Is real estate a value opportunity? TR Property’s Marcus Phayre-Mudge

Commercial real estate has had a rocky ride in recent years, but is it now a great value investment opportunity with the power to beat inflation?

On this episode of the Investing Show, Simon Lambert is joined by TR Property Investment Trust’s manager, Marcus Phayre-Mudge, as he explains why he believes a careful approach to supporting retail, warehouse and office properties can pay off in the years to come. yield. .

The office market was written off by many during the pandemic, but has bounced back strongly for landlords who can offer quality.

Marcus says there are two elements he believes will drive the office market for years to come: the demand for high-quality space ‘to lure workers back in’ and the demand for more energy-efficient buildings so that companies can save money and be more environmentally friendly. can work. commitments.

He says, “We expect a super bike that builds green.”

The fund manager, whose trust owns shares in listed real estate companies across Europe, says what connects the philosophy behind TR Property’s diverse investments is the search for quality management in those companies – something he believes is key to success.

Marcus explains the things investors need to consider before buying commercial real estate, and why a mutual fund is a better way to get ahead than an open-ended mutual fund, many of which have been forced to hold onto investors during turbulent periods.

He also talks about where he sees the best opportunities and how he sees retail and office space changing, including the demand for higher quality properties for stores and businesses eager to attract shoppers and workers to the brick-and-mortar store.

Like many real estate funds and funds, TR Property had a tough 2022, with its share price down 35 percent, but confidence is up 8.5 percent since the start of the year. Shares are currently trading at an 8 percent discount to their net asset value.

Over the past decade, TR Property has averaged 9.48 percent total return and a 4.37 percent dividend yield, according to Morningstar data. It has an ongoing charge of 0.58 percent, but a performance fee may also apply.