Interim Management Statement

RNS Number : 5520P

TR Property Investment Trust PLC

19 August 2014

TR Property Investment Trust plc

Interim Management Statement - 3 months to 30 June 2014

This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party for any other purpose.

This interim management statement relates to the period from 1 April 2014 to 30 June 2014, and contains information that covers this period, and up to the date of the publication of this interim management statement, unless otherwise specified.

Investment Objective and benchmark

The investment objective is to maximise shareholders' total return by investing in property shares and investment property.

The benchmark is the FTSE EPRA/NAREIT Developed Europe Capped Net Total Return Index in Sterling. This index, calculated by FTSE, is freefloat based and currently has 87 constituent companies. The Benchmark website www.epra.com contains further details about the index and performance.

Material events

The interim results were announced on 28 May 2014. A final dividend of 4.60p per share was announced and paid on 5 August 2014 to shareholders on the register on 27 June 2014.

The full text of the announcement is contained in the Annual Report which is available on the Company's website www.trproperty.com.

Transaction in Own Shares

There were no transactions in the period.

Investment Portfolio Exposure by Country as at 30 June 2014

£'000 % of Total Portfolio

Austria

CA Immobilien 8,174 0.84

8,174 0.84

Belgium

Befimmo 4,267 0.44

Wereldhave 452 0.05

Warehousing de Pauw 388 0.04

5,107 0.53

Finland

Sponda 4,846 0.50

Technopolis 416 0.04

5,262 0.54

France

Unibail Rodamco 82,960 8.54

Klepierre 21,502 2.21

Gecina 17,470 1.80

Fonciere des Regions 15,568 1.60

Terreis 12,670 1.30

Mercialys 7,450 0.77

CFI Compagnie 6,739 0.69

Argan 4,850 0.50

Fonciere des Murs 3,083 0.32

ANF Immobilier 1,809 0.19

174,101 17.92

Germany

Deutsche Wohnen 33,826 3.48

LEG 24,793 2.55

Gagfah 23,960 2.47

Deutsche Euroshop 15,307 1.58

Deutsche Annington 14,554 1.50

Alstria Office 9,469 0.97

VIB Vermoegen 5,483 0.56

VIB Vermoegen 4.5% (Conv) 2,626 0.27

Prime Office 1,329 0.14

Hahn 313 0.03

131,660 13.55

Ireland

Green REIT 4,937 0.51

4,937 0.51

Italy

Beni Stabili 1,510 0.16

1,510 0.16

Netherlands

Corio 17,048 1.75

Eurocommercial Properties 12,674 1.30

Wereldhave 10,402 1.07

Vastned Retail 7,278 0.75

47,402 4.87

Norway

Norwegian Property 4,981 0.51

4,981 0.51

Spain

Merlin Proeprties 4,785 0.50

Hispania Activos Immobiliaria 1,204 0.12

5,989 0.62

Sweden

Wihlborgs 11,936 1.23

Fabege 10,592 1.09

Castellum 10,174 1.05

Atrium Ljungberg 10,127 1.04

Hufvudstaden 9,723 1.00

Fastighets Balder 5,882 0.60

Wallenstam 5,480 0.56

Kungsleden 4,966 0.51

D Carnegie 1,613 0.17

Fastighets Balder (Pref) 830 0.09

Hemfosa Fastigheter 628 0.06

Klovern (Pref) 303 0.03

Klovern 155 0.02

72,409 7.45

Switzerland

PSP Swiss Property 24,446 2.52

Swiss Prime Site 6,335 0.65

Mobimo 1,421 0.14

32,202 3.31

United Kingdom

Land Securities 82,668 8.51

British Land 44,135 4.54

Hammerson 42,489 4.37

Great Portland Estates 35,941 3.70

Derwent London 27,683 2.85

St Modwen 25,332 2.61

Max Property 19,546 2.01

Unite Group 15,012 1.55

CLS Holdings 13,131 1.35

McKay Securities 12,876 1.33

Shaftesbury 11,417 1.17

Capital & Counties 8,159 0.84

Quintain Estates & Developments 7,703 0.79

Grainger 7,018 0.72

New River Retail 5.85% (Conv) 6,130 0.63

Hansteen Holdings 6,001 0.62

Urban & Civic 6,000 0.62

Picton 5,330 0.55

Safestore Holdings 5,097 0.52

SEGRO 5,067 0.52

Workspace Group 4,844 0.50

New River Retail 4,521 0.47

Big Yellow Group 4,356 0.45

Capital & Regional 3,420 0.35

Londonmetric Property 3,037 0.31

Secure Income REIT 2,908 0.30

Local Shopping REIT 2,862 0.29

Conygar Investments 2,752 0.28

Helical Bar 745 0.08

Dev Sec 534 0.06

Pactolus Hungarian 209 0.02

Nanette Real Estate 129 0.01

Rugby Estates 54 0.01

417,106 42.93

Investment Property 60,865 6.26

TOTAL PORTFOLIO 971,705 100.00

Property holdings at 30 June 2014

Colonnades W2 - Mixed Use

Ferrier St, Wandsworth, London - Industrial

Field House, Harlow - Offices

Solstice House, Milton Keynes - Offices

Unit H1, Parkway Industrial Estate, Plymouth - Industrial

Portfolio Allocation at 31 December 2013

UK Equities 42.9%

European Equities 50.8%

UK Direct Property 6.3%

Company's Financial Position and Performance:

Ordinary Shares

As at 30 Jun As at 31 Mar As at 30 Jun 3 Month 12 Month

2014 2014 2013 Total Return/ Total Return/

Change (%) Change (%)

Share Price 257.50p 247.50p 190.00p 5.9 39.4

Income NAV per share¹ 262.93p 254.94p 216.52p 4.9 24.9

Benchmark (EPRA)

Total Return 3,748.76 3,588.81 3,173.03 4.5 18. 1

Gearing (%) ² 17.42 15.32 11.61

Shares in issue 317,500,980 317,500,980 317,500,980 0.0 0.0

1 NAV including Income year to date calculated on the AIC basis. % Change information includes adjustment for dividends paid.

2 Gross gearing calculated in accordance with the AIC definition.

Events since the period end

The Annual General Meeting of the Company was held on 22^nd July 2014 and all of the resolutions put to the meeting were approved on a show of hands.

On 24^th July 2014 the Board announced that the Company had entered into the arrangements necessary to ensure compliance with AIFMD.

F&C Investment Business Limited has been appointed to act as the Company's Alternative Investment Fund Manager (the "AIFM), with portfolio management delegated to Thames River Capital LLP (the "Portfolio Manager), the current investment manager of the Company. The existing management agreement between the Company and the Portfolio Manager has been updates to appoint the AIFM, appoint the Portfolio Manager as the delegate of the AIFM and ensure compliance with the AIFMD. The arrangements in respect of the investment management fees are unchanged.

F&C Investment Business Limited was approved as an AIFM by the UK's Financial Conduct Authority on 22^nd July 2014.

The Board has appointed BNP Paribas Securities Services, London Branch (the "Depositary") to act as the Company's depositary (as required by the AIFMD) on the terms of and subject to the conditions of a depository agreement between the Company, the AIFM and the depository. BNP Paribas Securities Services was the Company's existing custodian.

On 25^th July the company acquired a 53,000 sq ft distribution warehouse at Almondsbury, Bristol on the junction of the M5 and M4 motorways. The property is let to Yodel, a parcel delivery company, on a lease expiring in February 2019 at a rent of £325,000 per annum (£5.00 per sq. ft.). The purchase price was £4.575 million for the freehold interest which equates to a net initial yield of 6.75% and a capital value of £91 per sq.ft. The property is well located on a motorway junction, has a large yard which is essential for a modern distribution operation and the tenant is paying a low market rent.