| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 0.49 | -99 |
| Graham Formula | 0.47 | -99 |
TOC Property Backed Lending Trust Plc (PBLT.L) is a UK-based investment trust specializing in property-backed lending. The company provides a diversified portfolio of fixed-rate loans secured primarily against land and property assets in the UK. Established in 2016 and headquartered in Chelmsford, TOC Property Backed Lending Trust focuses on senior secured loans, bridging loans, subordinated loans, and other debt instruments. Operating within the Financial Services sector and Asset Management industry, the trust offers investors exposure to the UK property market through structured debt financing. With a conservative approach to lending and a focus on secured assets, the company aims to deliver stable returns while mitigating risk. Its investment strategy targets mid-market property transactions, filling a niche between traditional bank lending and higher-risk alternative finance providers.
TOC Property Backed Lending Trust presents a specialized play on UK property debt markets, offering investors exposure to secured lending with relatively low volatility (beta of 0.21). The company reported £1.43 million in revenue and £929,000 net income for FY2021, with a healthy cash position of £4.55 million and no debt. The trust pays an attractive dividend yield (23.5p per share), which may appeal to income-focused investors. However, the small market cap and niche focus introduce liquidity risks. The conservative loan-to-value approach provides downside protection but may limit upside potential compared to more aggressive lenders. Investors should weigh the stable cash flows against concentration risk in UK property markets and the impact of rising interest rates on loan performance.
TOC Property Backed Lending Trust occupies a specialized niche in the UK property lending market, differentiating itself through its focus on secured mid-market loans. The company's competitive advantage stems from its ability to provide flexible financing solutions that sit between traditional bank lending and higher-risk alternative lenders. Its conservative underwriting approach, with loans secured against property assets, provides a buffer against market downturns. The trust benefits from the structural shortage of property development finance in the UK, particularly for small-to-medium sized projects that may not qualify for bank financing. However, its small scale limits its ability to compete for larger transactions where established property debt funds operate. The company's localized UK focus provides deep market knowledge but also creates geographic concentration risk. Unlike REITs that own physical properties, TOC's loan portfolio offers different risk-return characteristics, with potentially lower volatility but also less participation in property appreciation. The trust's performance is closely tied to UK property market fundamentals and developer activity levels.