Sentence:  To remove gearing, a simple weighted average cost of capital model is used: R<sub>pt</sub>= {R<sub>et</sub> - (1 - P/E<sub>t</sub>) R<sub>dt</sub>}/(P/E<sub>t</sub>) where R<sub>pt</sub>, is the <WSD>degeared</WSD> return to the property portfolio; R<sub>et</sub> is the observed equity return; R<sub>dt</sub> is the return on debt (taken as the long bond yield); and P/E<sub>t</sub> is the value of the property portfolio as a ratio of shareholder equity. 
Meaning of the word marked with <WSD> tags:  To calculate the net value of assets after removing both debt and the projected cost of interest on borrowed capital.