Standard LifeInvProp Unaudited Net Asset Value
July 30 2015 - 2:00AM
UK Regulatory
TIDMSLI
30 July 2015
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE: SLI)
Unaudited Net Asset Value as at 30 June 2015
Key Highlights
* Net asset value per ordinary share was 77.3p as at 30 June 2015 which is
arrived at after deducting the Q2 dividend due to be paid in August 2015.
This is an increase of 2.2% from 31 March 2015 representing a NAV total
return of 3.8% for Q2.
* Successful placing of approximately 11.6m ordinary shares at 80.3p per
share under the Company's authority to issue shares pursuant to the
disapplication of pre-emption rights approved by shareholders at the
Company's AGM on 27 May 2015, raising gross proceeds of approximately GBP
9.3m.
* One industrial property purchased in June 2015 for GBP4.6m excluding costs.
Two office properties sold during Q2 for GBP4.9m excluding costs and one
industrial property sold during Q2 for GBP3.5m excluding costs.
* Dividend yield of 5.5% based on share price of 84.25p (28 July 2015).
Net Asset Value ("NAV")
The unaudited net asset value per ordinary share of Standard Life Investments
Property Income Trust Limited ("SLIPIT") at 30 June 2015 was 77.3 pence
including the adjustment for the Q2 dividend payment due in August 2015. This
is an increase of 2.2% over the net asset value of 75.6 pence (including the
adjustment for the Q1 dividend) per share at 31 March 2015. 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 2015. The property portfolio will next be valued by the
external valuer during September 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 31 March 2015 to 30 June 2015.
Pence % of opening
GBPm per NAV
share
Unaudited Net Asset Value at 31 March 2015 212.5 76.8 -
Gain - unrealised on the standing portfolio 4.5 1.6 2.1%
following revaluation of property portfolio
Loss - on sale of properties (0.5) (0.2) (0.2%)
Costs on the purchase of investment property (0.3) (0.1) (0.2%)
Decrease in unrealised interest rate swap 1.0 0.4 0.5%
liability
Increase in share capital (net) 9.2
Unaudited Net Asset Value at 30 June 2015 before
adjustment for dividend 226.4 78.5 2.2%
Adjustment for Q2 dividend (3.3) (1.2)
Unaudited Net Asset Value at 30 June 2015 after
adjustment for dividend 223.1 77.3
European Public Real Estate Association ("EPRA") 30 Jun 2015 31 Mar 2015
*
EPRA Net Asset Value before adjustment for GBP228.3m GBP215.5m
dividend
EPRA Net Asset Value after adjustment for GBP225.0m GBP212.2m
dividend
EPRA Net Asset Value per share before adjustment
for dividend 79.2p 77.9p
EPRA Net Asset Value per share after adjustment
for dividend 78.0p 76.7p
The Net Asset Value per share is calculated using 288,387,160 shares of 1p each
being the number in issue on 30 June 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
The Company had a busy Q2 with both asset management and investment
transactions. The agreement for lease on the letting of four units at Ocean
Trade Centre was completed (the refurbishment completes end July) and the
Company has put the remaining units available there under offer which are all
on 10 year leases to very good covenants. The Company also agreed terms (but
has not yet completed) lease re-gears on several large expiries due in Q4 this
year.
The Company undertook a number of sales of smaller investments that it felt
offered poorer prospects for the future including an industrial asset in
Swindon for GBP3.5m, offices in Swansea for GBP1.3m and Chelmsford for GBP3.6m. The
Company exchanged contracts on the sale of a small industrial unit in Stockton
on Tees for GBP1.3m with completion due in mid-August. Since the quarter end the
Company completed the sale of an industrial unit in Mansfield for GBP2.6m, and
the sales of two other investments, an office and an industrial unit, are in
solicitors' hands.
At the same time the Company has recycled the available cash into a number of
new investments. During the quarter the Company completed the purchase of two
industrial units in Bristol, close to the junction of the M4 and M5 for GBP4.6m.
One unit is currently vacant and will be refurbished before re-letting. Since
the quarter end the Company has also completed the purchase of a retail
warehouse investment in Bradford for GBP5.1m excluding costs and a small
portfolio of three offices for GBP13.25m excluding costs. Purchases of three
other investments totalling GBP10.8m are in solicitors' hands.
These transactions utilise all the capital available to invest, including the
equity raised in June 2015.
The Company provided a total NAV return of 3.8% over the quarter, and at a real
estate portfolio level provided a total return of 2.9% (on investments held
through the whole period the return was 3.2%). This compares to the IPD monthly
index return of 3.6% for the quarter.
Cash position
As at 30 June 2015 the Company had borrowings of GBP84.4m and a cash position of
GBP27.3m (excluding rent deposits) therefore cash as a percentage of debt was
32.3%.
Dividends
The Company paid an interim property income dividend in respect of the quarter
ended 31 March 2015 of 1.161p per Ordinary Share, with ex-dividend and payment
dates of 7 May 2015 and 22 May 2015 respectively. The Company declared a second
interim property income dividend on 27 July 2015 in respect of the quarter
ended 30 June 2015 of 1.161p per Ordinary Share, with ex-dividend and payment
dates of 6 August 2015 and 21 August 2015 respectively. The Q2 property income
dividend has been deducted from the NAV above.
Loan to value and interest rate
As at 30 June 2015 the loan to value ratio (assuming all cash is placed with
RBS as an offset to the loan balance) was 19.8% (31 March 2015: 23.4%). 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 GBP1.9m (31 March 2015: GBP2.9m). These had a positive
impact on the NAV of 0.4p per share or 0.5% over the quarter.
Net Asset analysis as at 30 June 2015 (unaudited)
GBPm % of net assets
Office 110.8 49.0
Retail 63.6 28.1
Industrial 113.5 50.1
Total Property Portfolio 287.9 127.2
Adjustment for lease incentives (2.2) (1.0)
Fair value of Property Portfolio 285.7 126.2
Cash 27.3 12.1
Other Assets 7.1 3.1
Total Assets 320.1 141.4
Non-current liabilities (86.0) (38.0)
Current liabilities (7.7) (3.4)
Total Net Assets 226.4 100.0
Breakdown in valuation movements over the period 1 Apr 2015 to 30 Jun 2015
Capital Value Capital Value
Exposure as at Movement on Movement on
30 Jun 2015 (%) Standing Portfolio (GBPm)
Portfolio (%)
External Property Valuation at 286.7
31 Mar 2015
IPD Sub Sector Analysis:
RETAIL
South East Retail 5.7 0.3 0.0
Retail Warehouses 16.3 0.4 0.2
OFFICES
London City Offices 6.2 1.3 0.2
London West End Offices 3.6 9.0 0.8
South East Offices 18.8 2.7 (2.1)*
Rest of UK Offices 10.0 1.7 (0.7)*
INDUSTRIAL
South East Industrial 8.9 3.1 0.8
Rest of UK Industrial 30.5 1.8 2.5*
External Property Valuation at 100.0 1.7 288.4**
30 Jun 2015
*Due to purchase of one industrial investment, the sale of one industrial
investment and the sale of two office investments.
**Adjusted to exclude sales costs of properties held for sale at 30 June 2015.
Top 10 Properties
30 Jun 15 (GBPm)
White Bear Yard, London 15-20
DSG, Preston 15-20
Chester House, Farnborough 15-20
Symphony, Rotherham 15-20
Denby 242, Denby 10-15
Hertford Place, Rickmansworth 10-15
St James's House, Cheltenham 10-15
3B - C Michigan Drive, Milton Keynes 10-15
Hollywood Green, London 10-15
Bourne House, Staines Upon Thames 10-15
On 15 July the Company completed a part sale of Windsor Court & Crown Farm, an
industrial investment in Mansfield for GBP2.6m excluding costs.
On 23 July the Company completed the purchase of a retail investment in
Bradford for GBP5.1m excluding costs.
On 24 July the Company completed the purchase of an office portfolio of 3
properties for GBP13.25m excluding costs.
The Board is not aware of any other significant events or transactions which
have occurred between 30 June 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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