Net Asset Value(s)

RNS Number : 2562B

Standard Life Invs Property Inc Tst

23 October 2009

 

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

30 September 2009

Key Highlights

• Net asset value per ordinary share was 51.3p as at 30 September 2009, an increase of 1.5% from 30 June 2009

• Cash held by the Trust of £32.6m as at 30 September 2009

• Loan to value of 42.1% after cash balances offset against debt

• Dividend yield of 6.8% using the share price as at 20 October 2009 of 58.5p

• 2.25m ordinary shares were issued during the quarter at 53.0p each

Net Asset Value 

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 30 September 2009 was 51.3 pence. This is an increase of 1.5% percentage points over the net asset value of 50.5 pence per share at 30 June 2009.  

The net asset value is calculated under International Financial Reporting Standards ("IFRS") and includes a provision for payment of a proposed interim dividend of 1.00p per ordinary share for the quarter to 30 September 2009.

The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 30 September 2009. The property portfolio will next be valued by an external valuer during December 2009 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 2009 to 30 September 2009.

	Pence per share	% of opening NAV
Net Asset Value per share as at 30 June 2009	50.5	-
Unrealised gain following revaluation of property portfolio (including the effect of gearing)	0.8	1.5%
Decrease in interest rate swap valuation	(0.8)	(1.5)%
Other movement in reserves	0.8	1.5%
Net Asset Value per share as at 30 September 2009	51.3	1.5%

The ungeared increase in the valuation of the property portfolio over the quarter to 30 September 2009 was 0.7%.

Cash position

As at 30 September 2009 the Company had borrowings of £84.4m and a cash position of £32.6m (excluding rent deposits) therefore cash as a percentage of debt was 38.6%.

Loan to value ratio

As at 30 September 2009 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 42.1% (30 June 2009: 42.8%).  The covenant level is 65%.

Total asset analysis as at 30 September 2009 (unaudited)

	£m	%
Office	49.0	30.9
Retail	21.9	13.8
Industrial	37.4	23.5
Other	14.8	9.3
Total Property Portfolio	123.1	77.5
Cash	32.6	20.5
Other Assets	3.1	2.0
Total Gross Assets	158.8	100.0

Breakdown in valuation movements over the period 30 June 2009 to 30 September 2009

	Exposure as at 30 September 2009 (%)	Capital Value Movement on Standing Portfolio (%)	£m
External Valuation at 30/06/09			122.2
Sub Sector Analysis:
RETAIL
South East Standard Retail	4.6	-	-
Retail Warehouses	13.1	(3.6)	(0.6)
OFFICES
Central London Offices	9.8	4.8	0.5
South East Offices	18.2	4.0	0.9
Rest of UK Offices	11.9	0.7	0.1
INDUSTRIAL
South East Industrial	6.6	(0.9)	(0.1)
Rest of UK Industrial	23.7	(2.4)	(0.7)
OTHER	12.1	5.4	0.8
External Valuation at 30/09/09	100	0.7	123.1

Investment Manager Commentary

For the second quarter in a row the property investment portfolio has provided a positive total return. In quarter 3 this was more pronounced at 3.4% than in quarter 2 with positive capital growth, for the first time since quarter 2 2007. The property and investment portfolio performance compared to IPD monthly index is shown below.

	Quarter 3 2009	YTD	12 months	3 years	5 years
SLIPIT Property only	3.4%	-2.4%	-13.8%	-8.7%	0.5%
SLIPIT inc cash	2.7%	-1.3%	-9.9%	-5.9%	2.1%
IPD Monthly Index	3.3%	-6.6%	-19.2%	-10.8%	0.1%

Over the quarter we made a block listing of 10m shares, of which 2.25m have been admitted at a premium of 4.7% to the June 30 NAV. This had a positive impact to the NAV. The SWAP had a negative impact on NAV over the quarter, which almost wiped out the increase in property values.

Although the property investment market has seen a significant improvement over the quarter with evidence of a weight of money chasing limited stock, the occupier market remains difficult, with negative rental growth continuing. In that context, the fund had a good quarter, with several deals with tenants to extend the income security, for example the removal of a break clause in 2011 on an industrial unit in Leeds. We have also completed new leases on office space in Farringdon London (total of 10,000sqft), and completed an agreement for lease on a shop in Wood Green London with another in solicitors hands.

Despite the successful lettings the void rate in the portfolio rose as we accepted a surrender from the guarantor of a logistics units in Skelmersdale where the tenant was in administration in return for a substantial premium. This gives the Company flexibility on the marketing and letting of the unit.

Cash holdings are becoming an increasing drag on performance, and we are actively looking at several interesting new purchases that will enhance returns, as well as a number of other asset management initiatives that will improve future cash flow. 

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:

30/09/09	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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