TR Property Investment Trust PLC · LSE:TRY
TR Property Investment Trust — Shareholder Meeting (July 2019)
22 slides from TR Property Investment Trust's shareholder meeting presentation, Jul 23, 2019
Slide 1: TR Property Investment Trust AGM Presentation
Classification: Public TR Property Investment Trust AGM Presentation Marcus Phayre-Mudge Fund Manager 23rd July 2019
Slide 2: Contents
Contents • Results review – what drove performance in the year to March 2019 • 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: Highlights for the year to March 2019
Highlights for the year to March 2019 • Net assets £1.32bn, market cap £1.25bn • Total shareholder return of +6.2% • Net asset value total return +9.1% • Relative outperformance of the benchmark (after fees) +350bps • Dividend growth (year on year) of +10.7% • Physical property 7% of assets (same as
Slide 5: Standardised performance
Standardised performance Percentage Growth (%) Mar 14 - Mar 15 - Mar 16 - Mar 17 - Mar 18 - Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 TR Property Investment Trust (NAV with 28.2% 8.2% 8.0% 15.5% 9.1% Income) FTSE EPRA Nareit Developed Europe Capped 23.3% 5.4% 6.5% 10.2% 5.6% Index (Net, GBP, Total Return)
Slide 6: 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 7: Dividend history (pence per share)
Dividend history 10 year average compound annual growth rate: 8.9% 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 18/19 Interim Final Past performance should not be seen as an indication of future perform
Slide 8: Pan-European real estate equities have outperformed broader European equities
Pan-European real estate equities have outperformed broader European equities 20% 15% 10% 5% 0% -5% -10% -15% 2014 2015 2016 2017 2018 2019 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 Pas
Slide 9: UK vs. Continental Europe – Brexit still weighs heavily
UK vs. Continental Europe – Brexit still weighs heavily 70% 60% in £ 50% 40% 30% in € 20% 10% 0% -10% -20% -30% Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 FTSE EPRA/NAREIT Developed Europe ex UK Index TR GBP FTSE EPRA/NAREIT Developed Europe ex UK Index TR EUR FTSE EPRA/NAREIT UK Index
Slide 10: See-through geographic exposure – didn't change much
See-through geographic exposure – didn’t change much March 2018 March 2019 Italy, 2% Italy, 2% Switzerland, 1% Switzerland, 0% Rest of Rest of Europe, Spain, 2% Europe, 7% 8% Spain 6% Sweden, Sweden, 9% 9% UK, 38% UK, 38% France, France, 14% 15% Germany, 22% Germany, 27% Source: BMO Global Asset Man
Slide 11: Equity portfolio: relative country exposure and alternatives
Equity portfolio Relative country exposure vs benchmark UK overweight exposure UK UNITE GROUP PLC Alternatives FRANCE SAFESTORE HOLDINGS PLC NORWAY NETHERLANDS ASSURA PLC AUSTRIA CLS HOLDINGS PLC IRELAND Majority EU assets ITALY STENPROP LTD SWEDEN PHOENIX SPREE FINLAND SPAIN SIRIUS REAL ESTATE LTD
Slide 12: Key positioning and where it worked (or not)
Key positioning and where it worked (or not) Overweight logistics Underweight Switzerland Pan-Europe Overweight alternatives Underweight Spain ‘Meds’ and ‘Beds’ – student accommodation, hotels, healthcare, self-storage Overweight long, secure income Underweight German offices but our overweight
Slide 13: Retail: weakest performer (again); Logistics: strongest performer (again)
Retail: weakest performer (again) Logistics: strongest performer (again) 65% 55% 45% 35% 25% 15% 5% -5% -15% -25% -35% -45% -55% -65% Retail Logistics 1 yr total return (%) Source: BMO Global Asset Management as at 29.03.2019 13
Slide 14: Top contributors to relative performance FY 18/19
Top contributors to relative performance FY 18/19 INDUSTRIALS FRENCH OFFICES STOCKHOLM OFFICES EUROPEAN SHOPPING CENTRES SELF STORAGE UK STUDENT HOUSING GERMAN OFFICES BENELUX DIVERSIFIED UK RETAIL SWISS DIVERSIFIED -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% Source: Bloomberg as at 29.03.2019 14
Slide 15: Portfolio profile – largest active positions vs. benchmark
Portfolio profile – largest active positions vs. benchmark ARGAN UNITE GROUP PLC MCKAY SECURITIES PLC-ORD LEG IMMOBILIEN AG LAND SECURITIES GROUP PLC KLEPIERRE PSP SWISS PROPERTY AG-REG CASTELLUM AB BRITISH LAND CO PLC SWISS PRIME SITE-REG -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% • Active position
Slide 16: Small cap M & A – big gains for the fund
Small cap M & A – big gains for the fund 12 mth performance *% of net to announcement assets 54% (to 13 Nov ‘17) Acquired by Colonial Q2/18 0.5% 28% (to 22 Jun ‘18) Acquired by Blackstone Q3/18 4.3% Majority acquired by Swiss 37% (to 14 Feb ‘19) Q1/19 1.9% Life 19% (to 23 May ‘19) Acquired by London
Slide 17: Physical property portfolio (7% of assets)
Physical property portfolio (7% of assets) • Southern UK only • London long-term regeneration Bayswater Wandsworth • Preferred sub-sectors – Industrial, logistics, decentralised offices Gloucester Bristol Harlow Source: BMO Global Asset Management as at 14.05.2019 17
Slide 18: The Colonnades, Bayswater
The Colonnades, Bayswater March 2015 March 2016 • 43,000 sqft Waitrose supermarket at first floor, 20 year lease 3% p.a. fixed uplifts at a rent of £28.70 per sqft • 15,000 sqft of ‘new’ lettable space added within the existing envelope • 1 restaurant unit available • 22,000 sqft Waitrose supermarke
Slide 19: Ferrier Street, Wandsworth
Ferrier Street, Wandsworth Current Proposed • 106 unit residential (35% affordable) • 55,000 sqft of office • 63,000 sqft of light industrial • New community playground • Industrial public realm • 35,000 sqft industrial estate • 16 ground floor units • 1976 construction – inflexible and high obsoles
Slide 20: Outlook
Outlook Risks – Don’t fight Pockets of plentiful. the Central rental growth Capital markets Volatility – Banks remains elevated Rates staying low in UK student housing, Doing brisk business. Brexit negotiations, Europe German offices, Still record low funding China/US trade Paris CBD offices, cost f
Slide 21: Disclaimer
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Slide 22: Contact us
Contact us BMO Global Asset Management (EMEA) – Head Office Exchange House Primrose Street London EC2A 2NY Tel: +44 (0) 20 7628 8000 Calls may be recorded. bmogam.com Extensive worldwide investment capabilities • Total focus on clients • Comprehensive range of products and solutions • Defined expert
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