Interim Results

Insight Foundation Property Tst Ltd
28 November 2005


Insight Foundation Property Trust Limited
Interim Report

Unaudited as at 30 September 2005

Company summary

Objective

To provide Shareholders with an attractive level of income together with the
potential for income and capital growth from investing in UK commercial
property.

The Group holds a diversified portfolio of UK commercial properties and is
invested in three commercial property sectors: office, retail and industrial.
The Group will not invest in other listed Investment Companies. In pursuing the
investment objective, the Investment Manager intends to target assets with good
fundamental characteristics, a diverse spread of occupational tenants and, at
least initially, with above average income yields for the property sector with
opportunities to enhance value through active management.

Investment manager

Insight Investment Management (Global) Limited

Total assets less current liabilities (group)
£538.97 million at 30 September 2005.

Shareholders' funds
£385.03 million at 30 September 2005.

Capital structure
At launch, Insight Foundation Property Trust Limited had a capital structure
comprising approximately 85 per cent ordinary shares and 15 per cent bank debt.
As at 30th September 2005 this was approximately 70 per cent ordinary shares and
30 per cent bank debt.

Ordinary shareholders are entitled to all dividends declared by the Company and
to all the Company's assets after repayment of its borrowings. Borrowings
consist of £152.5 million drawn down. The loan currently has an effective
interest cost of 5.31% (before annualised costs and expenses in association with
its arrangement) fixed for the period of the loan by way of an interest rate
swap contract matched against the full amount of the loan. On 27th July 2005
100,000,000 C Shares were admitted to the Stock Exchange and commenced dealing.

On 5th August 2005 Insight Foundation Property Trust Limited carried out a
Conversion of the C Shares of the Company. As at that date, the net asset value
per C Share was 97.85p and the net asset value per ordinary share was 104.59p.
On this basis, for the purpose of the Conversion, the Conversion Ratio was
0.9356 Ordinary shares for every one C Share. 93,560,000 new Ordinary Shares
were created on Conversion of the C Shares increasing the number of issued
Ordinary Shares of the Company from 260,000,000 to 353,560,000.

ISA/PEP status
The Company's shares are eligible for Individual Savings Accounts (ISA's) and
PEP transfers and can continue to be held in existing PEPs.

Website
The Company's website is www.ifpt.co.uk

Financial highlights and performance summary

Net asset value per share rose by 3.8% over the period
The fourth interim dividend of 1.6875 pence per share was paid on 12 August 2005

Key Statistics

                                30 September 2005     30 March 2005   % Change

Net asset value1 (NAV £m's) 2               £385.0           £272.8       41.1
Net asset value per ordinary share (pence)1  108.9            104.9        3.8
Ordinary share price (pence)                 112.0            115.5       (3.0)
IFPT total shareholder return index 3        119.5            119.7       (0.2)
Peer Group Comparison total shareholder      126.0            122.6        2.8
  return index 4
FTSE All-Share Index                      2,745.79          2,457.73       11.7

Sources: Insight Investment, Datastream.

1 Net asset value (NAV) is calculated using International Financial Reporting
Standards
2 Between 31 March 2005 and 30 September 2005 the C Shares were issued and
converted to Ordinary Shares
3 Total shareholder return including gross dividends reinvested
4 Peer Group changes over time

As at 30 September 2005 includes ISIS Property Trust Limited, ISIS Property
Trust 2 Limited, The UK Balanced Property Trust Limited, Standard Life
Investments Property Income Trust Limited, F&C Commercial Property Trust, ING UK
Real Estate Income Trust and Invesco UK Property Income Trust - total
shareholder return including gross dividends reinvested

Note: All based on returns during the period from 1 April 2005 to 30 September
2005.

Chairman's Statement
Results
I am pleased to report a further positive set of results for the six months
ended 30 September 2005. During the period under review, the Company's unaudited
net asset value per share (NAV) has increased by 4 pence per share, or 3.8%. Our
Shareholders have also received total dividends of 3.375 pence per share, making
an NAV total return of almost 7% over the six months.

Since the launch of the Company in July 2004 the Company's NAV has increased by
11.4 pence per share, or 11.7% to 108.9 pence per share. Over this period our
Shareholders have also received total dividends of 6.75 pence per share
resulting in an NAV total return of approximately 18.5%.

The NAV growth is clearly a reflection of the continued strength of the UK
commercial property market, but it is also a consequence of the Manager's active
approach to transactional activity, intensive asset management and innovative
financing. Each of these areas is making a real contribution to the Company's
performance providing a solid base for sustained NAV growth.

The Company's underlying property portfolio has performed well, particularly
given the number of transactions completed since launch, with acquisitions
totalling £464 million and disposals totalling £27 million since July 2004. For
the twelve months to September, the independent performance measurement company,
Investment Property Databank ('IPD'), has recorded an un-geared total return for
the Company's underlying property portfolio (after deducting all property level
transaction costs) of 17%, which is in line with the comparable IPD Index for
our peer group. Since the audited report to March 2005, acquisitions and
disposals totalling £97 million and £12 million respectively were completed. The
level of transactions undertaken by the Company in order to invest available
funds in line with the strategy has been running at approximately twice the
average rate reflected in the IPD index. The Manager estimates that this
difference would have had an impact of some 1.3% on the performance comparison.
On an underlying basis, therefore, the Company's property portfolio has
outperformed the market as a whole by a satisfactory margin.

C Share Issue
The successful completion of the C Share issue in July has increased the
Company's capital base from approximately £439 million to £557 million. This
expansion will enable the Manager to grow and diversify the Company's portfolio,
most specifically by increasing the exposure to the Central London and South
East office markets, which is expected to enhance returns to shareholders over
the coming years. On closing the C Share issue the Manager anticipated investing
approximately £100 million during 2005 with the balance of approximately £70
million invested in the first quarter of 2006. Approaching £100 million of
acquisitions had been completed by early November with a further £12 million
under offer.

Following this expansion the Company now has net assets of £385 million and as a
consequence, in September the Company was admitted into the FTSE 250. The
Company now has 920 shareholders and an increased free float of 70%, compared
with 38% at launch, and I am delighted to welcome those who have joined our
shareholder register through the C share issue.

Accounting Practices
The Company has already adopted the new IFRS reporting standards, with the June
and September reported Net Asset Values reflecting this rather than UK GAAP,
which remains the standard used by many of our peers. The key impact of the
Company in reporting under IFRS relates to the marking to market of liabilities,
and particularly the Company's debt. As part of the successful debt
securitisation carried out by the Company in early 2005, the senior loan was
fully hedged against interest rate risk using an interest rate swap at 5.1%.

Subsequent to the securitisation interest rates have fallen and in June this led
to the Company making a negative adjustment to the NAV of £6.69 million or 1.9
pence per share, reducing slightly in September to £5.37 million or 1.52 pence
per share.

Shareholder Communication
Since the last audited accounts the Manager continues to issue quarterly
Investor factsheets and has launched the Company's web-site, www.ifpt.co.uk.

Prospects
The strategy set out for the expansion of the Company's capital base at the time
of the C share issue is on track, with almost £100 million invested between July
and November 2005. It is clear, however, that the market remains very
competitive, and the Manager is finding that many potential opportunities, when
widely marketed, are achieving prices that do not meet our return requirements,
when making appropriately prudent assumptions about future growth. Nonetheless,
the Manager has continued to identify and secure attractive additions to the
Company's portfolio and expects to have invested the remaining equity before the
second quarter of 2006. The Board will continue to work with the Manager to
analyse the benefits of increasing the Company's gearing by drawing down on the
reserve notes under the Company's securitised debt facilities to underpin the
Company's future growth.

Andrew Sykes, Chairman
Insight Foundation Property Trust Limited
22 November 2005

Investment manager's summary report
The Property Portfolio
As at 30 September 2005, the Company owned a direct property portfolio valued at
£439 million comprising 73 assets, increasing to £481.645 million as at 15
November 2005. The portfolio has approximately 252 tenancies (with 199 different
corporate tenants) with an average unexpired lease term of approximately 8.3
years. The portfolio is diversified both geographically and across the main
sub-sectors of the UK property market.

During the period under review, the Company has made acquisitions and selective
disposals totalling approximately £97 million and £12 million respectively.
Since the issue of the Audited accounts in March 2005, the Company's property
assets have increased to £481.645 million. This figure comprises the September
property portfolio valuation of £438.995 million together with the recent
acquisition of National Magazine House for £45.05 million and the disposal of
the retail property at Thames Street, Kingston. These assets produce a total
rent of £29.8 million per annum which reflects a portfolio net initial yield of
6.2%. The current rental value of the portfolio is £31.09 million reflecting a
reversionary yield of 6.4%. The portfolio yield on property cost is higher at
approximately 7%.

Our strategy has evolved further to increase our exposure to Central London.
Since the C Share issue, three key acquisitions have been successfully completed
that meet the Company's core objectives of acquiring well located assets with
the ability to increase rents via active asset management initiatives, and also
benefit from rental growth generally as the Central London office market
recovers.

In early July the Company acquired a freehold office property (Minerva House) in
London SE1 for £42.13 million, reflecting a net income yield of 6.3%. The
property is in a strong location with extensive river frontage to the Thames and
is close to Southwark Cathedral and London Bridge. The property is well let to
established tenants (ANZ Banking Group Limited and Reed Smith LLP) producing a
rent of approximately £2.76 million per annum. This averages at a rate of £31
per sq ft, providing the potential for income growth as the level of market
rents increase and asset management opportunities are realised.

In August the Company invested £10 million in equity and subordinated debt
acquiring a 19.7% stake in Mid City Place, High Holborn in London WC1. The
Company owns the freehold property jointly, providing a rare opportunity to
invest in a high quality asset. The property is regarded as one of the 'Mid
Town's' most attractive assets. It provides a total floor area of 323,000 sq ft
with Grade A office accommodation and good quality retail units fronting High
Holborn. The property is let to 11 tenants on 15 leases and has significant
asset management potential with current low rents of £37.50 per sq ft.

In November the Company completed the acquisition of National Magazine House in
Soho W1 for £45.05 million. The freehold property benefits from 16,000 sq ft
floors and is located in a prominent position. It is let for a further 13 years
to The National Magazine Company Limited, the UK subsidiary of Hearst
Corporation.

The property also benefits from residential units above the offices. The price
reflects a net income yield of 5.3%. There is a rent review in 2008 and we
believe this is well timed to benefit from rental growth with the current
shortage of good quality buildings offering large, clear accommodation in Soho.

These recent acquisitions produce a blended net initial yield of 5.83%, are in
line with the strategy outlined at the time of the C Share issue and reflect
good value in a market where there is considerable demand for well-let London
office property.

We have approximately £70 million available for further investment (before any
further drawing of reserve notes) and the Company's continued focus will be
London and the South East. Remaining acquisitions will target an above average
yield so as to maintain a blended portfolio yield of over 6%. We have continued
to complete a limited number of disposals where the properties have reached
their full potential and a material premium over valuation could be achieved
post active management initiatives.

We are using all efforts to ensure that the Company is substantially invested,
whilst not compromising on our key investment principles. We have a robust
quantitative and qualitative approach to stock selection and this is a strategy
that is helping to secure mis-priced properties, even in today's competitive
market.

The underlying performance of the portfolio continues to be driven not just by
stock selection but also by our pro-active approach to active asset management.
This approach is required to ensure that the Company captures rental growth as
fast as possible and consequently maximises all possible opportunities for
capital value appreciation.

Any vacant units are pro-actively managed, and this is delivering strong
results. As at September 2005 approximately 2.6% of the portfolio was vacant,
down from 4% in March 2005. If leases currently under offer complete as
anticipated, the void rate will be further reduced to approximately 1.5% of
rental value. This compares to approximately 8% on an average portfolio (as
measured by the IPD Index).

The Company's loan facility runs until 2014 and is fully hedged against future
interest rate movements. It is worth recording that the securitisation included
an additional £150 million facility of reserve notes which can be drawn down in
the future very efficiently (subject to Rating Agency consent). As further debt
is drawn down and the gearing in the Company increases, the Net Asset Value
should increase.

Outlook
We anticipate returns to the UK commercial property market of over 15% for 2005
and reducing to closer to 7% to 8% per annum over the foreseeable future. The
expectation for 2005 has increased from earlier in the year due to the sustained
and increased levels of demand for commercial property.

Prime yields continue to reflect strong real estate fundamentals with
expectations for good rental growth in some parts of the market. We remain
cautious regarding the narrowing gap between prime and secondary properties. Our
view therefore is that secondary stock is now less attractive, although our
approach allows the Company to identify value across all markets. We will always
be prepared to act where we see opportunities to unlock value through selective
new acquisitions and asset management solutions.

The principal focus for the remainder of 2005 and into 2006 will be to acquire
further properties in London and the South East, especially where they involve
larger lot sizes offering active management opportunities and flexibility for
potential occupiers.

In summary, our focus for property activity will be to:

  • Be substantially fully invested and pursue new investment in high growth
    assets and segments of the market
  • Consider limited sales of lower yielding retail properties,
    notwithstanding the desire to be fully invested
  • Pursue active management initiatives set to make a significant impact on
    valuation
  • Maintain and enhance the current portfolio to ensure a continued broad
    diversity of properties and tenants.

Duncan Owen
Insight Investment Management
22 November 2005


Property portfolio statistics

Property Portfolio Statistics as at 14 November 2005 (includes the recent
acquisition of National Magazine House, due to the significant nature of the
transaction)

Sector analysis by value
Retail                     26%
Office                     50%
Industrial                 24%

Source: Insight Investment

Geographical analysis by value

Central London             24%
South East excl. CL        36%
Rest of South               9%
Midlands and Wales         19%
North and Scotland         12%

Source: Insight Investment

Tenure Analysis by value
Freehold                   91%
Leasehold                   9%

Source: Insight Investment

Lease length by value (to earlier of tenant break / lease expiry)

0-5 Years                  31%
5-10 Years                 33%
10-15 Years                28%
15+ Years                   8%

Source: Insight Investment

Covenant Strength by rental income
Government                  4%
Negligible                 30%
Low                        40%
Low-Medium                 11%
Medium-High                 5%
High                        6%
Unmatched                   4%

Source: Insight Investment

10 Largest Properties                                        Value       %*
National Magazine House, Carnaby Street                £45,050,000     8.1%
Minerva House, 5&6, Montague Close, London SE1         £43,500,000     7.8%
Victory House, Trafalgar Place, Brighton               £17,700,000     3.2%
Reynard Business Park, Brentford                       £17,300,000     3.1%
20/22, Tudor Street, London, EC4                       £17,100,000     3.1%
The Albion Centre, Bath Street, Ilkeston               £14,200,000     2.5%
Olympic Office Centre, 8 Fulton Road, Wembley          £13,650,000     2.4%
Union Park, Fifers Lane, Norwich                       £13,450,000     2.4%
The Gate Centre, Syon Gate Way, Brentford              £10,800,000     1.9%
Mid City Place, High Holborn                           £10,150,000     1.8%

Total                                                 £202,900,000

* Percentage of Gross Asset Value


10 Largest Tenancies                                         Value       %
National Magazine Company Limited                       £2,250,000     7.4%
Australia & New Zealand Banking Group Ltd               £1,460,000     4.8%
Mott MacDonald Ltd                                      £1,307,148     4.3%
Reed Smith Services                                     £1,295,374     4.3%
Freshfields Services Company                            £1,279,600     4.2%
The British Broadcasting Corporation                      £826,000     2.7%
Grand Metropolitan Estates Ltd                            £795,975     2.6%
Recticel SA                                               £713,538     2.4%
Jarvis Porter (Property Holdings) Ltd                     £700,000     2.3%
Concept Automotive Services Ltd                           £515,970     1.8%

Total                                                  £11,143,605


Consolidated income statement
(unaudited) for the period from 1 April 2005 to 30 September 2005

                                             01/04/2005  27/05/2004  27/05/2004
                                                     to          to          to
                                             30/09/2005  31/03/2005  30/09/2004
                                                  £'000       £'000       £'000

Rent receivable                                  13,023      16,693       4,061
Other income                                                    318
Property operating expenses                        (172)       (293)
Net rental and related income                    12,854      16,718       4,061
Profit on disposal of investment property         1,862         390


Valuation gains on investment property           18,493      18,425       4,250
Valuation losses on investment property                      (1,922)
Net valuation gains on investment property       18,493      16,503       4,250

Expenses
Investment management fee                        (2,357)     (2,418)       (604)
Valuers' and other professional fees               (201)       (473)        (24)
Administrative fee                                 (127)       (120)        (41)
Audit fee                                           (13)        (50)        (17)
Directors' fees                                     (43)        (72)        (30)
Other expenses                                     (121)       (187)       (113)

Total expenses                                   (2,862)     (3,320)       (829)

Net operating profit before net finance costs    30,347      30,291       7,482
Interest receivable                               1,270         430         143
Interest payable                                 (4,133)     (3,477)       (542)
Finance expenses                                   (472)       (133)        (64)
Net finance costs                                (3,335)     (3,180)       (463)
Profit before tax                                27,012      27,111       7,019

Taxation provision                                 (400)     (1,756)     (1,082)
Profit for the period                            26,612      25,355       5,937
Basic and diluted earnings per share              9.22p        9.7p       2.28p

The Company commenced operations on 16 July 2004 following incorporation on 27
May 2004. All items in the above statement derive from continuing operations.


Consolidated statement of changes in equity
(unaudited) for the period from 1st April 2005 to 30th September 2005

                                     Notes   01/04/2005  27/05/2004  27/05/2004
                                                     to          to          to
                                             30/09/2005  31/03/2005  30/09/2004
                                                  £'000       £'000       £'000

Equity at 31 March 2005                         272,822

Profit for the period                            26,612      25,355       5,937
Dividends paid                           4       (8,775)     (8,775)

Issue of Ordinary Shares                                    260,000     260,000
Issue of C Shares                               100,000
Issue costs                                      (1,644)     (2,376)     (2,376)
Hedge Reserve                                    (3,987)     (1,382)
Equity at 30 September 2005                     385,028     272,822     263,561


Consolidated balance sheet
(unaudited) as at 30th September 2005

                                     Notes   30/09/2005  31/03/2005  30/09/2004
                                                  £'000       £'000       £'000

Investment properties                           428,845     379,450     349,680
Investment in associate                  6          131
Loan to associate                        6        9,787
Non-current assets                              438,763     379,450     349,680

Trade and other receivables                       5,595       4,694       6,626
Cash and cash equivalents                       112,943      55,222      16,599
Current assets                                  118,538      59,916      23,225
Total assets                                    557,301     439,366     372,905

Issued capital and reserves                     385,028     272,822     263,561
Equity                                          385,028     272,822     263,561

Interest-bearing loans and borrowings           148,570     148,482      97,216
Interest rate swap                                5,369       1,382
Provisions                                                    2,000
Non-current liabilities                         153,939     151,864      97,216

Trade and other payables                         14,298      12,875      12,128
Provisions                                        2,000
Taxation payable                                  2,036       1,805
Current liabilities                              18,334      14,680      12,128
Total liabilities                               172,273     166,544     109,344
Total equity and liabilities                    557,301     439,366     372,905

Net Asset Value per Ordinary Share               108.9p      104.9p     101.37p

This Interim Report was approved by the Board of Directors on 22 November and
signed on its behalf by:

Andrew Sykes             Paul Smith
Chairman                 Director


Consolidated statement of cash flows
(unaudited) for the period from 1 April 2005 to 30 September 2005

                                             01/04/2005  27/05/2004  27/05/2004
                                                     to          to          to
                                             30/09/2005  31/03/2005  30/09/2004
                                                  £'000       £'000       £'000

Operating Activities
Profit for the period                            26,612      25,355       7,482
Adjustments for:
Profit on disposal of investment property        (1,862)       (390)
Net valuation gains on investment property      (18,493)    (16,503)     (4,250)
Net finance cost                                  3,336       3,180
Taxation                                            400       1,756
Operating profit before changes
in working capital and provisions                 9,993      13,398       3,232

Increase in trade and other receivables            (785)     (4,682)     (6,626)
Increase in trade and other payables                710      10,860       9,943

Cash generated from operations                    9,918      19,576       6,549

Interest paid                                    (2,632)     (3,279)
Interest received                                 1,147         417         143

Cash flows from operating activities              8,433      16,714       6,692

Investing Activities
Proceeds from sale of investment property        21,020       3,550
Acquisition of investment property              (58,102)   (364,107)   (344,940)

Cash flows from investing activities            (37,082)   (360,557)   (344,940)

Financing Activities
Proceeds on issue of Ordinary Shares                        260,000     260,000
Cost of issue of conversion                     100,000
Issue costs paid on issuance of Ordinary Shares  (1,644)     (2,376)     (2,352)
Draw down of short term bank loan                            98,100      98,100
Repayment of short term bank loan                           (98,100)
Draw down of long term loan                                 152,500
Bank loan arrangement and valuation fees                                   (901)
Finance costs paid on arrangement of long        (3,211)     (2,284)
  term loan
Dividends paid                                   (8,775)     (8,775)

Cash flows from financing activities             86,370     399,065     354,847
Net increase in cash and cash equivalents
at 30 September 2005                             57,721      55,222      16,599
Cash and cash equivalents at beginning of period 55,222
Cash and cash equivalents at end of period      112,943      55,222      16,599

Accounting policies
(a) Basis of accounting
The consolidated unaudited financial statements have been prepared in accordance
with the International Financial Reporting Standards issued by, or adopted by,
the International Accounting Standards Board (the 'IASB'), interpretations
issued by the International Financial Reporting Standards Committee, applicable
legal and regulatory requirements of Guernsey Law and the Listing Rules of the
UK Listing Authority. The consolidated financial statements have been prepared
under the historical cost convention, except for the measurement at fair value
of investment properties.

(b) Basis of preparation
The accounting policies have been applied consistently by the company and are
consistent with those used in the previous year, except for changes resulting
from the amendments to IFRSs. The company adopted the revised versions of IFRSs
that were effective at 1 January 2005.

(c) Basis of consolidation
The consolidated financial statements comprise the financial statements of the
Company and all of its subsidiary undertakings up to 30 September 2005.
Subsidiaries are consolidated from the date on which control is transferred to
the Group and cease to be consolidated from the date on which control is
transferred out of the Group.

(d) Income

Rental income
Rental income is accounted for on a straight line basis over the lease term of
ongoing leases and is shown gross of any UK income tax. Any material premiums or
rent-free periods are spread evenly over the lease term.

Interest receivable
Interest receivable derives from cash monies held in current and deposit
accounts throughout the period and is accounted for on an accruals basis.

(e) Expenses
All expenses are accounted for on an accruals basis. The Group's investment
management and administration fees, finance costs (including interest on the
long term borrowings) and all other expenses are charged through the
Consolidated Income Statement.

(f) Taxation
The Company and its Guernsey registered subsidiaries have obtained exempt
company status in Guernsey under the terms of the Income Tax (Exempt Bodies)
(Guernsey) Ordinance 1989 so that they are exempt from Guernsey taxation on
income arising outside Guernsey and on bank interest receivable in Guernsey.
Each company is, therefore, only liable to a fixed fee of £600 per annum. The
Directors intend to conduct the Group's affairs such that they continue to
remain eligible for exemption. No charge to Guernsey taxation will arise on
capital gains. The Company and its subsidiaries are subject to United Kingdom
income tax on income arising on investment properties, after deduction of debt
financing costs and allowable expenses.

(g) Investment properties
Investment properties are initially recognised at cost, being the fair value of
the consideration given, including transaction costs associated with the
investment property. After initial recognition, investment properties are
measured at fair value, with unrealised gains and losses recognised in the
Consolidated Income Statement. Realised gains and losses on the disposal of
properties are recognised in the Consolidated Income Statement. Fair value is
based on the open market valuations of the properties as provided by Knight
Frank LLP a firm of independent chartered surveyors, at the balance sheet date.
Market valuations are carried out on a quarterly basis.

(h) Share issue and formation expenses
Incremental external costs directly attributable to the equity transaction and
costs associated with the establishment of the company that would otherwise have
been avoided are written off against the share premium account.

(i) Segmental reporting
The Directors are of the opinion that the Group is engaged in a single segment
of business, being that of a property investment business and in one
geographical area, the United Kingdom.

(j) Cash and cash equivalents
Cash in banks and short-term deposits that are held to maturity are carried at
cost. Cash and cash equivalents are defined as cash in hand, demand deposits and
short term, highly liquid investments readily convertible to known amounts of
cash and subject to insignificant risk of changes in value. For the purpose of
the Consolidated Statement of Cash Flows, cash and cash equivalents consist of
cash in hand and short-term deposits in banks.

(k) Bank loans and borrowings
All bank loans and borrowings are initially recognised at cost, the fair value
of the consideration received net of arrangement costs associated with the
borrowing. After initial recognition, all interest bearing loans and borrowings
are subsequently measured at amortised cost. Amortised cost is calculated by
taking into account any loan arrangement costs and any discount or premium on
settlement.

(l) Derivative financial instruments
The Group uses derivative financial instruments to hedge its exposure to
interest rate fluctuations. It is not the Group's policy to trade in derivative
financial instruments. Derivative financial instruments are recognised initially
at cost and are subsequently re-measured and stated at fair value. Fair value of
interest rate swaps is the estimated amount that the Group would receive or pay
to terminate the swap at the balance sheet date. The gain or loss on
re-measurement to fair value of cash flow hedges in the form of derivative
financial instruments are taken directly to the Statement of Changes in Equity.
Such gains and losses are taken to a reserve created specifically for that
purpose, described as the Hedge reserve. On maturity or early redemption the
realised gains or losses arising from cash flow hedges in the form of derivative
instruments are taken to the Income Statement, with an associated transfer from
the Statement of Changes in Equity in respect of unrealised gains or losses
arising in the fair value of the same arrangement. The Group considers the terms
of its interest rate swap qualify for hedge accounting.

(m) Investment in Associate
Associates are those entities in which the Group has significant influence, but
not control, over the financial and operating policies. The consolidated
financial statements include the Group's share of the total recognized gains and
losses of associates on an equity accounted basis, from the date that
significant influence commences to the date that significant influence ceases.
When the Group's share of losses exceeds its interest in an associate, the
Group's carrying amount is reduced to nil and recognition of further losses is
discontinued except to the extent that the Group has incurred legal or
constructive obligations or made payments on behalf of an associate. Loans to
associates are stated at their amortised cost less impairment losses.

Notes to the Interim report
1. The un-audited interim results have been prepared in accordance with
International Financial Reporting Standards.

2. The returns per ordinary share are based on 288,630,383 shares, being the
average number of shares in issue. The average number of shares in issue in the
period 27/05/2004 to 30/09/2004 was 260,000,000 shares. The average number of
shares in issue in the period 27/05/2004 to 31/03/2005 was 260,000,000 shares.

3. Earnings for the period from 01 April 2005 to 30 September 2005 should not be
taken as a guide to the results of the period to 31 March 2006.

4. The third interim dividend of £4,387,500, equivalent to 1.6875 pence per
share was declared on 21 April 2005. The dividend payment was made on 19 May
2005, to shareholders on the register on 29 April 2005. The fourth interim
dividend of £4,387,500, equivalent to 1.6875 pence per share was declared on 19
July 2005 with an ex-dividend date of 27 July 2005. The dividend payment was
made on 12 August 2005, to shareholders on the register on 29 July 2005. The
fifth interim dividend of £5,966,325, equivalent to 1.6875 pence per share was
declared on 24 October 2005 with an ex-dividend date of 02 November 2005. The
dividend will be paid on 2 December 2005 to those shareholders on the register
at close of business on 04 November 2005. The net asset value in these accounts
is expressed before the fifth interim dividend payment.

5. The Group results consolidate those of Insight Foundation Property Trust
Limited and its subsidiary companies, all of which are wholly owned.

6. In August 2005, the Company invested equity and subordinated debt of
£9,917,246.50 for a 19.725% shareholding in DV3 MidCity Limited, the company
that owns the Mid City Place property in London. This investment is classified
as an investment in an associate due to the company having the ability to exert
significant influence through its shareholding and representation on the board
of directors. The subordinated debt was advanced on similar terms to the other
shareholders of DV3 Mid City Limited in proportion to their shareholdings.

KPMG Independent review report to Insight Foundation Property Trust Limited

We have been engaged by the company to review the financial information set out
on pages 13 to 19 and 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 company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the company those matters we are required to state in
this 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 Company for our
review work, for this report, or the conclusions we have reached.

Directors' 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 which require that the accounting policies and presentation applied to the
interim figures should be consistent with those which will be applied in
preparing the annual accounts.

Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
'Review of interim financial information' 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 is substantially less in scope than an audit
performed in accordance with Auditing Standards 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 period ended
30th September 2005.

KPMG Channel Islands Limited
22 November 2005


Corporate information
Registered Address
Royal Bank Place
1 Glategny Esplanade
St Peter Port
Guernsey GY1 2HS

Directors
Andrew F Sykes (Chairman)
John R Frederiksen
Keith M Goulborn
Graham A Hall
Paul D Smith
(all Non-Executive Directors)

Investment Manager
Insight Investment Management
(Global) Limited
33 Old Broad Street
London EC2N 1HZ

Fund Administrator
RBSI Fund Services
(Guernsey) Limited
Royal Bank Place
1 Glategny Esplanade
St Peter Port
Guernsey GY1 2HS

Solicitors to the Company
as to English Law
Herbert Smith
Exchange House,
Primrose Street
London EC2A 2HS

as to Guernsey Law
Ozannes
1 Le Marchant Street
St. Peter Port
Guernsey GY1 4HP

Auditors
KPMG Channel Islands Limited
2 Grange Place
The Grange
St. Peter Port
Guernsey GY1 4LD

Property Valuers
Knight Frank LLP
20 Hanover Square
London W1S 1HZ

Channel Islands Sponsor
Ozannes Securities Limited
1 Le Marchant Street
St. Peter Port
Guernsey GY1 4HP

UK Sponsor and Broker
JP Morgan Cazenove Limited
20 Moorgate
London EC2R 6DA

Tax advisers
Deloitte & Touche LLP
180 Strand
London WC2R 1BL

Receiving Agent and UK
Transfer/Paying Agent
Computershare Investor
Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 1XZ

Issued by Insight Investment Management (Global) Limited.
Registered office 33 Old Broad Street, London EC2N 1HZ


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            The company news service from the London Stock Exchange
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