TR Property Investment Trust : Click here for the March 2022 Annual Report

TR PROPERTY INVESTMENT TRUST PLC

Annual Report

31-03-2022

Overview

1. Company Summary
2. Financial Highlights and Performance
3. Historical Performance

Strategic report

1. Chairman's Statement

1. Manager's Report

1. Portfolio
2. Investment Portfolio by country
3. Twelve largest equity investments

1. Investment properties
2. Investment objective and benchmark

1. Business Model
2. Strategy and investment policies
3. Key Performance Indicators

1. Principal and emerging risks and uncertainties

1. Long-termviability

1. Responsible investment

Governance

1. Directors

1. Managers
2. Report of the Directors

1. Corporate Governance Report

1. Report of the Nomination Committee

1. Report of the Management Engagement Committee

1. Directors' Remuneration Report

1. Report of the Audit Committee

1. Statement of Directors' Responsibilities in Relation to the Group Financial Statements
2. Independent Auditor's Report to the Members of TR Property Investment Trust plc

Financial statements

1. Group Statement of Comprehensive Income
2. Group and Company Statement of Changes in Equity
3. Group and Company Balance Sheets
4. Group and Company Cash Flow Statements
5. Notes to the Financial Statements

Glossary and AIFMD disclosure

102 Glossary and AIFM disclosure

Notice of AGM

1. Notice of Annual General Meeting

1. Explanation of Notice of Annual General Meeting

Shareholder information

1. Directors and other information
2. General Shareholder information

1. Investing in TR Property Investment Trust plc

1. How to Invest

2	TR Property Investment Trust

TR Property Investment Trust plc

The investment objective of TR Property Investment Trust plc is to maximise shareholders' total returns by investing in the shares and securities of property companies and property related businesses internationally and also in investment property located in the UK.

Overview

report Strategic

Introduction

TR Property Investment Trust plc (the 'Company' or the 'Trust') was formed in 1905 and has been a dedicated property investor since 1982. The Company is an Investment Trust and its shares are premium listed on the London Stock Exchange.

Benchmark

The benchmark is the FTSE EPRA/NAREIT Developed Europe Capped Net Total Return Index in Sterling.

Investment policy

The Company seeks to achieve its objective by investing in shares and securities of property companies and property related businesses on an international basis, although, with a pan-European benchmark, the majority of the investments will be located in that geographical area. The Company also invests in investment property located in the UK only.

Further details of the Investment Policies, the Asset Allocation Guidelines and policies regarding the use of gearing are set out in the Strategic Report on page 23 and the entire portfolio is shown on page 16.

Investment manager

BMO Investment Business Limited acts as the Company's alternative investment fund manager ('AIFM') with portfolio management delegated to Thames River Capital LLP (the 'Portfolio Manager' or the 'Manager'). Marcus Phayre-Mudge has managed the portfolio since 1 April 2011 and been part of the Fund Management team since 1997.

Independent board

The Directors are all independent of the Manager and meet regularly to consider investment strategy, to monitor adherence to the stated objective and investment policies and to review investment performance. Details of how the Board operates and fulfils its responsibilities are set out in the Report of the Directors on page 43.

Performance

The Financial Highlights for the current year are set out on page 2 and Historical Performance can be found on page 3. Key Performance Indicators are set out in the Strategic Report on pages 24 and 25.

Retail investors advised by IFAs

The Company currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers ('IFAs') in the UK to retail investors in accordance with the Financial Conduct Authority ('FCA') rules in relation to non-mainstream investment products and intends to continue to do so. The shares are excluded from the FCA's restrictions, which apply to non-mainstream investment products, because they are shares in an authorised investment trust company.

Further information

General shareholder information and details of how to invest in the Company, including an investment through an ISA or saving scheme, can be found on pages 114 onwards. This information can also be found

on the Company's website www.trproperty.com

Governance

statements Financial

AGM of Notice disclosure AIFMD and Glossary

information Shareholder

Annual Report & Accounts 2022

1

Financial highlights and performance

	Year ended	Year ended
	31 March	31 March
	2022	2021	Change
Balance Sheet
Net asset value per share	492.43p	417.97p	+17.8%
Shareholders' funds (£'000)	1,562,739	1,326,433	+17.8%
Shares in issue at the end of the year (m)	317.4	317.4	0.0%
Net debt¹,6	10.2%	16.5%
Share Price
Share price	456.50p	392.50p	+16.3%
Market capitalisation	£1,449m	£1,246m	+16.3%

	Year ended	Year ended
	31 March	31 March
	2022	2021	Change
Revenue
Revenue earnings per share	13.69p	12.25p	+11.8%
Dividends²
Interim dividend per share	5.30p	5.20p	+1.9%
Final dividend per share	9.20p	9.00p	+2.2%
Total dividend per share	14.50p	14.20p	+2.1%
Performance: Assets and Benchmark
Net Asset Value total return3,6	+21.4%	+20.7%
Benchmark total return6	+12.2%	+15.9%
Share price total return4,6	+19.9%	+28.3%
Ongoing Charges5,6
Including performance fee	+2.19%	1.40%
Excluding performance fee	+0.60%	0.65%
Excluding performance fee and direct property costs	+0.58%	0.63%

1. Net debt is the total value of loan notes, loans (including notional exposure to CFDs) less cash as a proportion of net asset value.
2. Dividends per share are the dividends in respect of the financial year ended 31 March 2022. An interim dividend of 5.30p was paid on 14 January 2022. A final dividend of 9.20p (2021: 9.00p) will be paid on 2 August 2022 to shareholders on the register on 24 June 2022. The shares will be quoted ex-dividend on
   23 June 2022.
3. The NAV Total Return for the year is calculated by reinvesting the dividends in the assets of the Company from the relevant ex-dividend date. Dividends are deemed to be reinvested on the ex-dividend date as this is the protocol used by the Company's benchmark and other indices.
4. The Share Price Total Return is calculated by reinvesting the dividends in the shares of the Company from the relevant ex-dividend date.
5. Ongoing Charges are calculated in accordance with the AIC methodology. The Ongoing Charges ratios provided in the Company's Key Information Document are calculated in line with the PRIIPs regulation which is different to the AIC methodology.
6. Considered to be an Alternative Performance Measure as defiined on pages 102 and 103.

2	TR Property Investment Trust

Historical performance

for the year ended 31 March 2022

Overview

	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Performance for
the year:
Total Return (%)
NAV(A)	-8.5	21.5	22.4	28.3	8.2	8.0	15.5	9.1	-11.5	20.7	21.4
Benchmark(B)	-8.9	17.8	14.9	23.3	5.4	6.5	10.2	5.6	-14.0	15.9	12.2
Share Price(C)	-9.5	25.8	37.7	29.5	-1.6	9.1	25.5	6.2	-16.8	28.3	19.9
Shareholders' funds
(£'m)
Total	588	684	809	1,010	1,065	1,118	1,256	1,328	1,136	1,326	1,563
Ordinary shares	470	684	809	1,010	1,065	1,118	1,256	1,328	1,136	1,326	1,563
Sigma shares(D)	118	-	-	-	-	-	-	-	-	-	-
Ordinary shares
Net revenue (pence
per share)
Earnings	7.07	6.74	8.09	8.89	8.36	11.38	13.22	14.58	14.62	12.25	13.69
Dividends(E)	6.60	7.00	7.45	7.70	8.35	10.50	12.20	13.50	14.00	14.20	14.50
NAV per share	183.60	215.25	254.94	318.12	335.96	352.42	395.64	418.54	358.11	417.97	492.43
(pence)
Share price (pence)	154.50	186.30	247.50	310.50	297.50	314.50	382.50	394.00	317.50	392.50	456.50
Indices of growth
(rebased at 31 March 2012)
Share price(F)	100	121	160	201	193	204	248	255	206	254	295
Net Asset Value(G)	100	117	139	173	183	192	215	228	195	228	268
Dividend Net(E)	100	106	113	117	127	159	185	205	212	215	218
RPI	100	103	106	107	108	112	116	118	122	123	134
Benchmark(H)	100	113	121	145	149	154	165	169	141	160	176

Figures have been prepared in accordance with UK-adopted international accounting standards.

(A)The NAV Total Return for each year is calculated by reinvesting the dividends in the assets of the Company from the relevant ex-dividend date. Dividends are deemed to be reinvested at the ex-dividend date as this is the protocol used by the Company's benchmark and other indices. This is considered to be an Alternative Performance Measure as defined on pages 102 and 103.

(B)Benchmark Index: composite index comprising the FTSE EPRA/NAREIT Developed Europe TR Index up to March 2013, and thereafter the FTSE EPRA/NAREIT Developed Europe Capped Index. Source: Thames River Capital.

(C)The Share Price Total Return is calculated by reinvesting the dividends in the shares of the Company from the relevant ex-dividend date.

(D)The Sigma share class was launched in 2007 and Sigma shares were redesignated as Ordinary shares on 17 December 2012.

1. Dividends per share in the year to which their declaration relates and not the year they were paid.
2. Share prices only. These do not reflect dividends paid.

(G)Capital only values. These do not reflect dividends paid.

(H)Price only value of the indices set out in (B) above.

report Strategic

Governance

statements Financial

AGM of Notice disclosure AIFMD and Glossary

information Shareholder

Annual Report & Accounts 2022

3