Invista European Real Estate Trust Full Year -19-

                     for rental growth, vacancy, reletting costs, 
 Germany             incentives and refurbishment costs.                  Office Yield          7.50% 
                   ---------------------------------------------------- 
   Industrial 
    Yield                                                                                      12.50% 
 
   Retail Yield                                                                                 7.17% 
  --------------------------------------------------------------------------------------  ----------- 
                    The valuers valued each of the properties 
                     in Belgium, Spain and France using the 
                     traditional "all risks" yield method of 
                     valuation having regard to comparable investment 
                     transactions (where available) and current 
                     market sentiment. These valuation calculations 
                     have mainly been undertaken using the Argus 
                     Capitalisation model, albeit that for Belgium 
                     the valuers have used locally accepted 
                     methodology which is driven by capitalising 
                     the market rent and then explicitly adjusting 
 France              for over/under-renting and other costs.              Office Yield          8.35% 
                   ---------------------------------------------------- 
   Industrial 
    Yield                                                                                       9.35% 
 
                                                                          Retail Yield            n/a 
-----------------  ----------------------------------------------------  ---------------  ----------- 
 Spain              The valuers valued each of the properties             Office Yield            n/a 
                     in Belgium, Spain and France using the 
                     traditional "all risks" yield method of 
                     valuation having regard to comparable investment 
                     transactions (where available) and current 
                     market sentiment. These valuation calculations 
                     have mainly been undertaken using the Argus 
                     Capitalisation model, albeit that for Belgium 
                     the valuers have used locally accepted 
                     methodology which is driven by capitalising 
                     the market rent and then explicitly adjusting 
                     for over/under-renting and other costs. 
                   ---------------------------------------------------- 
   Industrial 
    Yield                                                                                       8.50% 
 
                                                                          Retail Yield            n/a 
-----------------  ----------------------------------------------------  ---------------  ----------- 
                    The valuers valued each of the properties 
                     in Belgium, Spain and France using the 
                     traditional "all risks" yield method of 
                     valuation having regard to comparable investment 
                     transactions (where available) and current 
                     market sentiment. These valuation calculations 
                     have mainly been undertaken using the Argus 
                     Capitalisation model, albeit that for Belgium 
                     the valuers have used locally accepted 
                     methodology which is driven by capitalising 
                     the market rent and then explicitly adjusting 
 Belgium             for over/under-renting and other costs.              Office Yield          8.03% 
                   ---------------------------------------------------- 
                                                                          Industrial              n/a 
                                                                           Yield 
                   ---------------------------------------------------- 
                                                                          Retail Yield            n/a 
-----------------  ----------------------------------------------------  ---------------  ----------- 
 The Netherlands    In arriving at their valuation for the                Office Yield            n/a 
                     properties in the Netherlands the valuers 
                     have used the Discounted Cash Flow (DCF) 
                     method. They have used a cash flow period 
                     varying from 20 years for the Netherlands. 
                     The gross rents and the annual outgoings 
                     are used to arrive at a net rent. These 
                     cash flows are adjusted for rental growth, 
                     vacancy, reletting costs, incentives and 
                     refurbishment costs. For the Dutch properties, 
                     the valuers have also used a capitalisation 
                     approach as a secondary method. The valuers 
                     have capitalised the net market rent and 
                     have made adjustments for existing lease 
                     terms. In addition the valuers have made 
                     further adjustments in case of vacancy. 
                     For this the period for which the vacancy 
                     is most likely to continue was estimated. 
                     At the assumed moment of reletting the 
                     valuers allowed for reletting costs and 
                     incentives. In case of a ground lease, 
                     overdue maintenance or any other reasons 
                     for adjustments, these have been made calculating 
                     the net present value of these cash flows. 
                     Using the above mentioned method(s), the 
                     valuers arrived at a gross value for which 
                     transfer Costs were deducted. Accordingly 
                     a rounded net value was arrived at. 
                   ---------------------------------------------------- 
   Industrial 
    Yield                                                                                       9.76% 
 
   Retail Yield                                                                                   n/a 
  --------------------------------------------------------------------------------------  ----------- 
 

Sensitivity analysis

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of the Group's investment properties are:

-- exit yield

-- long term vacancy rate

-- estimated rental value.

Significant increases (decreases) in estimated rental value (per sqm p.a.) would result in a significantly higher (lower) fair value measurement. Significant increases (decreases) in long-term vacancy rate and exit yield in isolation would result in a significantly lower (higher) fair value measurement.

Generally, a change in the assumption made for the estimated rental value is accompanied by a directionally:

-- similar change in the rent growth p.a. and exit yield

-- opposite change in the long term vacancy rate

The table below presents the sensitivity of the changes in valuation based on the significant assumptions underlying the valuation of the investment properties:

 
                    Yield Shift       Estimated        Long term       Yield Shift       Estimated        Long term 
                                     rental value     vacancy rate                      rental value     vacancy rate 
                  ---------------  ---------------  ---------------  ---------------  ---------------  --------------- 
   Sensitivity        25 basis      5% increase or     1% more or        25 basis      5% increase or     1% more or 
      Level            points          decrease       less vacancy        points          decrease       less vacancy 
----------------  ---------------  ---------------  ---------------  ---------------  ---------------  --------------- 
                                     30 Sep 2014                                        30 Sep 2013 
----------------  -------------------------------------------------  ------------------------------------------------- 
                      EUR(000)         EUR(000)         EUR(000)         EUR(000)         EUR(000)         EUR(000) 
 Office                4,712            9,683            1,600            5,167            10,468           1,767 
 Logistics             8,335            11,210           2,181            6,533            13,077           1,965 
 Retail                3,283            5,542            1,183            4,529            6,120            1,656 
----------------  ---------------  ---------------  ---------------  ---------------  ---------------  --------------- 
 
   13.        Finance income 

The table below represents the movement in financial income:

 
                                          30 Sep 14    30 Sep 13 
                                             EUR000       EUR000 
--------------------------------------  -----------  ----------- 
 Finance income: movements 
 Interest received                               15           49 
--------------------------------------  -----------  ----------- 
 Interest income                                 15           49 
  Derecognition of preference shares 
   held in treasury                             135            - 
 Unrealised foreign currency loss 
  on preference shares and warrants               -        1,650 
 Realised foreign currency gain 
  on monetary transactions                      428          580 
--------------------------------------  -----------  ----------- 
 Total finance income                           578        2,279 
--------------------------------------  -----------  ----------- 
                                          30 Sep 14    30 Sep 13