SLI.L Regulatory News (SLI)

30 Aug 2006 15:18

Standard Life Invs Property Inc Tst30 August 2006 Standard Life Investments Property Income Trust Limited 30 August 2006 Revised Financial Interim Results The interim results announcement made on the 24th August 2006 at 17.19 under RNS no. 0916I stated in the financial summary that the IFRS Net Asset Value per share was 126.0p when the correct value should have been 125.2p. The other sections of the report, including the Income Statement and Balance Sheet, were correctly stated. A revised financial interim results announcement is shown below. Standard Life Investment Property Income Trust Limited Interim Report and Financial Statements 1 Jan 2006 to 30 June 2006 Objective To provide shareholders with an attractive level of income together with theprospect of income and capital growth from investing in a diversified UKcommercial property portfolio. Financial Summary 30 June 2006 31 December 2005 % Change Price per share 133.0p 118.1p 12.6%Value of property portfolio* £218.1m £202.3 7.9%Gearing** 41.3% 43.4% n/aIFRS Net Asset Value per share*** 125.2p 113.6p 10.2%Published IFRS Net Asset Valueper share **** 130.2p 116.5p 11.8% * Valued on an open market value basis in accordance with the RICS Appraisal andValuation Standards. ** Gearing: (Bank borrowings and redeemable preference shares) / (Market valueof properties and cash held for re-investment). *** Calculated under International Financial Reporting Standards. **** Calculated under International Financial Reporting Standards and adjustedto include an accrued dividend in respect of the last quarter and to excludedeferred taxation. Chairman's Statement I am pleased to report that the first half of 2006 has continued the stronggrowth shown by your Company since inception in December 2003. The Net AssetValue of the Company has grown by 11.8% over the first six months of 2006 andthe Company's dividends of 3.315 pence per share for the first half of the yearhave been paid to shareholders. This includes an increased dividend of 1.69pence per share for the quarter to 30 June 2006 representing an increase of 4%on the previous quarter. The UK commercial property market continues to deliver exceptional returns, withtotal returns, as measured by the IPD Monthly Index, registering some 9.7% overthe first half of 2006. Compared to both bonds and equities, commercial propertycontinues to rank favourably, both in absolute and relative terms. The UK giltmarket delivered 1.7% over the corresponding period while the UK equity marketregistered total returns of 6.1%, further emphasising the stability and strengthof the UK property market in recent periods. Performance was once again primarily attributable to increasing capital valuesacross the portfolio, as well as the continued benefits of financial gearing ina strong market. The theme of strong capital growth, principally driven by thepersistent weight of money attempting to invest in the asset class, continues todrive the market. Debt costs have increased in the early part of 2006, andalthough commercial property initial yields have fallen to levels such that debtbacked buyers are now being priced out of the market, strong investment demandfrom equity backed investors, both in the UK and from overseas, continues toprovide strong competition for better quality stock. The potential introductionof UK REITs in 2007 is also expected to contribute to institutional demand forquality property stock as new issuance of REITs and their purchase by retailinvestors in the UK is expected to drive demand for property assets. Despite this highly competitive market, the Company has acquired one newproperty over the reporting period and in line with previous reporting periods,the profile of this property complements that of the existing property portfolioin terms of tenant quality and lease length. The Company continues to look atinnovative ways to increase the size of the portfolio to drive futurediversification. The office sector, and the Central London office market in particular, hascontinued to show signs of a sustainable recovery in occupational demand. Rentalgrowth in the sector is beginning to gather pace, as tenants increasingly haveto compete for the best quality available space as vacancy levels continue todrop. The industrial sector continues to perform steadily, albeitunspectacularly, with yields still the most attractive of the three mainsectors. The retail sector still shows signs of a muddle through scenario, as UKretail sales continue to grow positively, albeit below long term trend growthrates of circa 3%, and well below the 6% or 7% levels witnessed a couple ofyears ago. The UK housing market is now showing steady growth and the effect onretail sales has been marked as consumers are releasing less equity from theirprincipal asset in order to acquire 'big ticket' items. However, there remainpockets of growth in the retail sector, primarily in the better quality andbetter located retail warehouse sector, and your Company will continue toconcentrate on these areas. The Company remains well positioned to benefit from the expected divergence ofsector performance, given its relatively high exposure to the office andindustrial sectors The outlook for commercial property markets overall remainsbroadly positive, as sustained and accelerating economic growth underpinscorporate demand for commercial space. However, it must be noted thatexpectations are that the impressive performance over the past two years willnot continue, as the relentless upward pressure on capital values begins todissipate in poorer quality stock and less favourable sectors. That said, theCompany's property portfolio is well placed to continue to produce attractiveand steady absolute investment returns to its shareholders. David Moore Chairman of the Board 24 August 2006 Investment Manager's Report UK Property Market Following a marginally slower start to the year, the second quarter of 2006 sawa renewed acceleration in returns from the UK commercial property market. TheIPD Monthly Index measured total returns of 21% for the year to end June, drivenprimarily by capital value growth of just under 15% over the year. Against thisbackdrop, the UK property sector's yield margin over debt rates reversed in Q2for the first time in 6yrs. The upward shift in UK interest rates worked againsta further decline in property income yields. At 4.9%, property initial yieldsare now at their lowest ever level recorded by IPD and offer less than 0.2% overthe 'risk free' rate, i.e. 10 year government bonds. The acceleration in prices in the UK listed property market in the firstquarter, buoyed by the news of more flexible than anticipated UK REITs, waspartially reversed in quarter two as the volatility of broader equity marketstook its toll on property stocks. Although the underlying direct marketfundamentals remained little changed over the period, investor nerves oninflationary pressures and the future course of interest rates led to sharpswings in prices and sentiment. On average UK listed property prices ended thequarter 4% down, taking back some of the 17% increase in the first quarter. Although still high by historical standards, returns from the retail propertysector flattened out in the 2nd quarter of the year. For the year to end Junetotal returns measured 21% - in line with annual returns to March. Withinretail, retail warehouses remain the strongest segment and, with returns at23.2% p.a. in June, are the only retail format currently outperforming the AllProperty average. As with retail, in recent months industrial sector returns ofjust under 20% p.a. have kept pace with their level in the first quarter.Returns from the office market moved further into the lead in recent months withthe strength in investor demand for Central London office investments driving afurther acceleration in prices and a compression in valuation yields. The rentalrecovery in the capital is firmly on course, led by the West End and Midtown butalso backed up by fairly consistent improvement in the City. Investment Manager's Report continued Portfolio Valuation The investment portfolio has increased in value by £15.76m over the reportingperiod, including £4.52m from new investments. Capital value increases andgrowth in central London office rental values have been the main drivers of theuplift in capital value. At the end of June 2006, the investment portfolio was valued at £218.1m and hadan average unexpired lease term of 9.5 years, assuming all lease breaks occur. Investment Activity We have invested £4.71m (including costs) during the reporting period,representing approximately half of the proceeds from the disposal of Green Lane,Walsall. A modern office building and converted coach house in the centre ofWeybridge has been acquired representing a net initial yield of 6%. The entireproperty is let to Alliance Unichem plc until March 2015 and the property has alarge car park which offers opportunities to add value in the medium term. We are confident the remaining sale proceeds will be fully invested by Q3 2006. Asset Management We have completed 2 new lettings in the first half of 2006. At the Courtyard in St Albans, we have let Unit B1 on a 5 year lease at£26,655pa. We have also let the Ground Floor Shop Unit at Wellington House toMaplin Electronics Ltd at a rent of £140,000 p.a. for a period of 10 yearsincorporating a rent review in year 5. As a result of our letting activity, the portfolio void level stands at 0.2% oftotal portfolio rents at the end of June 2006 and has been maintained at lessthan 0.5% for the entire reporting period. We have also completed one lease renewal and settled two rent reviews,increasing the portfolio income by £88,710 p.a. There have been no tenantdefaults over the reporting period and the overall default rate on the portfoliosince launch has amounted to 0.053%, well below the IPD default rate of 1.2%. Gearing The Gearing level at 30 June 2006 stood at 41.3% of the market value ofinvestment properties. Investment Outlook We anticipate less favourable returns from the UK property market over the nextfew years than we have enjoyed in the years since 2004. Despite interest ratesincreasing, pricing some debt backed buyers out of the market, we expect themarket to become increasingly expensive. Weight of money remains strong in theUK although, at this stage, it looks likely that last year was the peak ininvestment into the market. Within the UK we continue to favour office andindustrial property, rather than retail, as the predicted divergence in sectorreturns becomes increasingly evident during the remainder of this year. In 2006,the UK market looks likely to comfortably achieve high double digit returns fora third successive year. Thereafter slowing capital growth suggests lower singledigit returns for investors in UK property over the next few years. Property Investments as at 30 June 2006 Name (Sector) Town Capital Value £ Clough Road (Retail) Kingston upon 20-22m HullWellington House (Office) London 18-20mHollywood Green (Leisure) London 16-18mDrakes Way (Industrial) Swindon 8-10m2-4 Bucknall Street (Office) London 8-10mSolution Hall (Office) Welwyn Garden 8-10m CityWellesley House (Office) Harlow 8-10mWhitebear Yard (Office) London 8-10mThe Axys (Office) Nantgarw 8-10mChancellors Place (Office) Chelmsford 8-10mCentury Plaza (High Street Retail) Edgware 8-10mBathgate Retail Park (Retail Warehouse) Bathgate 8-10mInterfleet House (Office) Derby 6-8mThe Courtyard (Office) St Albans 6-8mFarah Unit, Crittal Road (Distribution Witham 4-6mWarehouse)Phase II, Telelink (Office) Swansea 4-6mPity Hey Place (Industrial) Skelmersdale 4-6mCrown Farm (Industrial) Mansfield 4-6mEsporta (Leisure) Chislehurst 4-6mViscount Way (Office) Swindon 4-6m31/32 Queen Square (Office) Bristol 4-6mDe Ville Court (Office) Weybridge 4-6mCoal Road (Industrial) Leeds 2-4mWardley Industrial Estate (Retail Warehouse) Manchester 2-4mHalfords (Retail Warehouse) Paisley 2-4mGemini Court (Industrial) Port Talbot 2-4mEurolink Normanton (Industrial) Leeds 2-4mEaster Park (Industrial) Bolton 2-4mLister House (Office) Leeds 2-4mUnit 14 Interlink Park (Industrial) Bardon 2-4mPortrack Lane (Industrial) Stockton on Tees 1-2m Standard Life Investments Property Income Trust Limited Unaudited Consolidated Income Statement for the period ended 30 June 2006 Restated 01-Jan-06 to 01-Jan-05 to 30-Jun-06 30-Jun-05 Note £ £IncomeUnrealised gain arising onadjustment to fair value ofinvestment properties 11,048,950 6,839,904Rental income 7,125,791 6,065,091 -----------------------------Total income and fair value gains 18,174,741 12,904,995 ----------------------------- ExpenditureInvestment management fees 3 (917,033) (729,282)Head lease payments (140,346) (141,203)Valuation fees (39,681) (34,562)Other direct property costs (129,382) (101,958)Directors' fees and subsistence (41,166) (37,448)Other administration expenses (115,880) (49,361) ----------------------------- (1,383,488) (1,093,814) ------------------------------ Operating profit 16,791,253 11,811,181 Finance costs - netInterest payable (2,601,462) (1,986,011)Interest receivable 210,415 128,631 ------------------------------ (2,391,047) (1,857,380) ------------------------------Profit for the period before tax 14,400,206 9,953,801 ------------------------------ Taxation 4 (2,425,256) (1,359,867) ------------------------------Profit for the period 11,974,950 8,593,934 ============================== Earnings per share for the periodattributable to the equity holders of the company Basic and diluted 11.97 8.59 pence pence (restated) All items in the above income statement derive from continuing operations. Standard Life Investments Property Income Trust Limited Unaudited Consolidated Balance Sheet as at 30 June 2006 30-Jun-06 31-Dec-05 Note £ £ASSETSNon-current assetsFreehold investment 5 181,811,603 168,194,233propertiesLeasehold investment 5 41,651,276 39,105,163properties ------------------------------ 223,462,879 207,299,396 ------------------------------Current assetsTrade and other 2,265,737 2,134,473receivablesCash and cash 9,205,810 13,711,633equivalents ------------------------------ 11,471,547 15,846,106 ------------------------------ ------------------------------Total assets 234,934,426 223,145,502 ============================== EQUITYEquity capital andreserves attributableto Company's equityholdersShare capital 1,000,000 1,000,000Retained earnings (4,455,693) (2,334,373)Capital reserves 33,625,466 19,734,918Other distributable 95,003,939 95,206,619reserves ------------------------------Total equity 125,173,712 113,607,164 ------------------------------ LiabilitiesNon-current liabilitiesInterest rate swap 182,313 3,023,911Bank borrowings 84,432,692 84,432,692Redeemable preference 6,958,686 6,756,006sharesLeasehold obligations 5,491,276 5,085,163Taxation 6,871,553 4,446,297 ------------------------------ 103,936,520 103,744,069 ------------------------------ Current liabilitiesTrade and other payables 5,824,194 5,794,269 ------------------------------Total liabilities 109,760,714 109,538,338 ------------------------------ Total equity and 234,934,426 223,145,502liabilities ============================== Approved by the board of directors on 24August 2006 David Moore John HallamDirector Director Standard Life Investments Property Income Trust Limited Unaudited Consolidated Statement of Changes in Equity for the period ended 30June 2005 Share Retained Capital Other Total equity capital earnings reserves distributable reserves Note £ £ £ £ £ Openingbalance 1January 2005 1,000,000 702,259 5,214,861 96,692,892 103,610,012 Movement on revaluationof interestrate swap (4,918,163) (4,918,163)Profit for theperiod 9,953,801 9,953,801Transferbetweenreserves 1,295,066 (1,295,066)Unrealised gain on adjustment tofair value ofinvestmentproperties (6,839,904) 6,839,904Dividends 6 (3,250,000) (3,250,000) Balance at 30 June 2005 --------------------------------------------------------------------as previouslyreported 1,000,000 1,861,222 7,136,602 95,397,826 105,395,650 ==================================================================== Prior period adjustment:Taxation 4 (1,359,867) (1,359,867) --------------------------------------------------------------------Balance at 30June 2005 1,000,000 501,355 7,136,602 95,397,826 104,035,783 ==================================================================== Standard Life Investments Property Income Trust Limited Unaudited Consolidated Statement of Changes in Equity for the period ended 30June 2006 Share Retained Capital Other Total equity capital earnings reserves distributable reserves Note £ £ £ £ £ Openingbalance 1January 2006 1,000,000 (2,334,373) 19,734,918 95,206,619 113,607,164 Movement on revaluationof interestrate swap 2,841,598 2,841,598Profit for theperiod 11,974,950 11,974,950Transferbetweenreserves 202,680 (202,680)Unrealised gain on adjustment tofair value ofinvestmentproperties 5 (11,048,950) 11,048,950Dividends 6 (3,250,000) (3,250,000) ---------------------------------------------------------------------Balance at 30June 2006 1,000,000 (4,455,693) 33,625,466 95,003,939 125,173,712 ===================================================================== Standard Life Investments Property Income Trust Limited Unaudited Consolidated Cash Flow Statement for the period ended 30 June 2006 01-Jan-06 to 01-Jan-05 to 30-Jun-06 30-Jun-05 Note £ £ Cash flows from operating activitiesCash generated from operations 7 5,648,465 6,509,086Interest paid (2,398,783) (1,794,803) -------------------------Net cash generated from operating activities 3,249,682 4,714,283 ------------------------- Cash flows from investing activitiesPurchase of investment properties 5 (4,715,920) (5,832,905)Interest received 210,415 128,631 -------------------------Net cash used in investing activities (4,505,505) (5,704,274) ------------------------- Cash flows from financing activitiesDividends paid 6 (3,250,000) (3,250,000)Proceeds from bank borrowings 2,822,305 -------------------------Net cash used from financing activities (3,250,000) (427,695) ------------------------- Net decrease in cash and cash equivalents inthe period (4,505,823) (1,417,686) ========================= Cash and cash equivalents at beginning ofperiod 13,711,633 7,577,113 -------------------------Cash and cash equivalents at end of period 9,205,810 6,159,427 ========================= Standard Life Investments Property Income Trust Limited Notes to the Consolidated Financial Statements for the period ended 30 June 2006 1. General information Standard Life Investments Property Income Trust Limited ("the Company") and itssubsidiaries (together the "Group") carry on the business of property investmentthrough a portfolio of freehold and leasehold investment properties located inthe United Kingdom. The Company is a limited liability company incorporated anddomiciled in Guernsey, Channel Islands. The Company has its primary listing onthe London Stock Exchange with a secondary listing on the Channel Islands StockExchange. These unaudited consolidated financial statements have been approvedfor issue by the Board of Directors on 24 August 2006. The address of the registered office is Trafalgar Court, Les Banques, St PeterPort, Guernsey. 2. Accounting policies Basis of preparation The unaudited consolidated financial statements of the Group have been preparedin accordance with IAS 34 on Interim Financial Reporting, and all applicablerequirements of Guernsey Company Law. They do not contain all the informationrequired for full annual statements and should be read in conjunction with theaudited consolidated financial statements of the Company for the year ending 31December 2005. The same accounting policies and methods of computation arefollowed in these interim financial statements as compared with the auditedconsolidated financial statements prepared for the year ending 31 December 2005. Deferred Tax The comparative unaudited consolidated income statement has been restated toaccount for a change in the method by which deferred tax is calculated. Thisbrings the comparative statement into line with the method of calculationapplied in the financial statements for the year ending 31 December 2005. Thisadjustment has resulted in £1,359,867 more deferred tax being shown as anexpense in the income statement for the period ending 30 June 2005. 3 RELATED PARTY DISCLOSURES Parties are considered to be related if one party has the ability to control theother party or exercise significant influence over the other party in makingfinancial or operational decisions. Redeemable preference shares On 29 December 2003 the Company issued 6,000,000 25p redeemable zero dividendpreference shares for £6,000,000 to The Standard Life Assurance Company. Theseshares have a nominal value of £1,500,000 and are redeemable by the Company at aprice of £1.7908. These shares do not carry any voting rights. Ordinary share capital Standard Life Assurance Company has held 21,769,609 of the issued ordinaryshares throughout the period on behalf of its Unit Linked Property Funds (yearended December 2005: 21,769,609). Directors The Directors each hold the following number of Ordinary Shares in the Company: 30 Jun 06 31 Dec 05David Moore 15,000 15,000Richard Barfield 15,000 15,000John Hallam 15,000 15,000Shelagh Mason 15,000 15,000Paul Orchard-Lisle 25,000 25,000 No Director has any interest in any transactions which are or were unusual intheir nature or conditions or significant to the business of the Group and whichwere effected by any member of the Group since its date of incorporation. Totalfees relating to the directors in the period under review were £41,166 (periodended 30 June 2005: £37,448), being £40,000 (period ended 30 June 2005: £36,000)in respect of emoluments and £1,166 (period ended 30 June 2005: £1,448) inrespect of subsistence. Investment Manager On 19 December 2003 Standard Life Investments (Corporate Funds) Limited ("theInvestment Manager") was appointed as investment manager to manage the propertyassets of the Group. Under the terms of the Investment Management Agreement theInvestment Manager is entitled to receive a fee at the annual rate of 0.85% ofthe total assets (less any amounts drawn down under the facility agreement butnot yet invested in property assets), payable quarterly in arrears. Total feescharged for the period ended 30 June 2006 amounted to £917,033 (period ended 30June 2005: £729,282). The amount due and payable at period end amounted to£463,388 (period ended 30 June 2005: £nil). 4 TAXATION Deferred tax Restated 30-Jun-06 30-Jun-05 £ £ Accumulated unrealised gains at period end 33,456,002 10,660,621Accumulated Schedule A loss at period end (2,221,670) (1,905,380) ---------------------------------- 31,234,332 8,755,241 ----------------------------------Deferred tax liability at period end at 22% 6,871,553 1,926,153 ================================== Deferred tax liability at start of period - 1January 4,446,297 566,286 ----------------------------------Movement on deferred tax liability during period 2,425,256 1,359,867 ================================== At the balance sheet date provision has been made for deferred income on alltemporary differences between the tax bases of assets and liabilities and theircarrying amounts for financial reporting purposes, regardless of whether or notthose temporary differences are expected to reverse. 5 FREEHOLD AND LEASEHOLD INVESTMENT PROPERTIES 30-Jun-06 30-Jun-06 30-Jun-06 Freehold Leasehold Total £ £ £ Market value as at 31 December2005 168,285,000 34,020,000 202,305,000Capital expenditure 4,705,814 2,606 4,708,420Unrealised gain arising onadjustment to fair value ofinvestment properties 8,911,556 2,137,394 11,048,950Movement in adjustment for leaseincentives 2,630 - 2,630 ----------------------------------------Market value at 30 June 2006 181,905,000 36,160,000 218,065,000 ---------------------------------------- Adjustment for lease incentives (93,397) - (93,397)Discounted present value ofminimum lease payments - 5,491,276 5,491,276 ----------------------------------------Fair value at 30 June 2006 181,811,603 41,651,276 223,462,879 ---------------------------------------- 31-Dec-05 31-Dec-05 31-Dec-05 Freehold Leasehold Total £ £ £ Market value as at 31 December2004 138,946,422 25,020,000 163,966,422Capital expenditure 21,722,416 5,986,515 27,708,931Carrying value of disposedproperty (8,354,719) - (8,354,719)Unrealised gain arising onadjustment to fair value ofinvestment properties 15,970,881 3,013,485 18,984,367 ----------------------------------------Market value at 31 December 2005 168,285,000 34,020,000 202,305,000 ---------------------------------------- Adjustment for lease incentives (90,767) - (90,767)Discounted present value ofminimum lease payments - 5,085,163 5,085,163 ----------------------------------------Fair value at 31 December 2005 168,194,233 39,105,163 207,299,396 ---------------------------------------- Investment properties were revalued at the period end by DTZ Debenham Tie LeungLimited, Chartered Surveyors on the basis of the market value for existing use.The market values of leasehold investment properties have been adjusted toreflect the discounted present value of minimum lease payments to reflect theirfair value in accordance with IFRS. The market value for existing use providedby DTZ Debenham Tie Leung Limited at the period end was £218,065,000 (year endedDecember 2005: £202,305,000). 6 DIVIDENDS The interim dividends paid to date in 2006 are as follows (period ended 30 June2005: £3,250,000): £1,625,000 (1.625p per ordinary share) paid in February relating to the quarterending 31 December 2005 £1,625,000 (1.625p per ordinary share) paid in May relating to the quarterending 31 March 2006 £3,250,000 A further interim dividend of 1.690p per share in respect of the quarter to 30June 2006 was approved in August 2006. These consolidated financial statementsdo not reflect this dividend, however, the published net asset value does. 7 CASH GENERATED FROM OPERATIONS Restated 01-Jan-06 to 01-Jan-05 to 30-Jun-06 30-Jun-05 £ £ Profit for the period 11,974,950 8,593,934 Movement in debtors (131,264) 1,121,479Movement in creditors 37,425 416,330Interest payable 2,601,463 1,986,011Interest receivable (210,415) (128,631)Unrealised gain arising on adjustment to fairvalue of investment properties (11,048,950) (6,839,904)Movement in deferred tax provision 2,425,256 1,359,867 ----------------------------Cash generated from operations 5,648,465 6,509,086 ============================ 8 SEGMENTAL REPORTING The group is organised into four main business segments determined in accordancewith the type of investment property: Retail - Mainly shops and retail warehouse parks Office - Mainly in large cities Industrial - distribution warehouses and industrial units Other - Leisure centres and Cinema complex's Segmental analysis by business segment 01 Jan 06 to 30 Jun 06 Retail Office Industrial Other Total £ £ £ £ £ Rental income 2,105,489 2,225,013 2,145,877 649,412 7,125,791Unrealised gainarising onadjustmentto fair valueof investmentproperties 1,940,000 6,191,242 2,137,708 780,000 11,048,950Propertyrelatedexpenditure (27,399) (216,255) (54,796) (10,959) (309,409) ---------------------------------------------------------------Segment result 4,018,090 8,200,000 4,228,789 1,418,453 17,865,332 Non-propertyrelatedexpenditure (1,074,079) -----------Operatingprofit 16,791,253Finance costs- net (2,391,047) -----------Profit for theperiod beforetaxation 14,400,206 =========== There were no transactions between the business segments. Property related expenditure relates to head lease payments, valuation fees andother direct property costs. 01 Jan 05 to 30 Jun 05 Retail Office Industrial Other Total £ £ £ £ £ Revenue 926,523 3,220,233 1,239,767 678,568 6,065,091Unrealised gainarising onadjustmentto fair valueof investmentproperties 2,004,092 2,114,634 1,657,600 1,063,578 6,839,904Propertyrelatedexpenditure (18,499) (192,710) (28,953) (3,000) (243,162) ---------------------------------------------------------------Segment result 2,912,116 5,142,157 2,868,414 1,739,146 12,661,833 Non-propertyrelatedexpenditure (850,652) ---------Operatingprofit 11,811,181Finance costs- net (1,857,380) ---------Profit for theperiod beforetaxation 9,953,801 ========= There were no transactions between the business segments. Property related expenditure relates to head lease payments, valuation fees andother direct property costs. Standard Life Investments Property Income Trust Limited Directors and Company Information Directors David Christopher Moore (Chairman)Richard Arthur BarfieldJohn Edward HallamShelagh Yvonne MasonPaul David Orchard-Lisle CBE Registered Office Trafalgar CourtLes BanquesSt. Peter PortGuernsey Administrator, Secretary and Registrar Northern Trust International Fund Administration Services (Guernsey) LimitedTrafalgar CourtLes BanquesSt. Peter PortGuernsey Registered Number 41352 Investment Manager Standard Life Investments (Corporate Funds) LimitedOne George StreetEdinburghEH2 2LL Independent Auditors PricewaterhouseCoopers CI LLPNational Westminster HouseLe TruchotSt. Peter PortGuernseyGY1 4ND Solicitors Dickson Minto W.S.16 Charlotte SquareEdinburghEH2 4DF Principal Banker The Royal Bank of Scotland plc135 BishopsgateLondonEC2M 3UR Property Valuer DTZ Debenham Tie Leung Limited1 Curzon StreetLondonW1A 5PZ Standard Life Investments Limited, tel. 0131 225 2345, is a company registeredin Scotland (no. SC 123321) Registered Office 1 George Street Edinburgh EH2 2LL. The Standard Life Investments Group includes Standard Life Investments (MutualFunds) Limited, SLTM Limited, Standard Life Investments (Corporate Funds)Limited and Standard Life Investments (Private Equity) Limited. Standard LifeInvestments Limited acts as Investment Manager for The Standard Life AssuranceLimited and Standard Life Pension Funds Limited. Standard Life Investments may record and monitor telephone calls to help improvecustomer service. All companies are authorised and regulated by the Financial Services Authority. (c)2006 Standard Life Enquiries: The Company Secretary Northern Trust International Fund Administration Services (Guernsey) LimitedTrafalgar CourtLes BanquesSt Peter PortGuernseyGY1 3QL Tel: 01481 745439Fax: 01481 745085 END This information is provided by RNS The company news service from the London Stock Exchange