TR Property Investment Trust PLC · LSE:TRY
TR Property Investment Trust — Shareholder Meeting (July 2023)
21 slides from TR Property Investment Trust's shareholder meeting presentation, Jul 20, 2023
Slide 1: TR Property Investment Trust AGM - Manager's Presentation
For professional investors only TR Property Investment Trust AGM - Manager’s Presentation 20th July 2023
Slide 2: Investment risks and standardised performance
Investment risks The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. Investments which are concentrated in a specific sector or country may result in less diversif
Slide 3: Agenda
Agenda Results review – year to March 2023 Drivers of performance in the year Positioning ESG Update Physical portfolio Outlook Q&A 3
Slide 4: Performance for the year to March 2023 and financial year to date
Performance for the year to March 2023 and financial year to date Full year to 31 March 2023 31 March 2023 to 19 July 2023 -35.5% -34.0% -36.2% +8.9% +4.6% +8.0% NAV Benchmark Share price NAV Benchmark Share price (total return) (total return) (total return) (total return) (total return) (total retu
Slide 5: Long term performance to March 2023: a difficult year
Long term performance to March 2023…..a difficult year Net Asset Value vs. Benchmark Cumulative Alpha Generation 300% 60% 250% 50% 40% 200% 30% 150% 20% 100% 10% 50% 0% 0% -10% 1 Year 3 Year 5 Year 10 Year -50% Mar 11 Mar 13 Mar 15 Mar 17 Mar 19 Mar 21 Mar 23 TR Property Investment Trust (NAV with I
Slide 6: Dividend history – FY23 record earnings
Dividend history – FY23 record earnings 18 Dividend has grown every year since 1996 (bar one flat year) 16 10 year average pay-out ratio : 96% 14 10 year compound annualised growth rate : 8% 12 Pence Per Share 10 8 6 4 2 0 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08
Slide 7: Drivers of return in the year to March 2023
Drivers of return in the year to March 2023 Dramatic changes in the cost of capital Debt cost , debt availability , Bond markets All about the balance sheet Yet top line earnings robust in so many of our markets Lack of dispersion between our sectors / regions 7
Slide 8: Best & worst performers in our universe
Best & worst performers in our universe For the year to 31 March 2023 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% -100% Past performance should not be seen as an indication of future performance. Companies referenced are those in the FTSE EPRA/Nareit Developed Europe Capped TR Net GBP Index. Perform
Slide 9: Portfolio exposure today
Portfolio exposure today UK DIRECT PROPERTY, 7% OTHER, 5% BELGIUM, 6% FRANCE, 30% SPAIN, 7% CONTINENTAL EUROPE SHARES, 56% SWITZERLAND, 11% UK SHARES, 37% GERMANY / AUSTRIA, 20% SWEDEN, 21% Note : Exposure as % of allocated capital Source : Columbia Threadneedle Investments. Data as at 04.07.2023 9
Slide 10: Q2 2023 – how has our positioning changed?
Q2 2023 – how has our positioning changed? Deep value Income growth Taking profits Offices Source : Columbia Threadneedle Investments as at 05.07.2023. All intellectual property rights in the brands and logos set out in this slide are reserved by respective owners. 10
Slide 11: Sector positioning
Sector positioning Absolute Relative to the benchmark GERMAN RESIDENTIAL INDUSTRIALS EUROPEAN SHOPPING CENTRES UK DIVERSIFIEDS FRENCH OFFICES FRENCH OFFICES GERMAN RESIDENTIAL SWISS DIVERSIFIED UK RETAIL SWEDISH DIVERSIFIED GERMAN OFFICES UK DIVERSIFIEDS SPANISH DIVERSIFIED EUROPEAN SHOPPING CENTRES
Slide 12: ESG credentials
ESG credentials “We fully intend to keep up and heighten pressure on our investee companies to enhance their standards of governance and we will be increasing our expectations on both the provision of data and on the Social and Environmental outcomes that they deliver. Any long term support for mana
Slide 13: The Colonnades, Bayswater
The Colonnades, Bayswater Residential sold under a 999 year lease for c.£5m Over the last 20 years we had extended the majority of the underlying residential leases Simplifies investment as a pure commercial proposition 72% of income from Waitrose Source : Columbia Threadneedle Investments.
Slide 14: Ferrier Street, Wandsworth
Ferrier Street, Wandsworth Urban industrial rental growth £1,600,000 120% £1,400,000 100% £1,200,000 80% £1,000,000 60% £800,000 40% £600,000 20% £400,000 £200,000 0% £0 -20% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ERV (pa) - LHS ERV Growth (cumulati
Slide 15: Pan-European real estate equities – performance 2022/23
Pan-European real estate equities – performance 2022/23 FTSE EPRA Nareit Developed Europe Capped Index 0% -5% -10% -42% -15% -20% 34% -25% -30% 15% -35% -40% -45% Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 FTSE EPRA Nareit Develope
Slide 16: Pan-European real estate equities - valuation
Pan-European real estate equities - valuation FTSE EPRA Nareit Europe - discount to NAV 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 Discount to NAV Source : Columbia Threadneedle Investments. European Public Real Estate Association (EPRA).
Slide 17: Mergers & Acquisitions (2021 onwards)
Mergers & Acquisitions (2021 onwards) CONSOLIDATION PUBLIC TO PRIVATE Landsec buys U+I (Development Securities) St Modwen (Blackstone) Workspace buys McKay Securities GCP Student Living (Blackstone/APG) LXI merges with Secure Income REIT Alstria (Brookfield) CapCo acquires/merges with
Slide 18: More activity likely……
More activity likely…… Listed companies need to be bigger for relevance, efficiency and liquidity We have engaged with many Boards over several years Recent highlights: More to come…… All intellectual property rights in the brands and logos set out in this slide are reserved by respective ow
Slide 19: 2023 and onwards
2023 and onwards Point of maximum macro uncertainty Significant yield expansion in bond markets Reduced liquidity and bank margins widening Investor sentiment weak, price correction underway But…….. Property shares have reflected much of this news Little evidence of weakness at the occup
Slide 20: Q&A
COLUMBIA THREADNEEDLE INVESTMENTS. Q&A
Slide 21: Contact us
Contact us Columbia Threadneedle Investments. Exchange House Primrose Street London EC2A 2NY Tel: +44 (0) 20 7628 8000 www.columbiathreadneedle.co.uk © 2022 Columbia Threadneedle Investments. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of compani
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