TIDMSLI
RNS Number : 6992W
Standard Life Invs Property Inc Tst
30 January 2013
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED
31 December 2012
Key Highlights
-- Dividend yield of 7.5% based on share price of 60.5p (25 January 2013)
-- Real Estate portfolio total return for 2012 of 4.1% compared
to the IPD Monthly index of 2.4%
-- Cash held by the Trust was GBP13.5m at 31 December 2012
-- Property sold in Q4 for GBP3.9m excluding costs. Continued
active asset management of assets.
-- Net asset value per ordinary share was 56.6p as at 31 December 2012
Net Asset Value
The unaudited net asset value per ordinary share of Standard
Life Investments Property Income Trust Limited at 31 December 2012
was 56.6 pence. This is a decrease of 3.2% over the net asset value
of 58.5 pence per share at 30 September 2012.
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 December 2012.
The net asset value incorporates the external portfolio
valuation by Jones Lang LaSalle at 31 December 2012. The property
portfolio will next be valued by an external valuer during March
2013 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
September 2012 to 31 December 2012.
Pence % of opening
per NAV
share
Net Asset Value per share as at 30 September 58.5 -
2012
Loss - realised and unrealised following
revaluation of property portfolio (including
the effect of gearing) (4.0) (6.8)%
Increase in interest rate swap valuations 0.5 0.8%
Other movement in reserves 1.6 2.8%
Unaudited Net Asset Value per share as
at 31 December 2012 56.6 (3.2)%
31 Dec 2012 30 Sept 2012
European Public Real Estate Association
Net Asset Value per share 61.5 63.9
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
At the end of Q4 the Company took a surrender of the lease on
its office investment in Staines. The lease was due to expire in
March 2016, and the Company has received all rent due under the
lease to that date, as well as dilapidations, as a surrender
premium. The Company is about to undertake a refurbishment of the
office, prior to marketing for a new lease. The ERV represents 4.7%
of the fund income, however the surrender premium provides rental
cover and the refurbishment costs until the property is relet, and
a longer term tenant is found.
Due to accounting rules the fall in valuation at Staines is
reported a capital item, whilst the surrender premium (similar in
value to the fall in valuation) is treated as a revenue item.
The Company suffered a fall in the value of its vacant retail
warehouse unit in Norwich as a change in legal evidence relating to
a change of use to open retail uses has meant a letting to a
supermarket now looks less likely. The unit represents just under
3% of rental value of the Company, and we are actively discussing
the unit with several other retailers.
The Company has now completed the refurbishment of the 4(th)
floor office in Cheltenham, and has terms out to an interested
party. It is also in solicitors hands on the sale of one vacant
property, and the letting of another.
As a result of taking back the lease at Staines the Company had
a vacancy rate at year end of 10.8%. Of this, 5.6% is under
refurbishment, and a further 1.6% is in solicitors hands.
Cash increased over the quarter to GBP13.5m as a result of the
sale in Chislehurst and the surrender premium in Staines. The cash
will be used for the next dividend payment ( GBP1.6m),
refurbishment of existing buildings (for example Staines at a cost
of circa GBP2m) and the potential extension and regear of the lease
of another office building. The Company also has a couple of
attractive investment opportunities under consideration.
The total return for the portfolio over 2012 was 4.1%, which
compares favourably to the IPD monthly index 2.4%. The Company has
outperformed the IPD monthly index over 1, 3 and 5 years.
Cash position
As at 31 December 2012 the Company had borrowings of GBP84.4m
and a cash position of GBP13.5m (excluding rent deposits) therefore
cash as a percentage of debt was 16.0%.
Loan to value ratio
As at 31 December 2012 the loan to value ratio (assuming all
cash is placed with RBS as an offset to the loan balance) was 43.9%
(30 September 2012: 45.9%). The covenant level is 65%.
Interest Rate Swaps
The interest rate swaps had a positive impact on the NAV of 0.5p
per share or 0.8% over the quarter, and the fair value liability is
GBP(6.9)m as at 31 December 2012. The Company has one interest rate
hedge maturing in December 2013 with a current liability of
GBP3.3m. This will have a value of GBP0 by maturity in December
2013. The other interest rate hedges mature in December 2018, and
have a current liability of GBP3.6m.
Total asset analysis as at 31 December 2012 (unaudited)
GBPm %
-------------------------- ------ ------
Office 78.9 44.7
-------------------------- ------ ------
Retail 38.0 21.5
-------------------------- ------ ------
Industrial 44.7 25.4
-------------------------- ------ ------
Other 0.0 0.0
-------------------------- ------ ------
Total Property Portfolio 161.6 91.6
-------------------------- ------ ------
Cash 13.5 7.7
-------------------------- ------ ------
Other Assets 1.2 0.7
-------------------------- ------ ------
Total Gross Assets 176.3 100.0
-------------------------- ------ ------
Breakdown in valuation movements over the period 30 Sept 2012 to
31 Dec 2012
Exposure Capital Value GBPm
as at 31 Movement
Dec 2012 on Standing
(%) Portfolio
(%)
------------------------ ---------- -------------- ------
External Valuation at
30/09/2012 170.8
------------------------ ---------- -------------- ------
Sub Sector Analysis:
------------------------ ---------- -------------- ------
RETAIL
------------------------ ---------- -------------- ------
South East Retail 6.3 1.5 0.2
------------------------ ---------- -------------- ------
Retail Warehouses 17.2 (4.8) (1.4)
------------------------ ---------- -------------- ------
OFFICES
------------------------ ---------- -------------- ------
Central London Offices 9.9 0.3 0.0
------------------------ ---------- -------------- ------
South East Offices 14.6 (12.1) (3.3)
------------------------ ---------- -------------- ------
Rest of UK Offices 24.3 (0.2) (0.1)
------------------------ ---------- -------------- ------
INDUSTRIAL
------------------------ ---------- -------------- ------
South East Industrial 4.6 (2.0) (0.2)
------------------------ ---------- -------------- ------
Rest of UK Industrial 23.1 (1.7) (0.6)
------------------------ ---------- -------------- ------
Sale in Q4 2012 0.0 0.0 (3.8)
------------------------ ---------- -------------- ------
External Valuation at
31/12/12 100 (3.2) 161.6
------------------------ ---------- -------------- ------
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:
31/12/12 56.61p
30/09/12 58.45p
30/06/12 60.27p
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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