Interim Results

ING UK Real Estate Income Trust Ltd
08 September 2006


8 September 2006



ING UK Real Estate Income Trust Limited

Re: Interim Report and Consolidated Financial Statements for the period from 1
January to 30 June 2006

On 7 September 2006, the Directors of ING UK Real Estate Income Trust Limited
approved the Company's Interim Report and Consolidated Financial Statements for
the period from 1 January to 30 June 2006.

Please find below a full copy of the Interim Report and Consolidated Financial
Statement.

(a link to a PDF version can be found at the end of the announcement)


Group Summary

ING UK Real Estate Income Trust Limited ('the Company') is a closed-ended,
Guernsey registered, Investment Company. The Company has three subsidiaries; ING
UK Real Estate (Property) Limited, ING UK REIT (SPV) Limited and ING (UK) Listed
Real Estate, (together 'the Group') whose results are consolidated, and one
Special Purpose Entity, ING (UK) Listed Real Estate Issuer Plc, whose results
are consolidated under SIC 12. The subsidiaries were incorporated to provide a
tax efficient structure. The investment portfolio is managed by ING Real Estate
Investment Management (UK) Limited, a member of the ING Group. The Group was
listed on the London and Channel Islands' Stock Exchanges on the 25 October 2005
and currently has nearly 800 investors.

The Group's aim is to provide shareholders with an attractive level of income
together with the potential for capital growth.

It will invest both directly and indirectly in an investment portfolio
comprising UK, Isle of Man and Channel Islands properties and will focus
initially on five principal commercial property sectors: office, retail,
industrial, retail warehouse and leisure. It is the present intention that the
Group's borrowings will be limited to a maximum of 50% of gross assets.

Financial Highlights and Performance Summary

>      Share price rose by 6% during the period 1 January 2006 to 30 June 2006
       from 108.5 pence to 114.75 pence

>      Two dividends of 1.16 pence per share and 1.5625 pence per share were
       paid in February and May 2006 respectively

>      Net asset value per share rose to 117.4 pence, reflecting a gain of 11.6%
       during the period

>      Gross property assets increased from GBP 505.6 million to GBP 553.7
       million

>      Shareholders' funds rose to GBP 358.1 million from GBP 320.8 million

>      The consolidated profit for the period was GBP 45.6 million, including
       unrealised investment gains of GBP 38.3 million

>      Net income increased to GBP 7.3 million for the period


Chairman's Statement

On behalf of the Board, I am pleased to report that the Group has continued to
deliver on its objectives. These consolidated accounts show good performance
over the six month period ending 30 June 2006. The Net Asset Value per share has
increased by 11.6% to 117 pence and, in addition, dividend payments have been
made totalling 2.72 pence per share.

With increasing interest rates, the Group is fortunate to have fixed its cost of
debt until 2013 at an attractive all-in rate of 5.1%. In accordance with
recognised accounting practices, the fair value of the interest rate swap used
to fix the cost of debt is accounted for through the Income Statement.

The property portfolio has now increased in value to over GBP 553 million and
has delivered an income return over the period of 3.3%, ahead of the IPD
Quarterly All Property Index (at 2.4%), with a total return of 9.3%, on an
ungeared basis, marginally behind the index at 9.6%.

During the period, the Group made its first acquisition which has further
increased its Central London Office weighting. This area of the market is
expected to perform strongly in the short/medium term although the 'low
yielding' nature of this type of investment makes it more difficult to source
opportunities that meet the Group's income objective.

In terms of investor relations, I am pleased to announce the launch of the
Group's website, which will allow shareholders easy access to information
concerning the Group. This is available to view at www.ingreit.co.uk.

Conditions in the UK property market remain favourable and on a one, three and
ten year basis the sector has outperformed both equities and gilts, whilst
continuing to offer the highest income return.

In recent years, much of this performance has been through yield compression but
this will not continue indefinitely; as this weakens, income growth will play an
increasingly important role in delivering strong returns.

Investor demand for property assets shows little sign of weakening and tenant
demand, particularly in the office sector, is improving. Stock selection and
proactive management of any portfolio will be crucial in delivering performance.
I am confident that the Group is well positioned on a sector basis and is
demonstrating its ability to continue to deliver on its objectives.

Nick Thompson
Chairman of the Board
7 September 2006


Investment Manager's Commentary

THE UK PROPERTY MARKET

The IPD Quarterly All-Property Index total return over the six months to June
2006 was 9.6%. Although rental growth continues to improve steadily,
yield-driven capital appreciation is still the main driver of total returns.
Capital values increased a further 6.9% per annum in the first six months of the
year.

Offices are currently the best performing property sector with returns averaging
11.6% over the last six months. Total returns in the central London markets are
higher than the sector average due to the benefits of significant recent rental
value uplifts. Retailer turnover has recently shown renewed life but trading
conditions remain tough for occupiers. Nevertheless, rental values have held up
well and retail property returns have averaged 8.7% in the year to date.
Industrial property returns over the last six months slightly edged ahead of
retail at an average 9%. Furthermore industrial stock still offers an income
advantage over the other property sectors.

UK economic growth increased by 0.8% in the second quarter, taking the annual
growth rate back above the long-term trend, generally considered to be around
2.5% per annum. The improvement was primarily on the service side of the economy
including distribution, financial & business services but perhaps most
surprisingly, as noted above, retail sales. Looking ahead, although concerns
exist regarding a possible US and global economic weakening, the vast majority
of forecasters still anticipate that the UK economy will continue to see growth
at or above trend over the next 18 months. This has highly positive implications
for commercial property rental growth.

CPI annual inflation, the Government's target measure, rose to 2.5% per annum in
June, the highest level since the start of the official series in 1997. Combined
with economic growth, surprisingly on the upside this quarter, the interest rate
outlook has now shifted upward. This underpinned the Bank of England's decision
to increase base rates by 25 basis points to 4.75% in early August. Although
property investment is no longer readily self-financing, investors are still
prepared to forgo income to gear-up on the capital growth component of total
return.

Whilst there are signs that investment transactions have slowed in 2006 against
last year's levels, investor appetite shows little sign of dissipating. High
property investment demand, particularly ahead of the launch of on-shore REITs
within the UK in January 2007, has resulted in reduced investment availability
and continued strong capital appreciation. Despite increasing rental growth, the
capital appreciation has resulted in a further dilution of the income
distribution yield available to new property fund investors. However, in the
coming years we anticipate that purely yield driven capital appreciation will
subside and rents will re-establish themselves as the primary driver of property
fund performance.

(Source: IPD Quarterly Index, ONS)


PORTFOLIO ACTIVITY

As at 30 June 2006 the value of the Group's portfolio was GBP 553.7 million with
an annual net income of GBP 32.3 million showing a running yield at a property
level of 5.8%. The portfolio comprises 56 properties with an average unexpired
lease term approaching nine years. The void level at 30 June 2006 represented
4.1% of total income (excluding Watford where the Group benefits from a rent
guarantee until August 2007).

During the period, the Group made its first acquisition, completing on the
purchase of a multi-let office building located within the City of London. The
property, known as Boundary House, Jewry Street, London EC3 became the sixth
largest asset and was acquired reflecting a net initial yield of 5.2% and a
capital value of approximately GBP 360 per sq ft. The property offers
significant scope to enhance value from both a recovering central London office
market as well as active management and refurbishment initiatives, with a range
of lease expiries over the next three years.

In our last report, we advised of the fire at the Magna Park property. We are
pleased to confirm that the property is fully rebuilt and the tenant, TNT, has
now reoccupied the building and recommenced rental payments. The Group's
insurers covered the loss of the rental income over the period and the
rebuilding costs.

The Group has taken a number of surrenders of occupational leases. This has
enhanced both value and income, by achieving lettings at rents and timescales
ahead of expectations.

Proactive management of the portfolio remains critical and we are continually
speaking with tenants to ensure that we can maximise opportunities when they
arise. The portfolio has a number of lease expiries within the short to
medium-term and we are working hard to ensure tenant retention as well as
maximising opportunities should units become vacant.

Following the period end, the additional debt facility contained within the
securitisation structure was utilised. An additional GBP 25 million of debt was
issued in the form of AAA rated Reserve Notes which has been fully hedged until
30 January 2013. The total debt on the portfolio has increased to GBP 225
million at an effective all in rate of 5.1%.

Subsequent to the period end the Group acquired another central London office -
Notcutt House, Southwark Bridge Road, London, SE1. The purchase price of GBP 7
million reflects a net initial yield of 5.75%. The property was refurbished in
2001 and is let to a single tenant until September 2016. The Group also disposed
of a retail property at Gorgie Park Road, Edinburgh for GBP 3.6 million, well in
excess of the June valuation of GBP 2.98 million.

We continue to search for suitable acquisitions that meet the Group's objectives
and, where appropriate, disposing of assets that do not.

ING Real Estate Investment Management (UK) Limited

7 September 2006


Portfolio Statistics


GEOGRAPHICAL


As at 30 June 2006 the regional weightings of the property portfolio, as a
percentage of current capital value, are summarised as follows:

Central London                                                             7.9%
South East & Greater London                                               35.9%
Midlands                                                                  18.1%
South West                                                                 4.6%
North                                                                     17.7%
Wales                                                                      7.2%
Scotland                                                                   4.1%
Northern Ireland                                                           2.9%
Offshore UK                                                                1.6%


SECTOR


As at 30 June 2006 the sector weightings of the property portfolio, as a
percentage of current capital value, are summarised as follows:

Offices                                                                   41.4%
Industrial                                                                21.5%
Retail                                                                    20.7%
Retail Warehouses                                                          9.1%
Leisure                                                                    7.3%


COVENANT STRENGTH


The covenant strength as at 31 March 2006 is summarised as follows (based as a
percentage of current passing rent):

                                      Portfolio         IPD Quarterly benchmark
Negligible and Government risk            32.2%                           37.6%
Low risk                                  32.0%                           33.6%
Low-medium risk                            9.2%                            8.5%
Medium-high risk                          15.9%                            8.1%
High risk                                  4.5%                            6.5%
Ineligible/not matched                     6.2%                            5.7%


Covenant strength data is produced by IPD and, as at 18 August 2006, is not
available for 30 June 2006.


LEASE EXPIRY


As at 30 June 2006 the length of the leases to the first termination is
summarised as follows (based as a percentage of current net annual rent):

< 5 years                                                                 37.7%
5-10 years                                                                23.7%
10-15 years                                                               28.4%
15-25 years                                                                8.2%
> 25 years                                                                 2.0%


LIST OF PROPERTIES BY VALUE BAND

Properties in excess of GBP 20 million                         Predominant Use
Colchester Business Park, The Crescent, Colchester             Office
36-42 Frodsham Street and Frodsham Square, Chester             Retail
Unit 5320, Magna Park, Lutterworth                             Industrial
Phase II, Parc Tawe, Link Road, Swansea                        Retail Warehouse

Properties between GBP 15 million and GBP 20 million
Scottish Provident Buildings, Donegall Square West, Belfast    Retail
Regency Wharf, Broad Street, Birmingham                        Leisure
Lincoln Place (Block 2),Farringdon Road, London EC1            Office
Boundary House, Jewry Street, London, EC3                      Office
Scorpio Inns Pub Portfolio                                     Leisure

Properties between GBP 10 million and GBP 15 million
Scots Corner, High St/Institute Rd, Birmingham                 Retail
Angouleme Way Retail Park, Bury                                Retail Warehouse
Angel Gate Office Village, City Road, London EC1               Office
Arena Court, Crown Lane, Maidenhead                            Office
401 Grafton Gate East, Milton Keynes                           Office
17/19 Fishergate, Preston                                      Retail
Unit 2, Ravensback Business Park, Redditch                     Industrial
The Business Centre, Molly Millars Lane, Wokingham             Industrial
171 Bath Road, Slough                                          Office

Properties between GBP 5 million and GBP 10 million
Downmill Road, Bracknell                                       Industrial
Waterside Park, Longshot Lane, Bracknell                       Office
9/12 St James Parade, Bristol                                  Office
Longcross Court, Newport Road, Cardiff                         Office
City Link House & Tolley House, Addiscombe Road, Croydon       Office
72/78 Murraygate, Dundee                                       Retail
Queens House,17/29 St Vincent Place, Glasgow                   Office
Leys House, 86/88 Woodbridge Road, Guildford                   Office
6/12 Parliament Row, Hanley                                    Retail
Units 1-3, 18/28 Victoria Lane, Huddersfield                   Retail
Provident House, Ballacottier Business Park, Isle Of Man       Office
Waterside House, Kirkstall Road, Leeds                         Office
1-3 Chancery Lane, London WC2                                  Office
134/152 Balham High Road, London, SW12                         Retail
Strathmore Hotel, Arndale Centre, Luton                        Leisure
Units 1-13 Dencora Way, Sundon Park, Luton                     Industrial
Heron Industrial Estate, Spencers Wood, Reading                Industrial
Haynes Way, Swift Valley Industrial Estate, Rugby              Industrial
Trident House, 42/48 Victoria Street, St Albans                Office
Northampton Business Park, 800 Pavilion Drive, Northampton     Office
Atlas, Third Avenue, Globe Park, Marlow                        Office
Easter Court, Gemini Park, Warrington                          Industrial
3 The Boulevard, Croxley Green, Watford                        Office
1 Boulevard Shire Park, Welwyn Garden City                     Office
Lawson Mardon Buildings, Kettlestring Lane, York               Industrial

Properties under GBP 5 million
Unit 1 Oakwell Park Industrial Estate, Birstall                Industrial
Riverside Business Centre, Aberdeen                            Office
Wren House, Hedgerows Business Park, Chelmsford                Office
Merchants House, Crook Street, Chester                         Office
Kwik Save, Gorgie Park Road, Edinburgh                         Retail
477 Alexandra Parade, Glasgow                                  Retail
593/599 Fulham Road , London SW6                               Retail
Trafford Park, Ashburton Road East, Manchester                 Industrial
9/17 Western Road, Mitcham                                     Retail Warehouse
40 Garsington Road, Oxford                                     Industrial
69/75 Queensway, 2-12 Park Place, Stevenage                    Retail
7&9 Warren Street, Stockport                                   Retail
Globe House, Madeira Road, West Byfleet                        Office



Unaudited Consolidated Income Statement

for the period from 1 January to 30 June 2006

                                1 January to 30 June 2006     15 Sept to 31 Dec
                                                                          2005
                                                                   (unaudited)
                          Notes Income    Capital     Total              Total
                               GBP 000s  GBP 000s  GBP 000s           GBP 000s
Income
Rental income               4    14,044         -    14,044              7,152
Service charge
recharged to tenants                872         -       872                737
Other operating income            1,750         -     1,750                 60
Total operating income           16,666         -    16,666              7,949

Gains and Losses on
Investments
Unrealised gains on
revaluation of
investment properties                 -    32,092    32,092             18,371
Unrealised gain on
interest rate swap                    -     6,230     6,230                  -
Total gains on
investments                           -    38,322    38,322             18,371

Expenses
Property management
fee                              (2,443)        -    (2,443)              (848)
Property expenses                (1,508)        -    (1,508)               (66)
Service charge cost of
properties                         (872)        -      (872)              (737)
Amortisation of
finance costs                      (145)        -      (145)                (8)
Swap arrangement fee                  -         -         -               (247)
Other                              (651)        -      (651)              (133)
Total operating
expenses                         (5,619)        -    (5,619)            (2,039)

Profit before finance
costs and tax                    11,047    38,322    49,369             24,281

Bank and deposit
interest receivable                 643         -       643                191
Loan interest expense            (4,739)        -    (4,739)            (1,915)
Total finance costs              (4,096)        -    (4,096)            (1,724)

Profit before tax                 6,951    38,322    45,273             22,557
Tax                         7       300         -       300               (300)
Profit for the period             7,251    38,322    45,573             22,257
Dividends                        (8,304)        -    (8,304)                 -
Retained earnings                (1,053)   38,322    37,269             22,257

Earnings per share          8
Basic (p)                             -         -      14.9                7.3
Diluted (p)                           -         -      14.9                7.3


The total column of this statement represents the Group's Income Statement,
prepared in accordance with International Financial Reporting Standards. The
supplementary revenue return and capital return columns are both prepared under
guidance published by the Association of Investment Trust Companies. All items
in the above statement derive from continuing operations. Notes 1 to 21 form
part of these financial statements.


Unaudited Consolidated Statement of Changes in Equity

for the period ended 30 June 2006

                     Share       Share   Distributable     Retained      Total
                   Capital     Premium        Reserves     Earnings
                  GBP 000s    GBP 000s        GBP 000s     GBP 000s   GBP 000s
Profit for the
period from
15 September
to 31 December
2005                     -           -               -       22,257     22,257
Issue of share
capital                  -     298,544               -            -    298,544
Transfer                 -    (298,544)        298,544            -          -
Balance as at
31 December
2005                     -           -         298,544       22,257    320,801
Profit for the
period from
1 January to
30 June 2006             -           -               -       37,269     37,269
Balance as at
30 June 2006             -           -         298,544       59,526    358,070


All income is attributable to the equity holders of the parent company. There
are no minority interests. By way of a special resolution dated 30 September
2005, the amount standing to the credit of the share premium account was
cancelled and transferred to a distributable reserve. See Note 18.


Unaudited Consolidated Balance Sheet

as at 30 June 2006

Assets                                Notes     30 June 2006  31 December 2005
                                                    GBP 000s        (unaudited)
                                                                      GBP 000s
Non-current assets
Investment properties                    10          553,746           505,630
Total non-current assets                             553,746           505,630
Current assets
Receivables                              11            4,809             4,638
Cash and cash equivalents                12           12,999            32,696
Total current assets                                  17,808            37,334
Total assets                                         571,554           542,964
Current liabilities
Accrued expenses and deferred income     14          (10,962)          (11,812)
Other payables                           15           (8,752)          (10,351)
Total current liabilities                            (19,714)          (22,163)
Non-current liabilities
Borrowings                               13         (193,770)         (200,000)
Total non-current liabilities                       (193,770)         (200,000)
Total liabilities                                   (213,484)         (222,163)
Net assets                                           358,070           320,801
Ordinary share capital                   17                -                 -
Distributable Reserve                    18          298,544           298,544
Retained earnings                                     59,526            22,257
Shareholders' funds                                  358,070           320,801
Net Asset Value per share                           GBP 1.17          GBP 1.05


The interim report was approved by the Board of Directors on 7 September 2006
and signed on its behalf by:


Trevor Ash


Robert Sinclair


Unaudited Consolidated Cash Flow Statement for the period from 1 January to 30
June 2006

                                    1 January to 30 June     15 Sept to 31 Dec
                                                    2006                  2005
                                                GBP 000s            (unaudited)
                                                                      GBP 000s
Profit before tax                                 45,273                22,557
Adjusted for
Interest received                                   (643)                 (191)
Interest paid                                      4,739                 1,656
Amortisation of finance
costs                                                145                     8
Realised and unrealised
surplus on investment
properties and interest
rate swap                                        (38,322)              (18,371)
Operating profit before
working capital changes                           11,192                 5,659
Increase in trade and
other receivables                                   (316)               (2,689)
(Increase)/decrease in
trade and other payables                          (2,907)               21,864
Net cash flows from
operating activities                               7,969                24,834
Cash flows from investing
activities
Purchase of investment
properties                                       (16,024)             (487,259)
Interest received                                    643                   191
Net cash flows from
investing activities                             (15,381)             (487,259)
Cash flows from financing
activities
Equity raised                                          -               305,000
Proceeds from long term
borrowings                                             -               200,000
Issue costs of borrowing
and equity raising                                     -                (8,414)
Interest paid                                     (3,981)               (1,656)
Dividends paid                                    (8,304)                    -
Net cash flows from
financing activities                             (12,285)              495,121
Net (decrease)/increase
in cash and cash
equivalents                                      (19,697)               32,696
Cash and cash equivalents
at beginning of period                            32,696                     -
Cash and cash equivalents
at end of period                                  12,999                32,696









Notes to the Unaudited Consolidated Financial Statements

for the period ended 30 June 2006



1. GENERAL INFORMATION

ING UK Real Estate Income Trust Limited was incorporated on 15 September 2005
and is registered as a closed ended Guernsey investment company (The address of
the registered office is given on page 28).

The interim consolidated financial statements are prepared for the period from 1
January to 30 June 2006. The comparable period is 15 September 2005 to 31
December 2005. The first accounting period and audited financial statements of
the Group will be prepared under International Financial Reporting Standards for
the period ending 31 December 2006.

These financial statements are presented in pounds sterling being the currency
of the primary economic environment in which the Group operates.

No Company only information has been provided because in the opinion of the
Directors this would not give a materially different view than for the Group.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of accounting

The financial statements of the Group have been prepared in accordance with
International Financial Reporting Standards ('IFRS'), which comprise standards
and interpretations approved by the International Accounting Standards Board
('IASB'), and International Accounting Standards and Standing Interpretations
Committee interpretations approved by the International Accounting Standards
Committee ('IASC') that remain in effect; and to the extent that they have been
adopted by the European Union.

At the date of approval of these financial statements, the following standard,
which has not been applied in these financial statements, was in issue but not
yet effective: IAS34 Interim Financial Reporting.

The financial statements have been prepared on the historical cost basis, except
for the revaluation of investment properties. The principal accounting policies
adopted are set out below. Where presentational guidance set out in the
Statement of Recommended Practice ('SORP') for investment trusts has been issued
by the Association of Investment Trust Companies ('AITC') in December 2005 and
is consistent with the requirements of IFRS, the Directors have sought to
prepare the financial statements on a basis compliant with the recommendations
of the SORP.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of
the Group and entities controlled by the Group made up to 30 June. Control is
achieved where the Group has the power to govern the financial and operating
policies of an investee entity so as to obtain benefits from its activities. All
intra-group transactions, balances, income and expenses are eliminated on
consolidation. The results of ING (UK) Listed Real Estate Issuer Plc are
consolidated in accordance with SIC 12, 'Consolidation-Special Purpose
Entities'.

Presentation of the income statement

In order to better reflect the activities of an investment trust company and in
accordance with guidance issued by the AITC, supplementary information which
analyses the income statement between items of a revenue and capital nature has
been presented alongside the income statement.

Investment properties

Following the initial recognition at cost, land and buildings are carried at a
revalued amount which is the fair value at the date of the revaluation. Fair
value is determined by reference to market-based evidence, which are the amounts
for which the assets could be exchanged between a knowledgeable willing buyer
and a knowledgeable willing seller in arm's length transactions as at the
valuation date.

The fair value of investment property is based on valuation by an independent
valuer who holds a recognised and relevant professional qualification and who
has recent experience in the location and category of the investment property
being valued. Movements in fair value are included in the income statement.

An item of investment property is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any
gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the item) is
included in the income statement in the year the item is derecognised.
Properties are not depreciated.

Realised and unrealised gains on investment properties have been presented as
capital items within the income statement.

The loan from ING (UK) Listed Real Estate Issuer Plc has a first ranking
mortgage over all the properties. See Note 13.

In line with industry practice, properties are held in nominee companies.

Leases

An operating lease is a lease other than a finance lease. Lease income is
recognised in income on a straight-line basis over the lease term. Indirect
costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the lease asset and recognised as an expense over the lease
term on the same basis as the lease income.

The financial statements reflect the requirements of SIC15, 'Operating Leases -
Incentives' to the extent that they are material.

Lease income and expenses have been presented as revenue items in the income
statement.

Income and expenses

Income and expenses are included in the income statement on an accruals basis.
All of the Group's income and expenses are derived from continuing operations.

Revenue is recognised to the extent that it is probable that the economic
benefit will flow to the Group and the revenue can be reliably measured.

Property operating costs include the costs of professional fees on letting and
other nonrecoverable costs.

The income charged to tenants for property service charges and the costs
associated with such service charges are shown separately in the income
statement to reflect that notwithstanding this money is held on behalf of
tenants occupying the properties, the ultimate risk for paying and recovering
these costs rests with the property owner.

Cash and cash equivalents

Cash includes cash in hand and cash with banks. Cash equivalents are short-term,
highly liquid investments that are readily convertible to known amounts of cash
with original maturities in three months' or less and that are subject to an
insignificant risk of change in value.

Trade receivables

Trade receivables are stated at their nominal amount as reduced by appropriate
allowances for estimated irrecoverable amounts.

Interest bearing loans and borrowings

All loans and borrowings are initially recognised at cost, being the value of
the consideration received net of issue costs associated with the borrowing.
After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost using the effective interest rate
method. Amortised cost is calculated by taking into account any issue costs, and
any discount or premium on settlement. Gains and losses are recognised in the
income statement when the liabilities are derecognised, as well as through the
amortisation process.

Finance Costs

Finance costs incurred relating to the arrangement of the loan are written off
to the income statement over the term of the loan.

Other assets and liabilities

Other assets and liabilities are not interest bearing and are stated at their
nominal value.

Taxation

The Group is exempt from Guernsey taxation on income derived outside Guernsey
under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989. A fixed annual
fee of GBP 600 is payable to the States of Guernsey income tax authorities in
respect of this exemption.

No charge to Guernsey taxation will arise on capital gains.

The Directors intend to conduct the affairs of the Group such that the
management and control of the Group is not exercised in the United Kingdom and
that the Group does not carry on a trade in the United Kingdom. Accordingly the
Group will not be liable to United Kingdom taxation on its income or capital
gains other than certain income deriving from a United Kingdom source.

The Group is subject to United Kingdom taxation on income arising on the
Property Portfolio after deduction of allowable debt financing costs and
allowable expenses.

Principles for the cash flow statement

The cash flow statement has been drawn up according to the indirect method,
separating the cash flows from operating activities, investing activities and
financing activities. The net result has been adjusted for amounts in the income
statement and movements in the balance sheet which have not resulted in cash
income or expenditure in the period.

The cash amounts in the cash flow statement include those assets that can be
converted into cash without any restrictions and without any material risk of
decreases in value as a result of the transaction. Dividends that have been
proposed and declared are included in the cash flow from financing activities.

3. RISK MANAGEMENT

The Group invests in commercial properties in the United Kingdom, the Isle of
Man and the Channel Islands. The following describes the involved risks and the
applied risk management.

Real estate risks

The yields available from investments in real estate depend primarily on the
amount of revenue earned and capital appreciation generated by the relevant
properties as well as expenses incurred. If properties do not generate
sufficient revenues to meet operating expenses, including debt service and
capital expenditures, the Group's revenue will be adversely affected. Revenue
from properties may be adversely affected by the general economic climate, local
conditions such as oversupply of properties or a reduction in demand for
properties in the market in which the Group operates, the attractiveness of the
properties to tenants, the quality of the management, competition from other
available properties and increased operating costs (including real estate
taxes).

In addition, the Group's revenue would be adversely affected if a significant
number of tenants were unable to pay rent or its properties could not be rented
on favourable terms. Certain significant expenditure associated with each equity
investment in real estate (such as external financing costs, real estate taxes
and maintenance costs) generally are not reduced when circumstances cause a
reduction in revenue from properties.

By diversifying in regions, sectors, risk categories and tenants, the Manager
expects to lower the risk profile of the portfolio.

Risks of leverage

The Group has external borrowings in connection with its investments to increase
the potential equity performance. Although the use of leverage may enhance
returns and increase the number of investments that can be made, it may also
increase the risk of loss. This includes the risk that available funds will be
insufficient to meet required payments and the risk that existing indebtedness
will not be able to be refinanced or that terms of such refinancing will not be
as favourable as the terms of existing indebtedness.


Interest rate risk


The following table sets out the carrying amount, by maturity, of the Group's
financial instruments.

              Less than one year  1 to 5 years   More than 5 years      Total
                        GBP 000s      GBP 000s            GBP 000s   GBP 000s
Assets
Cash and cash
equivalents               12,999             -                   -     12,999
Interest rate
swap                           -             -               6,230      6,230
Liabilities
Term loan                      -             -             200,000    200,000


Credit risk

Credit risks, or the risk of counter parties defaulting, are controlled by the
application of credit approvals, limits and monitoring procedures. Where
appropriate, the Group obtains collateral in the form of rent deposits. The
extent of the Group's credit exposure is represented by the aggregate balance of
amounts receivable, reduced by the effect of any netting arrangements with
counter parties.

Liquidity risk

Liquidity risk arises from the possibility that customers may not be able to
settle obligations within the normal terms of trade. To manage this risk, the
Group periodically assesses the financial viability of customers.

4. RENTAL INCOME

Rent receivable is stated exclusively of Value Added Tax and arose wholly from
continuing operations in the United Kingdom, the Isle of Man and the Channel
Islands.

5. BUSINESS AND GEOGRAPHICAL SEGMENTS

The Directors are of the opinion that the Group, through its subsidiary
undertakings, operates in one reportable industry segment, namely real estate
investment, and across one primary geographical area, namely the United Kingdom,
the Isle of Man and the Channel Islands and therefore no segmental reporting is
required. The portfolio consists of 55 commercial properties, comprising office,
retail, industrial and leisure sectors, and one Public House Portfolio (the 'Pub
Portfolio').

6. STAFF NUMBERS AND COSTS

The Group has no employees.

7. TAX

The (credit)/charge for the period is:
                                                            2006          2005
                                                        GBP 000s      GBP 000s

UK income tax at 22% on UK rental income                    (300)          300


8. EARNINGS PER SHARE

From continuing operations, the calculation of the basic and diluted earnings
per share is based on the following data:

Earnings for the purposes of basic earnings per share being net   GBP 45,573,000
profit attributable to equity holders:
The average number of shares in issue during the period:           305,000,000


9. SUBSIDIARIES

ING UK Real Estate Income Trust Limited owns 100% of the share capital of:


>      ING UK Real Estate (Property) Limited, PO Box 255, Trafalgar Court, Les
       Banques, St Peter Port, Guernsey GY1 3QL; and

>      ING (UK) REIT (SPV) Limited, PO Box 255, Trafalgar Court, Les Banques, St
       Peter Port, Guernsey GY1 3QL.


ING UK Real Estate (Property) Limited and ING (UK) REIT (SPV) Limited own 100%
of the units in ING (UK) Listed Real Estate, a Guernsey Property Unit Trust (The
'GPUT').

The subsidiaries and the GPUT were incorporated to provide a tax efficient
structure for the Group to invest in the underlying property investments.

Under the principles of SIC 12 the Group has consolidated the results of the
Special Purpose Entity ('the SPE') detailed below. The Group does not own any
share capital of the SPE: ING (UK) Listed Real Estate Issuer Plc, c/o SPV
Management Limited, Tower 42 (Level 11), International Financial Centre, 25 Old
Broad Street, London EC2N 1HQ.

The SPE was incorporated to provide funding to the Group though a securitisation
agreement. See note 13.

10. INVESTMENT PROPERTIES

                                                      2006                2005
                                                  GBP 000s            GBP 000s

At start of period                                 505,630                   -
Additions                                           16,024             487,259
Surplus on revaluation                              32,092              18,371
At end of period                                   553,746             505,630


The investment properties were valued by King Sturge, Chartered Surveyors, as at
24 June 2006, on the basis of open market value in accordance with the Appraisal
and Valuation Manual of the Royal Institute of Chartered Surveyors.

The historical cost of investment property included in the valuation above was
GBP 503,283,000.

The loan facility is secured by a first ranking fixed charge over all properties
held.

In relation to the Scorpio Inns Pub Portfolio, the tenant has options to
purchase one third of the pub properties in 2006, one half in 2011 and the
balance in 2016. The option price has been accounted for in the above valuation.
The current option has been exercised and will take effect before the end of
October 2006.

11. RECEIVABLES
                                                        2006              2005
                                                    GBP 000s          GBP 000s

Trade debtors                                          3,005             2,609
Capitalised finance costs                              1,804             1,949
Other receivables                                          -                80
                                                       4,809             4,638

The unamortised loan arrangement costs as at 30 June 2006 are GBP 1,804,000.
These are amortised over the life of the loan. For the period ended 30 June 2006
GBP 145,000 (period ended 31 December 2005: GBP 8,000) of these costs were
written off to the income statement.

12. CASH AND CASH EQUIVALENTS
                                                        2006              2005
                                                    GBP 000s          GBP 000s
Cash at bank and in hand                               5,277             9,761
Short term deposits                                    7,722            22,935
                                                      12,999            32,696


Cash at bank and in hand earns interest at floating rates based on daily bank
deposit rates. Short-term deposits are made for varying periods of between one
day and one month depending on the immediate cash requirements of the Group, and
earn interest at the respective short-term deposit rates. The fair value of cash
and cash equivalents is GBP 12,999,000.

13. INTEREST BEARING LOANS AND BORROWINGS

Type         Rate                 2006                 2005   Maturity
                %             GBP 000s             GBP 000s       Date
Fixed       4.805              200,000              200,000   Jan 2013


On 20 December 2005 the Group entered into a seven year fixed rate loan with ING
(UK) Listed Real Estate Issuer PLC (the 'Issuer'), a newly set up Special
Purpose Vehicle which, back-to-back, issued GBP 200 million of AAA seven year
floating rate loan notes to the debt market. The loan has a fixed interest rate
of 4.805% and can be repaid at any time. The debt proceeds were used to repay
the GBP 200 million bridge loan which was due to expire in April 2006. The
Issuer has entered into an interest rate swap in order to fix the interest
payable on its loan notes. The fair value of this interest rate swap at 30 June
2006 was GBP 6,230,000 (31 December 2005: GBP nil).


Under the terms of the securitisation documents the Group has an obligation to
the Issuer in respect of any amounts due or payable under the swap agreement. As
the Group consolidates the results of the Issuer under the principles of SIC 12,
the Group has accounted for the fair value of the swap.


14. ACCRUED EXPENSES AND DEFERRED INCOME

                                                        2006              2005
                                                    GBP 000s          GBP 000s
Property management fees                               1,182               848
Other accruals                                         1,988             3,416
Deferred rental income                                 7,792             7,548
                                                      10,962            11,812



15. OTHER PAYABLES

                                                           2006           2005
                                                       GBP 000s       GBP 000s
VAT liability                                                 -          2,367
Trade creditors - capital expenses                        5,600          7,700
Other                                                     3,152            284
                                                          8,752         10,351



16. CONTINGENCIES AND CAPITAL COMMITMENTS

There are none as at 30 June 2006. (Period ended 31 December 2005: GBP Nil)

17. ORDINARY SHARE CAPITAL

Authorised: 305 million of ordinary shares of nil par value.

Issued and fully paid: 305 million ordinary shares of nil par value.



18. SHARE PREMIUM AND DISTRIBUTABLE RESERVE

                         Share Distributable       Share Distributable Reserve
                       Premium       Reserve     Premium                  2005
                          2006          2006        2005              GBP 000s
                      GBP 000s      GBP 000s    GBP 000s
Balance at start of
period                       -       298,544           -                     -
Premium arising on
issue of equity shares       -             -     305,000                     -
Expenses of issue of
equity shares                -             -      (6,456)                    -
Transfer to
distributable reserve        -             -    (298,544)              298,544
Balance at end of
period                       -       298,544           -               298,544


By way of a special resolution dated 30 September 2005, the amount standing to
the credit of the share premium account was cancelled and transferred to a
distributable reserve.

19. DIVIDENDS

The dividends paid in the current period are as follows: GBP 3,538,000 (1.16
pence per ordinary share) paid in February 2006 relating to the period 25
October to 31 December 2005, GBP 4,766,000 (1.5625 pence per ordinary share)
paid in May 2006 relating to the quarter ended 31 March 2006. (Period ended 31
December 2005: GBP nil).

A further interim dividend of 1.5625 pence per ordinary share in respect of the
quarter ended 30 June 2006 has been approved and paid in August 2006. Under IFRS
these financial statements do not reflect this dividend.

20. RELATED PARTY TRANSACTIONS

Under the terms of the Investment Management Agreement, ING Real Estate
Investment Management (UK) Limited (the 'Investment Manager') receives
remuneration for property management and administration services. The management
fee is payable quarterly in arrears and is equal to the aggregate of the
following:

a) one quarter of 90 basis points of gross property assets up to and including
GBP 600 million

b) one quarter of 82.5 basis points of gross property assets in excess of GBP
600 million and up to and including GBP 800 million

c) one quarter of 75 basis points of gross property assets in excess of GBP 800
million

d) one quarter of 40 basis points of cash assets

ING Real Estate Investment Management (UK Funds) Limited (the 'Fund Manager') is
paid a quarterly fee of GBP 150,000 per annum by the Group in respect of the
administration services. This is deducted from the fee referred to above. During
the period the Investment Manager and Fund Manager were paid a total of GBP
2,443,000 in respect of the above services.

ING UK Real Estate Income Trust Limited has no controlling parties.

21. EVENTS AFTER THE BALANCE SHEET DATE

A dividend of GBP 4,766,000 (1.5625 pence per share) was approved by the Board
on 10 August 2006.

On 6 July 2006 a further GBP 25 million of debt was drawn down under the
securitisation structure which was established in December 2005. This was issued
in the form of AAA rated Reserve Notes and has been fully hedged until 30
January 2013.



INDEPENDENT REVIEW REPORT ING UK REAL ESTATE INCOME TRUST LIMITED ('The Group')

Introduction

We have been instructed by the Group to review the financial information for the
six months ended 30 June 2006 which comprise the consolidated income statement,
the consolidated balance sheet, the consolidated statement of changes in equity,
the consolidated cash flow statement and related notes 1 to 21. We have read the
other information contained in the interim report and considered whether it
contains any apparent misstatements or material inconsistencies with the
financial information.

This report is made solely to the Group in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the Group those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Group, for our review work, for this report, or for the conclusions we have
formed.

Director's responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

As disclosed in note 1, the next annual financial statements of the Fund will be
prepared in accordance with International Financial Reporting Standards as
adopted for use in the EU. Accordingly, the interim report has been prepared in
accordance with the recognition and measurement criteria of IFRS and the
disclosure requirements of the Listing Rules.

Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with International Standards on Auditing (UK and
Ireland) and therefore provides a lower level of assurance than an audit.
Accordingly, we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2006.

Deloitte & Touche
Chartered Accountants
7 September 2006

Group Information

Directors
Nicholas Thompson (Chairman)
Trevor Ash
David Blight
John Gibbon
Robert Sinclair

Investment and Property Manager
ING Real Estate Investment
Management (UK) Limited
6th Floor
60 London Wall
London EC2M 5TQ

Fund Administrator, Registrar and Secretary
Northern Trust International Fund
Administration
Services (Guernsey) Limited
PO Box 255, Trafalgar Court
Les Banques
St. Peter Port
Guernsey GY1 3LQ

Receiving Agent and UK Transfer/ Paying Agent
Computershare Investor Services Plc
PO Box 859
The Pavilions
Bridgewater Road
Bristol BS99 1XZ

Tax Advisers
Deloitte and Touche LLP
Hill House
1 Little New Street
London EC4A 3TR

Registered Office
Trafalgar Court
Les Banques
St. Peter Port
Guernsey

Auditors
Deloitte & Touche
Regency Court
Glategny Esplanade
St Peter Port
Guernsey GY1 3HW

Property Valuers
King Sturge LLP
30 Warwick Street
London W1B 5NH

Solicitors to the Group:

As to English Law

Norton Rose
Kempson House
Camomile Street
London EC3A 7AN

As to Guernsey Law

Carey Olsen
PO Box 98
7 New Street
St Peter Port
Guernsey GY1 4BZ



Please find below a link to the Interim Report and Consolidated Financial
Statements of the Company.

http://www.rns-pdf.londonstockexchange.com/rns/6728i_-2006-9-7.pdf




Enquiries:

The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL

01481 745439



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