Standard Life Investment... Share Discussion Threads

[spectoacc] 14/9/2021 08:09

A lot to digest on SLI's results. Occupancy not great due to "..Muted office demand.>". LTV is stunningly low - c.17%. Rent collection good, but not sector-leading.

Industrial weighting topped 50%, retail at 11%.

[speedsgh] 09/9/2021 10:33

Standard Life Reit buys big Highlands plot in net-zero drive -

This is basically a summary of the announcement on Monday with brief analyst commentary at the end...

"Analysts at Numis Securities welcomed the initiative and said other property funds could follow suit. However, Andrew Rees said shareholders would want more information on what impact there could be on the trust’s dividend from deploying 2%-2.5% of capital in assets not yielding a rental income.

Like its rivals, SLI was forced to cut its quarterly dividend by 40% to 0.714p per share last August, but has since raised it to 0.8925p, still below the pre-pandemic rate of 1.19p."

[Jason Baggaley has already hinted heavily that investors should not assume that the dividend will return to the same level as pre-pandemic 1.19p per qtr.]

"SLI shares eased 1% to 68.8p. The 5% dividend-yielder has rallied 17% this year as UK commercial property has recovered from the coronavirus crash, but trades on a wide 20% discount below net asset value. This reflects the caution investors still feel to the sector as the Delta variant threatens further restrictions to businesses and workers."

[essentialinvestor] 09/9/2021 10:05

Tried to add a few this AM but the price was moved immediately so left it.
Looks like some wider market volatility is now underway, if so it's no surprise.

[essentialinvestor] 07/9/2021 11:08

A tiny glimpse in to the future, also tougher legislation
on commercial office buildings effective from 2030 ?. Valuers warning this
will effectively make a % of existing UK office stock obsolete.

[dr biotech] 07/9/2021 11:06

I think there are mulitple good reasons for doing this - don't think the woodland will be commercial but the carbon offset may be. And when rules about carbon use are imposed as they will almost certainly be - then being able to say that your office/industrial site is properly offset will be a big plus.

And its nice that we have more woodland.

[hindsight] 07/9/2021 09:11

Personally not against this, low cost 3k acre land will be in demand for carbon offsets which are only going one way and timber one way too

[nickrl] 07/9/2021 08:50

The way i read it is they are using it to offset emissions generated by their portfolio so maybe the tenants will be prepared to cough up a bigger service charge so they can claim they are zero emissions?

[spectoacc] 07/9/2021 07:59

Never been comfortable with SLI's greenwashing, but there could be revenue in this. Carbon credits are only likely to go up in price.

[essentialinvestor] 07/9/2021 00:35

Stick a few glamping pods on there!. Different world, eh.

[nickrl] 06/9/2021 21:24

Baggley is very ESG focussed so all the way I would suggest. May pay off in the longer term if pension schemes/funds wish to be seen to be investing in climate compliant companies but its 7.5m that won't earn anything for now. I suspect in short term share price will continue to drift but i bailed out in mid 90's last year.

[clausentum] 06/9/2021 18:02

Is this the reason why the share price dropped 6% recently? How far are they going with this ESG?

[ammons] 06/9/2021 17:51

What is the income from this investment going to be? Some notional savings cost from having to reduce thier carbon footprint X, Y or Z number of years in the future?

[dr biotech] 06/9/2021 17:06

Hmm. So that’s about 2% of the assets invested in non commercial property. I don’t mind that. Action needs to be taken by everyone IMO.

[cwa1] 06/9/2021 16:38

Acquisition of land as part of carbon strategy

Standard Life Investments Property Income Trust (SLIPIT) is pleased to announce
the acquisition of land that will be used as part of the Company's carbon
strategy.

The 1,447 hectares of upland rough grazing and open moorland in the Cairngorm
national park has been purchased for £7.5m. The site supports 956 hectares for
planting with natural broadleaf trees (about 1.5m trees in total) with
approximately 115 hectares for peatland restoration, with the remainder open
land to support bio diverse habitats. The site is expected to sequester
approximately 195,630 tonnes of carbon up until 2060, representing 73% of the
Company's residual embedded and operational carbon.

SLIPIT takes ESG very seriously, and believes that strong ESG credentials will
be a driver of performance, as well as an agent for good. The Company is not
investing in commercial forestry, but is acquiring a gold standard carbon
offset at a fixed price. The purchase forms part of a wider strategy to achieve
carbon net zero, based primarily on reducing operational carbon at the
investment property assets with offsets for residual carbon that cannot be
eliminated. It is anticipated that the costs of planting will be met through
grant funding.

Jason Baggaley, fund manager of SLIPIT, commented "SLIPIT has acquired this
significant opportunity for reforestation as part of its carbon strategy. We
believe that being an early mover will give the Company an important advantage
in future costs for offsetting as society moves to net zero by 2050. We
anticipate making a couple of further acquisitions, on a smaller scale, to
complete this element of the carbon strategy. Although the focus is on carbon
offsetting the opportunities for wider ecological and net bio diversity gain
are also being explored, which is important given changing legislation around
development in the UK".

[hindsight] 03/9/2021 19:17

Good to have you onboard EI, Grainger been strong one for me lately, they all have a turn

[spectoacc] 03/9/2021 18:47

Good point Sept - nervousness ahead of October ;)

A few REITs took a bath today, but rarely lasts long.

[essentialinvestor] 03/9/2021 17:23

Added a few this afternoon.

Expecting a bit of wider market volatility this month, September can be
a tad tricky, whether it develops that way let's see.

[hindsight] 02/9/2021 13:03

Thank you for the reply EI, good points. Personally prefer managers that try to be in the right places, than those that sit tight and blaim the markets. Albeit not low frictional costs in property
Stand out volume today of 2m so far
Agree wall of money everywhere, not that I have one of those trees yet

[essentialinvestor] 02/9/2021 12:27

hindsight, I will have a stab at answering but others who post here are more
knowledgeable, including yourself!.

THe market Imv wants to see details of the new acquisitions that are under offer.

The Manger appears to have aggressively reconfigured the portfolio and sold
a lot, we soon get to see how well they buy - as Jason appears to live and
breath this Trust, hopefully he buys well.

Problem ATM there is a wall of money chasing industrial, in wider markets there is a
wall ofm money chasing nearly everything!.

[hindsight] 02/9/2021 12:17

Added at 70.1, 20.6% discount in theory

[hindsight] 02/9/2021 11:34

Any views on the weakness here ?. They are now 20% discount and were par pre covid, albeit I accept property class world has changed. But asset mix looks ok with a 17.6% LTV

Industrial 221.9 63.3

Office 127.7 36.4

Retail 50.5 14.4

Other Commercial 33.7 9.7

Total Property Portfolio 433.8 123.8

[hindsight] 31/8/2021 17:01

Added a few today, keen seller

[clausentum] 21/8/2021 10:03

Another month before we get half year results.

[panshanger1] 12/8/2021 08:14

Ex div today for .89 payday 27/8