10th Jun 2026 10:41
(Alliance News) - TR Property Investment Trust PLC on Wednesday said that until very recently it had a "positive outlook", but the war in Iran renewed the risk of inflation, as it slightly upped its dividend.
The London-based investment trust offers exposure to companies involved with UK and European commercial real estate.
TR Property said net asset value per share rose 1.9% to 333.48 pence as at March 31 from 327.16p a year prior.
NAV total return was 6.7% in the financial year ended March 31, in line with the benchmark, which TR Property called "disappointing".
TR Property said that geopolitical events "are at the forefront of investors' minds", with impacting the pricing of all risk assets.
"The bottom line is impacted by rising costs: primarily overheads, expenses associated with vacancy and the critical line item - debt servicing," the company commented.
"We had, until very recently, a positive outlook on all these elements, ie falling costs. However, the war in Iran and the renewed risk of inflation may well lead central banks to consider increasing short term interest rates. The market has already adjusted upwards at the longer end of the yield curve.
"For our underlying companies this will reduce earnings growth expectations where they have imminent refinancing. However, it is possible that the impact is muted if, as is the case at the moment, margins remain tight amidst a competitive lending environment."
Trust manager Marcus Phayre-Mudge said: "Macro events once again dictated short-term sentiment but they did not change what we are seeing on the ground. Occupier demand remains resilient and rental growth is coming through, helped by the lack of new supply across many of our markets.
"The sharp market dislocation at the year end was disappointing, particularly given the progress made through most of the year, but it underlined why balance sheet strength matters so much in this sector. Markets can re-price the sector in a matter of days; they cannot create new supply or erase rental growth quite so quickly."
The company recommended a final dividend of 10.35p per share, up 1.0% from 10.25p. That brings the total annual payout to 16.10p, up 1.3% from 15.90p.
TR Property shares were 0.5% higher at 307.10 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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