• 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

March 2016

About TR Property

16th April 2016

The rebound in prices of pan European property equities which commenced in mid February, evolved into a strong rally in March with the benchmark climbing 7.7%. The index (in GBP) was last at this level in June 2007.

Once again, Continental Europe outperformed the UK as the expectation of more unorthodox monetary easing was effectively confirmed by the ECB. Europe ex UK (in GBP) returned 8.9% in March bringing the YTD (Q1 2016) to 11.4%. What is noteworthy is how little response there was from broader European equities through March with the EuroStoxx600 Net TR Index up just 1.4% in the month. Investors are less convinced that central banks can engineer the growth required to drive an inflationary response. In the case of property where the average lease contract is multi-year, the benefit from falling debt costs coupled with stable top line revenue continues to look attractive, at least on a relative basis. Another surprise has been the strength of EUR (or ongoing weakness in GBP). When viewed in EUR the returns from Continental Europe are a more modest 7.1% in the month and just 3.6% YTD.

The negative sentiment towards the UK extends beyond the currency with the UK property stocks still collectively down -7.1% YTD, even after a robust 5.4% rise in March. Fears over the June referendum remain centre stage and the universal inability to measure the impact leads to the deferral of investment decision making. The UK commercial property market has recorded significantly lower quarterly transaction volumes than last year. Whilst the top performing UK companies in Q1 were the higher yielding names with no development risk such as Tritax Bigbox and the medical focused businesses; March saw strong performance from the largest stocks led by a 10% gain in Land Securities (the fund’s largest UK overweight position).

The strongest gains in Europe were the largest companies, particularly the German residential names with Vonovia (+10.1%), Deutsche Wohnen (+12.1%) and LEG (+9.5%). The Paris office names also did well with Gecina (+8.3%) and Fonciere des Regions (9.9%). Elsewhere in Europe, income remains a focus and the ex-growth high yielding names such as Befimmo (+9.7%) and NSI (+7.6%) also performed well.

Performance in March benefited from the semi-annual revaluation of the physical property portfolio (9% of assets) which rose a net £6.6m in the second half. The valuation gains were primarily a result of our asset management initiatives at the Colonnades in Bayswater (where all 5 of the new retail / restaurant units are let or under offer) and our light industrial estate in Wandsworth where a new rental level of £20 per ft has been set.

The Trust’s full year performance (to the end of March) saw the NAV (with income) return +8.2% versus a benchmark total return of 5.4%, resulting in outperformance, post fees, of 285bps.

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