Yahoo Finance

• Market Capitalization: GBP2.1 billion, with assets just under GBP1.1 billion.

• Trading Discount: Currently at 6.5%, wider than the long-term average of 4% to 5%.

• Physical Property Ownership: 5.5% of assets, with potential to increase.

• Gearing: Just under 13%, recently increased towards 14%.

• Share Price Total Return: Ahead of the benchmark for the half year to the end of September 2024.

• Dividend: Interim dividend maintained at the same level as the previous half year.

• Reserves: Dipped into reserves to maintain dividend growth.

• Sector Focus: Emphasis on rental growth and targeting markets with rental growth potential.

• Geographical Diversification: Pan-European focus with sector-based portfolio construction.

• Top Holdings: Picton and London Metric as top UK diversified names.

• Recent Acquisitions: Industrial properties in Oxford and Northampton.

• ESG Initiatives: Focus on sustainability improvements in properties.

• Warning! GuruFocus has detected 2 Warning Sign with LSE:TRY.

Release Date: December 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• TR Property Investment Trust PLC (LSE:TRY) has a strong support network with a large number of analysts and a core team that has been together for a long time, providing stability and expertise.

• The Trust has managed to beat the benchmark, offering a better performance than simply buying the benchmark via an ETF.

• The company has a diversified portfolio with a Pan-European focus, allowing for exposure to various sectors and geographical areas.

• TR Property Investment Trust PLC (LSE:TRY) has a history of successful asset management and refurbishment projects, such as the Wandsworth project.

• The Trust is positioned to benefit from M&A activity, with several recent acquisitions and mergers in the sector indicating potential for future growth.

Negative Points

• The Trust is currently trading at a discount wider than its long-term average, which could indicate market skepticism or undervaluation.

• Geopolitical issues across Europe, such as political unrest in France and Germany, pose risks to the Trust's investments.

• The Trust has had to dip into reserves to maintain dividend growth, indicating potential challenges in sustaining earnings.

• There is a slowdown in economic growth expected, which could impact rental growth and overall market conditions.

• The Trust faces challenges from overdevelopment in certain sectors, such as secondary offices and subscale shopping centers, which could affect asset values.

Q & A Highlights

Q: Most property companies are currently on substantial discounts to NAV, plus TR Property is also on a discount, making a double discount. What is the look-through discount at the moment and how does this impact on dividends? A: Marcus Phayre-Mudge, Fund Manager, explained that the average discount across their group is in the mid-20s, with the Trust itself at a 6.5% to 7% discount. They tend to own companies with tighter discounts due to better earnings opportunities. The discount does not affect earnings, as they focus on businesses with growth potential, either through rental growth or refinancing opportunities.