TR Property (TRY)

TR Property (TRY) invests in Pan-European listed property shares and UK physical property. It offers investors a more flexible and diversified alternative to REITs, with a portfolio of predominantly listed securities that are easily tradeable. This allows TRY’s management team to quickly evolve the portfolio in response to different opportunities and market conditions. Whilst there are direct REITs with higher initial dividend yields, TRY’s current dividend yield of 5.0% is at a premium to UK equities and UK government bonds, and the trust has a 15-year track record of increasing the dividend.

Recently, TRY saw a strong increase in underlying earnings, as the legacy of reduced or suspended dividends for many UK and European property shares begins to fall away, and after a period where the trust’s dividends were supplemented by revenue reserves, the board now believes that full dividend cover may be restored for the financial year ending 31/03/2027. Growing underlying income is the strongest sign yet that property in the UK and Europe has moved past the bear market of 2022 to 2024, and as a sign of the TRY team’s optimism, the trust has relatively high gearing of 16%.

TRY is managed by Marcus Phayre-Mudge, who has led the team since 2011 and worked on TRY since 1997. He is supported by long-term colleagues Alban Lhonneur and George Gay, together with a team of investment professionals making up one of the largest specialist investors in listed property in Europe. TRY’s discount, 7%, is in line with its five-year average. Over the last five years, the NAV and share price total returns of -4% and 1% are ahead of the comparative index, the FTSE EPRA Nareit Developed Europe, which has produced a total return of -13%.

TRY has a Kepler ‘Income and Growth’ rating.