Interim Management Statement

RNS Number : 6553X

TR Property Investment Trust PLC

18 August 2009

 



TR Property Investment Trust plc

Interim Management Statement - 3 months to 30 June 2009

This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party for any other purpose.

This interim management statement relates to the period from 1 April 2009 to 30 June 2009, and contains information that covers this period, and up to the date of the publication of this interim management statement, unless otherwise specified.

Investment Objective and benchmark

Ordinary share class

The objective of the Ordinary share class is to maximise shareholders' total return by investing in property shares and property on an international basis.

The benchmark is the FTSE EPRA/NAREIT Europe Index in Sterling. This index, calculated by FTSE, is freefloat based and currently has 81 constituent companies. The Benchmark website www.epra.com contains further details about the index and performance.

Sigma share class

The objective of the Sigma share class is to maximise shareholders' total return by investing predominantly in shares of property companies with a market capitalisation of less than £1 billion on an international basis.

From 1 April 2009, the benchmark is the FTSE EPRA/NAREIT Small Cap Europe Index in Sterling. This index is provided by FTSE, and is the EPRA/NAREIT Europe Index in Sterling adjusted to exclude those stocks with a market capitalisation exceeding £1 billion. The constituents are adjusted quarterly.  

Prior to 1 April 2009 the benchmark was the FTSE EPRA/NAREIT Europe Index in Sterling, as for the Ordinary share class. The board announced the change of benchmark on 31 March 2009 as the Board considers that, going forward, the relative performance of the share class will be more appropriately judged using a benchmark which is more aligned to its objective.

Material events

The final results were announced on 27 May. Final dividends of 3.45p per Ordinary share and 1.10p per Sigma share were announced and following shareholder approval on 28 July were paid on 4 August 2009 to shareholders on the register on 3 July 2009.

The results also contained details of revised management fee arrangements with the Manager, Thames River Capital. These are covered in detail in the Annual Report which can be found on the Company's website www.trproperty.com

The Board also announced on 26 May that Mr Richard Stone would step down as Chairman of the Audit Committee with effect from 1 August 2009 and become the Company's Senior Independent Director. Mr Paul Spencer has succeeded Mr Richard Stone as Chairman of the Audit Committee.

Material Transactions

No share buy-backs in either share class have been made during this period.

On 28 July 2009 the VAT reclaim for the 1990 -1996 periods was received. The total reclaim amounted to £906k across the two share classes.

£734,000 was allocated to the Ordinary share class, £442,000 to the revenue account (0.17p per share) and £292,000 to the capital account (0.11p per share).  

£172,000 was allocated to the Sigma share class, £104,000 to the revenue account (0.08p per share) and £68,000 to the capital account (0.05p per share).  

These amounts were recognised in the NAVs for each share class as at 28 July 2009, released on 29 July 2009.

The total amount of VAT recovered across the two share classes now amounts to £6.86m. The estimated recovery initially disclosed in the March 2008 accounts was an amount in excess of £6 million.

Ordinary Portfolio

Twenty largest equity holdings at 30 June 2009

                                  % of Net Assets

Unibail-Rodamco                15.28 

Land Securities                     7.30

British Land                          5.22

Corio                                    3.97

Segro                                    3.40

Icade                                     2.78

Foncière des Régions            2.65

Big Yellow                           2.65

Hammerson                          2.59

Great Portland Estates           2.57

Klépierre                              2.55

Derwent London                  2.31

Silic                                     1.85                    

Castellum                             1.83

Liberty International             1.79

Wereldhave                         1.59

Gecina                                 1.32

Eurocommercial Properties   1.26

Shaftesbury                           1.13

Vastned Retail                      1.12

5 Largest property holdings (Values in excess of £4m)

Colonnades W2 - Mixed Use

Ferrier St, Wandsworth, London - Industrial

Field House, Harlow - Offices

Cambridge Science Park - Offices

Solstice House, Milton Keynes - Offices

Portfolio Allocation at 30 June 2009

UK Equities                 34.2%

European Equities        44.3%

UK Direct Property     13.3%

Fixed Interest                 1.5%    

Cash                              6.7%

Sigma Portfolio

Twenty largest equity holdings at 30 June 2009

                                                  % of Net Assets

Segro                                                    6.23

Unibail-Rodamco                                   6.01

Eurocommercial                                     4.88

Castellum                                               4.87

Great Portland                                        4.61

Wereldhave                                            4.47

Hansteen                                                4.19

Silic                                                        4.00

Befimmo                                                 3.96

Derwent London                                     3.30

Big Yellow                                              3.27

Shaftesbury                                             2.76

Helical Bar                                              2.40

Cofinimmo                                              2.04

Citycon                                                   1.99

Foncière Lyonnaise                                 1.94

Deutsche Euroshop                                 1.69

Vastned Retail                                         1.69

Local Shopping REIT                              1.53

Société Foncière Paris Ile de France        1.52

Portfolio Allocation at 30 June 2009

UK Equities                       35.6%

European Equities               57.0%

Cash                                    7.4%

Company's Financial Position and Performance:

Ordinary Shares

	As at 30 Jun 2009	As at 31 Mar 2009	As at 30 Jun 2008	3 Month     % Change	12 Month % Change
Share Price	121.50p	106.00p	153.75p	14.6%	-21.0%
Capital NAV per share*	132.41p	122.84p	180.38p	7.8%	-26.6%
Income NAV per share**	138.32p	127.14p	187.29p	8.8%	-26.1%
Benchmark (EPRA)	1,290.36	1,206.99	2,005.31	6.9%	-35.7%
Gearing     (%) #	3.42	3.72	6.72
Shares in issue	256,725,000	256,725,000	257,250,000	0.0%	- 0.2%

Sigma Shares

	As at 30 Jun   2009	As at 31 Mar 2009	As at 30 Jun 2008	3 Month % Change	12 Month % Change
Share Price	52.75p	39.00p	72.50p	35.3%	-27.2%
Capital NAV per share*	67.40p	59.30p	88.61p	13.7%	-23.9%
Income NAV per share**	69.80p	61.36p	91.10p	13.8%	-23.4%
Benchmark## (EPRA SC)	1,126.64	1,011.55		11.4%
Gearing     (%) #	3.27	3.72	6.54
Shares in issue	124,922,000	124,922,000	127,415,000	0.0%	- 2.0%

* NAV per share is a capital only NAV calculated on the AIC basis

**  NAV including Income year to date calculated on the AIC basis

# Gearing calculated in accordance with the AIC definition, which does not take account of cash held on deposit. As at 30 June 2009, both share classes had repaid all short term borrowings and held cash on deposit in excess of the amount of the share class apportionment of the debentures, therefore the effective gearing level was zero. Net cash levels are shown in the portfolio allocation.

 ## EPRA SC = EPRA Small Cap - Sigma benchmark with effect from 1 April 2009

Other Information

Further information and commentary, including up to date NAV and share price information, can be found on the Company's website www.trproperty.com

Enquiries:

John Crehan

For and on behalf of

Capita Company Secretarial Services

Secretary

020 7592 8145

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