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TR Property Investment Trust said it sees "modest growth" for the year ahead as it reported that its net asset value per share climbed 5.8% to 418.54p for the year ending 31 March 2019 amid steady growth in underlying earnings.
"The early part of the current financial year is producing consistent earnings which suggest modest growth for the year ahead," Chairman Hugh Seaborn said, but cautioned on the impact of exchange rates as over half of its income is non-Sterling denominated, as well as political uncertainties.
"The beginning of 2019 has seen a resurgence in stock markets as central banks from the Fed to the ECB have offered dovish commentary away from further monetary tightening. Real estate has been a significant beneficiary and the Trust's asset value has more than recovered from the fall experienced in the last quarter of 2018," he added.
The company's net asset value total return for the year was 9.1%, ahead of the benchmark total return, while its shareholders' funds also grew 5.8% to £1.328bn. Revenue per share grew 10.3% to 14.58p, boosted by "healthy growth" in underlying investment dividends.
The firm's continental European property companies continued to outperform their UK counterparts, returning 10.6% and 0.6%, respectively.
In terms of sectors, the retail property sector continued to underperform, but it said there had been "positive momentum" in logistics property assets, meaning that there had been "significant outperformance" in all the firm's companies exposed to this sector.
"I remain confident that outside of the retail sector, income generation from this [property] asset class remains robust. We see ongoing earnings growth driven by a lack of development of new property in many of our markets. [...] However, those sectors with rental growth prospects are all well bid and whilst we do see future earnings growing we find it harder to predict yield tightening," said Fund Manager Marcus Phayre-Mudge.
The company recommended a final dividend of 8.60p per share, bringing the full-year dividend to 13.50p.
At 8:37am: (LON:TRY) TR Property Investment Trust Plc share price was +0.25p at 406.75p