TR Property NAV grows amid tougher macroeconomic climate

22nd Nov 2018 11:10

(Sharecast News) - TR Property Investment Trust released its half-year numbers on Thursday, reporting a 5.4% improvement in its net asset value per share to 417.06p, as well as a 5.4% rise in shareholders' funds to £1.32bn.The FTSE 250 company said revenue earnings per share were 9.25p in the six months ended 30 September, a 5.5% increase, with the board declaring an interim dividend of 4.9p, a 5.4% improvement.Looking at its performance, its net asset value total return was 7.4%, slowing from the 15.5% reported on 31 March, with the share price total return slowing to 8.6% from 25.5%."As we move into the second half of the financial year, there appears to have been a change in the mood and equity markets around the globe have been subject to a sell-off," said chairman Hugh Seaborn."Macro risks abound with the potential escalation in the US/China trade war whilst geopolitical concerns are heightened."Closer to home Brexit dominates and the UK will be the hardest hit by a poor outcome, however collectively there are no economic winners from this negotiation and growth across Europe will also suffer."Seaborn said the European Union was also being put to the test, by Italy's breach of the budget deficit rules.He said that, while the European Central Bank had flagged the termination of its bond-buying programme, and signalled an intention to resume a normalised interest rate cycle, the TR Property board believed it was "quite possible" that it would be deferred further if economic growth was dampened."It is in this context that our manager has sought to focus on secure earnings streams, often index linked, in sectors with lower earnings volatility such as student accommodation, private rented residential, healthcare, long income and away from development or consumer focused retail property."Crucially many of the companies we invest in are still growing their earnings and have a tenant base for whom ongoing occupation is business critical."If interest costs continue at these very low levels the ability of many of these property companies to offer investors high, sustainable, growing earnings will underpin valuations."