(Alliance News) - TR Property Investment Trust PLC on Friday said it outperformed its benchmark in the first half of the year due to a steady recovery in European real estate equity share prices.
The FTSE 250-listed trust's net asset value total return for the six months ended September 30 was 14.8%, beating its benchmark total return of 9.8%.
TR Property invests in both the shares of property companies, as well as physical property. Its benchmark is the FTSE EPRA/NAREIT Developed Europe Capped Net Total Return Index in sterling.
The trust said there has been a steady recovery in pan European real estate equity share prices, "as investors took comfort from significant central bank stimulus and state aid for corporates and individuals".
TR Property's net asset value per share for the period was 402.23 pence, an increase of 12.3% from 358.11 pence reported on March 31.
The trust has declared a 5.20 pence interim dividend, unchanged from last year due to the income for the full year being lower that the previous year.
Revenue earnings per share for the period were 7.65 pence, down 23.2% from 9.96 pence the year prior. The trust said this reflects the cuts and suspensions of dividends that many companies announced early in the year.
Looking ahead, Chair David Wilson said it is "extremely difficult" to predict the outlook for revenue beyond the financial year, however, the outlook for real estate pricing has improved.
"The dispersion of returns since March has been so wide that valuations are potentially becoming attractive in some of the least loved sectors of the market. Everything revolves around income security. This presents opportunities for a closed-ended structure where we can selectively acquire such names alongside our core, secure income portfolio," he said.
Shares in TR Property were down 1.4% at 389.00 pence in London on Friday.
By Zoe Wickens; zoewickens@alliancenews.com
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TR Property Investment Trust (TRY)