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19 Apr 2011 17:05
STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED
31 March 2011
Key Highlights
·; Net asset value per ordinary share was 64.1p as at 31 March 2011, an increase of 1.7% from 31 December 2010
·; Cash held by the Trust of £13.7m as at 31 March 2011
·; Property worth £8.375m purchased in Q1 2011
·; Dividend yield of 6.5% using the share price as at 15 April 2011 of 67.25p
Net Asset Value
The unaudited net asset value per ordinary share of Standard Life Investments Property Income Trust Limited at 31 March 2011 was 64.1 pence. This is an increase of 1.7% percentage points over the net asset value of 63.0 pence per share at 31 December 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 March 2011.
The net asset value incorporates the external portfolio valuation by Jones Lang LaSalle at 31 March 2011. The property portfolio will next be valued by an external valuer during June 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 31 December 2010 to 31 March 2011.
Pence per share | % of opening NAV | |
Net Asset Value per share as at 31 December 2010 | 63.0 | - |
Loss - realised and unrealised following revaluation of property portfolio (including the effect of gearing) |
(0.1) |
(0.2)% |
Increase in interest rate swap valuations | 1.1 | 1.7% |
Other movement in reserves | 0.1 | 0.2% |
Net Asset Value per share as at 31 March 2011 | 64.1 | 1.7% |
The standing property portfolio, ignoring the impact of debt, benefited from capital growth over the quarter of 0.2%, however the impact of purchase costs of Bourne House, Staines meant the overall capital growth on the portfolio was -0.1% over the quarter.
Cash position
As at 31 March 2011 the Company had borrowings of £84.4m and a cash position of £13.7m (excluding rent deposits) therefore cash as a percentage of debt was 16.2%.
Loan to value ratio
As at 31 March 2011 the loan to value ratio (assuming all cash is placed with RBS as an offset to the loan balance) was 43.1% (31 December 2010: 40.8%). The covenant level is 65%.
Interest Rate Swaps
The interest rate swaps had a positive impact on the NAV of 1.1p per share or 1.7% over the quarter, and the fair value liability is £(6.2)m as at 31 March 2011. This fair value will reduce to £nil by Dec 2013, although not on a straight line basis.
Total asset analysis as at 31 March 2011 (unaudited)
£m | % | |
Office | 71.6 | 40.0 |
Retail | 39.8 | 22.2 |
Industrial | 49.5 | 27.6 |
Other | 3.4 | 1.9 |
Total Property Portfolio | 164.3 | 91.7 |
Cash | 13.6 | 7.6 |
Other Assets | 1.4 | 0.7 |
Total Gross Assets | 179.3 | 100.0 |
Breakdown in valuation movements over the period 31 Dec 2010 to 31 Mar 2011
Exposure as at 31 Mar 2011 (%) | Capital Value Movement on Standing Portfolio (%) | £m | |
External Valuation at 31/12/10 | 155.0 | ||
Sub Sector Analysis: | |||
RETAIL | |||
South East Retail | 6.0 | 0.0 | 0.0 |
Retail Warehouses | 18.2 | 0.4 | 0.1 |
OFFICES | |||
Central London Offices | 15.7 | 2.2 | 0.6 |
South East Offices | 4.7 | (2.2) | (0.2) |
Rest of UK Offices | 18.1 | 2.0 | 0.6 |
INDUSTRIAL | |||
South East Industrial | 4.6 | (2.0) | (0.2) |
Rest of UK Industrial | 25.5 | 0.0 | 0.0 |
OTHER | 2.1 | 0.0 | 0.0 |
Purchases during Q1 2011 | 5.1 | 8.4 | |
External Valuation at 31/03/11 | 100 | (0.1) | 164.3 |
Investment Manager Commentary
The Company completed the purchase of Bourne House Staines at the beginning of the quarter for £8.375m showing a yield of 9.2%. The property is let until 2016 to UB Group and offers an opportunity for asset management as the tenant does not occupy the property.
The property portfolio provided a total return of 1.8% over the quarter, lagging the IPD Monthly index of 2.3%, in part due to the impact of purchase costs on the Staines acquisition. Over the twelve months to 31 March the Company's property portfolio returned 11.7% against the IPD monthly index 10.7%.
The Company has returned to a strong revenue position after investing cash and the completion of the development in Aberdeen which along with control of costs, meant the Company had a positive movement in retained earnings and a covered dividend.
* 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
Appendix 1
Historical adjusted IFRS NAVs per Ordinary Share are as follows:
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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