||SIGMA SHS 12.5P
||EPS - Basic
||Market Cap (m)
TR Prop.Inv.Sig Share Discussion Threads
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|Quite alright - hope they do well for you...|
|Quite happy holding TRY thank you!|
|A very nice bonus for TRYS holders. Bank the turn and replace with APT...|
|Today's announcement make sense to me. Never saw the logic of having two portfolio's and they are not significantly different anyway.|
|Share buybacks at last! Perhaps this will narrow the discount.|
Contact the fund manager Whilst the month was positive for equities and small cap real estate equities in particular (with the EPRA Small Cap Index+3.12%) it was highly volatile intra month. The index fell -5.7% between 7th and 16th as investors reacted firstly to the consequences of the natural disasters in Japan and then the unfolding of the Libyan crisis. However from 16th, the market anticipated little contagion and the index rose +7.3% from there to the month end. Our investment views remain the same. Properties (and property equities) are offering high income yields, which have historically been growing faster than inflation. As we enter the dividend payment season (over 50% of our income is declared in the next quarter) we are confident that earnings announcements will continue to surprise on the upside. This is clearly attracting investors to the sector.
Sigma's return over the month was +3.52%, exceeding the index by 40bps. The weakest markets were the UK and Germany. These had been the strongest performers in February. For the UK, the concerns continue to be the impact of the government's austerity package, employment levels and imported inflation (through weaker currency). In Germany the poor performance was very property company specific with Gagfah (residential owner/ manager) falling nearly 30% in the month. The company is being sued by the City of Dresden for allegedly failing to fulfil obligations to some residential tenants. The Fund benefitted from its exposure to Scandinavia as well as good performance from our portfolio of French small cap stocks, such as Fonciere des Murs, FPF and Argan.
The Trust has a March year end and the NAV total return for the financial year for the Sigma share class was +16.4%. The shareholders' total return was +19.8% reflecting the improvement in the discount over the year. The Fund's small cap benchmark is reviewed annually at the end of the financial year. The hurdle for inclusion/exclusion is adjusted to reflect the movement in the capital return of the index over the last 12 months. The hurdle has therefore increased from £1bn to £1.126bn. The adjustment mechanism also incorporates a 'smoothing band' of 20% either side of this figure to reduce constituent volatility. Two companies have been excluded, Hufvudstaden and Castellum. The strengthening of the SEK (+ 7.5% versus GBP) over the year contributed to this outperformance.
Whilst Marcus and James continue to manage this share class, from 1st April 2011 Marcus became lead manager of the Ordinary share class of TR Property Investment Trust (following Chris Turner's retirement) and James became lead manager of the Sigma share class.|
|Breakout.And its still at 20%+ discount to NAV|
For Sigma Shares
As the results season got underway, pan-European property companies' share prices responded to the steady stream of mildly (at the minimum) through to quite positive statements from company managements as well as better than expected dividend announcements. This strengthening of the 'bottom-up' picture from companies coupled with the increasing focus on safe havens of recurring income and inflation protection placed European real estate shares in the top decile of equity sector performance in the month. With the exception of Norway (a single company country) every country in the index had positive performance in the month. The EPRA Developed Europe TR Index (in GBP) rose 4.4% whilst Sigma's benchmark the EPRA Europe Small Cap Index rose +2.17%; the first month in which the large cap index has outperformed the small cap in over a year. The difference in performance was driven by the greater exposure of the larger index to UK stocks and within that the largest companies. The UK was up + 8.3%, whilst Land Securities and British Land rose +13.6% and 12.5% respectively. The message is clear - generalist investors (who primarily focus only on the largest stocks in the sector) were back buying the asset class. We are not surprised by this. Listed property companies across Europe are in good shape. They have repaired their balance sheets and in many instances have cash to use on accretive acquisitions. Within the UK, most of the companies have higher levels of fixed rate debt (which was a handicap to earnings growth as rates fell) but now look protectionist as the swap curves drift ever upwards. The EPRA Index has a 'loan to value' ratio of 54% - the quoted sector is not over indebted. Rental growth remains an elusive commodity but it is up to us to identify those management teams and those portfolios which will harness that growth as it appears. Sigma is now benefiting from its increased exposure to markets such as Central London, Paris, Stockholm, and Milan as well as early cyclical plays such as self-storage and hotels.
The Fund's return for the month was +2.97% whilst the EPRA Small Cap index rose +2.17% leading to 80bps of outperformance in the month. The euro weakened against sterling in the month. Currency exposure of the Fund is matched to that of the benchmark but we remain vigilant as our income is predominately earned in the second quarter of the year and over 50% is denominated in euros.|
|The real estate of things to come
Author: James Wilkinson
Professional Adviser| 31 Mar 2011 | 08:00
Categories: Property Investment
Topics: Thames River| commercial property| RPI| cpi
< Continued from page 1 2
James Wilkinson, manager of the Thames River Property team, explains why long-term opportunities for listed real estate are more positive now than before the credit crisis.
We have long held the shape of real estate returns is attractive over the long term and real estate also offers diversification benefits within a multi-asset portfolio. Of more immediate importance, however, we now think there are particular reasons to be positive towards the sector at the current time.
Listed real estate companies are almost all on a sound commercial footing. Balance sheets have been restored where necessary and revenue accounts are generally founded on relatively long leases and loan durations. Vacancy rates, levels of bad debt and tenant delinquency have risen far less in the last few years than during the property crash in the early 1990s, meaning absolute revenue levels fell less from peak to trough than was expected.
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One of our main concerns for the property markets over the last few years was commercial real estate (CRE) debt refinancing. We worried the scale of debt maturing between 2009 and 2013 was such that it would swamp available debt and equity, leading to a further plunge in property values. Not only has this not happened but we are now confident it will not materialise at all.
We believe as the full horror of the credit crisis reverberated throughout 2007 and 2008, the main lending banks had very little idea of what they had to deal with within their property lending books. Real estate loan books were effectively frozen while banks put their houses in order, and this may well have prevented losses within commercial property markets.
Since 2009, UK real estate values have recovered approximately 15%-20% from their trough (44% peak to trough fall according to UK IPD) and this significantly reduced the scale of the CRE debt refinancing issue. Furthermore, DTZ now estimate there is $145bn of equity available for investment into European commercial real estate between now and 2013 compared to a debt funding gap (DTZ define this as the difference between the existing debt balance as it matures and debt available to replace it) of $126bn.
These statistics bode well for real estate investment markets. That is not to say the path will be entirely smooth. Investment demand is likely to be focused on specific markets and sectors, which will not necessarily coincide with where the debt needs to be refinanced. Similarly, equity investors are not always prepared or able to take over real estate loans or to participate in joint ventures.
However, the really important issue is what we once viewed as an almost insurmountable problem now appears to be solvable. In the usual way, market pricing will differentiate between high and low demand areas of the market. Yields in low demand areas may have to rise further until there is sufficient demand. This, however, is a normal market something we have not seen for many years and the corollary is yields in high demand areas will fall, meaning values will rise.
Read more: http://www.ifaonline.co.uk/professional-adviser/feature/2038730/real-estate#ixzz1IYOf7Qvt
IFA Online - News, blogs and analysis for IFAs. Visit the website now.|
|So, they've now made 56p. Obviously sold this one way too soon!!
As at close of business on 6th May 2009, the unaudited net asset value per
ordinary share including current financial year revenue items was 73.4p (and 72.5p including debt marked at fair value). The unaudited net asset value excluding current financial year revenue items was 70.7p (and 69.7p including debt marked at fair value).
|Certainly had a good run - but at 51p the NAV discount is now at 25% and the yield @ under 4% - so perhaps now fully or fairly valued.
IGRE better value IMO - as NAV discount = 37% & the yield = 7.3%.
TRYS: As at close of business on 23rd April 2009, the unaudited net asset value per ordinary share including current financial year revenue items was 70.0p (and
69.1p including debt marked at fair value). The unaudited net asset value
excluding current financial year revenue items was 67.5p (and 66.6p including
debt marked at fair value).
|As at close of business on 7th April 2009, the unaudited net asset value per
ordinary share including current financial year revenue items was 64.4p (and
63.5p including debt marked at fair value). The unaudited net asset value
excluding current financial year revenue items was 62.1p (and 61.3p including
debt marked at fair value).|
|As at close of business on 3rd April 2009, the unaudited net asset value per
ordinary share including current financial year revenue items was 65.1p (and
64.3p including debt marked at fair value). The unaudited net asset value
excluding current financial year revenue items was 63.1p (and 62.2p including
debt marked at fair value).|
|Well spotted, Sky.|
|They confirm discount incorrect & will be amended from 27.7% to 32.1%!|
|Hi ALAN - thnx for that. May be someone else on watch - firstly late secondly incorrect. NAV discount s/b 32% - not the 27.7% stated! I've emailed the Manager.|
|Amazingly the Feb newsletter has now appeared - the company are obviously paying careful attention to this thread!!!!!
|Alan - was it perhaps because they issued an IMS mid-Feb...
jonwig - the links to the website and the RNSs are in the header here too.
Sigma Shares - As at close of business on 27th March 2009, the unaudited net asset value per ordinary share including current financial year revenue items was 61.7p (and 60.9p including debt marked at fair value). The unaudited net asset value excluding current financial year revenue items was 59.6p (and 58.8p including debt marked at fair value).|
|Alan - I imagine it's because TRYS isn't a 'company'.
The company is TRY which has two classes of shares, TRY and TRYS. To get any information on TRYS you need to read the TRY RNSs and go to the TRY website. (Links are in the header to my TRY thread.)
I think that's a pretty unsatisfactory set-up!
What does seem to be the case is that TRYS are better value in terms of NAV discount. There may be factors offsetting that, but I haven't looked too deeply.|
|Thanks for that Skyship. Any idea why the company did not issue a February newsletter?|
|TRYS A European Property Investment Trust
TRYS is the EPIC for the so-called "SIGMA" shares spun out of TRY (TR Property Investment Trust) in Q3'07. The Investment Objective of the Sigma Shares is to increase Shareholder value by investing in the shares of European property companies. The long-term objective is to trade out of the larger companies and increase exposure to companies with a market capitalisation of less than £1 billion.
Top Ten Holdings as at 30 January 2009:
Land Securities 7.3%
Castellum AB 5.1%
Great Portland 4.8%
British Land 4.3%
Helical Bar 3.3%
Beni Stabili 3.1%
Continental Europe 48.3%
LINK to RNSs, esp. the daily Net Asset Values, IMSs, Interims & Finals- all combined with the TRY statements:
The Dividend Statements are made in November (Interims) & May (Finals) for the year to 31st March. At the moment there is no forecast for the 2009 dividend. There was a 0.9p Interim (increased from 0.85p) and the daily NAV statements reveal current year earnings of 2.0p. Assuming a same again Final for a total of 1.8p the yield @ 39.5p = 4.56%.
The value assessment for many investors will be based upon a combination of yield and NAV discount. In this latter respect the Company's strategy is to stabilise the discount with the judicious use of share buybacks.
During Qtr3'08 the Company purchased 1,953,000 TRYS for cancellation at a total cost of £896,000. No shares have been purchased since 21st Nov'08. There are now 124,922,000 shares in issue & Zero debt.
The 26th Mar'09 NAV statement gave a Gross NAV of 62.1p & 60.1p NET of current year revenue. Utilising the latter figure, the NAV discount @ 39.5p is at an historic high of 34.3%.
The UK Real Estate sector has endured a cataclysmic 2yr fall of some 80% -though it has bounced with the wider Market in Mar'09 see sector chart above. An increasing number of analysts and commentators are now saying that, should inflation raise its head again due to global "Quantitative Easing", then the commercial property sector might once more be viewed as an attractive high-yielding asset class; and that the recent rash of UK company rights issues might well mark the bottom of the cycle.
Being a well-managed, conventional investment trust, TRYS might prove to be a safe way of playing such a possibility.|
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