Net Asset Value(s)

RNS Number : 9874O

Standard Life Invs Property Inc Tst

18 October 2012

 



STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

30 September 2012

Key Highlights

·      Dividend yield of 7.3% based on share price of 62.5p (16 October 2012)

·      Continued outperformance of property portfolio against the IPD Monthly Index with a Q3 total return of 0.98% against the index of 0.6%

·      Cash held by the Trust was £6.0m at 30 September 2012

·      Net asset value per ordinary share was 58.5p as at 30 September 2012, a decrease of 3.0% from 30 June 2012

Net Asset Value

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 30 September 2012 was 58.5 pence.  This is a decrease of 3.0% over the net asset value of 60.3 pence per share at 30 June 2012. 

The net asset value is calculated under International Financial Reporting Standards ("IFRS") and includes a provision for payment of an interim dividend of 1.133p per ordinary share for the quarter to 30 September 2012.

The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 30 September 2012.  The property portfolio will next be valued by an external valuer during December 2012 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 2012 to 30 September 2012.

	Pence per share	% of opening NAV
Net Asset Value per share as at 30 June 2012	60.3	-
Loss - realised and unrealised following revaluation of property portfolio (including the effect of gearing)	(1.2)	(2.0)%
Decrease in interest rate swap valuations	(0.5)	(0.8)%
Other movement in reserves	(0.1)	(0.2)%
Net Asset Value per share as at 30 September 2012	58.5	(3.0)%

	30 Sept 2012	30 June 2012
European Public Real Estate Association Net Asset Value per share as at 30 September 2012	63.9	65.2

The EPRA net asset value measure is to highlight the fair value of net assets on an on going, long-term basis. Assets and liabilities that are not expected to crystallise in normal circumstances, such as the fair value of financial derivatives, are therefore excluded.

Investment Manager Commentary

The IPD monthly index continued to see capital values fall in Q3, although the total return remained positive at 0.6% due to the income return. Although full benchmark figures are not yet available the Company continued to outperform the IPD Monthly index with a Q3 total return of 0.98%.

During the quarter the Company completed the letting of the vacant 2^nd floor at 140 West George St Glasgow as well as a small kiosk unit in Monck St Glasgow and started the refurbishment of the 4^th floor St James House Cheltenham following its recent purchase.

Cash position

As at 30 September 2012 the Company had borrowings of £84.4m and a cash position of £6.0m (excluding rent deposits) therefore cash as a percentage of debt was 7.1%.

Loan to value ratio

As at 30 September 2012 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 45.9% (30 June 2012: 45.5%).  The covenant level is 65%.

Interest Rate Swaps

The interest rate swaps had a negative impact on the NAV of 0.5p per share or 0.8% over the quarter, and the fair value liability is £(7.5)m as at 30 September 2012. The Company has one interest rate hedge maturing in December 2013 with a current liability of £4.1m. This will have a value of £0 by maturity in December 2013. The other interest rate hedges mature in December 2018, and have a current liability of £3.4m.

Total asset analysis as at 30 September 2012 (unaudited)

	£m	%
Office	82.2	46.0
Retail	39.3	22.0
Industrial	45.5	25.4
Other	3.8	2.1
Total Property Portfolio	170.8	95.5
Cash	6.0	3.4
Other Assets	1.9	1.1
Total Gross Assets	178.7	100.0

Breakdown in valuation movements over the period 30 June 2012 to 30 Sept 2012

	Exposure as at 30 Sept 2012 (%)	Capital Value Movement on Standing Portfolio (%)	£m
External Valuation at 30/06/2012			172.4
Sub Sector Analysis:
RETAIL
South East Retail	5.9	0.5	0.1
Retail Warehouses	17.1	(1.2)	(0.3)
OFFICES
Central London Offices	9.4	0.6	0.1
South East Offices	15.8	(2.8)	(0.8)
Rest of UK Offices	23.0	(0.4)	(0.2)
INDUSTRIAL
South East Industrial	4.4	(0.7)	(0.1)
Rest of UK Industrial	22.2	(1.4)	(0.5)
OTHER	2.2	2.0	0.1
External Valuation at 30/09/12	100	(0.9)	170.8

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:

30/09/12	58.45p
30/06/12	60.27p
31/03/12	61.91p
31/12/11	62.72p
30/09/11	61.49p
30/06/11	62.22p
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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