improved to 6.7% per annum.