Net Asset Value(s)

RNS Number : 7487H

Standard Life Invs Property Inc Tst

16 July 2012

 



STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

30 June 2012

Key Highlights

·      Property portfolio return of 1.45%, outperforming the IPD monthly index 0.33% for Q2 2012.

·      2 properties purchased during the quarter for £12.4m.

·      Cash held by the Trust was £5.9m at 30 June 2012.

·      Net asset value per ordinary share was 60.3p per share as at 30 June 2012, a decrease of 2.6% from 31 March 2012.

·      Based on a share price of 64.00p (13 July 2012) the dividend yield is 7.1%.

Net Asset Value

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 30 June 2012 was 60.3 pence.  This is a decrease of 2.6% over the net asset value of 61.9 pence per share at 31 March 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 June 2012.

The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 30 June 2012.  The property portfolio will next be valued by an external valuer during September 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 31 March 2012 to 30 June 2012.

	Pence per share	% of opening NAV
Net Asset Value per share as at 31 March 2012	61.9	-
Gain/(Loss) - realised and unrealised following revaluation of property portfolio (including the effect of gearing)	0.0	0.0%
Purchase costs	(0.5)	(0.8)%
Decrease in interest rate swap valuations	(0.9)	(1.5)%
Other movement in reserves	(0.2)	(0.3)%
Net Asset Value per share as at 30 June 2012	60.3	(2.6)%

Investment Manager Commentary

Q2 saw a continued decline in general sentiment, with real estate investment transaction levels remaining subdued and tenant activity generally weak. Investors continue to focus on low risk investments and income. This weak sentiment is reflected in the IPD Monthly index decline in capital values of 1.29% over Q2. SLIPIT however has benefitted from its security of income and active management, with capital growth on its standing portfolio (ignoring the two purchases in Q2) of 0.13%. The Company's property portfolio, including the purchases delivered a total return of 1.45% over the quarter, compared to the IPD's 0.33%. The purchase fees (stamp duty, legal and agent fees) on the two purchases reduced capital growth by 0.55% to -0.4%.

The two purchases have been reported already, but are St James House Cheltenham, a multi let office in the centre of Cheltenham bought for £8.45m, reflecting an initial yield of 7.4% at purchase, rising to 9% by year end, and over 10% once the fourth floor is re-let, and 140 West George St Glasgow: The office investment was bought for £3.95m, and the purchase price reflects an income yield of 9.5%.The multi let office building extends to c23,000 sqft over 7 floors and was comprehensively refurbished in 2009 to a Grade A specification.

Cash position

As at 30 June 2012 the Company had borrowings of £84.4m and a cash position of £5.9m (excluding rent deposits) therefore cash as a percentage of debt was 7.0%.

Loan to value ratio

As at 30 June 2012 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 45.5% (31 March 2011: 41.1%).  The covenant level is 65%.

Interest Rate Swaps

The interest rate swaps had a negative impact on the NAV of 0.9p per share or -1.5% over the quarter, and the fair value liability is £6.8m as at 30 June 2012. The fair value of the swaps will return to £0 at maturity, but not on a straight line basis. The original swap for £72m matures in December 2013, and has a current liability of £4.8m (3.5p per share), with the two remaining swaps expiring in December 2018 having a total liability of just over £2m.

Total asset analysis as at 30 June 2012

	£m	%
Office	83.0	46.2
Retail	39.5	22.0
Industrial	46.1	25.6
Other	3.8	2.1
Total Property Portfolio	172.4	95.9
Cash	5.9	3.3
Other Assets	1.5	0.8
Total Gross Assets	179.8	100.0

Breakdown in valuation movements over the period 31 March 2012 to 30 June 2012

	Exposure as at 30 June 2012 (%)	Capital Value Movement on Standing Portfolio (%)	£m
External Valuation at 31/03/2012			159.9
Sub Sector Analysis:
RETAIL
South East Retail	5.8	0.0	0.0
Retail Warehouses	17.1	4.4	1.3
OFFICES
Central London Offices	9.2	1.0	0.1
South East Offices	16.1	(1.7)	(0.5)
Rest of UK Offices	15.8	(1.2)	(0.4)
INDUSTRIAL
South East Industrial	4.4	(0.0)	0.0
Rest of UK Industrial	22.3	(0.9)	(0.3)
OTHER	2.2	1.4	0.1
Purchases during Q2 2012	7.1		12.2
External Valuation at 30/06/2012	100.0	0.13	172.4

The above information is unaudited and has been calculated by 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:

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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