TR Property

[Avantegarde]

I have had shares in this trust for eight years. It invests in European commercial and residential property, both directly and via the shares of listed property investment companies. About 75% of its investments are in the UK and Germany. Its performance was once very good but it has slowed right down and been poor for the past three years, with a total return in that time of just 8%. I initially invested partly for some diversity, believing that the property market can be both lucrative and that it also moves to a different beat from the "normal" equity market. But my experience is that once a trust's performance goes off the boil it rarely recovers much. Should I hang on, or sell?

[baldchap]

Maybe I have low expectations, but an 8% return certainly isn't disastrous. It looks poor in these crazy tech days of course.

If you think there is no longer an investment case for property, then move on. If you still believe in the Trust or sector, where else would you go?, and why not hang on for the future rise?

[AlumniLawn]

I sold out a year ago as I realised that it didn't meet my pf needs. A little lucky in the timing as I made a 10% gain.

If I was looking to add property to my pf right now, it would be TRY. It is on an 11% discount which is 7 points above its historic discount, still offers a decent yield and has recovered significantly from its March horror show.

This report looks fairly positive https://guthmann.estate/en/market-report/berlin/ and to be honest, if I held, I would probably top up.

But DYOR - mine is opinion not advice

[Avantegarde]

Maybe I have low expectations, but an 8% return certainly isn't disastrous. It looks poor in these crazy tech days of course.

If you think there is no longer an investment case for property, then move on. If you still believe in the Trust or sector, where else would you go?, and why not hang on for the future rise?

I think that is what is bugging me: is there a case for property investment, given the (possibly permanent) disruption wrought by covid and the associated economic shutdowns? I'm just not sure.

[scotia]

I think that is what is bugging me: is there a case for property investment, given the (possibly permanent) disruption wrought by covid and the associated economic shutdowns? I'm just not sure.

Agreed. Covid-19 has forced a change in work practices for a substantial fraction of the populace - and home working has proved to be advantageous for both employer and employee in many cases. And consequently it looks like this will be a continuing feature - and there will be a substantial surplus of city centre office space, and homes at a substantial distance from city centres will become more desirable. Lots of disruption.

[baldchap]

I think that is what is bugging me: is there a case for property investment, given the (possibly permanent) disruption wrought by covid and the associated economic shutdowns? I'm just not sure.

Short term I would think, but who really knows. I am putting new funds into Global IT's. Let the managers decide on the future of property.

[77ss]

...
I think that is what is bugging me: is there a case for property investment, given the (possibly permanent) disruption wrought by covid and the associated economic shutdowns? I'm just not sure.

There is property and then there is property.

TRY has large interests in the logistics/distribution sector and in the residential sector.

I don't see either of these as being particulary adversely affected by C19. Indeed, the l&d sector might benefit.

Its not done too well this year, but cast your mind back to last year. I am hanging in there.