Net Asset Value(s)

RNS Number : 6668R

Standard Life Invs Property Inc Tst

29 October 2013

 



29 October 2013

 

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

Unaudited Net Asset Value as at 30 September 2013

Key Highlights

·      Net asset value per ordinary share was 59.7p as at 30 September 2013, an increase of 2.4% from 30 June 2013.

·      Dividend yield of 6.7% based on share price of 68.0p (28 October 2013).

·      Cash held by the Company was £23.4m at 30 September 2013, of which £17.3m is earmarked for purchases in progress.

·      Development profits taken following the £15.2m sale of the Hydrasun building in Aberdeen.

Net Asset Value ("NAV")

The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited ("SLIPIT") at 30 September 2013 was 59.7 pence.  This is an increase of 2.4% over the net asset value of 58.3 pence per share at 30 June 2013.  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 September 2013. The property portfolio will next be valued by the external valuer during December 2013 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 30 June 2013 to 30 September 2013.

	£m	Pence per share	% of opening NAV
Unaudited Net Asset Value at 30 June 2013	88.2	58.3	-
Gain - realised and unrealised following revaluation of property portfolio (including the effect of gearing)	1.6	1.1	1.9%
Decrease in unrealised interest rate swap valuations Other movement in reserves	1.1 (0.6)	0.7 (0.4)	1.2% (0.7)%
New shares issued	0.7	-	-
Unaudited Net Asset Value at 30 September 2013	91.0	59.7	2.4%

European Public Real Estate Association ("EPRA")*	30 Sept 2013	30 Jun 2013
EPRA Net Asset Value	£93.1m	£91.3m
EPRA Net Asset Value per share	61.0p	60.3p

The Net Asset Value at 30 September 2013 is based on 152,519,237 shares of 1p each.

* 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

During the quarter the Company's cash position increased following the sale of the Hydrasun building in Aberdeen. As reported before the sale crystallised profit on the development, and followed the purchase of Hertford Place in Rickmansworth. Solicitors are instructed to finalise the acquisition of a portfolio of well let retail warehouse investments at a total cost of £13.4m at a yield of 8% and negotiations are in hand that if finalised will result in the acquisition of a small industrial investment of two units for £3.9m at a yield of 10.5% with 5 years left on the lease.

The Company's occupancy rate increased over the quarter from 89.6% to 94.6% with lettings at Norwich and Aberdeen completing. We are also in advanced negotiations on an agreement for lease on our largest void (Bourne House Staines), where the lease will be conditional on the refurbishment we are undertaking.

Cash position

As at 30 September 2013 the Company had borrowings of £84.4m and a cash position of £23.4m (excluding rent deposits) therefore cash as a percentage of debt was 27.7%.

Dividend

The Company paid an interim dividend, in respect of the quarter ended 30 June 2013, of 1.133p per Ordinary Share, with ex-dividend and payment dates of 7 August and 23 August 2013 respectively.

Loan to value and interest rate

As at 30 September 2013 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 39.1% (30 June 2013: 44.8%).  The covenant level is 65%. The Company has a current weighted average interest rate of 6.3% to December 2013. From 1 January 2014 the weighted average interest rate will fall to 3.8%, of which 100% is fixed with a maturity to December 2018.

The interest rate swaps had a positive impact on the NAV of 0.7p per share or 1.2% over the quarter, and the fair value liability was £2.0m as at 30 September 2013. The Company has one interest rate hedge maturing in December 2013 with a current liability of £0.8m (30 June 2013: £1.6m). This liability will have fallen to zero by maturity in December 2013. The other interest rate hedges mature in December 2018, and have a current liability of £1.2m (30 June: £1.5m).

Net Asset analysis as at 30 September 2013 (unaudited)

	£m	%
Office	75.4	83.0
Retail	35.4	38.9
Industrial	45.5	50.0
Total Property Portfolio	156.3	171.9
Adjustment for lease incentives	(3.6)	(4.0)
Fair value of Property Portfolio	152.7	167.9
Cash	23.4	25.7
Other Assets	5.4	5.9
Non-current liabilities	(85.9)	(94.4)
Current liabilities	(4.6)	(5.1)
Total Net Assets	91.0	100.0

Breakdown in valuation movements over the period 1 Jul 2013 to 30 Sept 2013

	Exposure as at 30 Sept 2013 (%)	Capital Value Movement on Standing Portfolio (%)	£m
External Valuation at 30/06/2013			154.7
Sub Sector Analysis:
RETAIL
South East Retail	6.7	3.4	0.4
Retail Warehouses	15.9	0.0	0.0
OFFICES
Central London Offices	12.2	1.1	0.2
South East Offices	20.5	(0.2)	(0.1)
Rest of UK Offices	15.6	(0.3)	(0.1)
INDUSTRIAL
South East Industrial	4.9	4.1	0.3
Rest of UK Industrial	24.2	2.4	0.9
External Valuation at 30/09/2013	100.0	0.9	156.3

Top 10 Properties

	Weighting 30 Sept 2013
Tesco Distribution, Bolton	8.8%
White Bear Yard, London	7.2%
Hollywood Green, London	6.7%
Hertford Place, Rickmansworth	6.4%
St. James's House, Cheltenham	5.8%
Ocean Trade Centre, Aberdeen	5.6%
Clough Road Retail Park, Hull	5.1%
New Palace Place, Monck St, London	5.0%
Fleming Way, Crawley	3.9%
Bathgate Retail Park, Bathgate	3.8%
Total	58.3%

The Board is not aware of any further significant events or transactions which have occurred between 30 September 2013 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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