Net Asset Value(s)

RNS Number : 6807U

Standard Life Invs Property Inc Tst

20 October 2010

 



STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

30 September 2010

Key Highlights

·      Net asset value per ordinary share was 61.4p as at 30 September 2010, an increase of 0.1% from 30 June 2010

·      Cash held by the Trust of £30.6m as at September 2010, but after full cost of Aberdeen development, and purchase completed after quarter end uncommitted cash is £20.7m

·      Property worth £11.4m sold in Q3

·      Dividend yield of 6.8% using the share price as at 15 October 2010 of 64.25p

Net Asset Value

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 30 September 2010 was 61.4 pence.  This is an increase of 0.1% percentage points over the net asset value of 61.3 pence per share at 30 June 2010. 

The net asset value is calculated under International Financial Reporting Standards ("IFRS") and includes a provision for payment of an interim dividend of 1.10p per ordinary share for the quarter to 30 September 2010.

The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 30 September 2010.  The property portfolio will next be valued by an external valuer during December 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 June 2010 to 30 September 2010.

	Pence per share	% of opening NAV
Net Asset Value per share as at 30 June 2010	61.3	-
Gain - realised and unrealised following revaluation of property portfolio (including the effect of gearing)	0.7	1.1%
Decrease in interest rate swap valuations	(0.1)	(0.2)%
Other movement in reserves	(0.5)	(0.8)%
Net Asset Value per share as at 30 September 2010	61.4	0.1%

The property portfolio, ignoring the impact of debt, benefited from capital growth over the quarter of 1.5%.

Cash position

As at 30 September 2010 the Company had borrowings of £84.4m and a cash position of £30.6m (excluding rent deposits) therefore cash as a percentage of debt was 36.2%. The unallocated cash following the undrawn commitment at the development in Aberdeen and purchase completed after the quarter end is £20.7m.

Loan to value ratio

As at 30 September 2010 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 37.0% (30 June 2010: 40.1%).  The covenant level is 65%.

Interest Rate Swaps

The interest rate swaps had a negative impact on the NAV of 0.1p per share (0.2%) over the quarter, and the fair value is held at £(8.8)m as at 30 September 2010. This will reduce to £nil by Dec 2013, although not on a straight line basis.

Total asset analysis as at 30 September 2010 (unaudited)

	£m	%
Office	52.9	29.8
Retail	39.6	22.2
Industrial	49.8	28.0
Other	3.4	1.9
Total Property Portfolio	145.7	81.9
Cash	30.6	17.2
Other Assets	1.5	0.9
Total Gross Assets	177.8	100.0

Breakdown in valuation movements over the period 30 June 2010 to 30 Sept 2010

	Exposure as at 30 Sept 2010 (%)	Capital Value Movement on Standing Portfolio (%)	£m
External Valuation at 30/06/10			151.2
Sub Sector Analysis:
RETAIL
South East Retail	6.8	0.5	0.1
Retail Warehouses	20.4	7.6	2.1
OFFICES
Central London Offices	12.6	0.5	0.1
South East Offices	5.9	0.0	0.0
Rest of UK Offices	11.1	(0.6)	(0.1)
Development during Q3 2010	6.7	0.1	3.9
INDUSTRIAL
South East Industrial	5.4	(6.0)	(0.5)
Rest of UK Industrial	28.8	0.3	0.2
OTHER	2.3	1.0	0.1
Sales during Q3 2010			(11.4)
External Valuation at 30/09/10	100	1.5	145.7

Investment Manager Commentary

The recovery in UK Commercial Property values continued to slow in Q3 with the IPD monthly index showing capital growth of just 0.5% compared to 1.9% for Q2. This soft patch is likely to continue over the next few months before values recover again in 2011.

The Company's portfolio once again outperformed the IPD monthly index with capital growth of 1.5% against the index 0.5%, and a total return for Q3 of 3.1% against the index's 2.2%. Once again though, cash was a drag on performance, reducing the total return on the investment portfolio to 2.6%.

During the quarter the Company completed the sale of Bucknall St London for £8.6m, as well as a vacant logistics unit in Skelmersdale for £2.8m. This sale, along with the letting of a retail warehouse unit in Hull and a logistics unit in Bardon reduced the Company's void level from 8% to 3.6%.

After the quarter end the Company completed the purchase of a mixed use investment in Westminster for £6.35m at a yield of 8%.

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:

30/09/10	61.37p
30/06/10	61.33p
31/03/10	59.56p
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

#1867738

 

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