SLI.L Regulatory News (SLI)

28 January 2015 STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE: SLI) Unaudited Net Asset Valueas at 31 December 2014 Key Highlights * Net asset value per ordinary share was 74.4p as at 31 December 2014 which is arrived at after deducting the Q4 dividend due to be paid in February 2015. This is an increase of 3.5% from 30 September 2014. * Successful placing of approximately 26.5m ordinary shares at 75.5p per share under the Placing Programme announced on 13 November 2014, raising gross proceeds of approximately £20.0m. * Five industrial properties purchased in November 2014 for £23.8m excluding costs and one retail property purchased in November 2014 for £10.1m excluding costs. * Dividend yield of 5.7% based on share price of 81.0p (26 January 2015). * Current market capitalisation - £200m. Net Asset Value ("NAV") The unaudited net asset value per ordinary share of Standard Life InvestmentsProperty Income Trust Limited ("SLIPIT") at 31 December 2014 was 74.4 penceincluding the adjustment for the Q4 dividend payment due in February 2015. Thisis an increase of 3.5% over the net asset value of 71.9 pence (including theadjustment for the Q3 dividend) per share at 30 September 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 December 2014. The property portfolio will next be valued by theexternal valuer during March 2015 and the next quarterly net asset value willbe published 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 30 September 2014 to 31 December 2014. £m Pence % of opening per NAV share Unaudited Net Asset Value at 30 September 2014 159.1 73.1 - Gain - realised and unrealised following 6.8 3.0 4.3%revaluation of property portfolio (including theeffect of gearing) Increasein unrealised interest rate swap (1.8) (0.8) (1.1%)liability 0.5 0.2 0.3%Other movement in reserves Increase in share capital 19.8 Unaudited Net Asset Value at 31 December 2014before adjustment for dividend 184.4 75.5 3.5% Adjustment for Q4 dividend (2.8) (1.1) Unaudited Net Asset Value at 31 December 2014after adjustment for dividend 181.6 74.4 European Public Real Estate Association 31Dec 2014 30 Sept 2014("EPRA")* EPRA Net Asset Value before adjustment £187.1m £160.0mfor dividend EPRA Net Asset Value after adjustment £184.3m £157.5mfor dividend EPRA Net Asset Value per share before 76.6p 73.5padjustment for dividend EPRA Net Asset Value per share after 75.5p 72.3padjustment for dividend The Net Asset Value per share is calculated using 244,216,165 shares of 1p eachbeing the number in issue on 31 December 2014. \* 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 The Company continued its active year with a further equity raise and purchaseof assets in Q4. We remained focussed on protecting existing shareholder value,raising the new equity at a 5% premium to NAV, and then investing the equityquickly into a pre identified portfolio to minimise cash drag. A portfolio of five industrial / logistics units was purchased at a yield of7.3% achieving further investment into a strong sector with some scope forasset management. The Company also acquired a mixed use retail and leisureinvestment in Glossop for £10.1m, giving it access to some new strong tenantsand an asset with scope for future growth. As a result of these purchases theCompany had a very low level of free cash at year end. However, in January, wecompleted the sale of a small office in Weybridge for £3.2m and the proceedswill be used for the refurbishment of some industrial units in Aberdeen and atan office in Farringdon, London. At a portfolio level the standing portfolio saw capital growth of 3.3% (IPDmonthly index 2.9%) which included an uplift from the sale of a small office inWeybridge at a premium of £1.0m to its previous valuation of £2.2m.Thevaluation of the Swindon asset had a negative impact. We had been close toagreeing terms on a letting to Asda but with the challenges in the food sectorthe letting has fallen away and we have reduced the valuation as a result. TheCompany had a NAV total return for Q4 of 4.9% and 23.2% for 2014. On 1 January 2015 the Company converted to being a UK REIT so, although itremains a Guernsey registered company, it has moved onshore for tax residency. The Company had a dividend cover of 100.7% in 2014, even after recognising thewrite down of its deferred tax asset of £0.6m as a revenue item. After addingback this item the dividend cover was 107.2%. Cash position As at 31 December 2014 the Company had borrowings of £84.4m and a cash positionof £5.4m (excluding rent deposits) therefore cash as a percentage of debt was6.4%. Dividends The Company paid an interim dividend in respect of the quarter ended30 September 2014, of 1.161p per Ordinary Share, with ex-dividend and paymentdates of 13 November 2014 and 28 November 2014 respectively. Loan to value and interest rate As at 31 December 2014 the loan to value ratio (assuming all cash is placedwith RBS as an offset to the loan balance) was 29.3% (30 September 2014:27.9%). The bank covenant level is 65%.As a result of interest rate swaps theweighted average interest rate on the loan is fixed at 3.8% until the loanmatures in December 2018. The Company has two interest rate hedges which mature in December 2018 and havea current liability of £2.7m (30 September 2014: £0.9m). These had a negativeimpact on the NAV of 0.8p per share or 1.1% over the quarter. Net Asset analysis as at 31 December 2014 (unaudited) £m %of net assets Office 114.3 62.0 Retail 47.1 25.6 Industrial 108.7 58.9 Total Property Portfolio 270.1 146.5 Adjustment for lease (1.8) (1.0)incentives Fair value of Property 268.3 145.5Portfolio Cash 5.4 2.9 Other Assets 4.4 2.4 Total Assets 278.1 150.8 Non-current liabilities (86.7) (47.0) Current liabilities (7.0) (3.8) Total Net Assets 184.4 100.0 Breakdown in valuation movements over the period 1 Oct 2014 to 31 Dec 2014 Exposure as Capital Value Capital at 31 Dec Movement on Value 2014 (%) Standing Movement on Portfolio (%) Portfolio (£m) External Property Valuation 228.1at 30 Sep 2014 Sub Sector Analysis: RETAIL South East Retail 4.1 0.0 0.0 Retail Warehouses 13.3 1.8 10.9* OFFICES Central London Offices 9.7 6.8 1.7 South East Offices 21.7 3.7 2.1 Rest of UK Offices 11.0 3.2 0.9 INDUSTRIAL South East Industrial 8.9 5.4 15.1* Rest of UK Industrial 31.3 2.6 11.4* External Property Valuation 100.0 3.3 270.2**at 31 Dec 2014 *Due to purchase of five industrial investments and one retail investment **Adjusted to exclude sales costs of properties held for sale at 31 December2014 Top 10 Properties 31 Dec 2014 (£m) White Bear Yard, London 15-20 Chester House, Farnborough 15-20 Symphony, Rotherham 15-20 Denby 242, 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 Bourne House, Staines 5-10 On 20 January 2015 the Company completed the sale of De Ville Court, an officeinvestment in Weybridge for £3.2m excluding costs. The Board is not aware of any other significant events or transactions whichhave occurred between 31 December 2014 and the date of publication of thisstatement which would have a material impact on the financial position of theCompany. 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) 1312452833 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