TIDMSLI 
 
2 August 2016 
 
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE: SLI) 
 
Unaudited Net Asset Value as at 30 June 2016 
 
Key Highlights 
 
  * Net asset value per ordinary share was 81.8p ( March 2016 - 82.3p), a fall 
    of 0.6%, resulting in a NAV total return, including dividends, of +0.8% for 
    Q2; 
  * The portfolio valuation increased by 0.9% on a like for like basis which 
    compares favourably to the quarterly capital return on the monthly IPD 
    Monthly Index of -0.1% 
  * This valuation increase, however, was more than offset by adverse movements 
    in the valuation of the Company's swap as a result of movements in interest 
    rates following the EU referendum result; 
  * Sale of four assets in the period from 1 April up to date of this 
    announcement for a combined GBP15.4million which was 4% above most recent 
    valuations; 
  * Proceeds from the sales were used to reduce the revolving credit facility 
    ("RCF") resulting in a LTV at the date of this announcement of 28.4%; 
  * Successful asset management initiatives up to the date of this announcement 
    included: 
 
  * Three rent reviews completed securing GBP698,000 per annum of income which is 
    above ERV; 
  * Two new lettings completed generating GBP79,000 of income; 
  * Six lease regears/renewals resulting in GBP667,000 of income being secured; 
 
  * Low void rate of 3.8% as at 30 June 2016; 
  * Dividend yield of 6.1% based on a quarterly dividend of 1.19p and a share 
    price of 78.5p (29 July 2016), comparing favourably to the yield on the 
    FTSE All-Share REIT Index (3.5%) and the FTSE All Share Index (3.5%) as at 
    the same date. 
 
Net Asset Value ("NAV") 
 
The unaudited net asset value per ordinary share of Standard Life Investments 
Property Income Trust Limited ("SLIPIT") at 30 June 2016 was 81.8p. 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 and Knight Frank at 30 June 2016. Both valuers have included the 
following caveat when issuing its valuations for the quarter ended 30 June 
2016. 
 
"Following the Referendum held on 23 June 2016 concerning the UK's membership 
of the EU, a decision was taken to exit. We are now in a period of uncertainty 
in relation to many factors that impact the property investment and letting 
markets. Since the Referendum date it has not been possible to gauge the effect 
of this decision by reference to transactions in the market place. The 
probability of our opinion of value exactly coinciding with the price achieved, 
were there to be a sale, has reduced. We would, therefore, recommend that the 
valuation is kept under regular review and that specific market advice is 
obtained should you wish to effect a disposal." 
 
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 1 April 2016 to 30 June 2016. 
 
                                 Per  Share (p) Attributable           Comment 
                                                 Assets (GBPm) 
 
Net assets as at 31 March                  82.3        313.3 
2016 
 
Unrealised increase in                      1.0          3.9 Like for like increase of 
valuation of property                                        0.9% in property portfolio 
portfolio 
 
Net income in the quarter                   0.1          0.2 Continued strong income 
after dividend                                               generation with dividend 
                                                             remaining fully covered. 
 
Interest rate swaps mark to                -1.4         -5.2 Increase in swap 
market revaluation                                           liabilities as  a result of 
                                                             a decrease in the 
                                                             expectation for future 
                                                             interest rates following 
                                                             the EU referendum result 
 
Other movement in reserves                 -0.2         -0.6 Movement in lease 
                                                             incentives and capital 
                                                             expenditure in the quarter 
 
Net assets as at 30 June                   81.8        311.6 
2016 
 
 
 
 
                                                   30 Jun 2016   31 Mar 2016 
European Public Real Estate Association 
("EPRA")* 
 
EPRA Net Asset Value                                   GBP317.0m       GBP316.3m 
 
EPRA Net Asset Value per share                           83.3p         83.1p 
 
 
The Net Asset Value per share is calculated using 380,690,419 shares of 1p each 
being the number in issue on 30 June 2016. 
 
* 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 Q2 the focus remained on improving resilience in the portfolio as we saw 
the UK commercial real estate market approaching the end of the capital growth 
cycle. As well as securing a number of lease regears and renewals to give 
greater certainty of income flow, we also sold three assets that we believed 
would not perform in line with our expectations going forward. Even given the 
decision to leave the EU, we believe the Company is relatively well placed to 
continue to offer an attractive level of income to investors. 
 
During Q2 the Company put in place a new debt facility with The Royal Bank of 
Scotland which replaces the short term facility agreed as part of the Pearl 
portfolio acquisition in December 2015. The new facility provides flexibility 
by having a term loan for 7 years for GBP110m, and a RCF for GBP35m. During the 
quarter the Company repaid GBP3.5m with a further GBP11.5m repaid in July 2016 
resulting in the drawn amount on the RCF now being GBP20.0m.  The new facility 
was completed in April and the term loan was matched with an interest rate swap 
entered into at the same time. The all in cost as at 30 June 2016 was 2.5% pa. 
However, the movement in the interest rate curve following the vote to leave 
the EU has led to a negative movement in the value of the interest rate swap 
resulting in a swap liability of GBP5.5m as at 30 June 2016. The current LTV is 
28.4%, compared with the maximum LTV covenant in the debt facility of 60%. 
 
Market Commentary 
 
The implications of the Referendum have caused a complex interaction between 
politics, economics and markets which makes the situation very difficult to 
predict. Given the political uncertainty and increased financial stress 
experienced so far, the UK economy is expected to be affected negatively, 
although as market volatility rises, safe haven assets will benefit. It would 
seem that the negative sentiment and heightened uncertainty is likely to impact 
adversely UK real estate capital values although this is not reflected in the 
June valuations and has yet to materialize significantly in the index level 
data. Unclear messages are emerging in respect of post referendum transactions 
with a mixture of deal withdrawals, price renegotiations but also completions 
at previously agreed figures. 
 
Against that background, UK listed real estate equities total returns fell by 
nearly 7% over the period 31/03/16 to 30/06/16. This decline is in contrast to 
the FTSE All Share and the FTSE 100 total returns where the returns rose by 
4.7% and 6.5% respectively as at the quarter end. REIT pricing since the 
referendum has been volatile, with discounts to NAV moving to over 25% for some 
of the majors, before recovering to around 10% on average. SLIPIT has also 
suffered from share price volatility but, more recently, the Company's share 
price has recovered to a 4 - 6% discount to NAV. 
 
Investment Outlook 
 
The slowdown in UK real estate that was materializing prior to the referendum 
has been exacerbated by the vote outcome. The heightened uncertainties 
following the result and the subsequent retreat in business and consumer 
confidence are likely to impact negatively on the outlook for the economy. This 
will have detrimental consequences for UK real estate given the direct linkage 
to economic activity. We therefore anticipate increased downward pressure on UK 
commercial real estate capital values. The magnitude of any declines will 
depend on the impact on the domestic economy and the level of interest rates 
and yields from alternative investment classes. In the short term, there is 
likely to be pessimistic sentiment in the market place, which will further 
affect capital values until there is clarity on the timing and nature of the 
exit from the EU and real estate's medium-term prospects. The impact will vary 
on the different sectors and geographies. From a sector perspective, we expect 
Central London offices to be the most negatively impacted in the near term 
given the linkages to European markets via cross border trading. We expect 
industrial and retail assets to be comparatively resilient, although not 
immune, given their higher yields. Long income assets should provide most 
resilience in any downturn.  Despite the negative outlook, UK real estate 
continues to provide an elevated yield compared to other assets and, unlike in 
the Financial Crisis, lending to the sector is at a much lower level than in 
2007/2008. Furthermore, existing vacancy rates are at below average levels in 
most markets and development remains relatively constrained which all should 
help stabilise the market further out. The current "lower for even longer" 
interest rate environment coupled with an increasing investor global search for 
yield and the retention of the UK's safe haven status should all ensure the 
asset class is better placed longer term. 
 
Cash position 
 
As at 30 June 2016 the Company had cash of GBP18.3million. 
 
Dividends 
 
The Company paid total dividends in respect of the quarter ended 31 March 2016 
of 1.19p per Ordinary Share, with a payment date of 31 May 2016. 
 
Net Asset analysis as at 30 June 2016 (unaudited) 
 
                                          GBPm      % of net 
                                                    assets 
 
Office                                 163.1          52.3 
 
Retail                                 101.5          32.6 
 
Industrial                             185.5          59.5 
 
Total Property Portfolio               450.1         144.4 
 
Adjustment for lease incentives        (3.9)         (1.3) 
 
Fair value of Property Portfolio       446.2         143.1 
 
Cash                                    18.3           5.9 
 
Other Assets                             6.5           2.1 
 
Total Assets                           471.0         151.1 
 
Non-current liabilities (bank        (145.8)        (46.8) 
loans & swap) 
 
Current liabilities                   (13.6)         (4.3) 
 
Total Net Assets                       311.6         100.0 
 
Breakdown in valuation movements over the period 1 Apr 16 to 30 Jun 2016 
 
                       Portfolio    Exposure as  Like for Like Capital Value 
                      Value as at    at 30 Jun   Capital Value  change (GBPm) 
                      30 Jun 2016    2016 (%)        Shift 
                          (GBPm) 
                                                      (%) 
 
Valuation as of 31                                                 452.3 
Mar 2016 
 
Retail                   101.5         22.6           0.6           0.7 
 
South East Retail                       7.0           1.6           0.5 
 
Rest of UK Retail                       1.1           0.0           0.0 
 
Retail Warehouses                      14.5           0.3           0.2 
 
Offices                  163.1         36.2           1.3           2.0 
 
London City Offices                     4.7           0.0           0.0 
 
London West End                         2.5           3.2           0.4 
Offices 
 
South East Offices                     23.6           0.0           0.0 
 
Rest of UK Offices                      5.4           7.3           1.6 
 
Industrial               185.5         41.2           0.7           1.2 
 
South East Industrial                  10.6           0.5           0.2 
 
Rest of UK Industrial                  30.6           0.7           1.0 
 
Sale of Turin Court                                                -6.1 
and Witham 
 
External valuation at    450.1         100.0          0.9          450.1 
30 Jun 2016 
 
Top 10 Properties 
 
                                       30 Jun 16 (GBPm) 
 
White Bear Yard, London                    20-25 
 
Elstree Tower, Borehamwood                 15-20 
 
Denby 242, Denby                           15-20 
 
DSG, Preston                               15-20 
 
Symphony, Rotherham                        15-20 
 
Chester House, Farnborough                 15-20 
 
Charter Court, Slough                      10-15 
 
3B - C Michigan Drive, Milton Keynes       10-15 
 
Ocean Trade Centre, Aberdeen               10-15 
 
Bourne House, Staines                      10-15 
 
Top 10 tenants: 
 
         Tenant group                  Passing rent    As % of total rent 
                                       (GBP) 
 
1        Sungard Availability Services 1,320,000       4.6 % 
         (UK) Ltd 
 
2        BAE Systems                   1,257,640       4.3 % 
 
3        Techno Cargo Logistics Ltd    1,242,250       4.3 % 
 
4        DSG                           1,177,677       4.1 % 
 
5        The Symphony Group Plc        1,080,000       3.7 % 
 
6        Bong UK                       727,240         2.5 % 
 
7        Royal Bank of Scotland Plc    700,000         2.4 % 
 
8        Ricoh UK Limited              696,995         2.4 % 
 
9        Matalan                       696,778         2.4 % 
 
10       Grant Thornton                680,371         2.3 % 
 
                                       9,578,951       33.0 % 
 
         Total Fund Passing Rent       29,025,646 
 
Regional Split: 
 
Region          Region Weighting 
 
South East      41.0% 
 
Scotland        4.9% 
 
South West      6.1% 
 
North West      11.6% 
 
London West End 2.5% 
 
East Midlands   14.9% 
 
London City     4.7% 
 
North East      8.5% 
 
West Midlands   5.8% 
 
The Board is not aware of any other significant events or transactions which 
have occurred between 30 June 2016 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 
 
Graeme McDonald  - Real Estate Finance Manager, Standard Life Investments 
Tel +44 (0) 131 245 3151 or graeme_mcdonald@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 
 
 
 
END 
 

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August 02, 2016 02:00 ET (06:00 GMT)

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