Net Asset Value(s)

RNS Number : 3679F

Standard Life Invs Property Inc Tst

12 January 2010

 

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

31 December 2009

Key Highlights

• Net asset value per ordinary share was 56.6p as at 31 December 2009, an increase of 10.4% from 30 September 2009

• Cash held by the Trust of £30.8m as at 31 December 2009

• Loan to value of 39.2% after cash balances offset against debt

• Dividend yield of 6.4% using the share price as at 8 January 2010 of 62.5p

• 6.15m ordinary shares issued between 6 and 13 November 2009 at prices between 54.25 and 55.25p per share.

Net Asset Value 

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 31 December 2009 was 56.6 pence. This is an increase of 10.4% percentage points over the net asset value of 51.3 pence per share at 30 September 2009.  

The net asset value is calculated under International Financial Reporting Standards ("IFRS") and includes a provision for payment of an interim dividend of 1.00p per ordinary share for the quarter to 31 December 2009.

The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 31 December 2009. The property portfolio will next be valued by an external valuer during March 2010 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 net asset value per share calculated under IFRS over the period 30 September 2009 to 31 December 2009.

	Pence per share	% of opening NAV
Net Asset Value per share as at 30 September 2009	51.3	-
Unrealised gain following revaluation of property portfolio (including the effect of gearing)	2.3	4.5%
Increase in interest rate swap valuation	0.2	0.4%
Other movement in reserves	2.8	5.5%
Net Asset Value per share as at 31 December 2009	56.6	10.4%

Cash position

As at 31 December 2009 the Company had borrowings of £84.4m and a cash position of £30.8m (excluding rent deposits) therefore cash as a percentage of debt was 36.5%.

Loan to value ratio

As at 31 December 2009 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 39.2% (30 September 2009: 42.1%).  The covenant level is 65%.

Total asset analysis as at 31 December 2009 (unaudited)

	£m	%
Office	64.3	38.0
Retail	22.7	13.4
Industrial	37.7	22.3
Other	12.1	7.1
Total Property Portfolio	136.8	80.8
Cash	30.8	18.2
Other Assets	1.6	1.0
Total Gross Assets	169.2	100.0

Breakdown in valuation movements over the period 30 September 2009 to 31 December 2009

	Exposure as at 31 December 2009 (%)	Capital Value Movement on Standing Portfolio (%)	£m
External Valuation at 30/09/09			123.1
Sub Sector Analysis:
RETAIL
South East Standard Retail	4.7	12.3	0.7
Retail Warehouses	11.9	0.3	0.1
OFFICES
Central London Offices	9.3	5.4	0.6
South East Offices	18.5	13.1	2.9
Rest of UK Offices	11.3	5.4	0.8
INDUSTRIAL
South East Industrial	6.0	0.3	0.0
Rest of UK Industrial	21.6	1.0	0.3
OTHER	8.8	(18.2)	(2.7)
Northern & Shell Tower, London	7.9		11.0
External Valuation at 31/12/09	100	11.1	136.8

Investment Manager Commentary

The period from 30 September 2009 to 31 December 2009 saw an acceleration in the recovery of prices in the UK commercial property market, and marks the third consecutive quarter of positive total returns from the investment portfolio.

In addition to the improvement in capital values (the property portfolio valuation rose by 4.5% over the quarter) the Company had an active quarter with asset management and investment transactions.

During the quarter the Company made its second property acquisition of 2009, an office block in the Docklands. The property is let for a further 13 years to a good covenant and the purchase reflected a yield of 8.6%. The property was valued at the end of December 9% above the purchase price.

The Company accepted a surrender of a lease of a cinema unit, and simultaneously relet the unit on a longer lease to a better covenant. The new rent is substantially lower than under the old lease (it was the most over rented lease in the portfolio) but the Company received a substantial premium of £3.3m from the outgoing tenant as compensation. It is this premium, along with the share issue mentioned below, that dominated the "other movement in reserves" detailed in the breakdown of the NAV above.

Perhaps reflective of the wider economic recovery seen over the quarter the Company was successful in letting two floors of offices in Clerkenwell London - both within days of completing a minor refurbishment, and also two shop units in North London, one of them to Sainsbury, a new tenant for the Company.

The shares issued over the quarter (1.75m @ 55.25p, and 4.4m @ 54.25p) were accretive to the end Sept NAV of 51.3p, and mean that all of the block listing under the TAP issue has been taken up. The cash raised over the quarter through the share issue and asset management transactions means that despite the new acquisition for £10m the Company's cash has only reduced by £2m. We continue to look for suitable investments to utilise the cash.

All Enquiries:

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Ltd

Trafalgar Court

Les Banques

GY1 3Q1

Tel: [phone]

Fax: [phone]

APENDIX 1

Historical adjusted IFRS NAVs per Ordinary Share are as follows:

31/12/09	56.63p
30/09/09	51.28p
30/06/09	50.53p
31/03/09	52.49p
31/12/08	61.65p
30/09/08	87.24p
30/06/08	101.59p
31/03/08	102.71p
31/12/07	111.60p
30/09/07	130.70p
30/06/07	137.16p
31/03/07	134.42p
31/12/06	132.68p
30/09/06	129.51p
30/06/06	130.20p
31/03/06	124.28p
31/12/05	116.46p
30/09/05	107.12p
30/06/05	103.88p
31/03/05	101.34p
31/12/04	99.00p

 

END

 

 

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