At the end of April the largest geographic exposure was the 36% weighting in the UK, with France making up a further 13.5%, Sweden 9% and Germany 37%. Retail has been reduced and accounts for 15% of the portfolio (down from 22% in 2019) and office space 28%, with another 37% in residential and the remainder divided between industrials 23% and diversified such as storage, healthcare, supermarkets and student accommodation.
The low costs of borrowing and skinny yields on ﬁxed income will remain a feature of the ﬁnancial landscape, increasing the value of income particularly where it is index-linked. This will support the attractiveness of property as an asset class although not necessarily protect it against market ﬂuctuations caused by macro events that move global equity markets, such as that which we have witnessed in the closing weeks of this ﬁnancial year".
The crisis caused several companies in which TR invests not to pay dividends as expected. The company said it expected earnings to fall in the current financial year but that it expected to use reserves to pay its own dividends. "The company has a healthy level of revenue reserves which have been accumulated over time to provide resilience in the event of a crisis. These are used to supplement short to medium term falls in earnings until such time as conditions settle..."