• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
TR Property

TR Property

A UK based investment company, listed on the FTSE 250 index investing in Pan European property equities & UK direct property

Search for:
  • About
    • About us
    • Investment portfolio
    • Meet the team
    • Awards
  • Why invest?
    • Why invest?
    • Investment trusts explained
  • Investor centre
    • Overview
    • Results & presentations
    • RNS News
    • Governance
  • News
  • Contact
  • How to invest

April 2012

About TR Property

16th May 2012

April was the first negative month of 2012 for real estate equities (and the European equity market in general). The FTSE EPRA/NAREIT Europe Index Total Return (in GBP) fell 2.47% in the month. Real estate shares fell over 7% between mid March and the last week of April, recovering into the end of the month. We have entered another ‘risk-off’ period as the markets fretted about the French presidential election, the Greek general election and the fall of the current Dutch government. Economic data was of little comfort in the period with the UK in particular delivering a -0.3% quarterly GDP figure. Whilst the total return for the sector was -2.5%, the capital fall was 3.75% such were the weight of dividends paid in the month. We would highlight that the dividend yield in the sector is over 5% and our investee companies generally remain confident of the sustainability of this income. Not unexpectedly, it was the Eurozone which bore the brunt of the sell-off with the Eurozone subset of our index falling 5.7%. Putting this into a wider equity context the Euro Stoxx 50 dropped -6.9% in the month.

The Fund has 35% exposure to UK equities and 11% to UK physical property. Over 80% of the physical property is in London, which is our preferred geographical exposure in the UK. The UK property stocks produced a positive, albeit modest return of 0.4% in the month. Particular outperformers included Shaftesbury (+3.9%) which owns prime retail assets across Soho and Covent Garden.

Net debt in the share class was reduced by £2.7m as sales exceeded purchases and some of our revolving facilities were paid back. Our preferred German residential play, GSW, issued shares via a rights issue and we participated. The company will use the proceeds to bid for another significant Berlin focused portfolio.

Big Yellow, the self storage operator announced that it had entered into a new £100m 15-yr loan with Aviva. The deal is underwritten with first charge over 15 properties valued at £260m. The stock rose 4.4% in the month. We expect to see more insurance companies lending to the real estate sector rather than buying property directly as a direct consequence of the Solvency 2 regulations. It is very encouraging to see this form of lending to a non-traditional property use such as self storage. The Trust owns both Big Yellow and Safestore and we are positive on the sector. The Trust’s annual results will be released on 23 May and will include the announcement of the final dividend following the Board meeting on 22nd.

Download factsheet

Previous post
Next post

Primary Sidebar

Real assets in a world of real inflation

13th June 2022

Whether you believe inflation is demand or supply driven, it is here and the central banks’ actions are adding to…

ii Podcast. Marcus Phayre-Mudge: The Richard Hunter Interview

2nd June 2021

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.

Post-AGM Update

29th July 2020

As announced on 22nd June 2020, TRY held the AGM on 28th July 2020 as a closed meeting in order…

Footer

Sign up to our newsletter for the latest updates

enquiries@trproperty.co.uk

For questions regarding TR Property Investment Trust, you can email us directly.

LEGAL

Disclaimer and legal statement

Cookie policy

GENERAL FUND INFORMATION

Investors should be aware that past performance should not be considered a guide to future performance.

Copyright © TR Property
All rights reserved