Final Results

TR Property Investment Trust PLC 9 June 2000 TR PROPERTY INVESTMENT TRUST PLC PRELIMINARY GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2000 Highlights * NAV has out performed its benchmark by 17% over the last year and by 39% over the last two years. * Diluted NAV beat both the FTSE All Share Index and FTSE 100 Index in the year to end March 2000. * Portfolio well placed to benefit from further corporate activity in the sector. 2000 1999 Net asset value per share - basic 58.36p 52.87p - fully diluted 56.52p 51.98p Share price at 31 March 45.25p 43.25p FTSE Real Estate Index at 31 March 1,789.47 1,904.37 NAV total return+ 12.6% (2.92)% Share price total return+ 7.6% (7.2)% Total return from quoted securities> 7.9% (3.6)% FTSE Real Estate Index total return* (3.7)% (17.8)% Total return from direct property> 22.5% 12.2% IPD Monthly Index total return* 15.3% 10.9% Source: +AITC/*Datastream/>WM Company Extracts from Chairman's Statement It gives me pleasure to report that the Trust's NAV has out performed its benchmark by 17% over last year and by 39% over the last two years. The past twelve months has been an extraordinary period in global stock markets with extremes of valuation combined with high levels of volatility. Around the world investors have chased growth and shunned value sectors such as real estate. Under these circumstances I am delighted to report that the Trust's diluted net asset value beat both the FTSE All Share Index and the FTSE 100 Index in the year to end March 2000. UK Property Markets For the second year in a row, property shares very significantly under performed the direct property market. The direct market has produced in the last two years respectable total returns of roughly 11% and 15% while UK property shares have recorded total returns of minus 18% and minus 4% in the same period, thus giving two year under performance of some 39%. I believe this substantial disparity in performance cannot continue indefinitely. At the nadir of property share prices this Spring, average discounts to debt adjusted NAVs were over 35% and such discounts, if sustained over any lengthy period, are likely to stimulate substantial corporate activity. In our own portfolio we have sought to capitalise on the recent disarray in share prices. Our holdings in the largest companies have increased significantly over the last six months and we have continued to reduce our direct property holdings. Nevertheless our belief remains that we will achieve the best long term returns from investing in well organised and well managed smaller and medium sized companies in the Sector. The Big Yellow Comment on individual investments is normally made by the manager, but I would like to record the very satisfactory returns made by the Trust from its investment in The Big Yellow Self Storage Co., founded and run by the former managers of Edge Properties. Back in 1998, the Trust took a 33% interest in The Big Yellow as a start-up at a cost of £2.6m - the only significant investment in an unquoted company made by the Trust in the last five years. Last September the shareholding was revalued to show a surplus of £2.4m and at 31 March the revaluation showed a £5.5m surplus. Since the year end the business has floated on the AIM market and joined our quoted investment portfolio. Following this flotation the Trust's holding is about 14% of the equity with a current value of £17.7m. We believe this business is well placed to take advantage of growth in the self storage market in the UK. Revenue, Earnings and Dividends Revenue earnings per share in the year to end March 2000 fell back sharply to 1.41p per share from the previous year's extraordinary level of 1.97p per share. That year's earnings were boosted by special dividends which were absent in the current year and we also saw a fall in rental income following on from property sales made in 1998/99. Changes in the spread of the portfolio which involve sales of high yielding property and reinvestment into low yielding property shares are likely to give rise to revenue movements of this type (and vice-versa). Despite the fall in earnings your Board proposes to pay a final dividend of 0.80p per share against the 0.77p paid as a final dividend last year. Including the interim payment of 0.52p per share the total dividend for the year would be 1.32p per share, an increase of 3.9% over the 1.27p per share paid last year. Management and Performance Fees The Board is currently reviewing the terms of the management fee as part of the triennial review. Revised arrangements are expected to be put in place which will include a performance fee and a lower base fee. Fuller details will be published in the Annual Accounts. Share Buy-Backs The Board is again seeking renewal of powers to buy back ordinary shares. During the last financial year a total of 16.55 million shares were purchased at an average cost of 43.4p per share, generating an enhancement in shareholders' funds of some £1.59m, equivalent to just over a quarter of a penny per share. We will continue to use our buy-back powers judiciously subject to market conditions. Prospects Direct markets continue to remain lively with a concentration of business growth and therefore tenant demand in London and the South East. We have seen, and benefited from, the increase in the level of corporate activity already this calendar year and, as I commented earlier, the under performance of the direct market by UK property shares is unlikely to continue without stimulating further such activity. AGM On behalf of the Board I should like to thank the managers and secretarial staff at Henderson Investors for all their hard work and enthusiasm during the year. The Board looks forward to welcoming shareholders to our AGM on the 20 July 2000 at 12 noon at 3 Finsbury Avenue. As usual there will be a presentation by the manager and light refreshments following the meeting. W G Cochrane Chairman The Annual General Meeting will be held at 12 noon on 20 July 2000 at the registered office, 3 Finsbury Avenue, London EC2M 2PA. Enquiries TR PROPERTY INVESTMENT TRUST PLC Tel: 020 7410 4348 Chris Turner, Manager HENDERSON INVESTORS Tel: 020 7477 5517 Stephen Westwood COLLEGE HILL Tel: 020 7457 2020 Gareth David PRELIMINARY GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2000 AUDITED GROUP STATEMENT OF TOTAL RETURN (Incorporating the Revenue Account) for the year ended 31 March 2000 Year ended 31 March 2000 Year ended 31 March 1999 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Restated Restated Total capital gains/ - 25,682 25,682 - (14,632) (14,632) (losses) from investments Repurchase of warrants - (48) (48) - - - Investment income 6,725 - 6,725 7,978 - 7,978 Net rental income 5,108 - 5,108 6,078 - 6,078 ------- ------- ------- ------- ------- ------- 11,833 25,634 37,467 14,056 (14,632) (576) Interest receivable and 860 - 860 1,126 - 1,126 similar income ------- ------- ------- ------- ------- ------- Gross revenue and capital 12,693 25,634 38,327 15,182 (14,632) 550 gains/(losses) Management fee (1,640) (805) (2,445) (1,479) (724) (2,203) Other administrative (943) - (943) (934) - (934) expenses ------- ------- ------- ------- ------- ------- Net return on ordinary activities before 10,110 24,829 34,939 12,769 (15,356) (2,587) interest payable and taxation Interest payable and (2,622) (2,622) (5,244) (2,308) (2,308) (4,616) similar charges ------- ------- ------- ------- ------- ------- Net return on ordinary activities before taxation 7,488 22,207 29,695 10,461 (17,664) (7,203) Taxation on net return on (855) 781 (74) (1,116) 940 (176) ordinary activities ------- ------- ------- ------- ------- ------- Net return on ordinary activities after taxation 6,633 22,988 29,621 9,345 (16,724) (7,379) Equity minority interests (42) (122) (164) (44) (56) (100) ------- ------- ------- ------- ------- ------- Net return attributable to ordinary shares 6,591 22,866 29,457 9,301 (16,780) (7,479) ------- ------- ------- ------- ------- ------- Ordinary dividends Interim of 0.52p (1999: (2,440) - (2,440) (2,354) - (2,354) 0.50p) Final of 0.80p (1999: (3,635) - (3,635) (3,626) - (3,626) 0.77p) ------- ------- ------- ------- ------- ------- (6,075) - (6,075) (5,980) - (5,980) ------- ------- ------- ------- ------- ------- Transfer to/(from) 516 22,866 23,382 3,321 (16,780)(13,459) reserves ==== ==== ==== ==== ==== ==== Return per ordinary share Basic 1.41p 4.89p 6.30p 1.97p (3.56)p (1.59)p The revenue columns of this statement represent the revenue accounts of the Group. PRELIMINARY GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2000 AUDITED GROUP BALANCE SHEET 2000 1999 £'000 £'000 Fixed assets Tangible assets 64 65 Investments 326,903 296,108 ------- ------- 326,967 296,173 ------- ------- Current assets Debtors 5,668 9,714 Cash at bank and short term deposits 2,284 5,855 ------- ------- 7,952 15,569 Creditors - amounts falling due 29,112 19,242 within one year ------- ------- Net current liabilities (21,160) (3,673) ------- ------- Total assets less current liabilities 305,807 292,500 Creditors - amounts falling due after 40,207 43,293 more than one year ------- ------- Total net assets 265,600 249,207 ====== ====== Capital and reserves Called up share capital 113,593 117,716 Share premium 27,938 27,874 Warrant reserve 5,009 5,060 Other non-distributable reserves 104,822 84,195 Revenue reserve 13,806 14,094 ------- ------- Equity shareholders' funds 265,168 248,939 Equity minority interests 432 268 ------- ------- 265,600 249,207 ====== ====== NET ASSET VALUE PER SHARE Basic 58.36p 52.87p Fully diluted 56.52p 51.98p Notes The preliminary figures for the year ended 31 March 2000 are an extract from the latest Group accounts, prepared on the same basis and approved on 8 June 2000, and do not constitute statutory accounts as defined in section 240 of the Companies Act 1985. These accounts, which have been audited, have not yet been delivered to the Registrar of Companies. The figures and financial information for the year ended 31 March 1999 have been extracted from the latest published accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement either under section 237(2) or section 237(3) of the Companies Act 1985. Dividend The final dividend, subject to shareholders' approval at the AGM, will be paid on 27 July 2000 to shareholders on the register at 7 July 2000. The shares will be quoted ex-dividend from 3 July 2000. Annual Report The annual report will be posted to shareholders on 20 June 2000 and will be available thereafter from the Secretary at the Registered Office, 3 Finsbury Avenue, London EC2M 2PA.

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