Quarterly Newsletter

ING UK Real Estate Income Trust Ltd
01 September 2006


ING UK Real Estate Income Trust Limited

31 August 2006


Newsletter Q2 2006


About the Fund


ING UK Real Estate Income Trust Limited is a closed-ended, Guernsey registered,
investment company. The investment portfolio is managed by ING Real Estate
Investment Management (UK) Limited, a member of the ING Group. The Company was
launched on the London and Channel Islands' Stock Exchange on 25 October 2005
and to date has over 790 investors.


Investment Objective


The Company'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, retail warehouse, industrial and leisure. It
is the present intention that the Company's borrowings will be limited to a
maximum of 50% of gross assets.


Fund Performance


As at 30 June 2006 the Net Asset Value of the Company was GBP 358.1 million
which amounts to 117.0 pence per share. This reflects an uplift of 7.4 pence per
share, or 6.8% over the quarter, including an adjustment which reflects the
marked to market swap.


Regional Diversification

Central London                                                             7.9%
Greater London                                                             7.4%
South East                                                                28.5%
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 Diversification

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


Key Information (As at 30th June 2006)

Launch Date                      25th October 2005
Shares Issued                    305 million
Share Price                      114.75 pence
Market Capitalisation            GBP 349.9 million
Net Asset Value                  GBP 358.1 million
Property Value                   GBP 553.7 million
NAV per share                    117 pence
Number of Properties             56
Average Lot Size                 GBP 9.88 million
Average Lease Length             8.81 years
Current Debt                     GBP 200 million
Gearing                          36.1%
Interest Rate                    5.04%
Financial Year End               31st December 2006
Half Year                        30th June 2006
Dividend Payment Dates           31st August / 30th November 2006
Fund Management Fee              0.9% of Gross Asset Value


10 Largest Assets


The following table shows the 10 largest assets by value, which comprises some
38.5% of the portfolio.

Asset                                            Principal       Lot Size (GBP)
                                                 Sector
Lutterworth - Unit 5320, Magna Park              Industrial      30 - 50 million
Swansea - Phase II, Parc Tawe, Link Road         Retail          30 - 50 million
                                                 Warehouse
Chester - 36-42 Frodsham Street & Frodsham       Retail          20 - 30 million
Square
Colchester - Colchester Business Park, The       Office          20 - 30 million
Crescent
London - Lincoln Place, Farringdon Road          Office          15 -20 million
London - Boundary House, Jewry Street            Office          15 - 20 million
Belfast - Scot Prov Buildings, 1/11 Donegall     Retail          15 - 20 million
Square
Birmingham - Regency Wharf, Broad Street         Leisure         15 - 20 million
UK Wide - Scorpio Inns Portfolio                 Leisure         15 - 20 million
Greater Manchester - Angouleme Way, Bury         Retail          10 - 15 million
                                                 Warehouse


10 Largest Tenants


The 10 largest individual tenants represent 30.4% of the portfolio by rent and
are set out below.

       Tenant                                     % of total Portfolio (by rent)
   1   TNT UK Limited                                                      6.7%
   2   Merrill Lynch Europe PLC                                            3.5%
   3   Tesco Stores Limited                                                3.3%
   4   The Punch Pub Company (PTL) Limited                                 3.3%
   5   Barclays Sharedealing                                               2.7%
   6   Sybase (UK) Limited                                                 2.6%
   7   Computer Associates UK Ltd                                          2.2%
   8   S P Group Limited                                                   2.2%
   9   KANA Communications Europe Limited                                  2.1%
  10   Hotel Portfolio 11 UK Limited                                       1.7%


Fund Highlights


London, Boundary House, Jewry Street

In May, the Fund purchased Boundary House on Jewry Street, London EC3, within
the City of London.  The purchase price of GBP 16.1 million reflects an initial
yield of 5.2%. Boundary House is now the trust's 6th largest asset by value.  It
comprises over 4,180 sq.m. (45,000 sq.ft.) of office space and has eight
occupational tenants. This acquisition gives the Fund further exposure to the
occupational upswing in the office market. There is also further opportunity to
gain added value through refurbishment and active management.


Following the quarter end, the Company completed the following:

Securitisation

In July, ING UK Real Estate Income Trust Ltd took the opportunity to utilise the
additional debt facility contained  within the securitisation structure
established in December 2005. An additional GBP 25 million of debt has been
issued  in the form of AAA rated Reserve Notes and 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 5.10%. The additional debt will be used
to fund further  acquisitions and assist with active management opportunities
across the portfolio.


London, Notcutt House, Southwark Bridge Road
Simultaneous to the above, the Fund purchased Notcutt House, Southwark Bridge
Road, London, SE1. The purchase price of  GBP 7 million reflects a net initial
yield of 5.75%. The property comprises 1,175 sq.m. (12,653 sq.ft.) of air 
conditioned office space refurbished in 2001, which is let at GBP 426,586 per
annum until September 2016 to Conchango UK plc.


Broker
JP Morgan Cazenove
20 Moorgate, London, EC2R 6DA
T: 020 7588 2828


Investment and Property Manager
Elliot Caldwell
ING Real Estate Investment Management (UK) Limited
60 London Wall, London EC2M 5TQ


Important Information


This newsletter is issued by ING Real Estate Income Trust Limited ('IRET'). It
is based on information supplied by the Investment and Property Manager, ING
Real Estate Investment Management (UK) Limited. This newsletter is intended for
shareholders of IRET only. The provision of the information herein is permitted
under Article 43 of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005. It is not a recommendation to deal or refrain from
dealing in the shares of IRET. The newsletter should not be passed to any person
other than an existing shareholder in IRET or their professional adviser. Any
shareholder who requires advice on their investment in IRET should contact their
stock broker, bank or independent financial adviser.


Please find below a link to the quarterly newsletter issued by the Company.

http://www.rns-pdf.londonstockexchange.com/rns/2927i_-2006-8-31.pdf



Enquiries


The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
P.O. Box 255, Trafalgar Court, Les Banques,
St Peter Port, Guernsey GY1 3QL
T: 01481 745 439


END



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