Interim Management Statement

RNS Number : 4698N

TR Property Investment Trust PLC

17 February 2009

 



TR Property Investment Trust plc

Interim Management Statement - 3 months to 31 December 2008

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 October 2008 to 31 December 2008, 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

To maximise shareholders' total return by investing in property shares and property on an international basis.

Benchmark

FTSE EPRA/NAREIT Europe Index in Sterling. This index, calculated by FTSE, is freefloat based and currently has 84 constituent companies. The Benchmark website www.epra.com contains further details about the index and performance.

Material events

The interim results were announced on 26 November. Interim dividends of 2.30p per Ordinary share and 0.90p per Sigma share were announced and paid on 13 January 2009 to shareholders on the register on 12 December 2008.

Material Transactions

Property Sales

On 6th October the Trust announced the completion of the sale of a freehold interest in Elizabeth House, Duke Street, Woking from the Ordinary share class portfolio. The sale price was £7.5 million (before sale costs of £75,000) which reflects a net initial yield of 5.9% and a capital value per sq ft of £145 assuming purchasers costs of 5.75%.

The 54,600 sq ft office property built in the 1970's is let in its entirety to Gallaher Ltd for a further 73 years at a rent geared to 68.7% of rental value. The current rent of £470,244 per annum equates to £9.30 per sq ft.

Share Buy-backs

During the three-month period to the end of December 2008, the Company purchased 275,000 ordinary shares of 25p each for cancellation for a total consideration of £296,000. Since the 31st December up to the date of this statement, no further shares have been purchased.

During the three-month period to the end of December 2008, the Company purchased 1,953,000 Sigma shares of 12.5p each for cancellation for a total consideration of £896,000. Since the 31st December up to the date of this statement, no further shares have been purchased.

Asset sales were made to fund the share repurchases.

Events post the reporting period

VAT reclaim

On 3rd February 2009 the Trust announced that it had received a reimbursement of £1.86m for VAT incorrectly charged for the period from December 2000 to September 2004. Since the resolution of the VAT case between JP Morgan Claverhouse Investment Trust v HMRC, the Trust has been in discussion with its former Manager, Henderson Global Investors and Current Manager, Thames River Capital regarding the reclaims. This amount was recovered through Henderson Global Investors and is equal to the total amount of irrecoverable VAT suffered for this particular period.

Outstanding claims are still being pursued by Henderson Global Investors for the period from 1 January 1990 to 4 December 1996 and by Thames River Capital for the period from 1 October 2004 to June 2007.

£1.51m was allocated to the Ordinary share class and £0.35m to the Sigma share class. For the Ordinary share class this represented 0.59p per share; 0.37p on the capital account and 0.22p on the revenue account. For the Sigma share class this represents 0.28p per share; 0.18p on the capital account and 0.10p on the revenue account. These amounts were recognised in the daily NAV's with effect from 3rd February 2009.

In the Report and Accounts for the year to 31 March 2008, a figure of £6m was disclosed as the estimate of the total potential VAT recovery. In the light of the recovery for 2000 to 2004 detailed above, this estimate has not materially changed.

Ordinary Portfolio

Twenty largest equity holdings at 31 December 2008

(excluding cash)

		% of Portfolio
Unibail-Rodamco		17.56
Land Securities		12.23
British Land		5.55
Icade		3.48
Segro		2.83
Castellum		2.74
Big Yellow Group		2.60
Corio		2.60
Hammerson		2.49
Fonciere des Regions		2.44
Klepierre		2.42
Great Portland Estates		1.96
Derwent London		1.94
Eurocommercial Properties		1.82
Gecina		1.80
Liberty International		1.71
PSP Swiss Property		1.32
Silic		1.20
Vastned Retail		1.02
Helical Bar		0.97

5 Largest property holdings (Values in excess of £5m)

Colonnades Leasehold W2 - Mixed Use

Field House, Harlow - Offices

Ferrier St, Wandsworth, London - Industrial

Cambridge Science Park - Offices

Solstice House, Milton Keynes - Offices

Portfolio Allocation at 31 December 2008

UK Equities	30.5%
European Equities	37.4%
UK Direct Property	14.0%
Cash	18.1%

Sigma Portfolio

Twenty largest equity holdings at 31 December 2008

(excluding cash)

		% of Portfolio
Unibail-Rodamco		11.54
Land Securities		8.77
Castellum		5.49
Eurocommercial Properties		5.36
Great Portland Estates		4.90
Hansteen		4.66
British Land		4.05
Silic		3.76
Big Yellow		3.37
Vastned Retail		2.80
Ben Stabili		2.24
Helical Bar		1.91
Derwent London		1.75
Corio		1.71
Retail Estates		1.61
Brixton		1.61
Shaftesbury		1.53
Segro		1.35
Hufvudstaden		1.32
Argan		1.31

Portfolio Allocation at 31 December 2008

UK Equities	32.7%
European Equities	44.9%
Cash	22.4%

Company's Financial Position and Performance:

Ordinary Shares

		As at 31 Dec		As at 30 Sep		As at 31 Dec		3 Month		12 Month
		2008		2008		2007		% Change		% Change
Share Price		116.00p		143.50p		173.00p		-19.2%		-32.9%
Capital NAV per share *		148.08p		172.98p		207.61p		-14.4%		-28.7%
Income NAV per share**		151.12p		177.30p		212.74p		-14.8%		-29.0%
Benchmark** (EPRA)		1,508.98		1,887.11		2,333.80		-20.0%		-35.3%
Gearing (%) #		3.13		7.11		6.03
Shares in issue		256,725,000		257,000,000		258,600,000		-  0.1%		- 0.7%

Sigma Shares

		As at 31 Dec		As at 30 Sept		As at 31 Dec		3 Month		12 Month
		2008		2008		2007		% Change		% Change
Share Price		41.00p		57.25p		81.50p		-28.4%		-49.7%
Capital NAV per share*		69.75p		81.05p		100.81p		-13.9%		-30.8%
Income NAV per share**		71.42p		83.08p		101.92p		-14.0%		-29.9%
Benchmark** (EPRA)		1,508.98		1,887.11		2,333.80		-20.0%		-35.3%
Gearing (%) #		3.19		7.20		5.90
Shares in issue		124,922,000		126,875,000		127,680,000		- 1.5%		- 2.2%

 * NAV per share is a capital only NAV calculated on the AIC basis

** NAV including Income year to date.  

# Gearing calculated in accordance with the AIC definition, which does not take account of cash held on deposit. As at 31 December 2008, both share classes had repaid all short term borrowings and held cash on deposit in excess of the amount of the share class apportionment of the debentures, therefore the effective gearing level was zero.

Other Information

Further information and commentary can be found on the Company's website www.trproperty.com

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