TRY : Good six months for TR Property
TR Property’s net asset value rose by 2.7% to reach 261.8p over the six months that finished on 30 September and the share price rose by a similar amount. The interim dividend has been increased from 2.85p to 2.95p. On a total return basis the fund beat its benchmark by 1.9%.
The wind up of Max Property, which they held, was accompanied by the payment of a special dividend which boosted the fund’s income for the period. Looking ahead, the Board say there is a chance that development work at the Colonnades (one of the properties they hold directly, planned to complete in November 2015) will hold back income for a while.
Within the portfolio, the best performing area was in Continental European property. They also sold park Place in Vauxhall to a residential developer at a 4.2% premium to book value. Apart from Max Property, another fund, CFI, which was established in 2008 to take advantage of the depressed prices across Continental Europe, also wound up during the period – making them a54% return on their original investment.
They bought two industrial buildings in Plymouth (£3.25m for a building let to Invensys at a yield of 8.6%) and Bristol (£4.58m for a building let to Yodel at a yield of 6.7%).
TR Property are also putting together a development masterplan for their property in Wandsworth.