Complete your registration today for a chance to win £50 John Lewis vouchers in our weekly draw Enter now
Fund Profile


This is a non-independent marketing communication commissioned by Columbia Threadneedle Investments. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

A new version of this profile is available. View Latest

TR Property (TRY) offers exposure to the property market via the equities of companies owning property. As such it has a number of key advantages over investment in a direct property investment trust. Manager Marcus Phayre-Mudge is able to be much more flexible and nimble in his asset allocation, and make medium-term tactical trades as well as longer-term investments. He can also more easily invest in alternative sectors of the property market when they are facing a strong outlook.

Marcus also invests across continental Europe as well as the UK, which means he and his team have multiple levers to pull in search of alpha. He aims to take advantage of national and local business cycles as well as broader secular themes, but his investment decisions are built on rigorous stock-specific work. There is a tilt towards quality, as we discuss in the Portfolio section, which can be important to understanding relative returns.

Over the past five years the trust has performed well versus its benchmark (see the Performance section) and outperformed in NAV and share price terms the average return in the AIC UK Commercial Property sector of direct property trusts. The bias to quality, to small caps and the small allocation to physical property all reduce the beta to the market, but this is more than offset by consistent levels of gearing.

Despite the impact of the pandemic on the revenue account (a c. 24% reduction in FY 2021), the board raised the dividend over the past year and remain committed to doing so again as long as they believe the income will recover in the medium term and they have the reserves to do so – see the Dividend section. This is in contrast to the direct sector, where dividends on the generalist trusts are still mainly below their pre-pandemic levels. TRY trades on a small discount of 4% as of 21/10/2021.

Analyst's View

TRY is a great way to capture the growth and income potential in commercial property without some of the drawbacks of direct property investing. This includes the much longer time taken to buy and sell properties which means positions cannot be easily unwound, and the greater uncertainty of the portfolio value given infrequent, non-market valuations. Marcus can be nimble with his investment decisions and take tactical positions as well as long-term strategic ones which we think has helped him generate alpha over the long run.

The relative solidity of the dividend is another attractive feature. The board was able to use revenue reserves to grow the dividend in FY 2021, and retains a decent reserve for future use. We think the flexibility of Marcus’s remit means the board can have greater confidence in the ability to repair the income account over the short to medium term.

While the market worries about inflation, it is worth remembering that much of TRY’s revenue is index-linked. Marcus’s quality growth strategy should mean his portfolio is more resilient to economic news, even if this cannot offset entirely the economic sensitivity of property. We think the strong performance in income and capital terms through the crisis show the strength of the strategy. However, we note the discount is narrow relative to the five-year average of 5.6% and, in the short-term, the economic sensitivity of the property market could work against the trust if there is a setback to the recovery.

bull bear
More diverse portfolio than its direct property peers and greater tactical flexibility
Lower historic yield than the direct property sector
Strong track record of alpha generation
Property shares more correlated to equities than direct property is over short term
Dividend was raised through the pandemic and the board is committed to growing further if possible
Economic sensitivity of property means it won’t protect in the same way bonds might – although some sectors are more defensive
Continue to Portfolio
2024 Kepler Income & Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for income & growth... Find out more

Fund History

17 Jan 2024 Top of the Pops
We reveal the winners of our investment trust ratings for 2024…
10 Aug 2023 Fund Analysis
TRY: a unique way to capture a recovery in property valuations...
21 Jun 2023 Ça plane pour moi
Some of the world's biggest companies are doing just fine in Europe, yet investors shun the region. Time for a rethink...
11 Jan 2023 Solving the Rubik’s Cube
We reveal the winners of our investment trust ratings for 2023…
08 Dec 2022 Fund Analysis
TRY: global debt re-pricing creates opportunities in pan-European property markets...
07 Dec 2022 What’s that coming over the hill?
Is it a monster, or a debt refinancing anniversary? Our analysis of the property sector shows chunky discounts across the board are there for good reason…
27 Jul 2022 Fund Analysis
TRY’s index-linked revenues could be appealing in the current inflationary environment…
08 Jun 2022 Safe as warehouses
We look into the attractions of the often-overlooked commercial property sector…
05 Jan 2022 Kepler’s top-rated trusts for 2022
We unveil the winners of our ratings for 2022 in the Growth, Income & Growth and Alternative Income categories…
27 Oct 2021 Fund Analysis
TRY has a number of key advantages over a direct physical property trust…
21 Apr 2021 Fund Analysis
TRY offers a diversified and flexible way to invest in property, via listed equities…
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
22 Oct 2020 Fund Analysis
TRY offers a yield of almost 4% backed over 100% by reserves…
20 Nov 2019 Making the grade: Kepler's rated trusts report strong performance in 2019
Earlier this year, we launched our new ratings for income and growth. Since then, the 40 trusts to have been awarded the elite Kepler Trust Intelligence ratings have performed strongly…
18 Oct 2019 Fund Analysis
Specialist property trust, which has consistently outperformed its benchmark…
View all

Welcome to Kepler Trust Intelligence

Please enter a valid email address
Please enter a valid password
Please enter a valid email address
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
Please enter a company name
Please enter a location name
Please choose an option
Please enter a platform
Please choose an option
Please enter a trust
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
Please select an option
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
Please enter your first name
Please enter your last name
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
Please enter a valid password
Please enter a valid password
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.