SLI.L Regulatory News (SLI)

7 May 2015 STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE: SLI) Unaudited Net Asset Valueas at 31 March 2015 Key Highlights * Net asset value per ordinary share was 75.6p as at 31 March 2015 which is arrived at after deducting the Q1 dividend due to be paid in May 2015. This is an increase of 1.7% from 31 December 2014. * Successful placing of approximately 31.3m ordinary shares at 78.1p per share under the Placing Programme announced on 12 February 2015, following this an additional 1.3m ordinary shares were also issued on 4 March 2015 at 80.2p per share, raising in total gross proceeds of approximately £25.5m. * One retail property purchased in March 2015 for £15.8m excluding costs and one office property sold in January 2015 for £3.2m excluding costs. * Dividend yield of 5.2% based on share price of88.5p (5May 2015). Net Asset Value ("NAV") The unaudited net asset value per ordinary share of Standard Life InvestmentsProperty Income Trust Limited ("SLIPIT") at 31 March 2015 was 75.6 penceincluding the adjustment for the Q1 dividend payment due in May 2015. This isan increase of 1.7% over the net asset value of 74.3 pence (including theadjustment for the Q4 dividend)per share at 31 December 2014. The net assetvalue is calculated under International Financial Reporting Standards ("IFRS"). The net asset value incorporates the external portfolio valuation by Jones LangLaSalle at 31 March 2015. The property portfolio will next be valued by theexternal valuer during June 2015 and the next quarterly net asset value will bepublished thereafter. Breakdown of NAV movement Set out below is a breakdown of the change to the unaudited NAV per sharecalculated under IFRS over the period 31December 2014 to 31 March 2015. £m Pence % of opening per NAV share Unaudited Net Asset Value at 31 December 2014 184.4 75.5 - Gain - valuation increase on the standing 3.7 1.5 2.0%property portfolio Loss - unrealised following the purchase ofinvestment property (0.7) (0.3) (0.4%) Capex receipts 0.2 0.1 0.1% Rent free smoothing (0.2) (0.1) (0.1%) Increase in unrealised interest rate swap (0.3) (0.1) (0.1%)liability 0.2 0.2 0.2%Other movement in reserves Increase in share capital 25.2 Unaudited Net Asset Value at 31 March 2015before adjustment for dividend 212.5 76.8 1.7% Adjustment for Q1 dividend (3.2) (1.2) Unaudited Net Asset Value at 31 March 2015 after adjustment for dividend 209.3 75.6 European Public Real Estate Association 31 Mar 2015 31 Dec 2014("EPRA")* EPRA Net Asset Value before adjustment £215.5m £187.0mfor dividend EPRA Net Asset Value after adjustment £212.2m £184.2mfor dividend EPRA Net Asset Value per share before 77.9p 76.6padjustment for dividend EPRA Net Asset Value per share after 76.7p 75.4padjustment for dividend The Net Asset Value per share is calculated using 276,779,237 shares of 1p eachbeing the number in issue on 31 March 2015. \* The EPRA net asset value measure is to highlight the fair value of net assetson an on-going, long-term basis. Assets and liabilities that are not expectedto crystallise in normal circumstances, such as the fair value of financialderivatives, are therefore excluded. Investment Manager Commentary During Q1 the Company issued new shares under the live prospectus, raising £25.5m. This fully utilised the capacity of the prospectus, and enabled theCompany to complete on the purchase of a retail warehouse in Preston for £15.8m. The property is let to DSG (Dixons) for a further 16 years. The purchaseprice reflected a yield of 7%. We also completed the sale of a small office inWeybridge that had a lease expiry in February this year. The sale price was £3.2m. During the quarter we started on site with the refurbishment of 6 industrialunits at Ocean Trade Centre in Aberdeen. The total cost will be circa £1.4m andwe are close to completing a new 10 year lease on 4 of the units. We are alsoworking up a refurbishment and upgrade of our office investment at White BearYard in Farringdon, at a potential cost of £2.5m. This building is in a verydesirable area and we want to capitalise on the strong tenant demand. We expect the UK real estate market to provide a total return of low doubledigits in 2015. Although this is attractive it will fall short of theexceptional returns experienced in 2014.This growth is in part due to continuedstrong investment demand driven by a weight of money in the sector, but withthe continued improvement in occupier demand as well throughout the UK we canexpect to see more rental growth than in 2014. It is not envisaged that theelection will have a material impact on demand, and we intend to continueinvesting in good quality real estate that appeals to occupiers. The Companyhad an occupation rate of 97.5% as at the quarter end, with solicitorsinstructed on two further lettings, and the average unexpired lease term (toearliest termination) has increased to 7.1 years. Cash position As at 31 March 2015 the Company had borrowings of £84.4mand a cash position of£17.4m (excluding rent deposits) therefore cash as a percentage of debt was20.6%. Dividends The Company paid an interim dividend in respect of the quarter ended 31December2014, of 1.161p per Ordinary Share, with ex-dividend and payment dates of5February 2015and 20 February 2015respectively. Loan to value and interest rate As at 31 March 2015 the loan to value ratio (assuming all cash is placed withRBS as an offset to the loan balance) was 23.4% (31December 2014: 29.3%). Thebank covenant level is 65%.As a result of interest rate swaps the weightedaverage interest rate on the loan is fixed at 3.7% until the loan matures inDecember 2018. The Company has two interest rate hedges which mature in December 2018 and havea current liability of £2.9m (31 December 2014: £2.7m).These had a negativeimpact on the NAV of 0.1p per share or 0.1% over the quarter. Net Asset analysis as at 31 March 2015 (unaudited) £m %of net assets Office 112.8 53.1 Retail 63.4 29.8 Industrial 110.4 51.9 Total Property Portfolio 286.6 134.8 Adjustment for lease (2.0) (0.9)incentives Fair value of Property 284.6 133.9Portfolio Cash 17.4 8.2 Other Assets 3.8 1.8 Total Assets 305.8 143.9 Non-current liabilities (87.0) (40.9) Current liabilities (6.3) (3.0) Total Net Assets 212.5 100.0 Breakdown in valuation movements over the period 1 Jan 2015 to 31 Mar 2015 Exposure as Capital Value Capital at 31 Mar Movement on Value 2015 (%) Standing Movement on Portfolio (%) Portfolio (£m) External Property Valuation 270.2at 31 Dec 2014 IPD Sub Sector Analysis: RETAIL South East Retail 5.7 2.2 0.4 Retail Warehouses 16.4 0.1 15.9* OFFICES London City Offices 6.2 5.5 0.9 London West End Offices 3.3 0.0 0.0 South East Offices 19.6 1.5 (2.3)* Rest of UK Offices 10.3 (0.7) (0.2) INDUSTRIAL South East Industrial 8.7 2.8 0.7 Rest of UK Industrial 29.8 1.3 1.1 External Property Valuation 100.0 1.5 286.7**at 31 Mar 2015 *Due to purchase of oneretail investment and the sale of one office investment **Adjusted to exclude sales costs of properties held for sale at 31 March 2015 Top 10 Properties 31 Mar 15 (£m) White Bear Yard, London 15-20 DSG, Preston 15-20 Chester House, Farnborough 15-20 Symphony, Rotherham 15-20 Denby242, Denby 10-15 Hertford Place, Rickmansworth 10-15 St James's House, Cheltenham 10-15 Hollywood Green, London 10-15 3B - C Michigan Drive, Milton Keynes 10-15 Howard Town Retail Park, Glossop 10-15 The Board is not aware of any other significant events or transactions whichhave occurred between 31 March 2015 and the date of publication of this statementwhich 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 websitewhich can be found at:www.standardlifeinvestments.com/its For further information:- Jason Baggaley - Real Estate Fund Manager Standard Life InvestmentsTel +44 (0) 131 245 2833 or jason_baggaley@standardlife.com Gordon Humphries - Head of Investment Companies Standard Life InvestmentsTel +44 (0) 131 245 2735 or gordon_humphries@standardlife.com The Company SecretaryNorthern Trust International Fund Administration Services (Guernsey) LtdTrafalgar CourtLes BanquesSt Peter PortGY1 3QLTel: 01481 745001Fax: 01481 745085