Matrix European Real Estate Investment Trust’s property portfolio fell by 4.2% in the third quarter of the year.

The closed-end fund, part of the Matrix Group, saw the property portfolio fall in value by E33.5m (£26.2m) from E798.7m (£624.8m) to E765.2m (£598.7m) for the quarter starting 30 June 2008.

Matrix European REIT said it used derivatives to hedge its exposure to interest rate and exchange rate changes.

It said the value of its interest rates derivatives had dropped by almost half to E8.9m (£7m) from E17.5m (£13.7m).

The drop in value of interest rate derivatives as an asset was caused by ‘the downward movement in the Euribor interest-yield curve over the same period’, the company said.

Foreign-exchange derivatives represent a E28.1m (£22m) liability compared with a liability of E30.7m (£24m) at 30 June 2008.

Matrix European REIT’s shares opened at 218p this morning, close to its year low of 212p which was set on 30 September this year.

The company’s highest share price over the past year was 590p which was set a year ago today.