• 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

November 2016

About TR Property

16th December 2016

Pan European real estate equities (in GBP) fell a dramatic -6.3% with the Trust’s NAV falling an additional 56bps at -6.8%. The only sliver of a lining on this particularly dismal cloud was the share price performance which fell half as much at -3.4% resulting in the discount tightening to -12% (from -15% a month ago).

Market sentiment has moved dramatically since the summer from deflationary fears and concerns over “QE infinity” / negative interest rate policies to reflation hopes. Trump’s US presidential victory has only exacerbated this frantic sector rotation momentum with his election seen as a pro-cyclical, fiscal easing signal leading to further yield increases in global bond markets.

As a previous QE winner our sector underperformed general equities by -10% over the last 3 months (EPRA Dev. Europe, TR Euros) following 2 ½ years of stark outperformance. The overall stock market leadership shifting to cyclicals away from defensives has been being unequivocal. However, within the European listed real estate space, sub-sector and stock performance dispersions have, in our view, been much more disorderly than expected.

For instance the most “cyclical” property sub-sectors (self-storage, hotels) have not outperformed whilst the traditional non-cyclical defensive sectors such as Swiss and Belgian diversified have outperformed. Switzerland was the only country in positive territory (+0.9%) in the month. In addition large liquid stocks as well as previously strong performers have been hit hard which has been detrimental to the fund’s performance.

The fund’s gearing includes the physical portfolio (9.5% of assets) and therefore the gearing to equities is modest (4%) but it does reflect our belief in the fundamental stability of the asset class and this has been borne out by the modest movement in underlying values since the end of June with IPD All Property capital values down -3.7% in the 4 months to the end of October.

The UK (in GBP) fell just -0.7% whilst the Eurozone (in EUR) was down -4.1%. However the recovery in GBP resulted in a dramatic monthly return of -8.6% for the Continental European companies collectively when measured in GBP. The German residential businesses continued to weaken in the face of rising bond yields, however investors favoured those sub-markets with the best rental growth prospects. The two Berlin focused names Deutsche Wohnen fell just 2.2% and ADO Properties -3.6%. Whilst we hold ADO we also hold LEG which fell -6.9% in the month.

The Trust reported its Interim results (to end of September) on 25th together with the interim dividend of 4.1p, an increase of 30% on the same period last year. The full report is available on www.trproperty.co.uk.

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