Net Asset Value(s)

RNS Number : 6845Z

Standard Life Invs Property Inc Tst

18 January 2011

 



STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

31 December 2010

Key Highlights

·      Net asset value per ordinary share was 63.0p as at 31 December 2010, an increase of 2.65% from 30 September 2010

·      Cash held by the Trust of £21.2m as at 31 December 2010, but after full cost of Aberdeen development, and purchase completed after quarter end uncommitted cash is £11.5m

·      Property worth £6.6m purchased in Q4 2010, and £8.375m in January 2011.

·      Dividend yield of 6.8% using the share price as at 17 January 2011 of 64.5p

Net Asset Value

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 31 December 2010 was 63.0 pence.  This is an increase of 2.65% percentage points over the net asset value of 61.4 pence per share at 30 September 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 December 2010.

The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 31 December 2010.  The property portfolio will next be valued by an external valuer during March 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 30 September 2010 to 31 December 2010.

	Pence per share	% of opening NAV
Net Asset Value per share as at 30 September 2010	61.4	-
Gain - realised and unrealised following revaluation of property portfolio (including the effect of gearing)	0.7	1.15%
Increase in interest rate swap valuations	1.2	2.00%
Other movement in reserves	(0.3)	(0.50)%
Net Asset Value per share as at 31 December 2010	63.0	2.65%

The property portfolio, ignoring the impact of debt, benefited from capital growth over the quarter of 0.5%.

Cash position

As at 31 December 2010 the Company had borrowings of £84.4m and a cash position of £21.2m (excluding rent deposits) therefore cash as a percentage of debt was 25.1%. The unallocated cash following the undrawn commitment at the development in Aberdeen and purchase completed after the quarter end is £11.5m.

Loan to value ratio

As at 31 December 2010 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 40.8% (30 September 2010: 37.0%).  The covenant level is 65%.

Interest Rate Swaps

The interest rate swaps had a positive impact on the NAV of 1.2p per share or 2.0% over the quarter, and the fair value liability is £(7.4)m as at 31 December 2010. This fair value will reduce to £nil by Dec 2013, although not on a straight line basis.

Total asset analysis as at 31 December 2010 (unaudited)

	£m	%
Office	62.3	35.1
Retail	39.6	22.3
Industrial	49.7	28.0
Other	3.4	1.9
Total Property Portfolio	155.0	87.3
Cash	21.2	12.0
Other Assets	1.2	0.7
Total Gross Assets	177.4	100.0

Breakdown in valuation movements over the period 30 Sept 2010 to 31 Dec 2010

	Exposure as at 31 Dec 2010 (%)	Capital Value Movement on Standing Portfolio (%)	£m
External Valuation at 30/09/10			145.7
Sub Sector Analysis:
RETAIL
South East Retail	6.4	0.0	0.0
Retail Warehouses	19.2	0.3	0.1
OFFICES
Central London Offices	12.0	1.9	0.4
South East Offices	5.0	(1.3)	(0.1)
Rest of UK Offices	10.3	(1.7)	(0.3)
Development (completed 14/12/10)	8.5	9.9	3.5
INDUSTRIAL
South East Industrial	5.0	(1.0)	(0.1)
Rest of UK Industrial	27.0	(0.2)	(0.1)
OTHER	2.2	0.7	0.0
Sales during Q4 2010			(0.7)
Purchases during Q4 2010	4.4		6.6
External Valuation at 31/12/10	100	0.5	155.0

Investment Manager Commentary

During the 4^th Quarter of 2010 the Company maintained its active investment record.  It completed the purchase of a commercial mixed use investment in Westminster London, and exchanged on the purchase of an office in Staines (which completed on 7^th January 2011), along with completing the pre let development in Aberdeen with a new 20 year lease to Hydrasun,  thus reducing the Company's cash to £11.5m (6.5% of gross assets).

As a result of the investment activity the Company expects a fully covered dividend for 2011, and has revenue reserves of £3.9m to utilise when required (calculated under IFRS and includes a provision for payment of the interim dividend for the quarter ending 31 December 2010).

The Company's total return on its property portfolio for the quarter was 2.3%, slightly ahead of the monthly index return of 2.2%. Over the 12 months to 31 December 2010 the Company's property portfolio had a total return of 16.4%* against the IPD Monthly Index 14.5%.

* 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]

 

APENDIX 1

 

Historical adjusted IFRS NAVs per Ordinary Share are as follows:

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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