TIDMSLI
RNS Number : 5194Y
Standard Life Invs Property Inc Tst
27 January 2014
27 January 2014
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE:
SLI)
Unaudited Net Asset Value as at 31 December 2013
Key Highlights
-- Net asset value per ordinary share was 65.5p as at 31
December 2013, an increase of 9.7% from 30 September 2013. The NAV
total return to investors over the quarter was 12.0%.
-- Dividend yield of 6.1% based on share price of 74.0p (23 January 2014).
-- Cash held by the Company was GBP12.3m at 31 December 2013.
-- Portfolio of 3 well let retail warehouses purchased during
the quarter for GBP12.7m excluding costs.
Net Asset Value ("NAV")
The unaudited net asset value per ordinary share of Standard
Life Investments Property Income Trust Limited ("SLIPIT") at 31
December 2013 was 65.5 pence. This is an increase of 9.7% over the
net asset value of 59.7 pence per share at 30 September 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 31 December 2013. The property
portfolio will next be valued by the external valuer during March
2014 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 September 2013
to 31 December 2013.
GBPm Pence % of opening
per NAV
share
Unaudited Net Asset Value at 30 September
2013 91.0 59.7 -
Gain - realised and unrealised following
revaluation of property portfolio (including
the effect of gearing) 6.6 4.3 7.2%
Decrease in unrealised interest rate 2.0 1.3 2.2%
swap valuations
Other movement in reserves 0.3 0.2 0.3%
New shares issued 1.7 - -
Unaudited Net Asset Value at 31 December
2013 101.6 65.5 9.7%
European Public Real Estate Association 31 Dec 2013 30 Sept 2013
("EPRA")*
EPRA Net Asset Value GBP101.6m GBP93.1m
EPRA Net Asset Value per share 65.5p 61.0p
The Net Asset Value per share is calculated using 154,994,237
shares of 1p each being the number in issue on 31 December
2013.
* 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 Company had a strong final quarter in 2013 as evidence of
the stronger demand for good secondary properties came through, and
a number of asset management initiatives completed. The Company's
portfolio delivered capital growth of 4.1% and a total return of
6.1% over the quarter, against an IPD Monthly Index return of 3.0%
and 4.7% respectively.
The Company's occupancy rate remains at 93% although the letting
of the largest void, Bourne House Staines, remains in solicitors'
hands. If this completes then the occupancy rate would be circa
97%. The average unexpired lease term is 5.2 years following the
recent purchases.
During Q4 the Company completed the purchase of three retail
warehouse investments, and so at the quarter end had a total cash
position of GBP12.3m. We are in solicitors hands on the purchase of
an industrial investment of GBP3.9m, 10.5% initial yield.
At the year end an interest rate swap matured, which means the
Company's cost of debt has reduced to 3.8%, giving it an annual
cost saving of circa GBP2.0m.
Cash position
As at 31 December 2013 the Company had borrowings of GBP84.4m
and a cash position of GBP12.3m (excluding rent deposits) therefore
cash as a percentage of debt was 14.6%.
Dividend
The Company paid an interim dividend, in respect of the quarter
ended 30 September 2013, of 1.133p per Ordinary Share, with
ex-dividend and payment dates of 13 November and 29 November 2013
respectively.
Loan to value and interest rate
As at 31 December 2013 the loan to value ratio (assuming all
cash is placed with RBS as an offset to the loan balance) was 40.9%
(30 September 2013: 39.1%). The covenant level is 65%. The Company
has a current weighted average interest rate of 3.8% to December
2018, of which 100% is fixed with a maturity to December 2018.
The interest rate swaps had a positive impact on the NAV of 1.3p
per share or 2.2% over the quarter, and the fair value liability
was GBP0.1m as at 31 December 2013. The Company has two interest
rate hedges which mature in December 2018, and have a current
liability of GBP0.1m (30 September: GBP1.2m).
Net Asset analysis as at 31 December 2013 (unaudited)
GBPm %
-------------------------- ------- -------
Office 79.9 78.6
-------------------------- ------- -------
Retail 48.3 47.5
-------------------------- ------- -------
Industrial 48.2 47.5
-------------------------- ------- -------
Total Property Portfolio 176.4 173.6
-------------------------- ------- -------
Adjustment for lease
incentives (3.5) (3.4)
-------------------------- ------- -------
Fair value of Property
Portfolio 172.9 170.2
-------------------------- ------- -------
Cash 12.3 12.1
-------------------------- ------- -------
Other Assets 5.2 5.1
-------------------------- ------- -------
Non-current liabilities (83.9) (82.6)
-------------------------- ------- -------
Current liabilities (4.9) (4.8)
-------------------------- ------- -------
Total Net Assets 101.6 100.0
-------------------------- ------- -------
Breakdown in valuation movements over the period 1 Oct 2013 to
31 Dec 2013
Exposure Capital Value Capital
as at 31 Movement Value Movement
Dec 2013 on Standing on Portfolio
(%) Portfolio (GBPm)
(%)
------------------------ ---------- -------------- ----------------
External Valuation at
30 Sept 2013 156.3
------------------------ ---------- -------------- ----------------
Sub Sector Analysis:
------------------------ ---------- -------------- ----------------
RETAIL
------------------------ ---------- -------------- ----------------
South East Retail 6.0 0.5 0.1
------------------------ ---------- -------------- ----------------
Retail Warehouses 21.4 0.0 12.8*
------------------------ ---------- -------------- ----------------
OFFICES
------------------------ ---------- -------------- ----------------
Central London Offices 12.2 12.9 2.5
------------------------ ---------- -------------- ----------------
South East Offices 19.0 4.5 1.5
------------------------ ---------- -------------- ----------------
Rest of UK Offices 14.1 2.5 0.6
------------------------ ---------- -------------- ----------------
INDUSTRIAL
------------------------ ---------- -------------- ----------------
South East Industrial 4.6 7.3 0.5
------------------------ ---------- -------------- ----------------
Rest of UK Industrial 22.7 5.6 2.1
------------------------ ---------- -------------- ----------------
External Valuation at
31 Dec 2013 100.0 4.1 176.4
------------------------ ---------- -------------- ----------------
*Due to purchase of Retail Warehouses in Q4
Top 10 Properties
Weighting 31
Dec 2013
--------------------------------- -------------
Tesco Distribution Unit, Bolton 8.2%
--------------------------------- -------------
White Bear Yard, London 7.2%
--------------------------------- -------------
Hertford Place, Rickmansworth 6.2%
--------------------------------- -------------
Hollywood Green, London 6.0%
--------------------------------- -------------
St James's House, Cheltenham 5.3%
--------------------------------- -------------
Ocean Trade Centre, Aberdeen 5.1%
--------------------------------- -------------
New Palace Place, London 5.0%
--------------------------------- -------------
Clough Road Retail Park, Hull 4.5%
--------------------------------- -------------
Explorer 1 & 2 & Mitre Court,
Crawley 3.5%
--------------------------------- -------------
Bathgate Retail Park, Bathgate 3.4%
--------------------------------- -------------
Total 54.4%
--------------------------------- -------------
The Board is not aware of any further significant events or
transactions which have occurred between 31 December 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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