Property trust share prices drop

By the end of last December the average trust was at a discount of 0.4pc, down from a premium of 3.6pc a year earlier, according to AIC and Datastream figures. Of the 24 property investment trusts covered by the data, 13 were showing discounts and several others were only marginally at premium. The picture is in marked contrast to that of property unit trusts, which saw record inflows in 2006 on the back of three years of double digit returns and institutions and private investors seeking portfolio diversification away from equities and fixed income. The move to discounts appears...