Standard Life Investment... Share Discussion Threads

[hugepants] 13/7/2020 13:18

In that scenario NAV goes down to 61.5p and LTV increases to 31%. But SLI has over 50% industrial so that scenario looks very unlikely to me. Even if it did happen SLI would be nowhere near breaching their LTV covenants. Id think the likes of RLE, PCA etc would be at a pretty high risk though and Id imagine the portfolios of say BLND and LAND would suffer much bigger write-downs given their high exposure to retail (and offices?).
I reckon SLI should be able to cope with just about any downside scenario.

[essentialinvestor] 13/7/2020 08:56

If you allow for a further approx 20% fall in asset values and add on the gearing element,
the current NAV discount about disappears. So I'm not sure these are the bargain some may see imv.

[cousin jack] 11/7/2020 13:18

Hi Sky; Good question !

Many of the concerns on the B/b are valid. In particular progress since IPO has not matched the timetable/aspirations and Sigma clearly has a better deal than I think justifiable. The risks of being so dependant on SIGMA are also a concern. Additionally, although the the IPO stated that until the end of the development period the projected dividend could be funded from income and capital gains it is clear that the target dividend will have to be (or perhaps more accurately is being) reduced to match income.

However the rental housing market, particularly for families, is already undersupplied and I believe demand will increase given the outlook on the economy and housing market. The current share price is around c.23% discount to the NAV and as investors increasingly seek income I suspect that even a rebased dividend more in line with PRS's income will still provide a yield, perhaps around 5%,which will attract investors.

As an older investor seeking income that's my rationale. It's part of a strategy to have a core of relatively safe income shares (including some fixed income) so I have some income whilst gradually increasing my cash for what I increasingly see as a likely downturn in the autumn as results and a possible Covid second wave impact markets. Whether my decision to switch from SLI to PRS was sensible time will tell.

Good luck.

[skyship] 10/7/2020 17:04

CJ - why do you believe PRSR offers upside considering the appalling governance issues with Sigma Capital? Interesting read the B/b thread - no-one seems to have a good word to say about it!

I suppose the 5p dividend should be safe enough - but the 6.7% yield hardly shoots the lights out...

[essentialinvestor] 10/7/2020 16:43

Dr, I added today, just attempting to provide some explanation for
recent share price weakness.

Jack, luck with that.

[skyship] 10/7/2020 16:42

CJ - PRS - no such epic that I could find...

Ahh - found it - PRSR

[cousin jack] 10/7/2020 16:26

Whilst there is potential upside here at some point it could be some time ahead - and dividends could have been pared long the way. Consequently I've sold after holding for many years and reinvested into the PRS Reit. This also offers upside (although maybe not as much as SLI though) but with a much safer dividend. Its market, affordable housing and co-ownership, does not seem to be materially impacted by Covid issues as evidenced by a rent collection rate of 97% in May. I feel happier in this than SLI at the moment and hope it will be a less turbulent hold.

[dr biotech] 10/7/2020 16:10

Over the last 10 years this has typically traded near to NAV, often at a premium. It’s currently 30% discount. Even allowing for a further drop, it’s decent value.

[essentialinvestor] 10/7/2020 14:26

NAV has further to fall imv. It may not trough until Q1/2 2021.

However, it looks reasonable(ish) risk reward near current levels?.

[dr biotech] 10/7/2020 13:17

I’ve added another 6k today at 55.2 Whilst I’m not expecting growth, I am expecting the NAV to narrow.

[hugepants] 10/7/2020 10:39

Agree this looks rather good value at 57p. NAV discount over 30%, yield over 8% (but Id expect a cut). Industrial over 50% and hardly any exposure to worst hit sectors of retail and leisure.

Portfolio;

industrial 53%
offices 32%
retail warehouse 6%
retail 2%
other 7%

"The LTV of 24.4% provides plenty of head room against banking covenants
(values can fall by 53% and rent by 62% before the covenants are under pressure
based on 31 March covenants)"

[essentialinvestor] 06/7/2020 16:24

Had a small amount.

[petewy] 27/5/2020 09:28

An honest update?

[speedsgh] 12/5/2020 08:31

Unaudited Net Asset Value as at 31 March 2020 -

Net Asset Value and Valuations

# Net asset value (“NAV”) per ordinary share was 83.2p (Dec 19 – 89.9p), a decline of 7.5%, resulting in a NAV total return, including dividends, of -6.2% for Q1 2020;

# The portfolio valuation (before CAPEX) reduced by 4.9% on a like for like basis, whilst the IPD/MSCI Monthly Index dropped by 2.7% over the same period.

As at the valuation date of March 31 2020 the country was in the early days of the lockdown, and the investment market had come to a near virtual standstill. There was a lack of relevant transactional evidence, so the independent valuers inserted a material uncertainty clause in the valuation...

Dividends

# As previously announced the Company intends to pay a full quarterly dividend of 1.19p per share, in respect of the three month period to 31 March 2020, which is payable on 29 May 2020. This reflects the fact that a significant proportion of rent for this period was paid in advance, prior to the impact from the Covid-19 pandemic.

# Given the ongoing pandemic and lockdown, the rent collection for the period to 30 June 2020, and potentially thereafter, will be materially impacted which is likely to affect the Company’s future dividends. The Board will continue to monitor closely the situation in relation to rent collection and keep its future dividend policy under review accordingly.

[nickrl] 12/4/2020 14:59

SLI one of quite a few that still haven't put out a C19 update. Prelim results should be this week coming based on previous years but no date on website. Not entirely clear whether the FCA guidance still in place over delaying prelim results.

[younasm] 25/3/2020 20:59

I sold out at 70p - much too early.I am happy with that, as I thought 85-90p is the max return within 6-months.I will buy again, if there is a bigger downleg in May-20.

[dr biotech] 25/3/2020 15:54

Well timed buy younasm.

Have to keeps the buys/sells to less than 10k here not sure why. That was before the crisis too

[rik shaw] 20/3/2020 12:35

What kind of market is there in this share and similar, Can't get a quote online for any reasonable amount and yet looking at recent trades an algorithm is quietly accumulating cheap shares.

[dr biotech] 19/3/2020 22:38

Shouldn’t do - this is a trust so they are under no requirement to sell. Will buy some more soon.

[younasm] 19/3/2020 14:21

Added at 49.5p - looks good value unless they get wound up due to liquidity etc

[dr biotech] 12/3/2020 13:40

FWIW I have bought back in today - about £9k so just under half what I sold. I'm not a trader and never claim to be a great investor, but even if trade falls a bit through the virus this should still give some longer term value.

[dr biotech] 09/3/2020 14:01

Well those of us that sold seemed to have got our timing spectacularly right. Shame I didn’t sell everything. Some interesting yields to be had in financials and oils, think I’ll hold off for another couple of weeks though.

[winsome] 06/2/2020 10:33

I sold a few too at these prices but recycled into RLE. They have a good yield, good balance of property and at a big discount to NAV. In a recent update the CEO hinted (IMO) that he may be to open to an offer.

[ec2] 05/2/2020 12:59

Also reinvested into SREI having done my due diligence this morning. Good discount to NAV, looks like the next div is going to be raised by 19%. Also was able to pick up in large size in one shape with no issues.

[nickrl] 04/2/2020 21:48

Sold yesterday as well but took a while to clear. Recycled into SREI