May was another positive month for real estate equities, but not quite as dramatic as April, with the benchmark (FTSE EPRA Nareit Developed Europe Total Return index in sterling) up +3.3%. The Trust’s net asset value (NA) grew +3.8%. Continental Europe returned +4.4% in euro terms, comfortably ahead of the UK (in sterling) at +1.8%. The standout performance came from Sweden (up +13.5% in Swedish krone), where we saw very strong performance from the most indebted companies, SBBB (+12.2%), Nyfosa (+10.0%) and Balder (+8.1%).Continue reading
Richard is joined by Marcus Phayre-Mudge, fund manager of the TR Property Investment Trust, to discuss investing in physical property, removing liquidity concerns, how the trust has managed during the last 12 months, and the changing environment.
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April was a strong month for pan-European property shares, with the benchmark rising +7.2%. The Trust’s net asset value (NAV) rose +8.2% and the share price +8.5%, so a good month all round. While currencies do not impact relative performance (as all exposure is in line with the benchmark), they do clearly affect absolute returns. The Trust’s non-sterling exposure is c75%, and therefore a weaker sterling provides additional valuation gains. During the first quarter of the year, sterling strengthened against all European currencies by over 5%; this was partially reversed in April. As a consequence, the benchmark when measured in euros returned only +4.9% versus +7.2% in sterling. So, while this was a good month for real estate equities, an important component was currencies, as opposed to organic growth.Continue reading
A positive month for equities across the board with real estate equities performing broadly in line when measured in local currency. EPRA (ex UK) when measured in EUR returned a respectable +3.2% but in GBP just +1.3% given the continued strengthening of GBP over the last quarter. GBP has now risen over 5% versus EUR since the beginning of the year. This has an impact on our NAV given that the base currency of the fund is GBP. The month’s NAV movement was +1.4% whilst the benchmark rose +1.5%.Continue reading