TR Property boosts dividend by 26 per cent – annual report summary

Our annual report summary series delivers a condensed analysis of a selected investment trust's annual report, including details of the trust's aim, investment style, portfolio focuses, gearing policy, charges and performance.

TR Property

TR Property Investment Trust (TRY) aims to maximise total returns primarily from investing in the shares of property companies and property related businesses, predominantly in the UK and Europe. It also invests directly in UK property. Its report for the year to 31 March 2017 shows shareholders’ funds of £1.12 billion.

The trust is managed by Thames River Capital, a subsidiary of F&C Investment Business. Marcus Phayre-Mudge joined the management team in 1997 and has been lead manager since April 2011.

He favours businesses with strong cash flows and the potential for earnings growth, and mitigates risk by investing across numerous submarkets and geographies.

Foreign exchange forward contracts are deployed to keep currency exposure broadly in line with TRY’s benchmark, the FTSE EPRA/NAREIT Developed Europe Capped Net Total Return index in sterling.

At end-March, 63 per cent of the portfolio was in European property shares, 29 per cent in UK property securities, and 8 per cent in UK direct property.

Gearing, including contracts for difference, was up from 11.9 per cent to 13.35 per cent. Ongoing charges, including a performance fee, fell to 0.8 per cent.


Helped by sterling weakness against the euro, NAV and share price total returns were 8 per cent, and 9.1 per cent last year. Both exceeded the 6.5 per cent return on TRY’s benchmark.

Earnings per share rose 36.1 per cent to 11.38p and the dividend, which is paid in two tranches, was raised 25.7 per cent to 10.5p, more than double its level 10 years earlier.

The board warns that uncertainty about the Brexit negotiations could adversely affect the UK property market, and that a reversal of last year’s sterling weakness could impact the revenue account. But the manager believes the market continues to offer attractive opportunities for growth.

Read the full annual report on the TR Property website.

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