Standard Life Investment... Share Discussion Threads

[2wild] 23/2/2021 12:23

Got back in here with a small purchase at 60.75p. Also added to AEWU this morning at 81.86p, yielding 9.7% and with cost of debt below 1.5%, another outstanding REIT primary invested in Industrial property.

[hugepants] 22/2/2021 19:33

Portfolio at end Dec 2020 (from recent update) Industrial 48% Offices 32.5% (5% central London) Retail Warehouse 10% Leisure 5% Data Centre 2% Retail High Street 1.5% "The LTV of 23.0% provides sufficient headroom against banking covenants (Bank LTV covenant is 55% and interest rate cover required is 175% v 595% achieved)." Looking at the chart on this one there could be 50% upside here if it reverts to trading at a premium to NAV again! I make current yield 5% and discount to NAV of 25% but you'd expect the dividend to increase from here with rent collection at approx 90%. Still think this has one of the best portfolios. LTV only 23% and massive covenant cover.

[spectoacc] 08/2/2021 11:43

High-ish price too - onwards & upwards for SLI.

[nickrl] 08/2/2021 10:47

Chunky own share purchase reported from 5/2 1,143,588 Ordinary Shares at a price of 60.62 pence per share 3,692,585 Ordinary shares now held in treasury https://www.londonstockexchange.com/news-article/SLI/purchase-of-own-ordinary-shares/14856502

[skyship] 03/2/2021 11:53

* We continue to expect outperformance from logistics and supermarkets, with fashion retail continuing to lag. Offices remain an area of significant change, where there will undoubtedly be winners and losers. Indeed - Central city losers; regional winners...

[spectoacc] 03/2/2021 11:25

Sounds like it - predicting a big shake-up with winners & losers.

[spectoacc] 03/2/2021 10:07

Some interesting comments re offices too.

[nickrl] 03/2/2021 09:53

Yeah interesting that they recognise obligations on 90% distribution others seem to be sitting on the fence and just noting the obligation but not declaring there hand. I also like the statement " extension of Government restrictions on rental collection continues to impact, with several tenants withholding payment but accepting they will have to pay at some point" is another useful read across and if moratorium is lifted as planned hopefully that infers most companies will just pay up and not wait to be embarrassed by winding up orders.

[playful] 03/2/2021 07:47

Let's hope so!

[dr biotech] 03/2/2021 07:22

I was expecting a drop in NAV. May be the start of better times ahead.

[playful] 03/2/2021 07:15

Rent collection for the year above 90% too.

[spectoacc] 03/2/2021 07:12

Impressive NAV uplift, sensible divi hold (but with a 0.25p Special expected for this year), & only 23% LTV. Main uncertainty seems to be finding good purchases, a nice problem to have.

[cwa1] 13/1/2021 11:14

Cheers, thanks for that speeds

[speedsgh] 13/1/2021 11:02

From Winterflood trust tips for 2021... HTTPS://citywire.co.uk/investment-trust-insider/news/strong-managers-cheap-shares-winterflood-unveils-trust-tips-for-2021/a1447639 In commercial property the analysts made two changes. Among mainstream, heavily discounted UK real estate investment trusts, they now prefer Standard Life Investments Property Income* (SLI) over BMO Commercial Property Trust (BCPT) for its higher industrial weighting, lower retail exposure and better dividend prospects. Among specialist UK Reits, the broker plumped for Civitas Social Housing (CSH) over rival Residential Secure Income (RESI) because the dividend behind its prospective 5.1% yield is fully covered. ‘Civitas offers an interesting opportunity for investors looking for secure income from a UK real estate portfolio and we believe that the portfolio’s long-term, inflation-linked leases are appealing,’ Elliott argued. Tritax Eurobox (EBOX) and TR Property (TRY) had also been retained, he said.

[spectoacc] 09/1/2021 14:56

A small Citywire mention: "Elsewhere in the property sector, trusts such as Standard Life Investments Property Income (SLI) and BMO Commercial Property (BCPT) have bounced from their lows but remain well-below the levels that they were trading at last year. My feeling is that most of these are oversold. For example, well over half of SLI’s portfolio is in industrial property, which is set fair. "

[dr biotech] 08/1/2021 09:59

Or NAV will drop to below the share price .. I have quite a lot of these, I think they are well managed and the current discount represents a decent buy assuming things will return to "normal". The nagging doubt in my mind is that the new normal will be a lot more working from home. I'm partially doing it (though as I often see labs I normally need to visit) and my wife is now full time from home. She thinks post covid she'll be home 3-4 days a week. Her company had two floors of a multi storey and they are in the process of giving up one of them. I have been impressed with the management here over the years so will hold on.

[essentialinvestor] 08/1/2021 09:43

Due a move. Should trade above NAV again in time.

[llef] 07/1/2021 16:14

I've added to my position here too today. re the sales announced on 23 dec for 44m, looking back at end sep NAV results, SLI said the following "On 4 September, the Company completed the purchase of a B&Q Retail Warehouse in Halesowen for £19.5 million, financed by its low cost revolving credit facility. The purchase reflects an initial yield of 7.5% and is let to B&Q Ltd for a further 11 years to lease expiry, providing secure income given the strong tenant covenant and good unexpired lease term." so maybe this is they kind of purchase they meant when they said "We are considering a number of new investments that we believe will better meet the Company's needs in the future"

[essentialinvestor] 07/1/2021 14:54

Back in like Flynn.

[essentialinvestor] 23/12/2020 12:23

Speed, hindsight- thanks for the views.

[speedsgh] 23/12/2020 12:07

Not particularly, EI. However Jason Baggaley has done a pretty decent job over a number of years as the invesmtment manager of this trust so, whilst I do not currently hold (I already have a healthy exposure to the sector through other REITs & ITs), I would be happy to do so again at the right price in the future.

[essentialinvestor] 23/12/2020 12:03

speed, do you have a view on those sales?, rational etc. Thanks.

[speedsgh] 23/12/2020 12:00

A little bit of background on a couple of the disposals announced today... Interfleet House, Derby www.proplist.com/search/for-sale/north-shields?page=2 Property type: office Tenant: Atkins Ltd (part of the SNC-Lavalin Group) Rent: Lease expiry 2/2/2026 at the passing rental of £420,000 (£14.60 psf) Guide price: £4.65m Sold for: £4.3m Previous valuation: £3.8m Net yield: 9%+ Middle Engine Lane, North Shields Property type: retail warehouse Tenant: Smyth's Toys Background: Purchased by SLIPIT in Dec 2015 as part of the acquisition of a portfolio of 22 commercial properties from Aviva Investors UK Real Estate Recovery II Unit Trust, a Jersey property unit trust. SLIPIT undertook a fundraising (placing + offer for subscription) to help finance the purchase and the follwoing information was provided within the fundraising prospectus... HTTPS://data.fca.org.uk/artefacts/NSM/data-migration/100889980.pdf Address: Smyth’s Toys, Middle Engine Lane, North Shields Description & Tenure: Freehold. 1993 detached retail warehouse providing approximately 1,524 sq m (16,400 sq ft) GIA – the tenant has installed a 465 sq m (5,000 sq ft) mezzanine – plus 92 surface car parking spaces on a site of 1.51 acres. Occupational tenancy: Let to Smyth’s Toys UK Ltd for 15 years expiring 28 March 2022 with a rent review at 29 March 2017 at RPI over the previous 10 years compounded annually multiplied by 1.2% per annum, RPI capped at 2.5% per annum, with no further reviews. Current net annual rent receivable: £371,138 In SLIPIT's 2019 annual report the North Shields property was valued at £2m-£4m. Prior to that it had been valued at £4-£6m in each annual report since acquisition.

[essentialinvestor] 23/12/2020 11:44

They had circa £37 Million drawn on the RCF, prior to the latest transactions.

[hindsight] 23/12/2020 11:25

Or as they have started a buy back, if want to hold LTV they have to sell something. Our BTLs are up about 10% this year, one is becoming vacant, do we sell and buy property shares at -30%. Not apples and apples but same type of argument