TR Property Investment Trust plc
London Stock Exchange Announcement
Unaudited results for the six months ended 30 September 2025
Legal Entity Identifier: 549300BPGCCN3ETPQD32
Information disclosed in accordance with Disclosure Guidance and Transparency Rule 4.2.2
Kate Bolsover, Chairman:
“ This half year marks a genuine turn in the income story. Revenue rose 23% compared with the same period in 2024, reaching 10.07p per share. The Board is pleased to increase the interim dividend to 5.75p. Income momentum is rebuilding and it is good to see our direct property assets contributing meaningfully once again. After several years in which uncertainty has overshadowed fundamentals, it is encouraging to see full dividend cover move back into sight – complementing healthy share price and net asset value returns.”
Marcus Phayre-Mudge, Fund Manager:
“ This period has been a classic tug-of-war: political uncertainty and higher-for-longer rates on one side, solid real estate fundamentals and a flurry of corporate activity on the other side. Over the half year, the positives have quietly pulled ahead, with the portfolio delivering a double-digit NAV return. Financing costs are easing, corporate activity is back on the front foot and high-quality assets remain in short supply. It is not a fairytale recovery, but the building blocks for further progress are firmly in place.“
Financial highlights and performance
| At 30 September 2025 | At 31 March 2025 | Change | |
| Balance Sheet | |||
| Net asset value per share | 351.36p | 327.16p | +7.4% |
| Shareholders’ funds (£’000) | 1,115,037 | 1,038,237 | +7.4% |
| Shares in issue at the end of period (m) | 317.4 | 317.4 | 0.0% |
| Net debt1,5 | 18.0% | 18.5% | |
| Share Price | |||
| Share price | 320.50p | 294.00p | +9.0% |
| Market capitalisation | £1,017m | £933m | +9.0% |
| Half year ended 30 September 2025 | Half year ended 30 September 2024 | Change | |
| Revenue | |||
| Revenue earnings per share | 10.07p | 8.16p | +23.4% |
| Interim dividend per share | 5.75p | 5.65p | +1.8% |
| Half year ended 30 September 2025 | Year ended 31 March 2025 | |
| Performance: Assets and Benchmark | ||
| Net Asset Value total return2,5 | +10.6% | -2.5% |
| Benchmark total return | +9.6% | -3.8% |
| Share price total return3,5 | +12.4% | -4.9% |
| Ongoing Charges4,5 | ||
| Including performance fee | 0.79% | 0.84% |
| Excluding performance fee | 0.79% | 0.78% |
| Excluding performance fee and direct property costs | 0.77% | 0.76% |
1 Net debt is the total value of loan notes, loans (including notional exposure to contracts for difference (‘CFDs’) less cash as a proportion of net asset value.
2 The NAV Total Return for the period is calculated by reinvesting the dividends in the assets of the Company from the relevant ex-dividend date. Dividends are deemed to be reinvested on the ex-dividend date as this is the protocol used by the Company’s benchmark and other indices.
3 The Share Price Total Return is calculated by reinvesting the dividends in the shares of the Company from the relevant ex-dividend date.
4 Ongoing Charges are calculated in accordance with the AIC methodology. Ongoing charges provided for the half year are based on estimated expenses and charges and provide indicative values only.
5 Considered to be an Alternative Performance Measure as defined in the Half Year Report.
Chairman’s statement
Market backdrop
I highlighted in June that our sector is very much part of the ‘value’ end of the equity landscape. Given the ongoing global investor focus on technology and ‘growth’ stocks, alongside the dominance of the US, it is pleasing to report that the Company, which focuses on pan-European real estate equities, has produced a double-digit return for the first six months of its financial year. Whilst we remain an under-owned part of the equity market, underlying real estate fundamentals continue to support rental and earnings growth.
I have often emphasised the sector’s need for capital – in particular debt – and it is very encouraging to report a tightening in spreads alongside the central bank-driven reductions in base rates across Europe. Competition amongst lenders is very real and the Company has, during the period, had first-hand experience of improving (versus expectation) margins on its revolving credit facilities.
As you will read later, our Manager remains optimistic; not only about the supportive demand/supply dynamic in so many of our markets but, crucially, about the low valuations applied to the listed companies through which we get the vast majority of our exposure. This valuation mismatch has resulted in the Company continuing to maintain a record low physical property exposure and a record high equity exposure. Having said that, we are pleased with the progress that the direct property team have made on a range of asset management initiatives, particularly at Wandsworth and Bicester. More details are given in the Manager’s Report and will follow in the next annual report.
Geo-political risks remain at the forefront of our minds and focusing on balance sheet strength and quality of earnings remains a central plank of our investment approach. This does mean that our Manager can miss out on the full benefits of ‘beta rallies’ – when all boats are lifted almost regardless of quality. It also means that we have not always been on the winning side of mergers where a higher-rated acquirer uses its stronger stock to acquire a lower grade, more heavily discounted business – as it is usually the latter that gets the immediate increase in share price. A couple of examples are given in the Manager’s report. More encouragingly, our Manager continues to be very engaged with small cap consolidation (or failing that privatisation), a process which has been running for several years and where this half year saw yet more positive activity.
Revenue Results, Outlook and Dividend
Revenue earnings for the half year were 10.07p per share, an increase of 23% compared to the level reported for the half year to 30 September 2024.
We are continuing to see a recovery in earnings from the sector, with the majority of companies in the portfolio having increased their dividends year on year. Income from our direct property portfolio increased 69% compared to the first six months of the previous financial year following the purchases of industrial assets at Northampton and Bicester.
We anticipate that the full year revenue earnings (to March 2026) will be ahead of the previous full year. Our income is significantly skewed to the first half of the year whilst most of our finance costs and expenses are spread evenly across the year, therefore, we do not expect to see such a significant increase in the second half.
The Board is aware of the importance to shareholders of a growing annual dividend. Despite a fall in earnings since the March 2023 year end, the annual dividend has modestly increased; something we have been using our revenue reserves to achieve. With the current trajectory of increasing earnings, the Board is confident that the annual dividend will return to being fully covered. However, it is anticipated that a modest contribution from revenue reserves for the current financial year will be required.
In recent years, increases have been made through the final dividend which has widened the gap between the historically smaller interim dividend and the final. Seeking to redress that balance marginally, the Board has increased the interim dividend to 5.75p, a small rise of 1.8%. Shareholders should not take this as an indication of the likely level of increase in the final dividend.
Net Debt and Currencies
Gearing decreased marginally over the first half of the financial year from 18.5% to 18.0%. Net borrowings were broadly unchanged in absolute terms however the Company’s net asset value (‘NAV’) has increased.
Sterling weakened by an average of 2.2% over the half year, delivering a positive impact in income terms for the non-sterling denominated income that accounts for 64% of the total income reported for the half year. Whilst the income is unhedged and subject to exchange rate fluctuations, the currency exposure of the portfolio is hedged in line with the benchmark.
Discount
The Company’s shares traded at an average discount of 8.5% over the period, narrowing from 10.1% at the end of March to 8.9% at the end of September. This is wider than the five-year average of 6.6%, reflective of the under-ownership of the sector referred to in my opening paragraph.
Awards
I am pleased to report that the Company has recently won two prestigious awards. It won ‘Best PR Campaign’ at the AIC Shareholder Communication Awards 2025. This is further vindication of the Manager’s and our PR consultants, Aspectus’ efforts to raise and maintain the Company’s profile and engagement with private, direct investors as well as our long standing institutional and wealth manager shareholders. The Company was also named Investment Company of the Year in the Property sector at the 2025 Investment Week awards. Finally, we are very pleased to have received a Gold rating from Morningstar.
Outlook
The outlook for pan-European economic growth is foggy. The region is in the midst of a huge shift in the global geo-political landscape. In recent decades, Europe outsourced security to the US; much of its production to China; and had become increasingly reliant on Russian gas. Termination of the latter has been both costly and disruptive but is much less of an issue than it was as recently as two years ago. The need to deliver a European-funded defence capability will now be an important driver of all European economies, particularly Germany and its neighbours such as Poland and Finland. Such growth in manufacturing will be a significant fillip for industrial and logistics real estate and the German ‘fiscal bazooka’ has many years of deployment ahead of it. Real estate is also benefitting from the desire of many companies to manage supply chain risk by bringing more production and component storage closer to the customer. Set against these drivers for growth there are more fundamental concerns around the funding of welfare and ageing populations. Politicians’ clear reluctance to make hard choices has resulted in inflation remaining stubbornly high, particularly in the UK. However, elsewhere in Europe inflation is falling alongside slowing job growth. The uncertainly generated by the tariff wars has resulted in the deferral of investment decisions, whilst uncertainty around job security and personal taxation discourages individual consumption. This slower growth outlook is likely to lead to further cuts in base rates by all European central banks.
Our asset class is very sensitive to the cost of debt and though economic slowdowns are not welcome, the reduction in the cost of borrowing certainly is. The key is how much this deceleration in growth impacts job creation, consumer behaviour and corporate expansion. For our Manager this backdrop only heightens the need to maintain exposure to the very best-in-class assets – those with balance sheets which are not only robust but can also be flexed as opportunities arise.
Ultimately, our sector remains materially under owned – currently viewed as a stalwart ‘value’ equity, at a time when many major indices are soaring to all-time highs. But underneath this unglamorous exterior lies steady earnings growth, fuelled by easing debt costs and rental growth for top tier assets. It is quite feasible that these more dependable income-focused equities become increasingly sought after if global equity markets experience greater volatility.