TR Property bounces back

TR Property Investment Trust saw sharp increases in the net asset value of both classes of its shares as property shares rallied in the April to September period.The investment trust’s ordinary share class saw a net asset value (NAV) total return of 45.3%, though this was 7.7% behind the growth of the index against which the fund measures performance.The Sigma share class saw a NAV total return of 55.3%, versus a return on the benchmark index of 57.5%.Net revenue per share for both classes declined as a result of the trend for cash strapped companies to cut or abandon dividend payments, while low interest rates also limited returns on cash on deposit.Revenue earning per Sigma share was 1.76p, down 14.1% from 2.05p a year earlier, while for the ordinary shares revenue earnings were down 12.8% at 3.60p from 4.13p a year earlier. Holders of TR Property ordinary shares will receive an unchanged interim dividend of 2.30p while the Sigma class shares’ interim dividend is also unchanged at 0.90p.Over the reporting period the trust increased its exposure to the market. At the end of March, the ordinary share class had gross cash £61.8m but this had been reduced to £4.4m at the end of September.A similar story applies to the Sigma shares, where net cash of £12.9m at the end of March was down to £4.6m at the end of September.The fund manager for the ordinary shares pool said there are the first signs of growth in property values in the UK where ‘despite continued weak tenant demand, investors are returning to the asset class attracted by income yields no longer available in most other asset classes.’The fund manager expects the Continental property to ‘follow a similar, if slightly delayed, path’ to the UK.