Unaudited Net Asset Value

RNS Number : 4980M

Standard Life Invs Property Inc Tst

16 July 2014

 



16 July 2014

 

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE: SLI)

Unaudited Net Asset Value as at 30 June 2014

Key Highlights

·      Net asset value per ordinary share was 69.4p as at 30 June 2014 which includes an adjustment for the Q2 dividend payment due to be paid in August 2014. This is an increase of 4.2% from 31 March 2014.

·      Dividend yield of 6.1% based on share price of 76.3p (14 July 2014).

·      Four properties sold for £27.0m excluding costs and one property purchased for £14.9m excluding costs in Q2.

Net Asset Value ("NAV")

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited ("SLIPIT") at 30 June 2014 was 69.4 pence including the adjustment of the Q2 dividend payment due in August 2014. This is an increase of 4.2% over the net asset value of 66.6 pence (including the adjustment for the Q1 dividend) per share at 31 March 2014.  The net asset value is calculated under International Financial Reporting Standards ("IFRS").

The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 30 June 2014. The property portfolio will next be valued by the external valuer during September 2014 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 NAV per share calculated under IFRS over the period from 31 March 2014 to 30 June 2014.

	£m	Pence per share	% of opening NAV
Unaudited Net Asset Value at 31 March 2014	108.9	67.8	-
Gain - realised and unrealised following revaluation of property portfolio (including the effect of gearing)	3.8	2.4	3.5%
Decrease in unrealised interest rate swap liability Other movement in reserves	0.4 0.3	0.2 0.2	0.4% 0.3%
Unaudited Net Asset Value at 30 June 2014 before
adjustment for dividend	113.4	70.6	4.2%
Adjustment for Q2 dividend	(1.8)	(1.2)
Unaudited Net Asset Value at 30 June 2014 after adjustment
for dividend	111.6	69.4

European Public Real Estate Association ("EPRA")*	30 June 2014	31 Mar 2014
EPRA Net Asset Value before adjustment for dividend	£113.6m	£109.5m
EPRA Net Asset Value after adjustment for dividend	£111.7m	£107.6m
EPRA Net Asset Value per share before adjustment for dividend	70.7p	68.1p
EPRA Net Asset Value per share after adjustment for dividend	69.5p	67.0p

The Net Asset Value per share is calculated using 160,709,237 shares of 1p each being the number in issue on 30 June 2014.

* 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

Q2 was a quarter of further activity for the Company with the sale of its largest asset, a logistics unit in Bolton let to Tesco for a further 18 months, at a yield of 7.25% to reduce expiry risk in 2016. The sale proceeds were then reinvested into an office in Farnborough let to BAE for a further 9 years at 8.1%. The Company also sold a portfolio of three retail warehouses that it felt would not perform in line with the rest of the portfolio. In part due to this sale, the Company had the exceptionally low void rate of 0.6% at quarter end.

At the end of the quarter the Company also issued a prospectus in relation to the issue of up to 100 million new shares including an initial placing, offer for subscription and a placing programme. New shares will be issued under the initial placing and offer for subscription at a 5% premium to the Adjusted NAV as at 30 June 2014. Good progress has been made in sourcing new investments to utilise these funds.

The latest time and date for the receipt of application forms under the offer is 11.00 a.m. on 24 July 2014 with the latest time and date for commitments under the initial placing being 3.00 p.m. on 25 July 2014. The admission and dealings in new shares is expected to commence on 8.00 a.m. on 30 July 2014.

Cash position

As at 30 June 2014 the Company had borrowings of £84.4m and a cash position of £23.2m (excluding rent deposits) therefore cash as a percentage of debt was 27.5%.

Dividends

The Company paid an interim dividend in respect of the quarter ended 31 March 2014, of 1.161p per Ordinary Share, with ex-dividend and payment dates of 7 May 2014 and 23 May 2014 respectively.   

The Company has announced an interim dividend in respect of the quarter ended 30 June 2014, of 1.161p per Ordinary Share, with ex-dividend and payment dates of 23 July 2014 and 22 August 2014 respectively.  

Loan to value and interest rate

As at 30 June 2014 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 34.2% (31 March 2014: 39.1%). The covenant level is 65%. The Company has a current weighted average interest rate of 3.8% to December 2018, of which 100% is fixed with a maturity to December 2018.

The interest rate swaps had a positive impact on the NAV of 0.2p per share or 0.4% over the quarter, and the fair value liability was £0.2m as at 30 June 2014. The Company has two interest rate hedges which mature in December 2018, and have a current liability of £0.2m (31 March 2014: £0.6m).

The Board is not aware of any further significant events or transactions which have occurred between 30 June 2014 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Details of the Company may also be found on the Investment Manager's website which can be found at: www.standardlifeinvestments.com/its

For further information:-

Jason Baggaley - Real Estate Fund Manager Standard Life Investments

Tel [phone] or [e-mail]

Gordon Humphries - Head of Investment Companies Standard Life Investments

Tel [phone] or [e-mail]

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Ltd

Trafalgar Court

Les Banques

St Peter Port

GY1 3QL

Tel: [phone]

Fax: [phone]

 

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