Tr Property Investment Share Discussion Threads

[speedsgh] 02/5/2023 19:19

TRY has a pretty decent track record, well respected investment manager in Marcus P-M and is an ideal vehicle if you're looking for broad brush exposure to what is mainly commercial property. Half decent income (paid out twice a year as ordinary dividends, not PIDs, as TRY is not a REIT). I can't offer much in terms of timing the market, gave up on that a long time ago.

[kingolly] 02/5/2023 18:33

Thank you for the info. I think this trust is more diversified than most but I just worry slightly about valuations going forward. I have a small holding here but plan to add if there is another significant drop.

[speedsgh] 02/5/2023 15:27

@kingolly - According to their website, as at 30/9/22 the following sector allocations were exposed to residential:

GERMAN RESIDENTIAL: 17.7% (of NAV)
NORDIC RESIDENTIAL: 1.4%
UK/IRELAND RESIDENTIAL: 0.1%

out of a total NAV of 111.1% (don't ask me to explain that!)

[kingolly] 02/5/2023 14:19

Does anyone know what percentage of the fund is invested specifically in commercial real estate? Residential and warehousing looks ok going forward but shops and offices look shaky.

[speedsgh] 28/3/2023 18:05

Nearly 50% retracement from its ATH. Starting to look interesting as a LTH. Decent track record in view of property's cyclicality.

[petewy] 28/3/2023 16:42

You're back again Red where u been???????

[redponza] 28/3/2023 15:14

Is it a concern for you guys that the revenue does not cover the dividend in the half year result? Also with REIT starting to reduce dividends, there maybe further downside to the share price

[brad44] 28/3/2023 12:26

this from 10 years ago...back where he started!! i will be looking to buy in when funds permit, thats for sure.

Price: 185.80

No Opinion
TRY22 Feb '13

Mr Turner retired in March 2011, to be replaced by his long-term deputy, Marcus Phayre-Mudge. It remains to be seen whether Mr Phayre-Mudge will prove as adept a thinker as his predecessor. In the volatile 22 months since he took over, the fund has underperformed the European benchmark for property shares. But that's not long enough to judge a manager and the trust's long-term record, for which Mr Phayre-Mudge is partly responsible, shows substantial outperformance.

Over the past five years, which have not been kind to property investors, that outperformance can be attributed to a focus on quality - particularly balance sheet quality. The managers have been right, it turns out, to avoid companies and countries with high levels of debt. TR Property itself is modestly geared, with net debt of just £36m on a £483m portfolio, and Mr Phayre-Mudge closely monitors 'see through' net debt - the gearing to which the fund is exposed through its holdings. They have also been right to focus on those markets with structural growth, even if the relevant companies trade on punchy ratings. These include London, Stockholm, German housing and pan-regional shopping malls.

[mozy123] 24/3/2023 10:30

The contrarian in me says I should start nibbling at this.

[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 11:39

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 09:45

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 21:51

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

[topvest] 27/9/2022 20:35

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 19:17

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 17:32

Did you take the plunge?

[trcml] 26/9/2022 10:59

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

[steve3sandal] 22/9/2022 06:56

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 23:40

Anyone know why the NAV fell 20p today please?

[trcml] 08/7/2022 11:25

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 16:58

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 13:01

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.