One to watch: UK commercial property

Is this, however, reflected in the "rating" of the F&C Commercial Property Trust (FCPT) and UK Commercial Property Trust (UKCM) where the share prices are trading at a 12 per cent premium to the underlying net asset value?

Both FCPT and UKCM offer attractive gross dividend yields of 5.6 per cent and 6.2 per cent respectively. Prime commercial property should also provide investors with a degree of capital security and diversification.

During 2010, asset values and the share prices of listed commercial property funds began to recover. Much of the recovery has come in the prime markets of London and south-east of England, where supply and demand conditions are generally favourable. However, this is tempered by the performance of the rest of the UK.

So does the prospect of a generous dividend yield and a combination of lacklustre net asset value and dividend growth merit paying such a hefty premium? I would argue that it does not.

• The value of your investments may fall and you may get back less than you invested. This does not constitute investment advice and you should take professional advice regarding the suitability of this company for your portfolio.

BROKER SNAPS

Mitchells & Butlers

326.5p +1.4p

Broker says BUY

PUB operator Mitchells & Butlers appears to be developing a taste for Asian food after hiring Adrian McCormack, the former executive chef of Wagamama and Tampopo, to create dishes for its brands, which include All Bar One, Browns and O'Neill's. Evolution Securities stuck with its "buy" rating.

Carnival

2,238p -16p

Broker says BUY

AHEAD of next week's interim results from Carnival, Numis has reiterated its "buy" rating on the cruise ship operator. The vote of confidence came despite Carnival downgrading its profit forecasts after under-estimating the affect unrest in North Africa and the Middle East and the Japanese tsunami would have on its business.