Net Asset Value(s)

RNS Number : 2106F

Standard Life Invs Property Inc Tst

19 April 2011

 



STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

31 March 2011

Key Highlights

·      Net asset value per ordinary share was 64.1p as at 31 March 2011, an increase of 1.7% from 31 December 2010

·      Cash held by the Trust of £13.7m as at 31 March 2011

·      Property worth £8.375m purchased in Q1 2011

·      Dividend yield of 6.5% using the share price as at 15 April 2011 of 67.25p

Net Asset Value

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 31 March 2011 was 64.1 pence.  This is an increase of 1.7% percentage points over the net asset value of 63.0 pence per share at 31 December 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 31 March 2011.

The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 31 March 2011.  The property portfolio will next be valued by an external valuer during June 2011 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 31 December 2010 to 31 March 2011.

	Pence per share	% of opening NAV
Net Asset Value per share as at 31 December 2010	63.0	-
Loss - realised and unrealised following revaluation of property portfolio (including the effect of gearing)	(0.1)	(0.2)%
Increase in interest rate swap valuations	1.1	1.7%
Other movement in reserves	0.1	0.2%
Net Asset Value per share as at 31 March 2011	64.1	1.7%

The standing property portfolio, ignoring the impact of debt, benefited from capital growth over the quarter of 0.2%, however the impact of purchase costs of Bourne House, Staines meant the overall capital growth on the portfolio was -0.1% over the quarter.

Cash position

As at 31 March 2011 the Company had borrowings of £84.4m and a cash position of £13.7m (excluding rent deposits) therefore cash as a percentage of debt was 16.2%.

Loan to value ratio

As at 31 March 2011 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 43.1% (31 December 2010: 40.8%).  The covenant level is 65%.

Interest Rate Swaps

The interest rate swaps had a positive impact on the NAV of 1.1p per share or 1.7% over the quarter, and the fair value liability is £(6.2)m as at 31 March 2011. This fair value will reduce to £nil by Dec 2013, although not on a straight line basis.

Total asset analysis as at 31 March 2011 (unaudited)

	£m	%
Office	71.6	40.0
Retail	39.8	22.2
Industrial	49.5	27.6
Other	3.4	1.9
Total Property Portfolio	164.3	91.7
Cash	13.6	7.6
Other Assets	1.4	0.7
Total Gross Assets	179.3	100.0

Breakdown in valuation movements over the period 31 Dec 2010 to 31 Mar 2011

	Exposure as at 31 Mar 2011 (%)	Capital Value Movement on Standing Portfolio (%)	£m
External Valuation at 31/12/10			155.0
Sub Sector Analysis:
RETAIL
South East Retail	6.0	0.0	0.0
Retail Warehouses	18.2	0.4	0.1
OFFICES
Central London Offices	15.7	2.2	0.6
South East Offices	4.7	(2.2)	(0.2)
Rest of UK Offices	18.1	2.0	0.6
INDUSTRIAL
South East Industrial	4.6	(2.0)	(0.2)
Rest of UK Industrial	25.5	0.0	0.0
OTHER	2.1	0.0	0.0
Purchases during Q1 2011	5.1		8.4
External Valuation at 31/03/11	100	(0.1)	164.3

Investment Manager Commentary

The Company completed the purchase of Bourne House Staines at the beginning of the quarter for £8.375m showing a yield of 9.2%. The property is let until 2016 to UB Group and offers an opportunity for asset management as the tenant does not occupy the property.

The property portfolio provided a total return of 1.8% over the quarter, lagging the IPD Monthly index of 2.3%, in part due to the impact of purchase costs on the Staines acquisition. Over the twelve months to 31 March the Company's property portfolio returned 11.7% against the IPD monthly index 10.7%.

The Company has returned to a strong revenue position after investing cash and the completion of the development in Aberdeen which along with control of costs, meant the Company had a positive movement in retained earnings and a covered dividend.

* Source:- Standard Life Investments

All Enquiries:

Jason Baggaley - Real Estate Fund Manager Standard Life Investments

Tel [phone]

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Ltd

Trafalgar Court

Les Banques

GY1 3Q1

Tel: [phone]

Fax: [phone]

 

Appendix 1

 

Historical adjusted IFRS NAVs per Ordinary Share are as follows:

31/03/11	64.09p
31/12/10	63.00p
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

 

END

 

 

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