In a portfolio update covering up to 31 December 2022, the trust said that its valuation drop was due to "upward yield movement across all sectors", noting that the MSCI UK Monthly properly index fell 15.6% in the same period.
Despite this, the trust said that it had paid dividends of 0.819p per share in this quarter, bringing the annualised dividend yield to a total of 6.9%.
It said that despite the weak quarter, this dividend was actually a 2% increase on the prior quarter dividend and a 6% increase to that paid immediately prior to the Covid-19 pandemic in December 2019.
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The trust, which is comprised of 41 portfolio valued at £470.3m, also noted that it had recently disposed of an office asset, Beech House, in Fleet for £2.1m, a 17% premium to its valuation made in September.
Nick Montgomery, fund manager of the trust, said: "Sustainability led, value add investments into the existing portfolio have partly offset the negative impact on valuations caused by rising yields.
"We have a robust and diverse tenant base that we expect to be resilient through a recessionary period and the strength of the underlying portfolio should enable us to continue delivering an attractive and growing income return."