Income falls, dividend rises at TR Property

An expected drop in income materialised for TR Property Investment Trust on Wednesday, as the group announced its half year results to 30 September.

The property firm reported unaudited revenue per share of 5.51p, down from 6.05p in March. Total profit was £5.31m, compared with £36.44m in the last corresponding period.

Its benchmark performance total return fell to -2%, from a reported +23.3% six months ago.

Net asset value per share fell to 315.05p, from 318.12p, and the reported share price went from 310.5p to 293p.

“The company's physical property enjoyed an increase in value of £6.5m (+8.5%) and outperformed pan-European property equities over the period”, said chairman Caroline Burton.

“Property equities themselves performed defensively in a period of stock market weakness where the FTSE All-Share (in GBP) fell 7.1% and the EuroStoxx600 (in EUR) fell 11%.”

Burton pointed to her anticipation for a fall in income in her last report, primarily due to the redevelopment of TR’s largest property - the Colonnades in Bayswater.

“The fall has been more modest than we expected, from 6.05p to 5.51p as property companies have continued to refinance debt at lower interest rates which has enabled stronger earnings growth”, she said.

An increased interim dividend of 3.15p (2015: 2.95p) will be paid on 5 January 2016 to shareholders on the register on 4 December 2015, the company said.

“The interim dividend has been increased over the prior year and we also expect to be in a position to increase the final dividend”, noted fund manager Marcus Phayre-Mudge.