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18 Oct 2012 10:30
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED
30 September 2012
Key Highlights
·; Dividend yield of 7.3% based on share price of 62.5p (16 October 2012)
·; Continued outperformance of property portfolio against the IPD Monthly Index with a Q3 total return of 0.98% against the index of 0.6%
·; Cash held by the Trust was £6.0m at 30 September 2012
·; Net asset value per ordinary share was 58.5p as at 30 September 2012, a decrease of 3.0% from 30 June 2012
Net Asset Value
The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 30 September 2012 was 58.5 pence. This is a decrease of 3.0% over the net asset value of 60.3 pence per share at 30 June 2012.
The net asset value is calculated under International Financial Reporting Standards ("IFRS") and includes a provision for payment of an interim dividend of 1.133p per ordinary share for the quarter to 30 September 2012.
The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 30 September 2012. The property portfolio will next be valued by an external valuer during December 2012 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 June 2012 to 30 September 2012.
Pence per share | % of opening NAV | |
Net Asset Value per share as at 30 June 2012 | 60.3 | - |
Loss - realised and unrealised following revaluation of property portfolio (including the effect of gearing) |
(1.2) |
(2.0)% |
Decrease in interest rate swap valuations | (0.5) | (0.8)% |
Other movement in reserves | (0.1) | (0.2)% |
Net Asset Value per share as at 30 September 2012 | 58.5 | (3.0)% |
30 Sept 2012 | 30 June 2012 | |
European Public Real Estate Association Net Asset Value per share as at 30 September 2012 | 63.9 | 65.2 |
The EPRA net asset value measure is to highlight the fair value of net assets on an on going, long-term basis. Assets and liabilities that are not expected to crystallise in normal circumstances, such as the fair value of financial derivatives, are therefore excluded.
Investment Manager Commentary
The IPD monthly index continued to see capital values fall in Q3, although the total return remained positive at 0.6% due to the income return. Although full benchmark figures are not yet available the Company continued to outperform the IPD Monthly index with a Q3 total return of 0.98%.
During the quarter the Company completed the letting of the vacant 2nd floor at 140 West George St Glasgow as well as a small kiosk unit in Monck St Glasgow and started the refurbishment of the 4th floor St James House Cheltenham following its recent purchase.
Cash position
As at 30 September 2012 the Company had borrowings of £84.4m and a cash position of £6.0m (excluding rent deposits) therefore cash as a percentage of debt was 7.1%.
Loan to value ratio
As at 30 September 2012 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 45.9% (30 June 2012: 45.5%). The covenant level is 65%.
Interest Rate Swaps
The interest rate swaps had a negative impact on the NAV of 0.5p per share or 0.8% over the quarter, and the fair value liability is £(7.5)m as at 30 September 2012. The Company has one interest rate hedge maturing in December 2013 with a current liability of £4.1m. This will have a value of £0 by maturity in December 2013. The other interest rate hedges mature in December 2018, and have a current liability of £3.4m.
Total asset analysis as at 30 September 2012 (unaudited)
£m | % | |
Office | 82.2 | 46.0 |
Retail | 39.3 | 22.0 |
Industrial | 45.5 | 25.4 |
Other | 3.8 | 2.1 |
Total Property Portfolio | 170.8 | 95.5 |
Cash | 6.0 | 3.4 |
Other Assets | 1.9 | 1.1 |
Total Gross Assets | 178.7 | 100.0 |
Breakdown in valuation movements over the period 30 June 2012 to 30 Sept 2012
Exposure as at 30 Sept 2012 (%) | Capital Value Movement on Standing Portfolio (%) | £m | |
External Valuation at 30/06/2012 | 172.4 | ||
Sub Sector Analysis: | |||
RETAIL | |||
South East Retail | 5.9 | 0.5 | 0.1 |
Retail Warehouses | 17.1 | (1.2) | (0.3) |
OFFICES | |||
Central London Offices | 9.4 | 0.6 | 0.1 |
South East Offices | 15.8 | (2.8) | (0.8) |
Rest of UK Offices | 23.0 | (0.4) | (0.2) |
INDUSTRIAL | |||
South East Industrial | 4.4 | (0.7) | (0.1) |
Rest of UK Industrial | 22.2 | (1.4) | (0.5) |
OTHER | 2.2 | 2.0 | 0.1 |
External Valuation at 30/09/12 | 100 | (0.9) | 170.8 |
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
Appendix 1
Historical adjusted IFRS NAVs per Ordinary Share are as follows:
30/09/12 | 58.45p | |
30/06/12 | 60.27p | |
31/03/12 | 61.91p | |
31/12/11 | 62.72p | |
30/09/11 | 61.49p | |
30/06/11 | 62.22p | |
31/03/11 | 64.09p | |
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 |
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