TR Property Investment Trust reports ‘healthy performance’ despite volatile year

TR Property Investment Trust has reported “healthy performance” as index-linked investments pay off. The £1.5bn fund said net asset value total return was 21.4% for the year to the end of March, well ahead of the benchmark return of 12.2%. Chair David Watson said the year had been “dominated by volatility and powerful global macroeconomic and political themes”, ranging from inflation to the “unfolding humanitarian disaster in Ukraine”. “It may therefore seem somewhat surprising that against that backdrop I am able to report a year of healthy performance for the company.” The share price total return was 19.9%, slightly behind the underlying asset growth, as the discount between the share price and the NAV widened just before the year end. TR PIT invests in the shares and securities of property companies and property-related businesses internationally, while also holding some investment property directly in the UK. The physical property portfolio performed less well, producing an 18.1% total return over the 12 months, made up of a capital return of 15.4% and an income return of 2.7%. This is behind the MSCI All Property Index return of 23.9%, made up of a capital return of 18% and an income return of 5%. Fund manager Marcus Phayre-Mudge added: “Although the economic outlook remains unsettled, property assets, particularly where the income is index-linked, should remain relatively attractive despite rising interest costs.” Watson concluded: “The era of cheap money is coming to an end… Inflation protected income is becoming harder to find, so index-linked property income should remain attractive. However, rising interest costs are clearly a headwind for any leveraged asset class.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews