Some highlights from the TR Property Investment Trust (LSE:TRY, TRYS) prelims out today: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11212440
Always worth reading, for anyone with an interest in the property sector (esp. commercial) as the fund manager generally "tells it like it is". There's also some useful stuff about retail trends there too (see below), and some very useful background on property debt: a huge factor in the Euro crisis.
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Although property companies' share prices fell over the 12 months to March, their earnings did not and it is pleasing to announce both record revenue earnings and significant increases in the final dividends in both share classes.
The management fee has been re-negotiated giving a slight reduction over last year....
...The Board is proposing to shareholders an Ordinary share class final dividend of 4.20p which compares with the previous year final dividend of 3.70p...
That puts the shares on a yield of 4.6% @ 142.5p
...One consequence of the current turmoil is a greater divergence of returns across countries, sectors and inevitably at the company level...
...Unfashionable as it may be to offer an upbeat message I would like to draw your attention to the revenue results and outlook. Our earnings are dividends and in the Ordinary Share Class these are coupled with some direct property rental income. Quality property companies are continuing to benefit from high levels of tenant occupancy coupled with low short term debt rates and there is no sign of the ECB raising the reference interest rate. Our larger investee businesses also have access to a broad range of funding sources which continues to ensure lenders remain competitive. Borrowing margins are stable for the most secure companies. Whilst rental growth will continue to be hard to come by, most of our Continental European property companies' income is also invariably index linked. Tenant delinquencies also remain surprisingly low by historic standards. Therefore, whilst there remains enhanced volatility in equity prices, the revenue outlook currently appears much more stable....
...We began last year's Managers' Report by highlighting the extreme polarity of property markets, in which good property rose in value and poor property declined. The twelve months to the end of March 2012 has seen a continuation of this theme. Demand for prime office and retail properties in Central…
