LONDON (Alliance News) - TR Property Investment Trust PLC Wednesday reported an increase in profit and revenue for its last financial year, boosted partly by value increases on two UK properties.
TR Property, which invest in property across Europe, posted pretax profit of GBP149.3 million for the 12 months ended March 31, up from GBP119.3 million a year earlier, while total income, which incorporates gross rental and investment income, rose to GBP169.6 million, from GBP133.9 million.
FTSE 250-listed TR Property said its portfolio performed well during the year and in particular the Colonnades in Bayswater and Park Place in Vauxhall, which between them increased in value by 56%.
The firm said its net asset value per share rose 18% to 254.94 pence, from 215.25 pence. TR said its net asset value total return of 22.4% was ahead of the benchmark total return of 14.9%.
Looking ahead, the firm said it is concerned about the "exuberance" of investors where underlying tenant demand remains fragile.
"With fixed income returns looking increasingly unappealing, capital is seeking alternatives such as commercial property," Chairman Caroline Burton said in a statement. "However rapid asset value inflation may lead to poorer than expected returns in the medium term if the anticipated economic improvement does not translate into growth and jobs."
On the back of its performance, the company increased its final dividend to 4.6 pence, from 4.35 pence a year earlier, making a total dividend of 7.45 pence, up from 7.00 pence.
TR Property shares were quoted flat at 260.00 pence Wednesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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TR Property Investment Trust (TRY)