Ann: Portfolio Revaluations , page-3

Deja, several property funds are adding industrial to their portfolio because retail space and office space have weak demand in the short and medium term. Industrial on the other hand is at worst balanced and at best has much more demand than supply (of A1 sites).

The result, at least for now, is that there are more buyers for industrial properties, which has pushed up the price (i.e. valuations) of those properties. Butler and Pitt warned of this upward price pressure a few months ago, and with their recent half year report decided on a share buy-back because their fund is undervalued while industrial properties are too expensive. They hinted last month that valuations would (of course) be higher due to increased demand and prices for industrial property.

But I expected maybe 3-5% increase valuation. An 8% increase is quite something!

The double benefit of the higher NTA are, as you noted, that (a) it pushes up the share price to at least NTA value ($2.20s) and (b) gearing drops enough to trigger the lower interest rate on debt (i.e. more cash flow).