TIDMSLI
RNS Number : 0750K
Standard Life Invs Property Inc Tst
24 July 2013
24 July 2013
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE:
SLI)
Unaudited Net Asset Value as at 30 June 2013
Key Highlights
-- Net asset value per ordinary share was 58.3p as at 30 June
2013, an increase of 4.8% from 31 March 2013
-- Dividend yield of 7.3% based on share price of 62.0p (23 July 2013)
-- Cash held by the Company was GBP8.6m at 30 June 2013
-- Property purchased for GBP9.9m excluding costs during the
quarter and property sold for GBP0.9m excluding costs
Net Asset Value ("NAV")
The unaudited net asset value per ordinary share of Standard
Life Investments Property Income Trust Limited ("SLIPIT") at 30
June 2013 was 58.3 pence. This is an increase of 4.8% over the net
asset value of 55.6* pence per share at 31 March 2013. 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 June 2013. The property
portfolio will next be valued by the external valuer during
September 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 NAV
per share calculated under IFRS over the period 31 March 2013 to 30
June 2013.
GBPm Pence % of opening
per NAV
share
Unaudited Net Asset Value at 31 March
2013 * 80.6 55.6 -
Gain - realised and unrealised following
revaluation of property portfolio (including
the effect of gearing) 1.7 1.1 2.0%
Purchase costs (0.5) (0.3) (0.6)%
Decrease in unrealised interest rate 3.4 2.2 4.0%
swap valuations
Other movement in reserves (0.6) (0.3) (0.6)%
New shares issued 3.6 - -
Unaudited Net Asset Value at 30 June
2013 88.2 58.3 4.8%
European Public Real Estate Association 30 Jun 2013 31 Mar 2013
("EPRA")**
EPRA Net Asset Value GBP91.3m GBP87.1m
EPRA Net Asset Value per share * 60.3p 60.1p
The Net Asset Value at 30 June 2013 is based on 151,374,919
shares of 1p each.
* The announcement of the Net Asset Value at 31 March 2013
included a provision for payment of an interim dividend of 1.133p
per ordinary share for the quarter; this has been excluded from the
above table to provide consistency with the Company's peer group
NAV calculations and will be deducted from the NAV when the
dividend goes ex-dividend.
** 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 the quarter the company completed on the purchase
of Hertford House, Rickmansworth. The purchase was for GBP9.85m, at
a yield of 11.1%, and an annual rent of GBP1.15m. The property is
let for a further nine years to Trebor Bassett.
The Company also undertook two sales, one just after the quarter
end. The first was of a small vacant warehouse unit to an owner
occupier for GBP0.9m, and the second, just after the quarter end,
was the sale of its holding at Aberdeen Gateway Business Park for
GBP14.77m. The company funded the development of this office and
industrial complex in 2010 off a yield of 8.4% at a total cost of
GBP11.47m. The property was let to Hydrasun and generated a rent of
GBP1.0m per annum. The sale price was 3% above the March quarter
valuation. This sale continues our belief in crystallising profit
on assets that have served their purpose for the company, so that
we can reinvest in new assets to the benefit of the revenue
account. We developed the Hydrasun facility in 2010 before other
parties were prepared to commit to development fundings and it has
performed very well for us. However, we believe the time is now
right to capitalise on the very strong demand for Aberdeen property
so that we can reinvest in other growth opportunities. We are
currently looking at a number of investments opportunities.
At the quarter end voids stood at 10.4%, down from 12.2% at the
end of Q1. This is still too high, however we have two lettings in
solicitors hands that will reduce this figure further and interest
has been expressed in our largest empty property, which is subject
to refurbishment.
During the latter part of the quarter there was a noticeable
change in sentiment in the market, with a pick up in interest in
both direct real estate and also in the sector. As a result the
company issued GBP3.6m shares during the quarter and has now used
up all its allocation under its 10% tap facility.
Cash position
As at 30 June 2013 the Company had borrowings of GBP84.4m and a
cash position of GBP8.6m (excluding rent deposits) therefore cash
as a percentage of debt was 10.2%.
Dividend
The Company intends to declare an interim dividend, in respect
of the period from 1 April to 30 June 2013, of 1.133p per Ordinary
Share, with ex-dividend and payment dates of 8 August and 24 August
2013 respectively.
Loan to value and interest rate
As at 30 June 2013 the loan to value ratio (assuming all cash is
placed with RBS as an offset to the loan balance) was 44.8% (31
March 2013: 43.7%). The covenant level is 65%. The Company has a
weighted average interest rate of 6.3%, of which 100% is fixed with
a maturity to December 2018. From 1 January 2014 the weighted
average interest rate will fall to 3.8%. The interest rate swaps
had a positive impact on the NAV of 2.2p per share or 4.0% over the
quarter, and the fair value liability is GBP3.1m as at 30 June
2013. The Company has one interest rate hedge maturing in December
2013 with a current liability of GBP1.6m (31 March 2013: GBP2.5m).
This liability will have fallen to zero by maturity in December
2013. The other interest rate hedges mature in December 2018, and
have a current liability of GBP1.5m (31 March: GBP4.0m).
Net Asset analysis as at 30 June 2013 (unaudited)
GBPm %
Office 90.0 102.1
------- -------
Retail 35.0 39.7
------- -------
Industrial 44.3 50.2
------- -------
Total Property Portfolio 169.3 192.0
------- -------
Adjustment for lease
incentives (3.6) (4.1)
------- -------
Fair value of Property
Portfolio 165.7 187.9
------- -------
Cash 8.6 9.8
------- -------
Other Assets 5.4 6.1
------- -------
Non-current liabilities (86.9) (98.6)
------- -------
Current liabilities (4.6) (5.2)
------- -------
Total Net Assets 88.2 100.0
------- -------
Breakdown in valuation movements over the period 1 Apr 2013 to
30 Jun 2013
Exposure Capital Value GBPm
as at 30 Movement
Jun 2013 on Standing
(%) Portfolio
(%)
External Valuation at
31/03/2013 158.7
---------- -------------- ------
Sub Sector Analysis:
---------- -------------- ------
RETAIL
---------- -------------- ------
South East Retail 6.0 0.5 0.0
---------- -------------- ------
Retail Warehouses 14.7 (5.3) (1.4)
---------- -------------- ------
OFFICES
---------- -------------- ------
Central London Offices 11.1 13.2 2.2
---------- -------------- ------
South East Offices 19.0 (2.3) 9.3
---------- -------------- ------
Rest of UK Offices 23.0 0.5 0.2
---------- -------------- ------
INDUSTRIAL
---------- -------------- ------
South East Industrial 4.3 0.0 0.0
---------- -------------- ------
Rest of UK Industrial 21.9 3.4 0.3
---------- -------------- ------
External Valuation at
30/06/2013 100 0.8 169.3
---------- -------------- ------
Top 10 Assets
Asset Weighting 30
Jun 2013
Aberdeen Gateway Business Park* 8.6%
-------------
Tesco Distribution, Bolton 7.9%
-------------
White Bear Yard, London 6.6%
-------------
Hollywood Green, London 6.0%
-------------
Hertford Place, Rickmansworth 5.8%
-------------
St. James's House, Cheltenham 5.2%
-------------
Ocean Trade Centre, Aberdeen 5.0%
-------------
Clough Road Retail Park, Hull 4.7%
-------------
New Palace Place, Monck St, London 4.5%
-------------
Fleming Way, Crawley 3.6%
-------------
Total 57.9%
-------------
*Sold in July 2013.
The sale of the Aberdeen property mentioned above has been
reflected in the 30 June Net Asset Value as an asset held for
sale.
The Board is not aware of any further significant events or
transactions which have occurred between 30 June 2013 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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