Tr Property Investment Share Discussion Threads

[trcml] 24/3/2023 10:02

sp starting to become attractive

[speedsgh] 27/1/2023 15:10

TR Property: Don’t let 2022’s slump fool you, real estate is reviving -

The fog of uncertainty is clearing around Reits after last year’s selloff, says TR Property's Marcus Phayre-Mudge, who tells Citywire where he is finding value in a sector trailing on an average of 27% below asset value.

Despite a strong long-term record that has seen TR Property (TRY) win five Citywire performance awards in the Specialist Equities category, the £1bn investment trust suffered a shocking 32.4% slump in net asset value (NAV) last year as investors dumped the real estate investment trusts (Reits) in which it invests on fears surging interest rates would hit commercial property valuations and their borrowing costs.

However, as inflation has peaked and started to fall, the fog of uncertainty has begun to clear, says fund manager Marcus Phayre-Mudge. In the month to 26 January, the trust’s NAV has rallied 11%, although the shares still trade on a relatively wide 9% discount.

Returning to the Citywire studio after nearly two years, Phayre-Mudge (below) talks to Gavin Lumsden about where he is finding good value in a sector trading on a steep 27% discount below asset value after last year’s selloff.

Citywire A-rated Phayre-Mudge says Reit and property valuations had to fall in response to rising government bond yields, and in some areas will continue to do so. However, he believes that top-down correction is at odds with the rental growth and strong tenant demand evident in many, but not all, areas of industrial, office and retail real estate.

In this 36-minute interview, the fund manager also discusses:

~ the two UK generalist Reits he bought for the first time.
~ the need for more mergers and consolidation in a fragmented Reit sector.
~ the importance of strong governance and due diligence following the suspension of shares in Home Reit (HOME).
~ the challenge of stricter environmental standards for the owners of many office buildings.

[petewy] 05/12/2022 09:42

"This has been a dramatically poor period of performance for property shares and the Company was no exception, delivering a six month net asset value total return of -33.6%. Nevertheless, our investments are focused on balance sheet strength and the security of income, much of which is index-linked, so I am pleased to report a 6.6% increase in the interim dividend." David Watson, Chairman

I'm still in it at a profit and the divi.

[trcml] 28/9/2022 10:39

it's not he 2% increase in base rate that concerns so much as how much percent over base rate rate. Refinancing when interest rates are are historic lows is all very laudable, the challenge is how to maintain the profit margin between higher borrowing costs, increasing overheads and rent increases (if any) below inflation.

[trcml] 28/9/2022 08:45

Watching too, especially the discount to nav which currently has hardly widened. Stock market volatility tends to have private investors rushing to the exit whereupon they buy commercial property perceived to be more stable: often little do they know.

[mozy123] 27/9/2022 20:51

Add this to my month saving. Very tempting at these levels.

[topvest] 27/9/2022 19:35

Yes, watching as well. Its a bit like catching a falling knife though. Its quite stunning how real estate is getting sold off, but I guess a 2% movement on interest rates is huge. We are certainly living in very volatile times.

[steve3sandal] 27/9/2022 18:17

Under £3 share price but the NAV isn’t much higher. I suspect the market will overshoot and a decent discount 15%? would tempt me given the discount on discount. Watching and waiting.

[stevenb3] 27/9/2022 16:32

Did you take the plunge?

[trcml] 26/9/2022 09:59

sp is heading towards the level at which I might be tempted to buy at. Just under £3.00

[steve3sandal] 22/9/2022 05:56

Most if not all of its holdings were down quite a bit yesterday on interest rate fears. Sum of the parts I’m afraid as the NAV catches up with the falling share price One day there will be an opportunity but I’m not banking on today or tomorrow.

[stevenb3] 21/9/2022 22:40

Anyone know why the NAV fell 20p today please?

[trcml] 08/7/2022 10:25

propco shares tend to be valued by reference to nav, rather than rental income. the more accurate the valuation opinion, the less scope for capital growth and extra on sales. rising interest rates fuel yield expansion. apart from its three direct investments, none of which are anything special, TRP is entirely dependent upon the market's assessment of the shares in the companies that TR holds.

[alan pt] 04/7/2022 15:58

TRCML Care to elaborate? I've been buying a bit as it falls, interested in hearing reasons for your negative sentiment

Seems interesting to me - German residential now offering an excellent dividend, sentiment has turned against industrial generally, but EU industrial did not have the potential price bubble in UK industrial (and even there it's more fear of falls than actual falls)

[trcml] 04/7/2022 12:01

On 15 Feb 2021 I bought at £3.88 because I reckoned the share price was low. Sold a couple of months later for a profit, prematurely as it transpired the share price then rose to circa £5.Now the share price is below what I'd paid before I reckon it is now too high.

[rambutan2] 22/6/2022 14:23

For completeness:

[rambutan2] 10/6/2022 21:18

Y/E presentation. Well worth a watch:

[brexitplus] 07/1/2022 12:10

TRY currently holding up better than other sectors. SUPR a good hedge against volatility.

[topvest] 03/1/2022 14:24

I think TRY is possibly a better real estate hold than buying individual property company shares. I am certainly mulling that over, going forwards.

[brexitplus] 20/12/2021 11:50

TRY has done me very well over the years. I've always reinvested the increasing dividends so now have a dividend yield of over 20% on my initial investment. Also have large holding in Supermarket Income Reit (SUPR) with which I do the same, both to give me a tax-free income supplement when required. Not required yet happily.

[petewy] 19/12/2021 12:17

Yes a quiet board but it's a good share and only news gets reported and no idiots.

[skyship] 18/12/2021 16:43

Continues to be quiet board here. I see I last posted in July; and below is a chart of the relative performances of those mentioned versus TRY.

BREI the stand out; whilst EPIC & SREI benefit from the higher prospective yields - 7.1% and 5.6% respectively.

Both TRY and PCTN calling for mergers of the smaller REITs trading on high discounts. IMO Directors & Investment Managers won't act like turkeys voting for Christmas; why sacrifice their nicely paid jobs. So any actions may need to be hostile.

Whether voluntary or hostile, perhaps the current best prospect is SREI on a 21.7% NAV discount and a 5.64% yield. It has a good portfolio with a good blend across sectors; also a low debt cost of 2.3%. So, a good yield whilst we wait and a 20%-25% upside on a bid.


free stock charts from uk.advfn.com

[brexitplus] 03/12/2021 09:15

Good results and increased dividend.

[lozzer69] 05/8/2021 13:45

Thanks for your suggestions and I have looked at EPIC before and will probably invest. My limited property share exposure is due to owning a commercial property. TRY continuing on an upward path.