TR Property (TRY)

TR Property (TRY) offers investors a diversified pan-European portfolio of property shares and REITs, together with an allocation, currently 6%, to physical property in the UK. By investing in listed securities, TRY provides much greater flexibility and diversification than would be practicable in a traditional REIT. The team managing the trust, led by Marcus Phayre-Mudge since 2011, are one of the largest specialist managers of property share portfolios in Europe and have played an influential role in M&A activity over the last few years.

Although TRY is a total return vehicle, income is the fundamental characteristic of property investing and TRY’s current dividend yield of 5.2% is higher than UK equities and government bonds and since 2016 has grown the dividend 6.8% p.a. After a post-pandemic catch up period of lower underlying earnings, TRY’s dividend in the year ending 31/03/2026 was almost fully covered and marked the sixteenth consecutive year of dividend increases.

Underlying earnings growth signals that property as an asset class is on a firmer footing again, with capital values stabilising or rising. Marcus and the team note that higher construction costs are also putting the brake on new development, reducing the risk of oversupply. As a result, the team continue with their optimistic stance, holding gearing at 19%.

TRY’s discount, 9%, is a touch wider than the five-year average. Over the last five years, TRY’s NAV and share price returns are -14.6% and -16%, respectively, ahead of the FTSE EPRA Nareit Developed Europe Index total return of -18.8%.

TRY has a Kepler ‘Income and Growth’ rating.