Tr Property Share Price (TRY)

Meanwhile, TR Property is a reliable income payer, and its shares trade at a 14 per cent discount to the latest book value of 212p. That's wide by the standards of the high-quality real-estate investment trusts that it owns.........BUT AS ALWAYS DYOR AND GOODLUCK.......

Perhaps the biggest risk faced by Mr Phayre-Mudge is that market sentiment improves, so investors turn to cheaper, messier companies. There have been hints of a rotation this year. This could remove the premium rating from safe-haven players such as Derwent (DLN) and Great Portland (GPOR) - both of which are overweight in TR portfolio. Yet, so far there has been more talk of risk-taking than action. And even if rotation does happen, property values in general should benefit. Besides, investors may not begrudge Mr Phayre-Mudge underperformance of TR's benchmark if he is still making good returns. Share tip sum

Mr Turner retired in March 2011, to be replaced by his long-term deputy, Marcus Phayre-Mudge. It remains to be seen whether Mr Phayre-Mudge will prove as adept a thinker as his predecessor. In the volatile 22 months since he took over, the fund has underperformed the European benchmark for property shares. But that's not long enough to judge a manager and the trust's long-term record, for which Mr Phayre-Mudge is partly responsible, shows substantial outperformance. Over the past five years, which have not been kind to property investors, that outperformance can be attributed to a focus on quality - particularly balance sheet quality. The managers have been right, it turns out, to avoid companies and countries with high levels of debt. TR Property itself is modestly geared, with net debt of just £36m on a £483m portfolio, and Mr Phayre-Mudge closely monitors 'see through' net debt - the gearing to which the fund is exposed through its holdings. They have also been right to focus on those markets with structural growth, even if the relevant companies trade on punchy ratings. These include London, Stockholm, German housing and pan-regional shopping malls.

Second, liquid portfolios are invaluable in a crisis. When the property market showed signs of turning in late 2007, TR Property's then manager, Chris Turner, could adapt his portfolio quickly. He sold off stocks with higher gearing and used the proceeds to pay off the company's own debt. Land Securities could do little but hope for the best as its portfolio deflated. Nobody expects a re-run of the 2007-09 property crash any time soon. But in today's polarised property markets - some are booming while most remain distressed - the flexibility of a diversified, liquid portfolio remains attractive. If you want hassle-free, low-risk exposure to European property, TR Property is a useful stock.

If you bought £100-worth of shares in Land Securities (LAND) a decade ago and spent the dividends, your capital would be worth just £112. If, instead, you had stashed your cash in TR Property (TRY), an investment trust that owns a basket of property shares, you would now have £205. There are two lessons. First, it really can pay to diversify. TR Property's largest holding in 2007 was Land Securities. Yet, because it owned shares in plenty of other companies, it weathered the property crash.

TR Property Investment Trust: Liberum Capital starts coverage with a target price of 195p and a buy recommendation.