June 2020

By | 15th July 2020

Pan European real estate equities started the month very much continuing the late May theme of benefiting from the rotation  away from growth focused (and more expensive) stocks towards the ‘value’ (cheaper multiples) names. However mid month that macro tailwind petered out and the sector corrected almost -7% in 5 days, this was followed by an equally sharp but short lived rally with the sector ending the month just +1.8% having been +9% at one point. ‘Volatile’ remains the most commonly used adjective. In essence markets are constantly torn between the attraction of equity valuations when bond yields are set to remain very flat for long periods (and real rates are negative) and the daily news that much of the real economy is in dire straits. The consumer (beyond the immediate post lockdown spending spree) is unlikely to come to the rescue given expected rising unemployment levels and job insecurity leading to higher savings ratios.

Continue reading

July 2020 AGM Presentation

By | 1st July 2020

As announced previously, the AGM in late July will now be a closed meeting without the usual manager presentation. Instead, the manager has posted a webcast (in the format of the usual presentation held at the AGM) covering the year to March 2020 and an update to June in the video link.

If shareholders would like to submit questions to enquiries@trproperty.co.uk we will endeavor to answer them.

May 2020

By | 12th June 2020

Pan-European real estate equities continued the range-bound, yet volatile performance (which we have experienced since the end of March) for most of the month. However, the last ten days of May and early June saw a sustained rally as investors preferred value stocks (seen to be undervalued) to growth stocks (companies that are expected to grow faster than the market). On a global perspective, the gap between the two had rarely been wider, and this snap back was sharp. In our universe, this has translated into a strong correction from those stocks that have had the weakest performance since markets began to react to COVID-19 in mid-February. This was primarily in retail, hotels and other consumer-facing real estate.

Continue reading