Net Asset Value(s) (6807U)

TIDMSLI

RNS Number : 6807U

Standard Life Invs Property Inc Tst

20 October 2010

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

30 September 2010

Key Highlights

-- Net asset value per ordinary share was 61.4p as at 30 September 2010, an increase of 0.1% from 30 June 2010

-- Cash held by the Trust of GBP30.6m as at September 2010, but after full cost of Aberdeen development, and purchase completed after quarter end uncommitted cash is GBP20.7m

-- Property worth GBP11.4m sold in Q3

-- Dividend yield of 6.8% using the share price as at 15 October 2010 of 64.25p

Net Asset Value

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 30 September 2010 was 61.4 pence. This is an increase of 0.1% percentage points over the net asset value of 61.3 pence per share at 30 June 2010.

The net asset value is calculated under International Financial Reporting Standards ("IFRS") and includes a provision for payment of an interim dividend of 1.10p per ordinary share for the quarter to 30 September 2010.

The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 30 September 2010. The property portfolio will next be valued by an external valuer during December 2010 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 net asset value per share calculated under IFRS over the period 30 June 2010 to 30 September 2010.

 
                                              Pence per   % of opening 
                                                  share            NAV 
 Net Asset Value per share as at 30 
  June 2010                                        61.3              - 
 Gain - realised and unrealised following 
  revaluation of property portfolio 
  (including the effect of gearing)                 0.7           1.1% 
 Decrease in interest rate swap valuations        (0.1)         (0.2)% 
 Other movement in reserves                       (0.5)         (0.8)% 
 Net Asset Value per share as at 30 
  September 2010                                   61.4           0.1%

The property portfolio, ignoring the impact of debt, benefited from capital growth over the quarter of 1.5%.

Cash position

As at 30 September 2010 the Company had borrowings of GBP84.4m and a cash position of GBP30.6m (excluding rent deposits) therefore cash as a percentage of debt was 36.2%. The unallocated cash following the undrawn commitment at the development in Aberdeen and purchase completed after the quarter end is GBP20.7m.

Loan to value ratio

As at 30 September 2010 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 37.0% (30 June 2010: 40.1%). The covenant level is 65%.

Interest Rate Swaps

The interest rate swaps had a negative impact on the NAV of 0.1p per share (0.2%) over the quarter, and the fair value is held at GBP(8.8)m as at 30 September 2010. This will reduce to GBPnil by Dec 2013, although not on a straight line basis.

Total asset analysis as at 30 September 2010 (unaudited)

 
                              GBPm       % 
   Office                     52.9    29.8 
                            ------  ------ 
   Retail                     39.6    22.2 
                            ------  ------ 
   Industrial                 49.8    28.0 
                            ------  ------ 
   Other                       3.4     1.9 
                            ------  ------ 
 Total Property Portfolio    145.7    81.9 
                            ------  ------ 
 Cash                         30.6    17.2 
                            ------  ------ 
 Other Assets                  1.5     0.9 
                            ------  ------ 
 Total Gross Assets          177.8   100.0 
                            ------  ------

Breakdown in valuation movements over the period 30 June 2010 to 30 Sept 2010

 
                                        Capital Value 
                            Exposure       Movement 
                            as at 30     on Standing 
                            Sept 2010     Portfolio 
                               (%)           (%)         GBPm 
 External Valuation at 
  30/06/10                                              151.2 
                          -----------  --------------  ------- 
 Sub Sector Analysis: 
                          -----------  --------------  ------- 
 RETAIL 
                          -----------  --------------  ------- 
 South East Retail            6.8            0.5         0.1 
                          -----------  --------------  ------- 
 Retail Warehouses            20.4           7.6         2.1 
                          -----------  --------------  ------- 
 
 OFFICES 
                          -----------  --------------  ------- 
 Central London Offices       12.6           0.5         0.1 
                          -----------  --------------  ------- 
 South East Offices           5.9            0.0         0.0 
                          -----------  --------------  ------- 
 Rest of UK Offices           11.1          (0.6)       (0.1) 
                          -----------  --------------  ------- 
 Development during Q3 
  2010                        6.7            0.1         3.9 
                          -----------  --------------  ------- 
 
 INDUSTRIAL 
                          -----------  --------------  ------- 
 South East Industrial        5.4           (6.0)       (0.5) 
                          -----------  --------------  ------- 
 Rest of UK Industrial        28.8           0.3         0.2 
                          -----------  --------------  ------- 
 
 OTHER                        2.3            1.0         0.1 
                          -----------  --------------  ------- 
 
 Sales during Q3 2010                                   (11.4) 
                          -----------  --------------  ------- 
 
 External Valuation at 
  30/09/10                    100            1.5        145.7 
                          -----------  --------------  -------

Investment Manager Commentary

The recovery in UK Commercial Property values continued to slow in Q3 with the IPD monthly index showing capital growth of just 0.5% compared to 1.9% for Q2. This soft patch is likely to continue over the next few months before values recover again in 2011.

The Company's portfolio once again outperformed the IPD monthly index with capital growth of 1.5% against the index 0.5%, and a total return for Q3 of 3.1% against the index's 2.2%. Once again though, cash was a drag on performance, reducing the total return on the investment portfolio to 2.6%.

During the quarter the Company completed the sale of Bucknall St London for GBP8.6m, as well as a vacant logistics unit in Skelmersdale for GBP2.8m. This sale, along with the letting of a retail warehouse unit in Hull and a logistics unit in Bardon reduced the Company's void level from 8% to 3.6%.

After the quarter end the Company completed the purchase of a mixed use investment in Westminster for GBP6.35m at a yield of 8%.

All Enquiries:

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Ltd

Trafalgar Court

Les Banques

GY1 3Q1

Tel: 01481 745324

Fax: 01481 745085

APENDIX 1

Historical adjusted IFRS NAVs per Ordinary Share are as follows:

 
 30/09/10   61.37p 
 30/06/10   61.33p 
 31/03/10   59.56p 
 31/12/09   56.63p 
 30/09/09   51.28p 
 30/06/09   50.53p 
 31/03/09   52.49p 
 31/12/08   61.65p 
 30/09/08   87.24p 
 30/06/08   101.59p 
 31/03/08   102.71p 
 31/12/07   111.60p 
 30/09/07   130.70p 
 30/06/07   137.16p 
 31/03/07   134.42p 
 31/12/06   132.68p 
 30/09/06   129.51p 
 30/06/06   130.20p 
 31/03/06   124.28p 
 31/12/05   116.46p 
 30/09/05   107.12p 
 30/06/05   103.88p 
 31/03/05   101.34p 
 31/12/04   99.00p

#1867738

This information is provided by RNS

The company news service from the London Stock Exchange

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