(Alliance News) - Standard Life Investments Property Income Trust Ltd said Wednesday net asset value rose in the first half of 2019, as its portfolio performed strongly, especially in the industrial sector.
The property investor reported a net asset value per share of 91.1 pence per share as at June 30, up 1.1% from 90.1p the same date the year before, and up 0.1% from 91.0p at the end of December.
SLIP's share price was 94.2p at the end of June, reflecting a 3.4% discount to net asset value. Shares in the trust were up 1.5% on the day Wednesday at 87.9p in London, having declined since the period-end.
As at June 30, SLIP's investment portfolio was valued by Knight Frank at GBP496.8 million, comprising 57 assets. This was up from a value of GBP458 million, comprising 56 properties the same date the prior year.
The trust's total property return for the six months to the end of June was 3.3%, outperforming the MSCI IPD benchmark index, which returned 0.9% in the period, mainly due to an overweight position in the strong industrial sector.
SLIP's portfolio as at the end of June was 53% exposed to the industrial sector, but only 9% exposed to the poorly performing retail sector.
The trust declared an interim dividend of 2.38 pence per share, in-line with the year before.
"Overall, the UK commercial property market is holding up well with positive total returns still forecast. The investment market has been, and will continue to be, muted in 2019 until progress is made on the Brexit conundrum. However, occupier markets are generally faring well, apart from the retail sector which is under severe pressure as the growth in e-commerce continues which, inversely, is boosting the industrial sector," said Chair Robert Peto.
"Given this background, the board believes that your company is strategically set to continue producing relative outperformance. The company is well diversified in both geographic and sector terms but, importantly, has a strategic overweight position to the industrial sector, which is forecast to be the strongest driver of returns over the next three years," Peto added.