Standard LifeInvProp Net Asset Value(s)
May 07 2015 - 7:33AM
UK Regulatory
TIDMSLI
7 May 2015
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE: SLI)
Unaudited Net Asset Valueas at 31 March 2015
Key Highlights
* Net asset value per ordinary share was 75.6p as at 31 March 2015 which is
arrived at after deducting the Q1 dividend due to be paid in May 2015. This
is an increase of 1.7% from 31 December 2014.
* Successful placing of approximately 31.3m ordinary shares at 78.1p per
share under the Placing Programme announced on 12 February 2015, following
this an additional 1.3m ordinary shares were also issued on 4 March 2015 at
80.2p per share, raising in total gross proceeds of approximately GBP25.5m.
* One retail property purchased in March 2015 for GBP15.8m excluding costs and
one office property sold in January 2015 for GBP3.2m excluding costs.
* Dividend yield of 5.2% based on share price of88.5p (5May 2015).
Net Asset Value ("NAV")
The unaudited net asset value per ordinary share of Standard Life Investments
Property Income Trust Limited ("SLIPIT") at 31 March 2015 was 75.6 pence
including the adjustment for the Q1 dividend payment due in May 2015. This is
an increase of 1.7% over the net asset value of 74.3 pence (including the
adjustment for the Q4 dividend)per share at 31 December 2014. 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 2015. The property portfolio will next be valued by the
external valuer during June 2015 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 31December 2014 to 31 March 2015.
GBPm Pence % of opening
per NAV
share
Unaudited Net Asset Value at 31 December 2014 184.4 75.5 -
Gain - valuation increase on the standing 3.7 1.5 2.0%
property portfolio
Loss - unrealised following the purchase of
investment property (0.7) (0.3) (0.4%)
Capex receipts 0.2 0.1 0.1%
Rent free smoothing (0.2) (0.1) (0.1%)
Increase in unrealised interest rate swap (0.3) (0.1) (0.1%)
liability
0.2 0.2 0.2%
Other movement in reserves
Increase in share capital 25.2
Unaudited Net Asset Value at 31 March 2015
before adjustment for dividend 212.5 76.8 1.7%
Adjustment for Q1 dividend (3.2) (1.2)
Unaudited Net Asset Value at 31 March 2015 after
adjustment for dividend 209.3 75.6
European Public Real Estate Association 31 Mar 2015 31 Dec 2014
("EPRA")*
EPRA Net Asset Value before adjustment GBP215.5m GBP187.0m
for dividend
EPRA Net Asset Value after adjustment GBP212.2m GBP184.2m
for dividend
EPRA Net Asset Value per share before 77.9p 76.6p
adjustment for dividend
EPRA Net Asset Value per share after 76.7p 75.4p
adjustment for dividend
The Net Asset Value per share is calculated using 276,779,237 shares of 1p each
being the number in issue on 31 March 2015.
*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
During Q1 the Company issued new shares under the live prospectus, raising GBP
25.5m. This fully utilised the capacity of the prospectus, and enabled the
Company to complete on the purchase of a retail warehouse in Preston for GBP
15.8m. The property is let to DSG (Dixons) for a further 16 years. The purchase
price reflected a yield of 7%. We also completed the sale of a small office in
Weybridge that had a lease expiry in February this year. The sale price was GBP
3.2m.
During the quarter we started on site with the refurbishment of 6 industrial
units at Ocean Trade Centre in Aberdeen. The total cost will be circa GBP1.4m and
we are close to completing a new 10 year lease on 4 of the units. We are also
working up a refurbishment and upgrade of our office investment at White Bear
Yard in Farringdon, at a potential cost of GBP2.5m. This building is in a very
desirable area and we want to capitalise on the strong tenant demand.
We expect the UK real estate market to provide a total return of low double
digits in 2015. Although this is attractive it will fall short of the
exceptional returns experienced in 2014.This growth is in part due to continued
strong investment demand driven by a weight of money in the sector, but with
the continued improvement in occupier demand as well throughout the UK we can
expect to see more rental growth than in 2014. It is not envisaged that the
election will have a material impact on demand, and we intend to continue
investing in good quality real estate that appeals to occupiers. The Company
had an occupation rate of 97.5% as at the quarter end, with solicitors
instructed on two further lettings, and the average unexpired lease term (to
earliest termination) has increased to 7.1 years.
Cash position
As at 31 March 2015 the Company had borrowings of GBP84.4mand a cash position of
GBP17.4m (excluding rent deposits) therefore cash as a percentage of debt was
20.6%.
Dividends
The Company paid an interim dividend in respect of the quarter ended 31December
2014, of 1.161p per Ordinary Share, with ex-dividend and payment dates of5
February 2015and 20 February 2015respectively.
Loan to value and interest rate
As at 31 March 2015 the loan to value ratio (assuming all cash is placed with
RBS as an offset to the loan balance) was 23.4% (31December 2014: 29.3%). The
bank covenant level is 65%.As a result of interest rate swaps the weighted
average interest rate on the loan is fixed at 3.7% until the loan matures in
December 2018.
The Company has two interest rate hedges which mature in December 2018 and have
a current liability of GBP2.9m (31 December 2014: GBP2.7m).These had a negative
impact on the NAV of 0.1p per share or 0.1% over the quarter.
Net Asset analysis as at 31 March 2015 (unaudited)
GBPm %of net
assets
Office 112.8 53.1
Retail 63.4 29.8
Industrial 110.4 51.9
Total Property Portfolio 286.6 134.8
Adjustment for lease (2.0) (0.9)
incentives
Fair value of Property 284.6 133.9
Portfolio
Cash 17.4 8.2
Other Assets 3.8 1.8
Total Assets 305.8 143.9
Non-current liabilities (87.0) (40.9)
Current liabilities (6.3) (3.0)
Total Net Assets 212.5 100.0
Breakdown in valuation movements over the period 1 Jan 2015 to 31 Mar 2015
Exposure as Capital Value Capital
at 31 Mar Movement on Value
2015 (%) Standing Movement on
Portfolio (%) Portfolio (GBPm)
External Property Valuation 270.2
at 31 Dec 2014
IPD Sub Sector Analysis:
RETAIL
South East Retail 5.7 2.2 0.4
Retail Warehouses 16.4 0.1 15.9*
OFFICES
London City Offices 6.2 5.5 0.9
London West End Offices 3.3 0.0 0.0
South East Offices 19.6 1.5 (2.3)*
Rest of UK Offices 10.3 (0.7) (0.2)
INDUSTRIAL
South East Industrial 8.7 2.8 0.7
Rest of UK Industrial 29.8 1.3 1.1
External Property Valuation 100.0 1.5 286.7**
at 31 Mar 2015
*Due to purchase of oneretail investment and the sale of one office investment
**Adjusted to exclude sales costs of properties held for sale at 31 March 2015
Top 10 Properties
31 Mar 15 (GBPm)
White Bear Yard, London 15-20
DSG, Preston 15-20
Chester House, Farnborough 15-20
Symphony, Rotherham 15-20
Denby242, Denby 10-15
Hertford Place, Rickmansworth 10-15
St James's House, Cheltenham 10-15
Hollywood Green, London 10-15
3B - C Michigan Drive, Milton Keynes 10-15
Howard Town Retail Park, Glossop 10-15
The Board is not aware of any other significant events or transactions which
have occurred between 31 March 2015 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
END
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