TR Property Investment Trust PLC on Monday said it outperformed its benchmark in its recent financial year, thanks to its holdings in the logistics sector.
The London-based investment trust offers exposure to companies involved with UK and European commercial real estate.
Net asset value rose 15% to 351.10 pence per share on March 31, the end of the company’s financial year, from 305.13p a year prior.
The trust swung to pretax profit £198.6 million in financial 2024 from a £543.7 loss in financial 2023.
In the most recent year, TR Property benefited from a £160.8 million gain on investments held at fair value compared to a £549.4 million loss reported last year.
NAV total return stood at 21%, improving from negative 36% a year before and outperforming the benchmark FTSE EPRA/NAREIT Developed Europe Index, which returned 15%.
Revenue earnings per share declined 30% to 12.04p from 17.22p
TR Property raised its final dividend 2.0% to 10.05p from 9.85p, bringing the total for the year to 15.70p, up 1.3% from 15.50p.
Performance over the period was largely attributed to the company’s exposure to a number of logistics-focused companies, including Argan SA and Catena AB, which returned 26% and 39% respectively.
Elsewhere in its portfolio, residential property valuations fluctuated during the year, and TR Property said the office sector proved to be the most challenging with sentiments remaining extremely negative.
Manager Marcus Phayre-Mudge commented: ‘Our central case is that more benign European inflation is drawing closer. But crucially, our optimism is not dependent on near-term cuts to interest rates. The companies we own are positioned to prosper even if rates remain at current levels and the spike in merger and acquisition activity this past year is recognition of this.’
Looking ahead, management anticipates that underlying income will take time to recover, TR Property said. However, with strong revenue reserves built up, the board will continue supporting the company’s dividend.
TR Property shares were down 0.8% to 326.96 pence each in London on Monday morning.
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