Standard Life Investment... Share Discussion Threads

[essentialinvestor] 21/12/2018 11:17

Had a small amount.

Dr, think I mentioned this would be available under NAV.
Would be surprised if we do not revist the 70's, if so will add.

[dr biotech] 19/9/2018 17:11

Uncovered dividend as they are holding quite a large amount of uninvested cash. Worthy but dull to me.

[essentialinvestor] 19/9/2018 11:34

Poor value imv, unsurprised by the sell off.

Dividend uncovered near a cycle top.

[speedsgh] 12/6/2018 15:13

Latest Edison research note...

Embracing the changing environment -

[noiseboy] 02/6/2018 00:15

Dividend late again AJ Bell!

[speedsgh] 01/5/2018 10:42

Investment Manager Commentary

The first quarter is generally fairly quiet as investors and occupiers take
stock and plan for the year ahead. This year, however, activity seemed to
continue on from the end of 2017 with little change. The Company was no
exception, with several transactions rolling over from last year and some new
activity. It was pleasing to complete a new lease on the Company's largest
vacant building in January, and over the quarter we found inspection levels on
all the vacant units was higher than in Q4 last year. Although lettings are
taking longer to secure, the level of interest is encouraging and generally new
leases have been agreed on better terms than assumed in the Company's
valuations. The void level reduced over the quarter to 5.8%, and is likely to
be in a range between 5%-10% throughout the year as various leases expire and
new lettings are completed.

Three purchases were completed in Q1, with a total investment of just over GBP
23m. The two industrial / logistics units are let on long leases with
indexation, and although the units are older, they provide cost efficient
occupation for the tenants, with future potential for redevelopment. The
leisure scheme in Aintree is adjacent to the race course, and we are already
actively engaged in extending leases to give long term secure income. As a
result of two sales of offices with potentially large capex requirements the
Company has a larger than normal cash holding (c10%) at quarter end. This
larger than normal cash holding obviously has a short term impact on the level
of dividend cover given the low yield on cash holdings. We are, however,
considering several investment opportunities and will seek to invest the cash
over the next 6 months into assets with lower capex requirements and stronger
growth potential. Investing the cash in suitable investments will enable the
Company to move back towards a covered dividend.

Market Commentary

UK economic growth was 0.4% in the fourth quarter of 2017 and was revised down
to 1.7% for the year as a whole. Early data for the first quarter of 2018 has
been underwhelming, particularly for the services sector. Retail sales figures
have been particularly weak over the first quarter, however there are signs
that the economy will benefit from a recovery in household spending power later
this year as the tight labour market starts to feed through into stronger wage
growth. Regular pay growth reached 2.8% in February, while consumer price
inflation (CPI) fell to 2.5% in March. The Bank of England has signalled that
further rate rises are coming although the recent GDP announcement has cast
some doubt over the timing of these.

The UK property market produced a total return of 2.3% in Q1, according to the
MSCI Monthly Index. Over the 12 month period to 31 March the total return was
11.3% after a year of consistent capital growth resulting in 5.6% capital

growth over the 12 month period. The majority of this growth came from inward
yield shift, with rental value growth of only 2% over the 12 months.

Volatility in the financial markets in Q1 have been reflected in the negative
total returns of the FTSE All Share (-6.9%) and the FTSE 100 (-7.2%). The FTSE
All-Share REIT Index was also negative over the first quarter of 2018 at -3.5%.

Industrials remained the clear outperformer at a sector level, with a total
return of 4.3% over the quarter, led by strong returns in the South East and
rental growth of 1.0%. Office and retail total returns over the quarter were
more muted at 1.9% and 1.2% respectively, with a modest 0.4% growth in rents in
the former but flat rents in the latter. In the office sector, central London
underperformed the South East and the regions over the quarter with South East
offices now also the top performing office segment over the last five years.
Retail returns were weighed down by shopping centres, which returned just 0.4%
over the quarter but retail warehouse performance was healthier at 1.5%.

Investment Outlook

We envisage positive but low total returns over the next five years, with the
forecast annual total return being slightly below the market income return.
Aside from industrial valuations catching up with extremely strong pricing and
delivering appreciably stronger returns in the short term, we do not see yield
shift contributing positively to capital growth over the forecast period.
Relative differences in projected segment performance beyond that initial yield
shift for industrials are expected to be reasonably small, with no clear
outperforming segment beyond industrial in 2018. Whilst the downside risk is
greater as prices remain high in a long-term context, we do not see a specific
trigger for a correction. Fundamentals are positive in the industrial sector,
although retail is more polarised. Most office markets are well-balanced with
limited new supply, albeit we see more risk in London. Debt is accretive to
income returns and lending remains selective and prudent, with total debt much
lower than before the global financial crisis. There remains significant
capital targeting the asset class, both from overseas and domestic investors'
allocations, with the comparatively high income yield one of the attractions.
We would caution that property's required risk premium has likely increased
over time as leases have shortened and income has become riskier, while rental
growth prospects have diminished. With income expected to be the main driver of
returns over the forecast period, the degree of income risk - whether potential
tenant default or the durability of income at lease events - will be key to
asset performance. It remains our view that lower risk, higher quality assets
are likely to perform best over the medium term.

[speedsgh] 01/5/2018 10:41

Unaudited Net Asset Value as at 31 March 2018 -

Key Highlights

Solid Performance

* Net asset value ("NAV") per ordinary share was 89.4p (Dec 2017 - 87.6p), a
rise of 2.1%, resulting in a NAV total return, including dividends, of 3.4%
for Q1 2018;

* The portfolio valuation increased by 1.9% on a like for like basis, whilst
the IPD/MSCI Monthly Index rose by 1.0% over the same period.

Portfolio activity

* Purchase of a 216,180 sq ft logistics facility in Shellingford, Oxfordshire
on the established White Horse Business Park, for GBP11.5m, reflecting an
initial yield of 6.5%. The unit is let for 25 years without a break, and is
subject to five yearly upwards only rent reviews fixed at 2.5% pa.

* Purchase of the Grand National Retail Park in Aintree for a price of GBP
6.125m, reflecting an initial yield of 6.85%. The park is adjacent to the
race course, and consists of 4 units let as a leisure park to Premier Inn,
Pure Gym, Mitchells and Butler, and KFC. The investment benefits from
strong trade associated with the race course and provides opportunity for
asset management to extend leases from the current 8.1 years.

* Purchase of an industrial complex in Sandy, Bedfordshire for GBP6.02m,
reflecting a yield of 6.25%. The property is located immediately adjacent
to a junction of the A1, approximately 40 miles north of central London,
and is let for an unexpired term of 19 years at a rent of GBP3.17psf, subject
to indexed increases in rent every five years.

Sales

* Completion of the sale of Elstree Tower in Borehamwood for GBP20m previously
announced in September 2017.

* Post the period end completed the sale of Charter Court, a multi let office
in Slough for GBP13.25m, 9.6% ahead of the end December valuation.

The transactions above have continued the process of selling assets where
future returns are expected to come under pressure and reinvesting into assets
in favoured sectors that offer secure income and better future performance
characteristics.

Successful asset management activity

* Completed the letting of 1 Marsh Way, Rainham, the Company's largest void.
The property has been let on a 15 year lease (with tenant break option in
the tenth year) at a starting rent of GBP636,200pa.

* Voids rate as at 31 March 2018 was 5.8% (Dec 2017 - 7.7%).

Strong balance sheet with prudent gearing

* LTV* of 14.3% and uncommitted cash of GBP44.1m post the quarter end
transactions with RCF of GBP35m also still available for investment in future
opportunities.

* Two year extension of existing GBP35million Revolving Credit facility ("RCF")
secured with Royal Bank of Scotland. While the margin over LIBOR on the RCF
will increase from 1.2% to 1.45% this extension will mean the RCF will now
expire at same time as the term loan in April 2023 providing the Company
with increased certainty of both availability and cost of financing to this
date. The interest rate on the Company's GBP110 million term loan remains
fixed at 2.725%.

Premium rating

* Continued strong demand for the Company's shares with 8.25m shares issued
in the quarter raising proceeds of GBP7.6m. As at 24 Apr 2018 the share price
was 94.2p - a premium to the 31 March NAV of 5.4%.

Attractive dividend yield

* Dividend yield of 5.1% based on a quarterly dividend of 1.19p as at 24 Apr
2018 compares favourably to the yield on the FTSE All-Share REIT Index
(3.8%) and the FTSE All Share Index (3.7%) as at the same date.

Net Asset Value ("NAV")

The unaudited net asset value per ordinary share of Standard Life Investments
Property Income Trust Limited ("SLIPIT") at 31 Mar 2018 was 89.4p. The net
asset value is calculated under International Financial Reporting Standards
("IFRS").

The net asset value incorporates the external portfolio valuation by Knight
Frank LLP at 31 Mar 2018.

[jonwig] 08/4/2018 14:43

Dr B - I know nothing about Bracknell, except that maybe Oscar Wilde had an unpleasant experience there.

Seriously, I agree - this should be one to hold through the next down-cycle.

[dr biotech] 08/4/2018 11:06

This is one of my more longer term holdings. Its actually my highest share by value, although I consider it to be property rather than equity if that makes sense (just easier to hold than an actual property).

I think they seem to have picked the longer term trends correctly -so they don't have any retail space and its not in the over heated central london area either. So I trust their judgement. Been some time since I was last in Bracknell. I had a curry in a restaurant that was a bit like an old airport lounge with plastic chairs.

[topvest] 06/4/2018 18:37

A solid trust at the value end of the spectrum. Happy to hold.

[pj fozzie] 06/4/2018 13:40

I agree - thus the "Their logic seems sound" comment. However - there is an awful lot of empty office space in Bracknell, much of which seems to have been vacant for multiple years. The fact that some landlords have failed to find tenants is what has probably driven the conversion of office space into accommodation - which is in demand. My concern is that one of the reasons that SLI are using to support their purchase "loss of office accommodation to residential use" is in fact a symptom of there being too much office space!

As I said, I just have to trust that the SLI guys know better.

Cheers,
PJ

[jonwig] 06/4/2018 12:54

This tells me it might not be too bad!

One Station Square, Bracknell: We purchased a refurbished multi-let office located adjacent to the train station for £12 million, with a yield of 6.9% in December 2017. The building has one vacant floor and we believe the recent improvements to the town centre, and loss of office accommodation to residential use, provides good scope for future rental growth.

[pj fozzie] 06/4/2018 12:49

Yep, very happy with those results. Was interested to see they've acquired a property in my home town, Bracknell. Their logic seems sound - however, there appears to be a lot of empty office space in Bracknell - so it looks like a good market for companies to negotiate a lower rent. I guess I just have to trust the SLI guys know what they're doing.

Cheers,
PJ

[jonwig] 06/4/2018 07:46

Annual results:



Looks well-placed to weather any property downturn!

[speedsgh] 07/12/2017 16:09

New Edison research note...

Strong track record in UK commercial property -

[speedsgh] 24/10/2017 11:24

Unaudited Net Asset Value as at 30 September 2017 -

KEY HIGHLIGHTS

Solid Performance
* Net asset value ("NAV") per ordinary share as at 30 Sep was 86.0p (30 Jun 2017 - 83.9p), a rise of 2.5% over the period, resulting in a NAV total return, including dividends, of 4.0% for Q3;
* The portfolio valuation increased by 1.5% on a like for like basis, whilst the MSCI/IPD Monthly Index rose by 1.3% over the same period.

Positive portfolio activity
* Purchases of multi-let offices in Reading for GBP13.24m, reflecting an initial yield of 6.75% and in Manchester for GBP8.1m, reflecting an initial yield of 6.4% both of which provide opportunity for asset management;
* Purchase of a 46,800sqft industrial unit in Birmingham for a price of GBP 4.58m, reflecting an initial yield of 5.75% for a 15 year lease in place with no breaks.

Sales
* Sale of a 25,600sqft office on York Science Park for GBP4.35m, just ahead of the June 2017 valuation figure, to reduce the Company's out of town office exposure;
* Sale of a small industrial unit in Cheltenham to the tenant for GBP2.175m, reflecting a yield of 4.8%. The sale price was 8% ahead of the valuation as at 30 June;
* Sale of a stand-alone retail warehouse in Southend on Sea at a price of GBP 5m, 5% ahead of the end June valuation and reducing exposure to the retail sector;
* Exchanged contracts to sell Elstree Tower in Borehamwood for GBP20m. The 80,700sqft office was valued at the end of June at GBP18m. The sale removes risk relating to the break clause in 2020 while the delayed completion until Feb 2018, which is unconditional, provides the Company with additional income, and reduces cash drag while opportunities to reinvest the proceeds are being investigated.

Overall, the portfolio activity is in line with the strategy of disposing of
assets at a profit where this also reduces risk to the Company and reinvesting
in higher yielding assets in favoured sectors that offer the opportunity for
successful asset management.

Strong balance sheet with prudent gearing
* LTV of 21.6% as at 30 Sep with uncommitted cash of GBP10m and the RCF of GBP35m still available for investment in future opportunities.

Premium rating
* Continued strong demand for the Company's shares with the share price sitting at a premium to NAV of 7.0% as at 30 Sep.

Attractive dividend yield
* Dividend yield of 5.3% based on a quarterly dividend of 1.19p and the share price of 92p as at 30 Sep compares favourably to the yield on the FTSE All-Share REIT Index (3.6%) and the FTSE All Share Index (3.7%) as at the same date.

Net Asset Value ("NAV")
The unaudited net asset value per ordinary share of Standard Life Investments
Property Income Trust Limited ("SLIPIT") at 30 Sep 2017 was 86.0p. The net
asset value is calculated under International Financial Reporting Standards
("IFRS"). The net asset value incorporates the external portfolio valuation by Knight Frank as at 30 Sep 2017.

[jonwig] 31/8/2017 07:23

H1 results. They seem to outperform their benchmark on most measures, and the LtV reduction to below 20% which is probably wise at this stage in the cycle.

[speedsgh] 03/11/2016 11:09

Unaudited Net Asset Value as at 30 September 2016 -

Key Highlights

* Net asset value per ordinary share was 79.0p ( June 2016 - 81.8p), a fall of 3.4%, resulting in a NAV total return, including dividends, of -2.1% for Q3;

* The portfolio valuation decreased by 2.2% on a like for like basis, whilst the IPD/MSCI Monthly Index fell by 3.6% over the same period;

* Positive share price performance in the quarter with share price total return of 5.0% resulting in the Company's shares trading at a premium to NAV of 3.5% as at 30 Sep 2016;

* Successful asset management initiatives up to the date of this announcement included
· 3 new lettings of industrial units in Aberdeen and one
lease renewal
· Refurbishment completed on largest void in the portfolio - Broadgate Oldham
· Terms agreed for letting of one of three vacant units at Trafford Park Manchester

* Low void rate of 4.4% as at 30 Sep 2016 (which will decrease by 1% on completion of sale of a property in Bristol);

* Dividend yield of 5.8% based on a quarterly dividend of 1.19p as at 30 Sep 2016 compares favourably to the yield on the FTSE All-Share REIT Index (3.6%) and the FTSE All Share Index (3.5%) as at the same date; it is anticipated the dividend will be covered for the financial year.

[speedsgh] 02/9/2016 15:07

New Edison research note...

Broader diversification following 2015 acquisition -

[jonwig] 02/8/2016 10:04

You mean the valuers' comments? I haven't checked around other companies, but I guess that's going to be standard practice for some time.

[dr biotech] 02/8/2016 09:26

Decent enough NAV but the statement is somewhat downbeat. I feel they are worth holding just for the yield over the next 5 years or so, doubt there will be a huge capital gain or loss over that time.

[asmodeus] 11/7/2016 16:10

And they're up another 10% today!(it says on ADVFN)

[caradog] 11/7/2016 11:56

Well, I sold the added shares I bought 6 days ago. 15% increase is a very good bankable profit for very little effort.

[badtime] 11/7/2016 10:34

Those buys sub seventies r beginning to look attractive

[dr biotech] 11/7/2016 10:10

Can imagine that in US$ terms commercial property has suddenly become a lot more attractive than it was a few weeks ago. Yield here is still 6%

I did look briefly at the express - they do put the daily collapse in exchange rate as being a good thing only as it helps exporters. They seem to gloss over the fact that only 10% of our GDP is manufacturing. It will become more apparent to their readers later in the year when the price of their two weeks in the sun goes up that it has not been a good thing. But that is a discussion for another board/time.