TIDMSLI
RNS Number : 4333F
Standard Life Invs Property Inc Tst
24 April 2014
24 April 2014
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE:
SLI)
Unaudited Net Asset Value as at 31 March 2014
Key Highlights
-- Net asset value per ordinary share was 67.8p as at 31 March
2014, an increase of 3.5% from 31 December 2013. The NAV total
return to investors over the quarter was 5.1%.
-- Dividend increase of 2.5% from Q1 2014.
-- Dividend yield of 6.2% based on share price of 74.8p (31 March 2014).
-- Purchase of industrial investment of two logistics units for GBP3.6m 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
March 2014 was 67.8 pence. This is an increase of 3.5% over the net
asset value of 65.5 pence per share at 31 December 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 March 2014. The property
portfolio will next be valued by the external valuer during June
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 31 December 2013 to
31 March 2014.
GBPm Pence % of opening
per NAV
share
Unaudited Net Asset Value at 31 December
2013 101.6 65.5 -
Gain - realised and unrealised following
revaluation of property portfolio (including
the effect of gearing) 3.2 2.2 3.4%
Increase in unrealised interest rate (0.6) (0.3) (0.5%)
swap liability
Other movement in reserves 0.6 0.4 0.6%
New shares issued 4.1 - -
Unaudited Net Asset Value at 31 March
2014 108.9 67.8 3.5%
European Public Real Estate Association 31 Mar 2014 31 Dec 2013
("EPRA")*
EPRA Net Asset Value GBP109.5m GBP101.6m
EPRA Net Asset Value per share 68.1p 65.5p
The Net Asset Value per share is calculated using 160,709,237
shares of 1p each being the number in issue on 31 March 2014.
* 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 UK real estate investment market remained robust in Q1,
driven primarily by a weight of money coming into the sector.
Capital values continued to rise, with the IPD monthly index
showing a capital value increase of 2.3% over the quarter, and a
total return of 3.9%. Over the same period, the Company produced a
NAV total return of 5.1% to investors and NAV growth of 3.5%,
whilst its underlying investment portfolio provided a total return
of 3.9%, in line with the IPD monthly index. The portfolio's
performance was impacted by one asset in particular; a retail
warehouse in Wymondham, where all hope value was removed from the
valuation following recent court evidence that ended the chance of
gaining a food store consent. Terms had been agreed with Asda to
take the store if planning could be resolved, although last year we
let the unit to Poundstretcher to mitigate downside risk.
The Company completed the purchase of an industrial investment
in Livingston during the quarter for GBP3.6m, a yield of 10.5%. The
investment is let to two good tenants for a term just over 5 years.
We also completed the agreement for lease on the Company's largest
void, Bourne House Staines, and completed the letting of the fourth
floor office suite in Cheltenham. As a result, at the end of Q1
voids stood at 2.1%.
Cash position
As at 31 March 2014 the Company had borrowings of GBP84.4m and a
cash position of GBP12.4m (excluding rent deposits) therefore cash
as a percentage of debt was 14.7%.
Dividends
The Company paid an interim dividend in respect of the quarter
ended 31 December 2013, of 1.133p per Ordinary Share, with
ex-dividend and payment dates of 5 February 2014 and 21 February
2014 respectively.
The Company has announced an interim dividend in respect of the
quarter ended 31 March 2014, of 1.161p per Ordinary Share, with
ex-dividend and payment dates of 7 May 2014 and 23 May 2014
respectively. This represents an increase of 2.5% on the quarterly
dividend.
Loan to value and interest rate
As at 31 March 2014 the loan to value ratio (assuming all cash
is placed with RBS as an offset to the loan balance) was 39.1% (31
December 2013: 40.9%). 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 negative impact on the NAV of 0.3p
per share or 0.5% over the quarter, and the fair value liability
was GBP0.6m as at 31 March 2014. The Company has two interest rate
hedges which mature in December 2018, and have a current liability
of GBP0.6m (31 December 2013: GBP0.1m).
Net Asset analysis as at 31 March 2014 (unaudited)
GBPm %
-------------------------- ------- -------
Office 84.3 77.4
-------------------------- ------- -------
Retail 47.3 43.4
-------------------------- ------- -------
Industrial 52.6 48.3
-------------------------- ------- -------
Total Property Portfolio 184.2 169.1
-------------------------- ------- -------
Adjustment for lease
incentives (3.5) (3.2)
-------------------------- ------- -------
Fair value of Property
Portfolio 180.7 165.9
-------------------------- ------- -------
Cash 12.4 11.4
-------------------------- ------- -------
Other Assets 5.6 5.2
-------------------------- ------- -------
Total Assets 198.7 182.5
-------------------------- ------- -------
Non-current liabilities (84.5) (77.6)
-------------------------- ------- -------
Current liabilities (5.3) (4.9)
-------------------------- ------- -------
Total Net Assets 108.9 100.0
-------------------------- ------- -------
Breakdown in valuation movements over the period 1 Jan 2014 to
31 Mar 2014
Exposure Capital Value Capital
as at 31 Movement Value Movement
Mar 2014 on Standing on Portfolio
(%) Portfolio (GBPm)
(%)
------------------------ ---------- -------------- ----------------
External Valuation at
31 Dec 2013 176.4
------------------------ ---------- -------------- ----------------
Sub Sector Analysis:
------------------------ ---------- -------------- ----------------
RETAIL
------------------------ ---------- -------------- ----------------
South East Retail 5.9 1.7 0.2
------------------------ ---------- -------------- ----------------
Retail Warehouses 19.8 (3.1) (1.2)
------------------------ ---------- -------------- ----------------
OFFICES
------------------------ ---------- -------------- ----------------
Central London Offices 12.0 3.0 0.7
------------------------ ---------- -------------- ----------------
South East Offices 19.0 4.3 1.5
------------------------ ---------- -------------- ----------------
Rest of UK Offices 14.8 9.2 2.3
------------------------ ---------- -------------- ----------------
INDUSTRIAL
------------------------ ---------- -------------- ----------------
South East Industrial 4.6 5.2 0.4
------------------------ ---------- -------------- ----------------
Rest of UK Industrial 23.9 0.6 3.9*
------------------------ ---------- -------------- ----------------
External Valuation at
31 Mar 2014 100.0 1.9 184.2
------------------------ ---------- -------------- ----------------
*Due to purchase of industrial investment
Top 10 Properties
Weighting 31
Mar 2014
--------------------------------- -------------
Tesco Distribution Unit, Bolton 7.9%
--------------------------------- -------------
White Bear Yard, London 7.2%
--------------------------------- -------------
Hertford Place, Rickmansworth 6.3%
--------------------------------- -------------
St James's House, Cheltenham 6.1%
--------------------------------- -------------
Hollywood Green, London 5.9%
--------------------------------- -------------
Ocean Trade Centre, Aberdeen 5.0%
--------------------------------- -------------
New Palace Place, London 4.8%
--------------------------------- -------------
Clough Road Retail Park, Hull 4.3%
--------------------------------- -------------
Explorer 1 & 2 & Mitre Court,
Crawley 3.6%
--------------------------------- -------------
Bathgate Retail Park, Bathgate 3.3%
--------------------------------- -------------
Total 54.4%
--------------------------------- -------------
The Board is not aware of any further significant events or
transactions which have occurred between 31 March 2014 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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