TR Property Investment Trust PLC on Wednesday posted a rise in profit for its recently ended financial year, despite the toughening of trading conditions in the second half.

For the financial year that ended March 31, pretax profit increased 22% to £283.6 million from £232.5 million the year before, on total income which grew 26% year-on-year to £320.9 million from £253.9 million.

The gains on investments held at fair value increased to £249.0 million from £196.6 million.

For the year, TR Property’s net asset value total return was 21.4%, outperforming its benchmark index, which made a 12.2% return.

The London-based property investor attributed the stronger performance to a focus on index-tilted income within its portfolio, helping to cushion TR Property from the macroeconomic challenges which mostly come up in the second half, including inflationary pressure, hawkish responses from central banks and the war in Ukraine.

As at March 31, the company’s net asset value per share stood at 492.43 pence, up 18% from 417.97p the same date a year prior.

TR Property declared a final dividend of 9.20 pence per share, bringing the total payout to 14.50p, a 2.1% increase from 14.20p the year before.

‘The era of cheap money is coming to an end. Inflation is surging and central banks are reversing their balance sheet expansion that has defined the period following the Global Financial Crisis. Consequently, bond markets are volatile and real as opposed to nominal yields on duration debt are getting even more negative. 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,’ said Chair David Watson.

Shares in TR Property Investment were down 0.2% at 408.00 pence on Wednesday morning in London.

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