Interim Management Statement

RNS Number : 2736R

TR Property Investment Trust PLC

18 August 2010

 



TR Property Investment Trust plc

Interim Management Statement - 3 months to 30 June 2010

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 2010 to 30 June 2010, 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.

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 annually.  

Material events

The final results were announced on 2 June including:

Second interim dividends of 3.45p per Ordinary share and 1.10p per Sigma share paid on 1 April  2010 to shareholders on the register on 12 March 2010. The second interim dividends replaced the final dividend that would normally be paid in August.

Chris Turner has decided to retire in July 2011 following the Annual General Meeting. He has been senior Fund Manager since 1995. He will continue in his current role with day to day responsibility for the Ordinary Share Class until 31 March 2011. Marcus Phayre-Mudge will take over as Fund Manager of the Ordinary share Class from 1 April 2011 and James Wilkinson will become Fund Manager of the Sigma Share Class from that date.

The Board also noted the announcement by F&C Asset Management regarding the acquisition of Thames River Capital, the Trust's appointed Investment Manager. The Board has been assured that the team and management of the Trust will be unchanged.

The full text of the announcement is contained in the Annual Report which is available on the Company's website www.trproperty.com

The Annual General Meeting of the company was held on 27 July 2010and all of the resolutions put to the meeting were approved unanimously.

Material Transactions

The sale of the leasehold interest in Unit 270, Cambridge Science Park, Cambridge completed from the Ordinary share class portfolio on 11 June 2010. The sale price was £6.7m which reflected a net initial yield of 9.0% and a gross capital value per sq ft of £182. The sale price was ahead of the March 2010 valuation. The Trust plans to reinvest the proceeds of the sale back into physical property.

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

Ordinary Portfolio

Twenty largest equity holdings at 30 June 2010

	% of Net Assets
Unibail-Rodamco	16.4
Land Securities	7.1
British Land	5.7
Corio	4.7
Klépierre	3.9
Foncière des Régions	3.0
Swiss Prime Site	3.0
Hammerson	2.9
Segro	2.8
Derwent London	2.7
Great Portland Estates	2.5
Icade	2.4
Castellum	2.3
Gecina	2.3
Big Yellow	1.8
PSP Swiss Property	1.8
Eurocommercial Properties	1.7
Wereldhave	1.7
Silic	1.5
Fabege	1.4

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

Colonnades W2 - Mixed Use

Ferrier St, Wandsworth, London - Industrial

Field House, Harlow - Offices

Solstice House, Milton Keynes - Offices

Portfolio Allocation at 30 June 2010

UK Equities	33.7%
European Equities	55.6%
UK Direct Property	9.8%
Fixed Interest	0.9%

Sigma Portfolio

Twenty largest equity holdings at 30 June 2010

	% of Net Assets
Eurocommercial	7.8
Great Portland Estates	6.8
Hufvudstaden	4.7
Castellum	4.7
Grainger	4.1
Conwert	4.0
Citycon	3.5
Hansteen	3.2
Vastned Retail	3.2
Fabege	3.1
Nieuwe Steen	3.1
Alstria	3.0
Big Yellow	2.9
Shaftesbury	2.8
CA Immobilien	2.6
Foncière Paris France	2.4
Norwegian Property	2.3
Prologis	2.2
Unite	2.1
Beni Stabili	1.9

Portfolio Allocation at 30 June 2010

UK Equities	35.5%
European Equities	64.5%

Company's Financial Position and Performance: 

Ordinary Shares

 

	As at 30 Jun 2010	As at 31 Mar 20103	As at 30 Jun 2009	3 Month % Change	12 Month % Change
Share Price	138.90p	159.40p	121.50p	-12.9	+14.3
Capital NAV per share1	152.93p	182.86p	132.41p	-16.4	+15.5
Income NAV per share2	157.41p	182.86p	138.32p	-13.9	+20.5
Benchmark (EPRA)
Capital Only	1,538.02	1,846.60	1,290.36	-16.7	+19.2
Total Return	2,330.51	2,716.82	1,860.71	-14.2	+25.2
Gearing  (%) 4	10.54	10.10	3.42
Shares in issue	256,725,000	256,725,000	256,725,000	0.0	0.0

Sigma Shares

	As at 30 Jun 2010	As at 31 Mar 20103	As at 30 Jun 2009	3 Month % Change	12 Month % Change
Share Price	62.10p	70.50p	52.75p	-11.9	+17.8
Capital NAV per share 1	79.96p	97.03p	67.40p	-17.6	+18.6
Income NAV per share2	81.07p	97.03p	69.80p	-16.4	+20.6
Benchmark5 (EPRA SC)
Capital Only	1,370.86	1,629.14	1,126.64	-15.9	+21.7
Total Return	1,479.44	1,729.94	1,170.20	-14.5	+26.4
Gearing  (%) 4	12.58	10.60	3.27
Shares in issue	124,922,000	124,922,000	124,922,000	0.0	0.0

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

2   NAV including Income year to date calculated on the AIC basis. % Change information includes adjustment for dividends paid

3   31 March NAVs adjusted for second interim distribution and transfers to/from capital reserves     following the full year announcement in respect of year ended 31 March 2010

4  Gearing calculated in accordance with the AIC definition, which does not take account of cash held on deposit.  

5  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 7954 9528

 

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