Standard LifeInvProp Unaudited Net Asset Value
October 20 2015 - 1:01AM
UK Regulatory
TIDMSLI
20 October 2015
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE: SLI)
Unaudited Net Asset Value as at 30 September 2015
Key Highlights
* Net asset value per ordinary share was 80.9p as at 30 September 2015, an
increase of 3.1% from 30 June 2015 resulting in a NAV total return of 4.5%
for Q3;
* The property portfolio produced a total return of 4.3%, significantly
outperforming the 3.4% total return on the MSCI (formerly IPD) Monthly
Index over the same period;
* In Q3, four office properties purchased for GBP18.0m excluding costs, two
industrial properties purchased for GBP6.0m excluding costs and one retail
property purchased for GBP5.1m excluding costs;
* Three industrial properties sold during Q3 for GBP7.7m excluding costs, as
well as one retail property sold for GBP5.3m excluding costs and one office
property sold for GBP5.5m excluding costs;
* Dividend yield of 5.4% based on share price of 86.5p (15 October 2015)
comparing favourably to the yield on the FTSE All-Share REIT Index (2.7%)
and the FTSE All Share Index (3.6%) as at the same date.
Net Asset Value ("NAV")
The unaudited net asset value per ordinary share of Standard Life Investments
Property Income Trust Limited ("SLIPIT") at 30 September 2015 was 80.9p. This
is an increase of 3.1% over the net asset value of 78.5p per share at 30 June
2015. The net asset value is calculated under International Financial Reporting
Standards ("IFRS").
The net asset value incorporates the external portfolio valuation by Jones Lang
LaSalle at 30 September 2015. The property portfolio will next be valued by the
external valuer during December 2015 and the next quarterly net asset value
will be published thereafter.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited NAV per share
calculated under IFRS over the period 30 June 2015 to 30 September 2015.
GBPm Pence % of opening
per NAV
share
Unaudited Net Asset Value at 30 June 2015 226.4 78.5 -
Gain - unrealised on the standing portfolio 7.8 2.7 3.5%
following revaluation of property portfolio
Gain - on sale of properties 0.8 0.3 0.4%
Costs on the purchase of investment property (0.8) (0.3) (0.4%)
Increase in unrealised interest rate swap (0.7) (0.2) (0.3%)
liability
Other movement in reserves (0.3) (0.1) (0.1%)
Unaudited Net Asset Value at 30 September 2015 233.2 80.9 3.1%
European Public Real Estate Association 30 Sep 2015 30 Jun 2015
("EPRA")*
EPRA Net Asset Value GBP235.8m GBP228.3m
EPRA Net Asset Value per share 81.8p 79.2p
The Net Asset Value per share is calculated using 288,387,160 shares of 1p each
being the number in issue on 30 September 2015.
* The EPRA net asset value measure is to highlight the fair value of net assets
on an on-going, long-term basis. Assets and liabilities that are not expected
to crystallise in normal circumstances, such as the fair value of financial
derivatives, are therefore excluded.
Investment Manager Commentary
The UK commercial real estate market continues to benefit from strong
investment and improving tenant demand. Given the lack of new construction over
the last 8 years, the supply of good quality accommodation is low in most
markets and this is leading to rental growth momentum starting to build. The
relatively high margin of real estate yields over UK Gilts means the sector
remains popular with investors, both overseas and domestic.
During the third quarter we were able to complete a number of asset management
initiatives, the main one being two lease regears and a new lease at White Bear
Yard London - the new leases have moved the rents up in the building and
provide a greater ability for us to extend the building in the future by having
all lease expiries at the same time. We also completed the lease at Ocean Trade
Centre to CCF (part of Travis Perkins) and, after the quarter end, signed the
Scottish Ministers on the remaining vacant units - all on 10 year leases. In
order to maximise income we granted a short term lease expiry on an industrial
unit in Oldham taking the rent from GBP4.50psf to GBP8.50psf for a 12 month
extension.
Following the completion of the purchase of three offices and a retail
warehouse at the beginning of the quarter (reported with the Q2 NAV), we also
completed the purchase of two single let logistics units and an office for a
total of GBP10.7m, the sale of an office in Glasgow for GBP5.7m and of a standalone
retail warehouse for GBP5.3m.
As already notified to the market, the Company has signed heads of terms to
acquire a portfolio of 22 UK commercial properties for a cash consideration of
approximately GBP165m. We are making good progress on our due diligence and hope
to update further through the publication of a prospectus in early November.
Cash position
As at 30 September 2015 the Company had borrowings of GBP84.4m and a cash
position of GBP16.3m (excluding rent deposits) therefore cash as a percentage of
debt was 19.3%.
Dividends
The Company paid an interim property income dividend in respect of the quarter
ended 30 June 2015 of 1.161p per Ordinary Share, with ex-dividend and payment
dates of 6 August 2015 and 21 August 2015 respectively.
Loan to value and interest rate
As at 30 September 2015 the loan to value ratio (assuming all cash is placed
with RBS as an offset to the loan balance) was 22.1% (30 June 2015: 19.8%). The
bank covenant level is 65%. As a result of interest rate swaps the weighted
average interest rate on the loan is fixed at 3.7% until the loan matures in
December 2018.
Net Asset analysis as at 30 September 2015 (unaudited)
GBPm % of net
assets
Office 129.5 55.5
Retail 64.0 27.4
Industrial 115.3 49.4
Total Property Portfolio 308.8 132.3
Adjustment for lease (2.3) (0.9)
incentives & sales costs on
assets held for sale
Fair value of Property 306.5 131.4
Portfolio
Cash 16.3 7.0
Other Assets 4.6 2.0
Total Assets 327.4 140.4
Non-current liabilities (86.7) (37.2)
Current liabilities (7.5) (3.2)
Total Net Assets 233.2 100.0
Breakdown in valuation movements over the period 1 Jul 2015 to 30 Sep 2015
Exposure as Capital Value Capital
at 30 Sept Movement on Value
2015 (%) Standing Movement on
Portfolio (%) Portfolio (GBP
m)
External Property Valuation 288.4
at 30 Jun 2015
IPD Sub Sector Analysis:
RETAIL
South East Retail 5.4 0.8 0.1
Retail Warehouses 15.3 1.2 0.3*
OFFICES
London City Offices 6.6 13.6 2.4
London West End Offices 3.4 1.8 0.2
South East Offices 22.6 2.6 15.7*
Rest of UK Offices 9.3 2.7 0.1*
INDUSTRIAL
South East Industrial 9.8 4.2 4.5*
Rest of UK Industrial 27.6 2.3 (2.9)*
External Property Valuation 100.0 3.0 308.8
at 30 Sep 2015
*Inclusive of Q3 purchases and sales
Top 10 Properties
30 Sep 15 (GBPm)
White Bear Yard, London 20-25
DSG, Preston 15-20
Chester House, Farnborough 15-20
Symphony, Rotherham 15-20
Denby 242, Denby 10-15
Hertford Place, Rickmansworth 10-15
St James's House, Cheltenham 10-15
3B - C Michigan Drive, Milton Keynes 10-15
Hollywood Green, London 10-15
Bourne House, Staines Upon Thames 10-15
The Board is not aware of any other significant events or transactions which
have occurred between 30 September 2015 and the date of publication of this
statement which would have a material impact on the financial position of the
Company.
Details of the Company may also be found on the Investment Manager's website
which can be found at: www.standardlifeinvestments.com/its
For further information:-
Jason Baggaley - Real Estate Fund Manager Standard Life Investments
Tel +44 (0) 131 245 2833 or jason_baggaley@standardlife.com
Gordon Humphries - Head of Investment Companies Standard Life Investments
Tel +44 (0) 131 245 2735 or gordon_humphries@standardlife.com
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Ltd
Trafalgar Court
Les Banques
St Peter Port
GY1 3QL
Tel: 01481 745001
Fax: 01481 745085
END
(END) Dow Jones Newswires
October 20, 2015 02:01 ET (06:01 GMT)
Abrdn Property Income (LSE:API)
Historical Stock Chart
From Apr 2024 to May 2024
Abrdn Property Income (LSE:API)
Historical Stock Chart
From May 2023 to May 2024