Tr Property Investment Share Discussion Threads

[mangal] 14/1/2004 22:32

Honiton,
Are the benefits of the French REITs already in the NAV or are they yet to be reflected in the price?

[honiton] 14/1/2004 22:27

mangal

I don't know about others. However TRY have a lot of property in France which has already adopted REITS type tax structures.

[mangal] 12/1/2004 21:54

After reading Sat's FT article about how property shares may start trading at premium to NAV once REITs are introduced in the UK, I searched for property ITs that may benefit from this. I found 4(%discounts)on trustnet site:
TRY(-9%), TPY(-23%), UBR(22%) & WGM(-8%).
Honiton, your post seems to suggest that you think that TRY will benefit from REITs. Do you know if the others are likely to benefit too?

[honiton] 28/12/2003 09:42

My view:-

interest in REITS and soft landing for UK london commercial property mkt. May have a bit to go.

Also, they may be renewed takeover talk with property cos - about 2 years ago Land was a potential target - but its all gone a bit quiet.

[ben gunn] 19/12/2003 19:56

Silent Night is fine but why oh why such silent days?
This is a key stock for us old folks, it may be about to slip back (the other property funds have started to wobble) but no one says nothin.
Any advice.....Any comments on recent stellar performance?

[ed 123] 17/6/2003 23:35

There's some speculative interest in TRY today - high turnover of shares and nice uplift in price.

[arichard] 22/4/2003 10:14

...and good news today:

TR Property Investment Trust Plc (TRPIT) has sold its interests in two
properties located in Swanley and at Tavern Quay, Docklands, SE16 for a total of
#3.465 million.

..at a premium to book value.

[skyship] 15/10/2002 23:40

The Property market in general is totally misunderstood by Fund Managers who follow rather than anticipate every trend; just look at the 5-yr chart of SLOU and you'll see the bigger picture: 7 major trends in just 5 years; and in that time the share price is back to where it started, but the diluted NAV is up 50% from 340p to 512p. These trends provide superb trading opportunities.

Right now we have had a major shake-out as Fund Managers concentrated on falling rental values, even though the weakness has really only been seen in The City and the TMT sector in the South-East. Capital values have actually stood still or risen as the attractions of pure property investment have become apparent to investors craving secure income.

Now look at the chart of the Real Estate Index (UB86) and you'll see a pretty convincing base platform for yet another sector bull run. As with other bull runs, this will be instigated or fanned by a series of broker recommendations stating that the sector fall has been overdone.

TRY is a totally secure route for buying into the next upturn; with the added advantages that:

1. The Company is buying-in its own stock
2. At 57.75p the shares stand at a 19.5% discount to the 71.8p NAV
3. This 19.5% figure is a recent high and is likely to reduce back to the 16-17% range which is the Norm for this stock (worth nearly 4% on the share price)
4. At 57.75p they are sitting on the bottom and haven't yet reflected the past week's market rise and sector rise

All in all, a good buy for anyone cherry-picking safe ways back into the market.

[skyship] 15/10/2002 13:22

Parrett: The Annual Report is admirable in its detail - well worth getting hold of a copy. Phone either Computershare on 0870-702-0010; or the Company on 0207-638-5757.

Key facts are:

Direct Property holdings: 19.4%
UK quoted stocks: 51.7%
Continental Europe stks: 28.7%
Cash: 0.2%

2001 saw a major shift of the UK quoted portfolio across to Europe:

UK: 2000-71%; 2001-52%
Euro: 2000-4%; 2001-29%

The Co's top 40 holdings are listed. The TOP 5 are:

Land Secs: 6.3% of Gross Assets
B. Land: 4.5%
Unibail (Fr): 3.8%
Hammerson: 3.8%
Slough: 3.5%

The other principal strategic action last year was the prescient decrease in a formerly overweight exposure to the london Office market.

Much of what they have been doing is proving to be a good call.

[parrett] 15/10/2002 13:16

ta - so its really a uk real estate and /or construction and building play rather than bricks and mortar ownership

parrett

[ashtongray] 15/10/2002 13:14

parrett

As at 31 March year end, TRY 19% directly invested in property, 52% in UK shares, 29% in European shares.

[ashtongray] 15/10/2002 13:12

Timely new thread and good post to kick off.

Bought some this morning with those sort of arguments in mind.

[parrett] 15/10/2002 12:37

Skyship

Do you know any details of what areas/types of property TRY is invested in

Thanks
Parrett

[ben gunn] 15/10/2002 12:25

I should love to agree with you as TRY is one of my favourite stocks of all time .....but I sold off the second half of my holding last week because the sector chart is bleak and the newsflow is bleaker. Isn't it good that we didnt buy Canary Wharf instead?

[deltablues] 15/10/2002 12:17

Skyship, agree with your reasoning and had in fact bought a few of these for my ISA before seeing your post!

Having said that, the sector isn't looking particularly strong this morning and there doesn't seem to have been much volume behind the recent rally.

[skyship] 06/8/2002 09:14

61.5 - 62.0 and standing at an 18% discount to the 75.5 NAV. Getting itchy fingers to buy this one for an anticipated recovery in the property sector. Pity the warrants have gone now.

[honiton] 01/7/2002 12:37

ben gunn

Sorry, I just didn't notice that box. Thanks for pointing it out.

I'm not worried about the recent fall. This is part of my pension fund and I've got another 30 years to go!!!!

[ben gunn] 01/7/2002 10:37

Honiton
NMS,Normal Market Size, as shown in the bottom right hand corner of ADVFN's main page for this stock is 25,000 which makes about £17,000 worth of stock the most that you can hold and still be able to sell at the quoted market bid price.
The recent fall is a little scary as you and I both like this stock because it has de-coupled from the main market index. If it re-couples we would be better off with the funds under the mattress.

[honiton] 10/5/2002 15:01

ben gunn

What is the NMS?

These are as safe as houses in a low inflationary environment.

[ben gunn] 10/5/2002 12:44

Money money money
Honiton
I like these so much I am up to the NMS. Would you happily invest well over normal market size in a trust with a price as stable as this one?
Ben

[honiton] 26/2/2002 16:17

Held them for 6 years now.

The're super aren't they.

I didn't suffer any dotcomn fallout and I now enjoy steady growth and a good yield (7% on initial investment). On top of that, I can't see this sector really failing. As investors chase yield they will push the price of commercial property (and commercial property shares) up.

A solid hold and a very good long term investment.

Stick it in your bottom draw and get a good night's sleep.

[ben gunn] 26/2/2002 15:24

I fell in love with the sector and this Trusts 0.8% spread. Any other buyers out there? Ben

[younasm] 07/11/2001 09:08

still cheap, the interest rate cuts should help the property sector. The only thing to bear in mind is that you will need to exercise the warrants by 31/7/2002.

[brnf] 06/2/2001 14:19

Agree with all you say about the low CFP but would make two cautionary noises:

1 The CFP for investment trust warrants is really only relevant when you are choosing between the ords and the warrants. Clearly you have to like commercial property (direct and shares) to consider TRYW. The Manager has consistently added value over his sector, so it really is a question of whether you like the sector.

2 When it comes to the sector, it is very old economy and has had a good run in the last year.

Which comes to the essential point that TRYW are probably not a trading instrument (very low volatility) but, in my view, an excellent way of playing a commercial property investment. Yes they are cheap, TRY itself is cheap for a trust with such a good record and TRY and its warrants are a much better way of investing in this sector than buying a basket of property shares, where one is open to greater volatility and the sneaking suspicion that one is paying to run expensive Mayfair offices and fleets of Rolls Royces.

In conclusion, I agree that TRYW are cheap, even after the last 3p move, but it has to be looked at over the life of the warrants, rather than as a short term trade.

[sharpshare] 22/1/2001 16:11

TR Props warrants is looking good value with a low CFP.

The Capital Fulcrum Point (CFP) is the annual percentage growth of the
equity required for you to do equally well in terms of capital appreciation
with either the equity or the warrant.

CFP = [ ( e/[s-w])^(1/y)-1]x100%

where
e = exercise price
s = share price
w = warrant price
y = years to expiry


CFP of 0% on 13.25p with a gearing of 4.58x
exercise price of 47.5p at 31 July 2002
ords at 60.5p
Nav at 72.64p at 18 Jan 2001
Ord Discount to NAV of 16.4%
low warrant spread of 13b 13.5o
ord spread 60.5b 61o

Warrants with a gearing of over 4 usually have a much higher CFP
A CFP of 6% would not be expensive implying a warrant price of 17.25p

Any thoughts?