Standard Life Investment... Share Discussion Threads

[speedsgh] 10/5/2021 12:20

Standard Life Investments Property Income upbeat on future (6/5) -

"... In an analyst call this morning, portfolio manager Jason Baggaley said it would take out some form of legal action on around 10 to 15 tenants to recoup arrears.

The property sector was handed a boost in this regards in recent weeks following the successful High Court judgment in favour of landlords in the battle for unpaid rent during the COVID pandemic..."

[playful] 06/5/2021 07:15

The 2020 dividend was covered 108% by income and, as the uncertainties caused by the pandemic gradually ease, the Board has now taken the decision to increase the quarterly dividend to 0.8925p. This is 25% higher than the quarterly dividends of 0.714p paid during the pandemic. Given current rent collection rates the Board believes this rate is sustainable even though the recent asset sales will reduce rental income until reinvestment occurs. The Board will keep the quarterly dividend under review as lockdown measures are eased and as rental collection levels improve further and the reinvestment of the asset sales proceeds takes place.

[winsome] 30/4/2021 13:43

I expect the share price to return to levels to match the NAV once Covid is over with. They have good quality assets and if they sit at a big discount for too long they'll simply be bought over by a foreign company. NAV has probably already kept rising since December year end. So I'm hoping for a return to the norm within the next 12 months, ie, around 85p plus divs.

[speedsgh] 30/4/2021 13:16

For much of the past decade SLI has regularly traded at a premium to its NAV...

[spectoacc] 30/4/2021 12:54

I've been a seller today but it highlights the smaller REIT value out there IMO. In normal times some (inc SLI) were trading at par.

[speedsgh] 30/4/2021 12:26

The excerpts below from today's Final Results are not new news but worth highlighting. The Investment Manager (Jason Baggaley) has been guiding in various presentations in recent months that, whilst the dividend is likely to incease from the current level, we should not assume that it will return to its pre-Covid level, nor should this be the trust's target. There will be a greater focus on total return in future which seems pretty sensible.



"The Board will continue to monitor the progress of the vaccine roll out on lockdown restrictions, rent collection and hence earnings on a quarterly basis. Furthermore, the Company in future will need to acquire properties that are well equipped and relevant for a post COVID world, which will tend to offer more modest income yields. A key aim, barring any further lockdowns, is to increase the dividend back to a level that is sustainable given the current portfolio as well as future investment and letting activity."

Under INVESTMENT STRATEGY...

"As the immediate impact of COVID-19 lockdowns eases and the economy reopens, so one expects to see a recovery in the rents received by the Company and, potentially enabling an increase in the dividend again. COVID-19 has, however, accelerated trends already seen in the market and the Board and Investment Manager believe that some changes in emphasis in the investment strategy are required.

Income remains a key focus, but it should not be at the expense of total return, and it is important that we invest in assets that can produce a reliable future income. ESG is an important consideration and we believe that only assets that meet high ESG standards will appeal to tenants and provide a strong resilient income flow. As such we expect future investments to have a strong ESG focus and that will have an impact in the yield we obtain. This is a nuanced change of focus, with ESG driving our strategy more, and means the portfolio yield is likely to trend to the low 5%s from the existing 5.8%. Although these assets might have lower yields, they are likely to have stronger net operating income growth to support future dividend growth.

Later in the report we detail the Company’s ESG activities: however it is worth pointing out under the investment strategy that ESG is at the heart of everything we do. We believe that having a portfolio which is fit for the future, will meet occupiers’ needs and provide the strongest returns, requires a progressive approach to ESG. As such, ESG is a key component of decision making for the Company."

[panshanger1] 30/4/2021 10:55

Decent results this morning Share price recovering nicely now

[hindsight] 29/4/2021 20:09

I was hoping the weakness pre divi was indicating a fall post, to add to my holding on a 12 month view.

[panshanger1] 29/4/2021 18:12

Yes -ex div today Strong finish too !!Decent management though and did stick with this

[cwa1] 29/4/2021 09:58

Ex the modest fifth dividend this morning AND share price ahead. Happy days :-)

[2wild] 21/4/2021 12:54

No reason why not, hopefully they will increase it to 0.9p.

[irishmatt] 21/4/2021 12:13

I think so

[nbudd] 21/4/2021 12:12

So, will we still receive the first dividend for the current year in May as well as the fifth for last year?

[spectoacc] 19/4/2021 15:07

Good stuff - had no idea how much to expect, but anything is a plus.

Should they succeed in recovering rent from non-payers - and the govnt seems determined to screw over landlords - perhaps we'll get more in future.

[speedsgh] 19/4/2021 12:01

Dividend Declaration -

Fifth Interim Dividend

On 3 February 2021, recognising the importance of dividends to shareholders, the Board indicated that a further interim dividend would be payable in order to comply with the REIT rules to distribute at least 90% of its annual property income within 12 months of the year end. The Board is therefore pleased to declare that a further property income dividend will be payable by the Company in respect of the year ended 31 December 2020 as follows:

Dividend per Share - 0.381p

Ex-Dividend Date - 29 April 2021

Record Date - 30 April 2021

Payment Date - 18 May 2021

Following the payment of this dividend, shareholders will have received payments totalling 3.713 pence per share in relation to the year ended 31 December 2020, representing 78% of the 2019 level. Based on this dividend level, dividend cover was 110% for 2020.

[nickrl] 13/4/2021 18:54

I believe all listed plc's are obliged to put in ESG information - wasted on me though as i just move onto next section!

[hindsight] 13/4/2021 18:47

Added few at 63.2 today. Seems they all have to been seen ESG even if its a very thin veneer

[2wild] 13/4/2021 17:09

Agree it's a load of bull sh*t. Like these morons who say they don't wish to invest in oil or gas on environmental grounds, whilst driving diesel/petrol cars, heating their homes and cooking their food with gas. Pretending British electricity is mainly green energy while importing 1000s of megawatts from Europe, with a large percentage generated from coal fired power stations.

[spectoacc] 13/4/2021 16:30

It's cobblers tho isn't it :)

Next thing they're paying themselves bonuses based on going net carbon neutral (printing off less at head office).

"This has put environmental, social and governance (ESG) at the forefront of its decision-making process..."

Perhaps I'm being harsh.

[2wild] 13/4/2021 16:15

Don't knock it. Tritax Big Box REIT (BBOX) issued an unsecured £250 Million Green Bond at an interest rate of just 1.5% pa over 13 years.

[spectoacc] 13/4/2021 15:36

How is ESG particularly relevant to a REIT? What, they're not going to let to BP?

A holder and a fan of SLI but that sort of thing puts me right off - greenwashing.

[speedsgh] 13/4/2021 13:56

New QuotedData research note available...

Standard Life Investments Property Income Trust: Focus on tomorrow’s world -

With the roadmap out of lockdown and into economic recovery in place, Standard Life Investments Property Income Trust (SLI) has turned its attention to future-proofing its portfolio. This has put environmental, social and governance (ESG) at the forefront of its decision-making process for asset disposals and acquisitions, with longevity of income considered critical to the process. Identifying lasting trends that have developed and accelerated during the pandemic, such as the growth in online retailing and how the office will be used, and its impact on future tenant demand for space, has become mission critical...

[essentialinvestor] 06/4/2021 18:56

Nick, from Jason's comments a number of can pay, won't pay currently.
At least that's my understanding.


SLI heavy net property sellers over the last 6 months.


Opportunities difficult to find atm ?.

[nickrl] 06/4/2021 18:18

EI what benefit do you expect SLI to gain from ending of moratorium?

[essentialinvestor] 06/4/2021 13:43

SLI has frequently sold over NAV and over the next 2-3 years

would expect to see it trade very close to, or slightly over NAV once again.


Ending of the moritorium would be particularly helpful for this REIT.