Best In Class  

Best in class: TR Property Investment Trust

By contrast, however, this structure gives the trust more liquidity, a hot topic in the property market at present.

The trust is well diversified from a sector perspective, with residential (31.7 per cent), offices (29.7 per cent) and industrials (25.5 per cent) all well represented.

The trust has its largest individual holding (10.9 per cent) in German listed property company Vonovia - which owns over 350,000 apartments across Germany.

Its second largest holding (7.8 per cent) is in Unibail-Rodamco-Westfield, the Paris-based European commercial real estate company.

Net gearing currently stands at 12.3 per cent, although the trust can gear up to 25 per cent. The share price has tended to trade at a discount to net asset value (NAV), however it has recently moved to a premium. It also offers an historic yield of 3 per cent.

The trust has an ongoing charge of 0.76 per cent.

There is also a 15 per cent outperformance fee of its benchmark plus 1 per cent hurdle.

Long-term return

Investors need to understand that while the share price may be volatile, this has been more than offset by the trust’s long-term returns, which importantly, have been demonstrated in various market conditions.

The TR Property Investment Trust team is one of the largest pan-European real estate equity teams.

All in all, this makes a compelling argument for those looking at property as an alternative source of return and income, whether it be shares or physical.

We see no reason why this trust can not continue to produce standout performance in the future.

Darius McDermott is managing director of FundCalibre