Net Asset Value(s) (9445B)
April 24 2012 - 7:30AM
UK Regulatory
TIDMSLI
RNS Number : 9445B
Standard Life Invs Property Inc Tst
24 April 2012
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED
31 March 2012
Key Highlights
-- New seven year GBP84.4m loan facility, maturing 16 December
2018, drawdown during Q1 2012 on very attractive terms.
-- Value of properties declined 0.73% over the quarter compared
to the IPD monthly index decline of 0.75%.
-- Cash held by the Trust was GBP18.8m at 31 March 2012. Cash
reduced in April 2012 to GBP10.3m post completion of office
purchase in Cheltenham.
-- Net asset value per ordinary share was 61.9p per share as at
31 March 2012, a decrease of 1.3% from 31 December 2011.
-- Based on a share price of 62.50p (23 April 2012) the dividend yield is 7.3%.
Net Asset Value
The unaudited net asset value per ordinary share of Standard
Life Investments Property Income Trust Limited at 31 March 2012 was
61.9 pence. This is a decrease of 1.3% percentage points over the
net asset value of 62.7 pence per share at 31 December 2011.
The net asset value is calculated under International Financial
Reporting Standards ("IFRS") and includes a provision for payment
of an interim dividend of 1.133p per ordinary share for the quarter
to 31 March 2012.
The net asset value incorporates the external portfolio
valuation by Jones Lang LaSalle at 31 March 2012. The property
portfolio will next be valued by an external valuer during June
2012 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 31
December 2011 to 31 March 2012.
Pence per % of opening
share NAV
Net Asset Value per share as at 31 62.7* -
December 2011
Loss - realised and unrealised following
revaluation of property portfolio
(including the effect of gearing) (0.8) (1.3%)
Increase in interest rate swap valuations 0.4 0.6%
Other movement in reserves (0.4) (0.6)%
Net Asset Value per share as at 31
March 2012 61.9 (1.3)%
* audited
Investment Manager Commentary
The IPD monthly index showed a capital decline of 0.75% over Q1.
The decline in values was driven by poorer secondary investments,
with continued risk aversion from most investors. Transaction
levels and available investments remained subdued in Q1, and this
pattern is expected to continue through the rest of 2012. The
Company saw a fall in the value of its properties of 0.73% over the
quarter, in line with the IPD Monthly index, and, mainly due to a
movement in values on some of the shorter let properties and lack
of favour of ROUK offices, which have seen no capital recovery
since the downturn generally, and now provide an attractive income
return.
During Q1 2012 the void level in the portfolio was reduced
slightly to 4.9% from 5.1% in Dec 2011 following the completion of
an agreement for lease on a retail warehouse in Hull. The Company
also completed a surrender and re-letting of an industrial unit in
Aberdeen where the original lease was due to expire in December
2012 and just after the quarter end completed the letting of the
last vacant unit on the multi let industrial estate in Aberdeen. In
addition, the Company completed a re-gear of its lease to Halfords
in Paisley, increasing the term certain from two years to ten.
The Company had a cash holding of GBP18.8m at the quarter end,
and is seeking to invest this into income producing investments.
The Company has issued a separate announcement confirming its
purchase of a multi let office in Cheltenham for a price of
GBP8.45m, reflecting an income yield of 7.4% on day one, rising to
9% in December 2012 on the expiration of rent frees, and over 10%
once the top floor is re-let following a lease expiry and
refurbishment. A second purchase is in solicitor's hands for GBP4m
at a yield of 9.5%.
During the quarter the negative movement in revenue reserves was
due to a combination of one off costs from the new debt facility
and an uncovered dividend pending re-investment of the Northern
& Shell sale proceeds.
Cash position
As at 31 March 2012 the Company had borrowings of GBP84.4m and a
cash position of GBP18.8m (excluding rent deposits) therefore cash
as a percentage of debt was 22.3%. On 23 April 2012 the Company
announced the purchase of an office in Cheltenham for GBP8.45m
resulting in a cash position of GBP10.3m post completion.
Loan to value ratio
As at 31 March 2012 the loan to value ratio (assuming all cash
is placed with RBS as an offset to the loan balance) was 41.1% (31
December 2011: 41.1%). The covenant level is 65%.
Interest Rate Swaps
The interest rate swaps had a positive impact on the NAV of 0.4p
per share or 0.6% over the quarter, and the fair value liability is
GBP(5.6)m as at 31 March 2012. This fair value will reduce to
GBPnil by December 2018, although not on a straight line basis.
Total asset analysis as at 31 March 2012
GBPm %
Office 71.5 39.7
------ ------
Retail 38.3 21.3
------ ------
Industrial 46.4 25.8
------ ------
Other 3.7 2.1
------ ------
Total Property Portfolio 159.9 88.9
------ ------
Cash 18.8 10.4
------ ------
Other Assets 1.3 0.7
------ ------
Total Gross Assets 180.0 100.0
------ ------
Breakdown in valuation movements over the period 31 December
2011 to 31 March 2012
Exposure Capital Value GBPm
as at 31 Movement
Mar 2012 on Standing
(%) Portfolio
(%)
External Valuation at
31/12/2011 162.1
---------- -------------- ------
Sub Sector Analysis:
---------- -------------- ------
RETAIL
---------- -------------- ------
South East Retail 6.2 0.0 0.0
---------- -------------- ------
Retail Warehouses 17.7 0.0 0.0
---------- -------------- ------
OFFICES
---------- -------------- ------
Central London Offices 9.8 0.0 0.0
---------- -------------- ------
South East Offices 17.6 (1.0) (0.3)
---------- -------------- ------
Rest of UK Offices 17.3 (1.7) (0.5)
---------- -------------- ------
INDUSTRIAL
---------- -------------- ------
South East Industrial 4.8 (0.7) (0.1)
---------- -------------- ------
Rest of UK Industrial 24.3 (0.8) (0.3)
---------- -------------- ------
OTHER 2.3 0.0 0.0
---------- -------------- ------
Sales during Q1 2012 - (0.6) (1.0)
---------- -------------- ------
External Valuation at
31/03/2012 100 (0.7) 159.9
---------- -------------- ------
The above information is unaudited and has been calculated by
Standard Life Investments.
All Enquiries:
Jason Baggaley - Real Estate Fund Manager Standard Life
Investments
Tel 0131 245 2833
The Company Secretary
Northern Trust International Fund Administration Services
(Guernsey) Ltd
Trafalgar Court
Les Banques
GY1 3Q1
Tel: 01481 745324
Fax: 01481 745085
Appendix 1
Historical adjusted IFRS NAVs per Ordinary Share are as
follows:
31/03/12 61.91p
31/12/11 62.72p
30/09/11 61.49p
30/06/11 62.22p
31/03/11 64.09p
31/12/10 63.00p
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
This information is provided by RNS
The company news service from the London Stock Exchange
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