(Alliance News) - Standard Life Investments Property Income Trust Ltd said on Tuesday that its net asset value stayed flat in a second quarter which featured little investment activity.
Net asset value as at June 30 was 91.1 pence per share, the same as it was at the end of March. Net asset value total return, including dividends, in the quarter was 1.3%.
The company's property assets increased in value by 0.3% in the quarter, comparing favourably with MSCI/IPD monthly index which had a decline of 0.7%.
Net asset value continued to be adversely impacted by movement in the company's interest rate swap which now has a negative worth of GBP2.4 million.
The company had little investment activity during the period, though three lettings were completed during the quarter, securing a total rent of GBP838,750 per year. Three rent review were also completed into industrial assets, with an uplift of 19% on previous rent.
In the second quarter, Standard Life Investments completed the sale of a small office in Milton Keynes for GBP6.0 million. The company said it made a profit on the asset.
The company said: "The second quarter continued the theme of 2019 with low investment transactional activity and great uncertainty over the outlook. The debate over the leadership of the UK has not helped, with overseas buyers taking a step back until they see greater clarity associated with Brexit."
"During the quarter we continued to see decent occupational interest and although deals are taking longer to conclude we managed to complete the surrender of the lease at Staines with a simultaneous grant of a new 10 year lease on our 26,000 square feet office. This is an example of taking a pro-active approach to managing our assets, as we worked with the old tenant to find a new occupier after we heard they wanted to downsize."
Shares in the company were up 1.2% at 86.20 pence each in London on Tuesday morning.