TR Property Investment Trust : Click here for the Sept 2021 Interim Report

TR Property Investment Trust plc

Financial Report for the half year ended 30 September 2021

TR Property Investment Trust plc

Financial Report for the half year ended 30 September 2021

OVERVIEW

1. Company Summary
2. Financial Highlights and Performance

STATEMENTS AND PORTFOLIO INFORMATION

3 Chairman's Statement

1. Interim Management Report and Directors' Responsibility Statement
2. Manager's Report

14 Portfolio

FINANCIAL STATEMENTS

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

SHAREHOLDER INFORMATION

1. Glossary and AIFMD Disclosure
2. Directors and Other Information
3. General Shareholder Information

1. Investing in TR Property Investment Trust plc
2. How to Invest

Visit our website for more information

WWW.TRPROPERTY.COM

TR Property Investment Trust plc

TR Property Investment Trust plc's ("the Company" or "the Trust" or "the Group") investment objective 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

INFORMATION PORTFOLIO	AND STATEMENTS
STATEMENTS	FINANCIAL

INTRODUCTION

The Company 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 and derivatives are set out on page 25 of the Annual Report, which is available on the Company's website. The current portfolio is shown on page 14.

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"). 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 Portfolio Manager and meet regularly to consider investment strategy, to monitor adherence to the stated objective and investment policies and to review performance. Details of how the Board operates and fulfils its responsibilities are set out in the Annual Report.

PERFORMANCE

The Financial Highlights for the current year are set out opposite and the 10 year performance can be seen alongside the graph on page 4.

DIVIDEND

An interim dividend of 5.30p (2020: 5.20p) will be paid on 14 January 2022 to shareholders on the register on

17 December 2021. The shares will be quoted ex-dividend on 16 December 2021.

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 ordinary 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.

FURTHER INFORMATION

General Shareholder information and details of how to invest in TR Property Investment Trust plc, including an investment through an ISA or saving scheme, can be found on pages 28 to 31. This information can also be found on the Company's website www.trproperty.com

SHAREHOLDER NINFORMATIO

TR PROPERTY INVESTMENT TRUST 1

Financial Highlights and Performance

	At 30 September	At 31 March	%
	2021	2021	Change
Balance Sheet
Net asset value per share	474.34p	417.97p	+13.5
Shareholders' funds (£'000)	1,505,318	1,326,433	+13.5
Shares in issue at the end of the period (m)	317.4	317.4	+0.0
Net debt1,5	11.6%	16.5%
Share Price
Share price	470.00p	392.50p	+19.7
Market capitalisation	£1,492m	£1,246m	+19.7
	Half year ended	Half year ended
	30 September	30 September	%
	2021	2020	Change
Revenue and Dividends
Revenue earnings per share	10.31p	7.65p	+34.8
Interim dividend per share	5.30p	5.20p	+1.9
	Half year ended	Year ended
	30 September	31 March
	2021	2021
Performance: Assets and Benchmark
Net asset value total return2,5	+15.6%	+20.7%
Benchmark total return	+11.0%	+15.9%
Share price total return3,5	+22.1%	+28.3%
Ongoing Charges4,5
Including performance fee	+1.50%	+1.40%
Excluding performance fee	+0.70%	+0.65%
Excluding performance fee and direct property costs	+0.69%	+0.63%

1. Net debt is the total value of loan notes and loans (including notional exposure to CFDs) less cash as a proportion of Net asset value.
2. 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.
3. The Share Price Total Return is calculated by reinvesting the dividends in the shares of the Company from the relevant ex-dividend date.
4. Ongoing Charges are calculated in accordance with the AIC methodology. The ratio for 30 September 2021 is based on forecast expenses and charges for the year ending 31 March 2022. The performance fee included in the calculation above is the provision at 30 September 2021 referred to in note 2 rather than an estimate of the fee at the year end.
5. Considered to be an Alternative Performance Measure as defined on page 26.

2 TR PROPERTY INVESTMENT TRUST

Chairman's Statement

David Watson

Chairman

A good set of results in challenging market conditions. A Share Price Total return of over 22% and an increase in the Interim Dividend, reflecting our confidence that income will return to pre-pandemic levels over the next 18 months.

INTRODUCTION

For the six months to 30th September, the Trust delivered a healthy NAV total return of 15.6%, 4.6% ahead of the benchmark total return of 11.0%. The share price total return was an impressive 22.1% as the discount to the underlying asset value, which the shares traded at in March, virtually disappeared over the subsequent six months.

The period saw the continuation of the broad post vaccine recovery across all economies. However, the rebound continues to be unequal across the real estate landscape. Legacy issues abound. Office landlords face headwinds from low levels of occupation, particularly in larger cities, whilst retail property continues to lack fresh demand amidst an unrelenting move to online retail fulfilment. There have also been clear winners: the major disruption in supply chains has forced businesses to invest in more storage capability and domestic leisure use has unsurprisingly surged giving hotels and restaurants a badly needed boost.

Our manager continues to focus on sustainable income and has further tilted the portfolio towards index-linked income. When viewed against more popular index linked instruments, REITS with this type of explicit inflation proof income look undervalued.

Our ability to buy (and trade) alternative asset types beyond the traditionally dominant office and retail sectors continues to be a driver of value and differentiation. Our investments in self-storage, private sector residential, logistics and secure income have all performed well.

OVERVIEW

INFORMATION PORTFOLIO	AND STATEMENTS
STATEMENTS	FINANCIAL

SHAREHOLDER

NINFORMATIO

TR PROPERTY INVESTMENT TRUST 3