18 Jan 2011 15:55
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED
31 December 2010
Key Highlights
·; Net asset value per ordinary share was 63.0p as at 31 December 2010, an increase of 2.65% from 30 September 2010
·; Cash held by the Trust of £21.2m as at 31 December 2010, but after full cost of Aberdeen development, and purchase completed after quarter end uncommitted cash is £11.5m
·; Property worth £6.6m purchased in Q4 2010, and £8.375m in January 2011.
·; Dividend yield of 6.8% using the share price as at 17 January 2011 of 64.5p
Net Asset Value
The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 31 December 2010 was 63.0 pence. This is an increase of 2.65% percentage points over the net asset value of 61.4 pence per share at 30 September 2010.
The net asset value is calculated under International Financial Reporting Standards ("IFRS") and includes a provision for payment of an interim dividend of 1.10p per ordinary share for the quarter to 31 December 2010.
The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 31 December 2010. The property portfolio will next be valued by an external valuer during March 2011 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 30 September 2010 to 31 December 2010.
Pence per share | % of opening NAV | |
Net Asset Value per share as at 30 September 2010 | 61.4 | - |
Gain - realised and unrealised following revaluation of property portfolio (including the effect of gearing) |
0.7 |
1.15% |
Increase in interest rate swap valuations | 1.2 | 2.00% |
Other movement in reserves | (0.3) | (0.50)% |
Net Asset Value per share as at 31 December 2010 | 63.0 | 2.65% |
The property portfolio, ignoring the impact of debt, benefited from capital growth over the quarter of 0.5%.
Cash position
As at 31 December 2010 the Company had borrowings of £84.4m and a cash position of £21.2m (excluding rent deposits) therefore cash as a percentage of debt was 25.1%. The unallocated cash following the undrawn commitment at the development in Aberdeen and purchase completed after the quarter end is £11.5m.
Loan to value ratio
As at 31 December 2010 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 40.8% (30 September 2010: 37.0%). The covenant level is 65%.
Interest Rate Swaps
The interest rate swaps had a positive impact on the NAV of 1.2p per share or 2.0% over the quarter, and the fair value liability is £(7.4)m as at 31 December 2010. This fair value will reduce to £nil by Dec 2013, although not on a straight line basis.
Total asset analysis as at 31 December 2010 (unaudited)
£m | % | |
Office | 62.3 | 35.1 |
Retail | 39.6 | 22.3 |
Industrial | 49.7 | 28.0 |
Other | 3.4 | 1.9 |
Total Property Portfolio | 155.0 | 87.3 |
Cash | 21.2 | 12.0 |
Other Assets | 1.2 | 0.7 |
Total Gross Assets | 177.4 | 100.0 |
Breakdown in valuation movements over the period 30 Sept 2010 to 31 Dec 2010
Exposure as at 31 Dec 2010 (%) | Capital Value Movement on Standing Portfolio (%) | £m | |
External Valuation at 30/09/10 | 145.7 | ||
Sub Sector Analysis: | |||
RETAIL | |||
South East Retail | 6.4 | 0.0 | 0.0 |
Retail Warehouses | 19.2 | 0.3 | 0.1 |
OFFICES | |||
Central London Offices | 12.0 | 1.9 | 0.4 |
South East Offices | 5.0 | (1.3) | (0.1) |
Rest of UK Offices | 10.3 | (1.7) | (0.3) |
Development (completed 14/12/10) | 8.5 | 9.9 | 3.5 |
INDUSTRIAL | |||
South East Industrial | 5.0 | (1.0) | (0.1) |
Rest of UK Industrial | 27.0 | (0.2) | (0.1) |
OTHER | 2.2 | 0.7 | 0.0 |
Sales during Q4 2010 | (0.7) | ||
Purchases during Q4 2010 | 4.4 | 6.6 | |
External Valuation at 31/12/10 | 100 | 0.5 | 155.0 |
Investment Manager Commentary
During the 4th Quarter of 2010 the Company maintained its active investment record. It completed the purchase of a commercial mixed use investment in Westminster London, and exchanged on the purchase of an office in Staines (which completed on 7th January 2011), along with completing the pre let development in Aberdeen with a new 20 year lease to Hydrasun, thus reducing the Company's cash to £11.5m (6.5% of gross assets).
As a result of the investment activity the Company expects a fully covered dividend for 2011, and has revenue reserves of £3.9m to utilise when required (calculated under IFRS and includes a provision for payment of the interim dividend for the quarter ending 31 December 2010).
The Company's total return on its property portfolio for the quarter was 2.3%, slightly ahead of the monthly index return of 2.2%. Over the 12 months to 31 December 2010 the Company's property portfolio had a total return of 16.4%* against the IPD Monthly Index 14.5%.
* Source:- Standard Life Investments
All Enquiries:
Jason Baggaley - Real Estate Fund Manager Standard Life Investments
Tel 0131 245 2833
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Ltd
Trafalgar Court
Les Banques
GY1 3Q1
Tel: 01481 745324
Fax: 01481 745085
APENDIX 1
Historical adjusted IFRS NAVs per Ordinary Share are as follows:
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 |