Interim Results

TR Property Investment Trust PLC 25 November 2004 25 November 2004 TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Highlights * NAV increase of 10.7% * Outperformed benchmark * Share price total return of 15.6% * Revenue per share up 20.8% * Dividend per share increase of 18.2% Peter Salsbury, Chairman of TR Property Investment Trust, commented: 'Global commercial property markets remain dominated by huge positive cashflows looking for quality income from real assets.' Dividend An interim dividend of 1.30p (2003: 1.10p) per ordinary share has been declared payable on 7 January 2005 to shareholders on the register on 10 December 2004. The shares will be quoted ex-dividend on 8 December 2004. - MORE - - 2 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Financial Highlights (Unaudited) (Unaudited) % Half year ended Half year ended Change 30 September 30 September Revenue 2004 2003 Gross revenue (£'000) 12,106 10,711 +13.0 Net return pre-tax (£'000) 9,356 8,561 +9.3 Revenue return per share 2.15p 1.78p +20.8 Net dividend per share 1.30p 1.10p +18.2 (Unaudited) (Audited) % As at As at Change Balance Sheet 30 September 31 March 2004 2004 Fixed asset investments (£'000) 513,663 486,266 +5.6 Shareholders' funds (£'000) 437,253 400,739 +9.1 Shares in issue at end of period (m) 349.4 354.4 -1.4 Gearing 15% 20% Net asset value per share 125.14p 113.07p +10.7 Performance Half year ended Half year ended 30 September 30 September 2004 2003 Assets and Benchmark Benchmark performance (price only) +8.9% +18.3% NAV change +10.7% +21.0% Benchmark performance (total return) +12.0% +22.0% NAV total return +12.3% +22.5% IPD Monthly Index total return +9.5% +5.6% Total return from direct property +4.4% +2.8% Performance Half year ended Year % 30 September ended Change 2004 31 March Share Price 2004 Share price 108.25p 95.00p +13.9 Share price total return+ +15.6% +66.2% Market capitalisation £378.2m £337.0m +12.2 Sources: Thames River Capital/+AITC - MORE - - 3 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Chairman's Statement Introduction The six month period to the end of September 2004 was one of satisfactory progress. The asset value rose by 10.7% and the share price by 13.9%. These figures compare with an 8.9% gain in our benchmark index and a 3.4% gain from the All Share Index. Revenue per share has risen by just over 20% compared with the same period last year, and the interim dividend per share is to be increased by a similar percentage. Before giving further details of the financial performance, I want to bring shareholders up to date with the transfer of our investment management contract from Henderson Global Investors to Thames River Capital. Management In his valedictory Chairman's Statement in June, Alastair Ross Goobey informed shareholders that the Board had given notice to terminate the Trust's investment management contract with Henderson Global Investors. He added that this action was taken as a consequence of the resignation, from Henderson, of the Fund Manager and his deputy. He reported that the Board had received many applications for the investment management role and that it was working with professional advisors to select the best candidate. The Board concluded at an early stage that shareholders' interests would be best served by retaining the services of existing fund management personnel and that they should play an appropriate role in the selection process. At the same time the Board has taken the opportunity to upgrade the investment management agreement to give your directors more direct control over the quality of services provided and greater transparency on costs. A shortlist of fund management companies, which included Henderson, was assembled in mid June, and the due diligence process was conducted over the following month. I must express my thanks to all those companies who entered this process for the time and effort they expended on our enquiries. In mid July we announced that Thames River Capital had been appointed as managers of the Trust from the start of October 2004. Since that announcement we have also concluded new agreements with our existing administrators, BNP Paribas and with Henderson Secretarial Services who will therefore continue to act as company secretary to the Trust. JP Morgan, previously our custodian for non-domestic assets, have been appointed custodian for our entire business. The costs of the move will be paid without increasing the management fee formula. The management fee will be reviewed in March 2006. Thames River Capital The business, which is based in Berkeley Square, was started in 1998 and has grown rapidly in the last three years, now employing some 75 staff including 35 directly engaged in fund management. Assets under management total some £3 billion of which roughly 55% are in conventional 'long only' funds and the remainder in hedge funds, with a strong presence in global bonds and credit, European and Japanese equities. The client base and the business strategy are orientated towards private investors in the UK and Europe, which is similar to the way the Trust's shareholder base has been moving. Personnel Chris Turner and Marcus Phayre-Mudge continued to manage the portfolio of the Trust at Henderson until the end of September, at which date they joined the staff of Thames River Capital to carry on with the task. James Wilkinson, who managed the Trust's direct real estate holdings at Henderson, has also joined them at Thames River, and Joanne Elliott, our finance manager since 1996, is to join the team in early 2005. John Ellman-Brown, the company secretary since 2001, continues in that role on behalf of Henderson Secretarial Services. Thus, your successful management team has been reassembled at Thames River Capital with virtually no loss of continuity. - MORE - - 4 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Outstanding Matters For an investment trust of TR Property's size and complexity, getting divorced and moving house at the same time might have been a truly stressful experience. Happily I can report that this has not been the case and that, with only minor disturbance, the transition has gone very smoothly. I should like to record my sincere thanks to all involved and particularly to the staff and management at Henderson for the very co-operative and professional way in which they assisted with the transition. Two matters remain: the ongoing management of the three savings schemes - Share Plan, PEP and ISA - and the name of the Trust. • Share Plan, PEP and ISA The Trust's Share Plan, PEP and ISA schemes have been popular and successful over many years. There are now over 3,000 shareholders in these schemes owning close to 10% of the outstanding shares. The Board will ensure that these schemes are maintained and available for fresh investment. Henderson has been the plan manager for all three schemes and has agreed to continue in that role until the end of the 2004/2005 tax year. The schemes are administered by Lloyds TSB Registrars and BNP Paribas Fund Services UK Limited on Henderson's behalf. A selection process for a new plan manager is now in hand, and should be concluded in early 2005. Once a choice has been made we expect to write directly to shareholders in each plan with the details of the changes proposed. • The Name of the Trust The terms of the old management agreement with Henderson place on the Board an obligation to call an EGM at which your directors are contractually bound to recommend to shareholders that the name of the Trust be changed in such a way that the initials 'TR' no longer form part of the title of the Trust. Discussions with Henderson are ongoing. However, I must put shareholders on notice that an EGM will have to be called before the next AGM unless, before that date, your directors are able to reach an agreement with Henderson allowing the Trust to retain its current name. Now I should like to revert to the report on the Trust's financial results for the interim period to the end of September 2004. Capital Performance The share price rose by 13.9% and produced a total return of 15.6%. The net asset value grew by 10.7% over the six months, and the NAV total return is 12.3%. The Trust's benchmark index rose 8.9% and showed a total return of 12.0%. Gearing was reduced over the summer, chiefly as a result of the very satisfactory sale for £23.5m of our leasehold property in Piccadilly to Standard Life. They will undertake the redevelopment of the building over the next three years, and the terms of the sale provide for the Trust to have a financial interest in the completed development. Otherwise the portfolio has altered only slightly and our shareholdings have generally continued to perform in line with our expectations. Our equity investments are currently valued at 'mid-market' prices - the half way figure between the best bid and offer prices shown as markets close each day. This is a practice common throughout the investment management industry for many years. Under the new international accounting standards to be introduced at the start of 2005, our managers and administrators will be required to value our equities at 'bid' prices. This will result in a small one-off decline in our stated asset value at the start of 2005, probably of the order of 0.5% to 1%. - MORE - - 5 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Revenue Results The revenue return per share for the period is 2.15p, an increase of 20.8% over last year's figure. Our gross revenue rose by 13.0% due in part to exceptional dividend growth from our French property shares. This increase was reduced to 9.3% at the pre-tax level by management fees, which rise in line with the increase in net assets, and by increased interest costs due to a higher level of borrowing. Tax is estimated at 18.7% compared with just under 14% in the comparable period, leaving post tax earnings ahead by only 3%. Shareholders may remember that almost 15% of the Trust's equity was bought back for cancellation in October 2003, so that the number of shares used to calculate the revenue per share has fallen sharply from 414 million to 353 million. The small increase in the net return in monetary terms is therefore divided by fewer shares, and thus gives rise to the healthy growth in revenue per share. As has been noted in previous interim statements, the Trust currently receives the bulk of its income in the first half of its financial year. Our managers expect that, subject to unforeseen circumstances, gross revenue for the half year now reported will represent some 68% of our expected full year gross revenue, as against 66% last year. Therefore shareholders should not expect the same rate of gross revenue or earnings growth to be reported in the full year results. Interim Dividend Your Board has pleasure in raising the interim dividend by 18% from 1.1 pence per share to 1.3 pence per share, an increase closely in line with the growth of revenue earnings. Discount and Share Repurchases The average discount at which the shares trade compared with the underlying asset value per share has continued to narrow, and has averaged around 12% over the six months. This has given us fewer opportunities to make worthwhile share repurchases, and only 5 million shares have been bought back for cancellation in the period, at a cost of £5.14m, an average cost per share of 103p. Gearing and Currencies Over the six month period the Trust's net debt fell from £81m to £66m, and this reduction, combined with the increase in the value of the net assets, produced a decline in gearing from 20% to 15%. All our debt continues to be denominated in Sterling and the Trust's exposure to foreign currency movements is therefore unhedged. Between the end of March and the end of September the Euro rose against the Pound by 2.7% increasing the value of the Trust's overseas assets by some £4.3m or 1.23p per share. Board The appointment of new non-executive directors was put into abeyance over the summer while the selection process for the new fund manager was in hand. Now that has been completed, this matter is now in progress using professional advice and I hope to announce appointments in the near future. Outlook Global commercial property markets remain dominated by huge positive money flows looking for quality income based on real assets. In equity and bond markets, sustained investor demand is likely to be met by an increased supply of newly created shares or bonds. In the property investment markets this cannot happen except over the long term, and heavy investor demand has led to falling yields. In the UK the average yield for all commercial property has moved from 6.4% in March to 6.1% in September. Viewed in the context of the yield available in the bond market, I believe we will see further yield contraction in the coming months. - MORE - - 6 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 In the property share market discounts have narrowed in the UK but, with asset values rising and takeover bids still occurring, any downside looks limited and our managers' view is that the outlook remains positive. The Government has made no comments on the possible introduction of UK REITs since the consultation period ended in July. Many in the property industry now expect the Treasury to defer any detailed announcement until the 2005 Budget rather than in the upcoming autumn statement. Manager's Statement While, in absolute terms, the total return of 12.3% for the six months is pleasing, in relative terms the performance against the benchmark, (which produced a 12.0% total return) has been no better than satisfactory. Volatility has been below average and share price movements across our benchmark have been more than usually uniform. Asset turnover has been modest and the portfolio bias continues to be overweight in retail property and in UK shares while underweight in offices and in European stocks. The large positions in the biggest property shares have been retained, and the greatest change in the portfolio has been in the direct property component, which has been reduced by a major sale from 14% to 11%. Across our markets, share prices have risen faster than asset values. Discounts to asset value have narrowed in the UK, while in Europe, where dividend yields are higher, many stocks are now trading at or above asset value thanks to persistent buying by investors seeking high income. Property Market Background Commercial property investment demand is strong and is coming from a wide diversity of local and international sources. Huge sums of capital are hunting for quality rental income on a global basis and, as a result, property initial yields are falling in virtually every developed country. In most economies this buying is occurring against a background of historically low base rates and low returns from bonds. In the UK the recent rise in base rates ought logically to have cooled some of the buying ardour. This has not happened, and with the threat of further base rate rises now receding and bond yields falling again, the UK property investment market continues to exude confidence. Tenant demand, though it has improved in a few locations, generally remains muted to poor. Development activity is at a low level and there are very few speculative schemes starting, save in excellent retail locations. In March we reported that office tenant demand in the UK and Europe was generally moribund. Over the six months it has improved but not by much. In a few select locations, notably the West End of London, vacancy rates have fallen, incentives have diminished and asking rents have risen slightly. In the worst locations, notably many Continental suburban markets, vacancy rates have continued to rise. Those occupiers on the move are often taking no more space than they are leaving, so, while gross turnover figures have sometimes improved, net take-up numbers are usually still close to zero, and vacancy rates remain static. We expect the recovery in office tenant demand to continue to be very gradual and not to gather much pace until the outlook for stronger and continued economic growth is more certain. The property market looks for this to happen in 2005, we think 2006 or even 2007 is a more realistic timescale. In the retail market, growth in consumer demand has abated across Europe over the summer but the numbers are still positive except in Germany. Retail rental growth has slowed but is expected to remain positive and ahead of the current inflation rate. Tenant demand is best for larger units in modern centres and, out of town, for units with open planning consents. Our investment in retail, which is all through shareholdings in retail property investment companies, is concentrated in these higher demand areas. - MORE - - 7 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 The tone of the UK residential market has changed markedly since mid-summer, and the immediate outlook for UK base rates has changed from further increases to potential reductions. We suspect that longer-term underlying housing demand remains strong but homes need to become more affordable especially for first time buyers. A long slow price decline seems less likely and less desirable than a quicker sharper readjustment. If the latter occurs and base rates are reduced in the spring of 2005, we might see optimism creeping back into the market as early as next summer. We will continue to avoid investment in UK housing stocks for the present. Across the Channel, house prices are still rising, especially in Spain and France, and affordability is worsening. While Euro base rates remain at 2% this trend may continue. The storm cones are not yet hoisted but may need to be used before too long, especially in Spain. Property Share Background While general equity markets have stuttered, property shares have continued to prosper thanks to the momentum of investor activity in the direct property markets. Actual and forecast asset values have risen and the continued dearth of good quality assets in the direct market has led to more corporate activity with quoted companies being taken private, mainly for cash, at prices around net asset value. The movement in European property shares has been fairly uniform over the past six months - mirroring the direct market performance of their underlying portfolios. In our benchmark, the average total return in the UK was 11.6% - just less than the 12.2% shown by Continental shares in Sterling terms. On a country basis the best total returns were from Spain (+18%), Sweden and France (+17%) while the laggards were Belgium, Austria, Finland and Germany (+6%). Investment Activity and Distribution of Assets Our equity market turnover (purchases plus sales divided by two) in the six months was light totalling only some £34m. Our shareholdings have generally continued to perform in line with our expectations. We saw price declines from only some 5% of our capital invested in equities, and adding back dividends received, several of the fallers gave us positive total returns, but unfortunately the portfolio was also devoid of any significant 25%+ gains. Reflecting the level of activity, the distribution of the portfolio has shown little alteration over the period. The largest change has been a reduction in our direct property holdings from 14.1% of the portfolio to 11.0% - a change due primarily to the disposal of our Piccadilly property. The UK quoted equity portion of the portfolio rose 1.5% to 53.6%, the European equity portion rose 1.5% to 34.9% and the UK unquoted section rose 0.1% to 0.5%. These splits compare with our benchmark weightings of 50.7% in the UK and 49.3% in the rest of Europe as at the end of September. Largest Equity Investments The composition of the ten largest equity investments did not change over the six-month period, but there were some slight changes to the size order, due mainly to share price performance. All the ten shares rose in value: Castellum (+17.5%) did best, with Unibail (+14%), Big Yellow (+13%) and British Land (+13%) runners up. Slough Estates (+1.5%) and Rodamco Europe (+3%) gave the lowest gains. There have been three changes in the list of the eleventh to twentieth largest holdings. Silic, Ashtenne and Pillar have dropped out, the latter two as a result of making capital repayments to shareholders and the first as a result of sales of shares from the portfolio. They have been replaced by Helical Bar, Capital & Regional and Fonciere des Regions. The former two are well known specialist UK based investment and development companies in which the Trust has been invested for many years. Fonciere des Regions is a French investment and trading company, based in Metz, which specialises in regional offices and residential property ownership across France. - MORE - - 8 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Direct Property Portfolio The Trust's direct property portfolio is smaller as a percentage of total assets than it has been for many years as a result of our strategy to reduce exposure to direct property in favour of equities. In the first half of the year we completed the sale of the Trust's largest property asset at Piccadilly for £23.5 million, £2 million over the March 2004 valuation, and exchanged contracts for the sale of Battersea to a residential developer for over £7.1 million, compared to a March book value of £6.75 million. Completion of this sale is due in January 2005. However, we also made our first purchase for 3 years, buying a multi-let freehold office building in the insurance quarter of the City of London for £8.275 million. The property is let to 22 tenants on short leases and offers numerous opportunities to increase value through management initiatives. Whilst we are in no rush to increase the Trust's exposure to direct property in the very short term, it is likely that we will make a small number of additional purchases over the next year. The direct property portfolio produced a total return of 4.4% for the half year, reflecting an income return of 3.0% and capital growth of 1.4%. This compared to the IPD Monthly index return of 9.5%, made up of income return of 3.4% and capital growth of 6.1%. During the period we incurred significant capital expenditure at The Colonnades in connection with the redevelopment of 7,000 sq ft of storage space as air-conditioned offices. These works have now been completed and the new space is being marketed. Unquoted Investments We made one small unquoted investment in May of £640,000 into Duelguide, the private company formed to acquire Chelsfield. Since the half year end a cash takeover bid has been made for this business, valuing the Trust's holding at £880,000 and we are accepting this offer. As reported in March, all the assets of Controlrun have now been realised and our final exit from this business is expected to be completed before the year end. Looking ahead to 2005 The momentum of demand for direct property investment shows little sign of abating, and the recent decline in bond yields has improved the gilt/property yield gap again. We believe that UK property yields still have further to fall. Property shares are now standing at premiums to asset value in every location where tax free (REIT) status has been introduced, and discounts to NAV are only available in countries such as the UK, Sweden, Spain, Italy and Germany where property companies are still subject to corporation tax. Our Government is looking at introducing REITs here, but hopes have faded that any decisive move will be made in the near future. However, even without the early introduction of UK REITs, the outlook for property shares into 2005 is positive. There must be a danger that the current popularity of commercial property as an investment reflects little more than the lack of attraction of gilts and equities, rather than demand for the asset class per se. If this is so then property's new found fan club might dissipate as soon as the outlook for other asset classes improves. To be sustainable in the medium to longer term, continued property value growth must be a consequence of rising rental values. This is not currently the position. We hope that, by mid 2005, the European economic outlook will have improved to a point where a return to general rental growth can be predicted with some degree of confidence. - MORE - - 9 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Group Statement of Total Return (Incorporating the Revenue Account) for the half year ended 30 September 2004 (Unaudited) (Unaudited) (Audited) Half year ended 30 September Half year ended 30 September Year ended 31 March 2004 2003 2004 Revenue Capital Total Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Total capital gains from investments - 39,940 39,940 - 60,162 60,162 - 147,478 147,478 Investment income 10,486 - 10,486 8,705 - 8,705 12,608 - 12,608 Net rental income 1,561 - 1,561 1,889 - 1,889 3,353 - 3,353 ----------- --------- ---------- ----------- --------- ---------- ----------- --------- ---------- 12,047 39,940 51,987 10,594 60,162 70,756 15,961 147,478 163,439 Interest receivable and similar income 59 - 59 117 - 117 286 - 286 ----------- --------- ---------- ----------- --------- ---------- ----------- --------- ---------- Gross revenue and 12,106 39,940 52,046 10,711 60,162 70,873 16,247 147,478 163,725 capital gains Management and (1,066) (533) (1,599) (801) (401) (1,202) (1,764) (2,149) (3,913) performance fees Other administrative (293) - (293) (276) - (276) (643) - (643) expenses ----------- --------- ---------- ----------- --------- ---------- ----------- --------- ---------- Net return on ordinary activities before interest payable and taxation 10,747 39,407 50,154 9,634 59,761 69,395 13,840 145,329 159,169 Interest payable and similar charges (1,391) (1,391) (2,782) (1,073) (1,073) (2,146) (2,512) (2,512) (5,024) ----------- --------- ---------- ----------- --------- ---------- ----------- --------- ---------- Net return on ordinary activities before taxation 9,356 38,016 47,372 8,561 58,688 67,249 11,328 142,817 154,145 Taxation on net return on (1,752) 577 (1,175) (1,194) 442 (752) (1,564) 912 (652) ordinary activities --------- --------- ---------- --------- --------- ---------- ----------- --------- ---------- Net return on ordinary activities after taxation 7,604 38,593 46,197 7,367 59,130 66,497 9,764 143,729 153,493 Ordinary dividends Interim of 1.30p (2003: (4,542) - (4,542) (3,899) - (3,899) (3,899) - (3,899) 1.10p) Final (year ended 31 March 2004: 1.40p) - - - - - - (4,961) - (4,961) ----------- --------- ---------- ----------- --------- ---------- ----------- --------- ---------- (4,542) - (4,542) (3,899) - (3,899) (8,860) - (8,860) ----------- --------- ---------- ----------- --------- ---------- ----------- --------- ---------- Transfer to reserves 3,062 38,593 41,655 3,468 59,130 62,598 904 143,729 144,633 ========== ========== ========== =========== ========= ========== =========== ========= ========== Return per ordinary 2.15p 10.94p 13.09p 1.78p 14.29p 16.07p 2.51p 36.96p 39.47p share (Note 1) The revenue columns of this statement represent the revenue accounts of the Group. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period. - MORE - - 10 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Group Balance Sheet as at 30 September 2004 (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 30 September 2004 30 September 2003 31 March 2004 £'000 £'000 £'000 Fixed asset investments 513,663 427,416 486,266 ----------- ----------- ----------- Current assets Debtors 1,162 574 5,982 Cash at bank 4,887 2,815 2,360 ----------- ----------- ----------- 6,049 3,389 8,342 Creditors - amounts falling due within one year 42,501 28,275 53,668 ----------- ----------- ----------- Net current liabilities (36,452) (24,886) (45,326) ----------- ----------- ----------- Total assets less current liabilities 477,211 402,530 440,940 Creditors - amounts falling due after more than one year 39,958 40,201 40,201 ----------- ----------- ----------- Total net assets 437,253 362,329 400,739 =========== =========== =========== Capital and reserves Called up share capital 87,354 102,549 88,604 Share premium 37,063 37,063 37,063 Other reserves 291,927 202,306 257,225 Revenue reserve 20,909 20,411 17,847 ----------- ----------- ----------- Equity shareholders' funds 437,253 362,329 400,739 =========== =========== =========== Net asset value per share 125.14p 88.33p 113.07p - MORE - - 11 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Group Cash Flow Statement for the half year ended 30 September 2004 (Unaudited) (Unaudited) (Audited) Half year ended Half year ended Year ended 30 September 2004 30 September 2003 31 March 2004 £'000 £'000 £'000 Net cash inflow from operating activities 9,291 7,930 11,837 Net cash outflow from servicing of finance (2,790) (2,150) (5,018) Net tax recovered 233 313 541 Net cash inflow/(outflow) from financial investment 18,481 (9,325) 15,425 Equity dividends paid (4,961) (4,774) (8,672) ----------- ----------- ----------- Net cash inflow/(outflow) before financing 20,254 (8,006) 14,113 Net cash outflow from financing* (5,141) (4,396) (48,021) ----------- ----------- ----------- Increase/(decrease) in cash 15,113 (12,402) (33,908) =========== =========== =========== Reconciliation of operating revenue to net cash inflow from operating activities Net revenue before interest payable and taxation 10,747 9,634 13,840 Decrease/(increase) in operating debtors 388 468 (24) Increase/(decrease) in operating creditors 1,082 (646) 1,180 Tax deducted at source (1,191) (930) (815) Scrip dividends included in investment - (195) (195) income Performance fees paid (1,201) - - Management and performance fees charged to capital (534) (401) (2,149) ----------- ----------- ----------- 9,291 7,930 11,837 =========== =========== =========== Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash as above 15,113 (12,402) (33,908) Exchange differences (13) (76) (148) Other (7) (7) (7) ----------- ----------- ----------- Movement in net debt in the period 15,093 (12,485) (34,063) Net debt at the beginning of the period (81,164) (47,101) (47,101) ----------- ----------- ----------- Net debt at the end of the period (66,071) (59,586) (81,164) =========== =========== =========== Represented by: Bank balances and overdrafts 4,887 2,599 2,360 Debt falling due within one year (31,000) (21,984) (43,323) Debt falling due after more than one year (39,958) (40,201) (40,201) ----------- ----------- ----------- (66,071) (59,586) (81,164) =========== =========== =========== * Financing comprises cash outflows from share buy-backs. - MORE - - 12 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Notes to the Accounts 1. Return per ordinary share Revenue return per ordinary share is calculated by dividing the net revenue return available for ordinary shareholders of £7,604,000 (half year ended 30 September 2003: £7,367,000 and year ended 31 March 2004: £9,764,000) by 352,828,854 (half year ended 30 September 2003: 413,645,046 and year ended 31 March 2004: 388,831,553) being the weighted average number of ordinary shares in issue. Capital return per ordinary share is calculated by dividing the net capital gain attributable to ordinary shareholders of £38,593,000 (half year ended 30 September 2003: £59,130,000 and year ended 31 March 2004: £143,729,000) by the weighted average number of ordinary shares in issue, as shown above. 2. Changes in share capital During the period the Company made authorised market purchases for cancellation of 5,000,000 of its own issued ordinary shares of 25p. As at 30 September 2004 there were 349,416,286 ordinary shares in issue. 3. Interim statement The interim accounts were approved by the directors on 25 November 2004. 4. Comparative information The financial information contained in this interim statement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the six months ended 30 September 2003 and 30 September 2004 has not been audited. The figures and financial information for the year ended 31 March 2004 are an extract from the latest published accounts and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors, which was unqualified and did not contain a statement under either section 237(2) or 237(3) of the Companies Act 1985. - MORE - - 13 - TR PROPERTY INVESTMENT TRUST PLC Unaudited interim results for the half year ended 30 September 2004 Largest Quoted Investments as at 30 September 2004 Market Market Market Value Value Value £'000 £'000 £'000 Land Securities 52,222 Eurocommercial Properties 7,947 Wereldhave (Netherlands) 4,767 (Netherlands) British Land 37,200 Metrovacesa (Spain) 7,829 London Merchant 4,694 Securities Hammerson 29,756 Fonciere des Regions 6,871 Brixton 4,354 (France) Unibail (France) 25,211 Capital & Regional 6,553 Bail Investissement 4,108 (France) Rodamco Europe 21,723 Helical Bar 5,948 Ashtenne Holdings 3,865 (Netherlands) Liberty International 20,675 Quintain Estates & 5,928 Rugby Estates 3,827 Developments St Modwen Properties 19,341 Inmobiliaria Colonial 5,804 Kungsleden (Sweden) 3,753 (Spain) Castellum (Sweden) 19,265 Pillar Property Group 5,769 Pirelli Real Estate 3,679 (Italy) Slough Estates 18,630 Silic (France) 5,701 Development Securities 2,937 Big Yellow Group 17,940 Cofinimmo (Belgium) 5,513 IVG Immobilien (Germany) 2,659 Corio (Netherlands) 11,528 Vastned Retail 5,449 PSP Swiss Property 2,540 (Netherlands) (Switzerland) Gecina (France) 10,490 NHP 5,288 Tops Estates 7.5% 1,989 Klepierre (France) 9,255 Beni Stabili (Italy) 5,232 Grainger Trust 8,716 Derwent Valley 4,767 The above 40 largest quoted investments amount to £429,723,000 or 84% of total investments (convertibles and all classes of equities in any one company being treated as one investment). Principal Investment Properties as at 30 September 2004 Location Sector Tenure Size (sq ft) Value in excess of £5m Elizabeth House, Duke Street, Woking, Surrey Offices Freehold 54,150 The Colonnades, Bishops Bridge Road, Mixed Use Freehold 44,000 London W2 Cambridge Science Park, Cambridge Offices Leasehold 38,500 6 Lloyd's Avenue, London EC3 Offices Freehold 34,410 Southbank Commercial Centre, Light Industrial and Freehold 49,000 Offices Battersea Park Road, London SW11 Ferrier Street Industrial Estate, Ferrier Street, Industrial Freehold 38,500 Wandsworth, London SW18 Value below £5m Unit 3, Interface Business Park, Wootton Bassett Industrial Freehold 38,249 Locke King House, Balfour Road, Weybridge Offices Freehold 5,250 - ENDS - For further information, please contact: Chris Turner TR Property Investment Trust plc Telephone: 020 7360 1332 Marcus Phayre-Mudge TR Property Investment Trust plc Telephone: 020 7360 1331 This information is provided by RNS The company news service from the London Stock Exchange

Companies

TR Property Inv Trust (TRY)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today