TR Property Investment Trust Share Price (TRY)

Key Points:

-Sentiment has shifted with the realisation quality assets look undervalued

-Investors continue to benefit from M&A as a value underpin

-TR Property is fortified to ride out a prolonged period of higher rates

-Doors to access real estate close elsewhere, boosting investment trust appeal

TR Property Investment Trust (‘the trust’ / ‘TR Property’) – the only FTSE fund specialising in listed real estate across the UK and Europe – has released positive results covering the year to 31 March 2024.

TR Property’s share price return for the year was 22.9 per cent, alongside a net asset value (NAV) total return of 21.0 per cent, ahead of the trust’s benchmark1, which was up 15.4 per cent.

Kate Bolsover, chairman of TR Property, comments: “There is no denying that commercial real estate became unfashionable when interest rates began to rise. But as TR Property’s renewed outperformance shows, investors are beginning to differentiate between the less desirable elements of the sector and the companies that our manager seeks out—that is, companies that own quality assets and have strong balance sheets.”

The board of TR Property announces a final dividend of 10.05 pence per share (PPS), taking the full year dividend to 15.70 PPS. This is a 1.3 per cent increase on the prior year and represents a dividend yield of 4.8 per cent.

Interest rates continue to dominate, fuelling M&A

Share price action is still being driven by base interest rate expectations. TR Property’s share price rallied and receded several times over the course of the year, moving in tandem with expectations around the proximity of European rate cuts.

Marcus Phayre-Mudge, fund manager of TR Property, comments: “These false dawns have led to many investors remaining on the sidelines, awaiting harder evidence of base rates falling. Our central case is that this point is drawing ever closer but crucially, our positioning and optimism is not dependent on major reductions in interest rates. The companies we own have balance sheets which can withstand rates remaining at current levels.

“The spike in takeover activity this past year shows acquirers are rushing in to take advantage, where public markets have left quality assets languishing at significant discounts.”

The trust’s exposure to this heightened merger and acquisition (M&A) activity was among the key contributors to 2023/24’s strong performance, with four transactions involving investee companies during the year, and fifth proposed post-year end.

Earnings and long-term performance

The trust’s earnings, at 12.04 PPS, were just over 30 per cent lower than the previous financial year, an expected dip which was flagged in the last interim and annual reports.

The income reduction came as some of the trust’s investee companies paused or reduced dividends, as they strengthened their balance sheets. Earnings in the prior report

119-year-old ftse 250-listed investment trust releases £33.5 million for reinvestment in physical assets

london 29 february 2024: tr property investment trust (tr property) today announces the sale of the colonnades to a private family office, for £33.5 million.

tr property carried out significant asset management on the property, adding 16,000 sq ft of new space through a comprehensive refurbishment in 2015 and doubling the size of the supermarket to 44,000 sq ft, which was let to waitrose on a 20-year lease.

the property comprises a large, fully let, mixed-use block in bayswater, constructed in the 1970s. the site extends to approximately two acres on the northeast corner of the junction of bishop’s bridge road and porchester road, close to bayswater tube station. the residential upper parts were sold in 2022 for £5m.

whilst tr property is best known as an investor in real estate investment trusts (reits) and other listed property companies, it can hold up to 15 per cent of its assets in physical uk real estate. the trust’s closed-ended structure means it is invulnerable to the illiquidity and gating issues that have dogged the open-ended property fund sector.

the sale of the colonnades is in line with tr property’s strategy to recycle capital out of mature assets.

george ***, direct property fund manager at tr property comments: “through this sale we have been able to unlock in excess of £30 million to invest into higher-yielding assets such as multi-let light industrial. having transformed the colonnades, this is the right time to exit and turn towards future opportunities and growth.”

https://www.trproperty.com/tr-property-announces-sale-of-the-colonnades-bayswater/

Wait for when rates actually start getting cut, envisage we should stay over £3 a share when that happens.

A 5% rise

Every time I am able to, I top up here. I can't see a better fund that's so depressed in SP yet still producing excellent dividends (with great cover), with the potential for decent capital gains in the future.