TR Property Investment Trust PLC · LSE:TRY
TR Property Investment Trust — Shareholder Meeting (July 2018)
24 slides from TR Property Investment Trust's shareholder meeting presentation, Jul 24, 2018
Slide 1: TR Property Investment Trust AGM Presentation
Classification: Public TR Property Investment Trust AGM Presentation Marcus Phayre-Mudge Fund Manager 24 July 2018
Slide 2: Contents
Contents • Results review – what drove performance in the year to March 2018 • Key features and positioning • What has happened since the year end (a lot!) • Outlook 2
Slide 3: Investment risks
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. The market value of the shares of TR Property may not reflect the underlying net asset value o
Slide 4: TR Property Investment Trust
TR Property Investment Trust • Largest Pan-European property equity closed-ended fund • Market cap: £1.21bn (£988m – March ‘17) • Net assets: £1.25bn (£1.12bn – March ‘17) • Equities 93% of assets (92% - March ‘17) • Physical property 7% of assets (8% - March ‘17) • Gearing: 14.6% (13.3% - March ‘17
Slide 5: Highlights for the year to March 2018
Highlights for the year to March 2018 • Total shareholder return of 25.5% • Share price close to asset value • Relative outperformance of the benchmark (after fees) 530bps • Dividend growth (year on year) of 16.2% • Pan European exposure proved resilient • Retail remains our greatest concern 5
Slide 6: Standardised performance
Standardised performance Percentage Growth (%) Mar 13 - Mar 14 – Mar 15 - Mar 16 - Mar 17 - Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 TR Property Investment Trust (Capital Only 18.2% 24.8% 5.9% 4.5% 12.1% NAV) FTSE EPRA/NAREIT Developed Europe 11.2% 19.7% 2.9% 3.6% 7.2% Capped Index (Net, GBP, Capital Only
Slide 7: Last 2 years performance
Last 2 years performance 30% 25.5% 25% 20% 15.5% 15% 10.2% 10% 9.1% 8.0% 6.5% 5% 0% Year to March 2017 Year to March 2018 Benchmark NAV total return NAV total return Share price total return Past performance is not a guarantee to future performance Source: BNP Paribas, Bloomberg as at 31.03.2017 and
Slide 8: Dividend history: Pence Per Share
Dividend history 10 year average compound annual growth rate: 8.1% 14 12 10 Pence Per Share 8 6 4 2 0 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 Interim Final Source : BMO Global Asset Management. Data as at 04.07.2018 8
Slide 9: Share price and discount
Share price and discount 450 400 350 300 250 200 150 100 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Mar 18 Share Price (P) 5% 0% -5% -10% -15% Discount -20% tightens driving share price -25% -30% Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14
Slide 10: Track record
Track record 1,200% 1,000% 800% 600% 400% 200% 0% 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 TR Property Investment Trust (Capital Only NAV) FTSE EPRA/NAREIT Developed Europe Capped Index (Net, GBP, Capital Only) Past performance is not a guarantee to future performance. Benchmark:
Slide 11: Pan-European real estate equities have outperformed broader European equities
Pan-European real estate equities have outperformed broader European equities 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% 2014 2015 2016 2017 2018 H1 Pan-European Real Estate Equities (FTSE EPRA/NAREIT Developed Europe Capped Index Net GBP) STOXX Europe 600 Net EUR FTSE All-Share Index Total Return GBP P
Slide 12: See-through geographic exposure – didn't change much
See-through geographic exposure – didn’t change much March 2017 March 2018 Italy, Italy, 2% 2% Switzerland, Switzerland, 1% 3% Rest of Rest of Europe, Europe, 11% 7% Spain 6% Spain, UK, 5% 36% Sweden, UK, 9% 38% Sweden, 8% France, 15% France, 15% Germany, 20% Germany, 22% Source: BMO Global Asset Ma
Slide 13: UK vs. Continental Europe – Brexit still weighs heavily
UK vs. Continental Europe – Brexit still weighs heavily 60% 50% in £ 40% 30% 20% in € 10% 0% -10% -20% -30% Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 FTSE EPRA/NAREIT Developed Europe ex UK Index TR GBP FTSE EPRA/NAREIT Developed Europe ex UK Index TR EUR FTSE EPRA/NAREIT
Slide 14: Intra European total return performance (in local currency)
Intra European total return performance (in local currency) - FY 2017 & 2018 35% 30% 2017 2018 25% 20% 15% 10% 5% 0% -5% -10% -15% SW NL BL & LUX FR GR SP SW IT Past performance is not a guarantee to future performance. Source: BMO Global Asset Management as at 31.03.2017 and 30.03.2018 14
Slide 15: Key positioning and where it worked (or not)
Key positioning and where it worked (or not) Overweight UK But…overweight Landsec not British Land (BL outperformed LAND strongly) London reduced, industrial / logistics increased, ‘alternatives’ increased Overweight Stockholm But…overall neutral Scandinavia Faberge (a large overweight) returned
Slide 16: Top contributors to relative performance FY 17/18
Top contributors to relative performance FY 17/18 INDUSTRIALS HOTELS UK DIVERSIFIED LONDON OFFICE UK STUDENT HOUSING BENELUX DIVERSIFIED GERMAN OFFICES SPANISH DIVERSIFIED UK MAJORS -0.8% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% Source: Bloomberg as at 30.03.2018 16
Slide 17: Portfolio profile – largest holdings
Portfolio profile – largest 10 holdings -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% VONOVIA UNIBAIL-RODAMCO DEUTSCHE WOHNEN LEG IMMOBILIEN LANDSEC HISPANIA ACTIVOS SEGRO GECINA UNITE GROUP MCKAY SECURITIES Fund Weight Relative • Top 10 is c.56% of portfolio Source: BMO Global Asset Management as at 0
Slide 18: Portfolio profile – largest active positions vs. benchmark
Portfolio profile – largest active positions vs. benchmark HISPANIA ACTIVOS LEG IMMOBILIEN MCKAY SECURITIES CLS HOLDINGS UNITE GROUP GRAND CITY PROPERTIES ICADE SWISS PRIME SITE KLEPIERRE BRITISH LAND CO -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% • Active positioning of equity portfolio (all overweights and un
Slide 19: Physical property portfolio
Physical property portfolio 1. Bayswater 2. Wandsworth 3 4 5 3. Harlow 4. Bristol 1 5. Gloucester 2 19
Slide 20: Asset management
Asset management Unit H1 Beacon House Ferrier Street Parkway Industrial Estate Worple Road Industrial Estate Plymouth Wimbledon SW19 Wandsworth SW18 • 2016 Rent Review - rent • 12,000 sq ft office • 16 units fully let with leases increased by 14.4% extended to September • Permitted development 2019
Slide 21: Property portfolio performance – kept up with the equity portfolio
Property portfolio performance – kept up with the equity portfolio and outperformed IPD Total Return 40% 35% 30% 25% 20% 15% 10% 5% 0% FY13 FY14 FY15 FY16 FY17 FY18 TRPIT IPD Past performance is not a guarantee to future performance. TRPIT - TR Property Investment Trust. IPD - Investment Property Da
Slide 22: Outlook
Outlook • Don’t fight the Central Banks – rates staying low across Europe (but rising in the US) • Pockets of strong rental growth – industrial / logistics, German residential, Paris CBD offices, Stockholm offices, Madrid offices • Capital markets – doing brisk business. Record low funding cost for
Slide 23: Disclaimer
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Slide 24: Contact us
Contact us BMO Global Asset Management (EMEA) – Head Office Exchange House Primrose Street London EC2A 2NY Tel: +44 (0) 20 7628 8000 bmogam.com • Extensive worldwide investment capabilities • Total focus on clients • Comprehensive range of products and solutions • Defined expertise – including a sui
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