Standard Life Investment... Share Discussion Threads

[skyship] 21/12/2021 16:42

A combination of the two for me. Follow the Fundamentals; but before dealing I will also have taken the chart into account. Use TA extensively to evaluate trends, support & resistance levels. Pretty basic stuff; but seems to work for me...as per 706 above (link below)

[nexusltd] 21/12/2021 16:36

@SpectoAcc
@SKYSHIP
I'm curious. May I ask what is your REIT trading style? Fundamentals, TA?

[skyship] 21/12/2021 10:19

Has reached my target so sold a few @ 80.4p. I expected SLI & SREI to move in tandem...not so it would seem. Question is whether to BUY more SREI; but already at 10% - my usual MAX.

[spectoacc] 21/12/2021 09:45

It does, and still more to go until we finally return to par.

Saying that, have sold down a few this week, with seemingly no effect on the price.

[panshanger1] 17/12/2021 17:28

Nice finish Discount continues to close appreciably

[nexusltd] 15/12/2021 16:11

@flyfisher. Thank you for highlighting the GRESB assessment scores. I note that in the SLI July 2021 interims the company stated that: "The GRESB submission (the most
widely used of ESG benchmarking in real estate)was made in July and we await results, to be shared in the annual report and accounts." Hopefully H2 2020 and H1 2021 developments will result in an improved overall score.

[panshanger1] 15/12/2021 13:20

New 52 week high today

[nickrl] 15/12/2021 11:55

flyfisher there is a list of participants here

hxxps://gresb.com/nl-en/about-us/gresb-participant-members/

No actual scores given but the only ones with 5* rating are BLND,DLN,GPOR,LAND,BBOX.

most of the reits/propcos have registered for the scheme although couldn't see AIRE or RLE on the list but can only filter down to Europe

Guess it something to pay some attention to as you can see scenarios emerging where big investment funds may divest themselves of companies with poorer ESG credentials of course the corollary to that is they may become better investments if the share price drops!

[flyfisher] 14/12/2021 09:16

In fairness,SLI probably has to devote some time to ESG as its GRESB score is low at 62, when compared to SREI at 75.

What are these scores for some of the others in the sector, one does not want to be left with either a pile of unletable offices or the expense of improvement.

Who are the sector leaders and laggards in this regard.

[dr biotech] 10/12/2021 22:19

Fwiw I added here rather than ukcp because of the more proactive ESG. Small beer, but all my new investments must meet my criteria.

[nexusltd] 10/12/2021 20:55

@SpectoAcc I agree with your statement; best business practise takes care of ESG. The way I look at SLI’s constant reference to ESG is salesmanship. If it helps conclude new leases at improved rents, reducing voids, and speaks to new investors, reducing the share price discount to NAV then it is a double win for current investors like us.

[skyship] 10/12/2021 16:37

Specto - well put; and totally agree, as posted a few days ago.

Good weekend all...could be interesting what with the Test Match and the last Grand Prix of the season.

[spectoacc] 10/12/2021 15:16

@nexusltd - I've no problem with quality buildings etc, makes good business sense. But ESG seems a bandwagon, one that SLI are constantly emphasising, inc the 7,500 acres of land bought in Scotland. Concentrate on the business, look at ESG within that, rather than (so it feels) the other way round.

Happy to have a decent holding in SLI tho - just an observation.

[nexusltd] 10/12/2021 15:10

@ SpectoAcc regarding ESG. Quality businesses are looking at their carbon footprint; government bodies, and public companies have to compile regular ESG reports. Further, as the labour market tightness, employees are selective and look for better facilities at a company they feel proud to work for; good businesses seek good employees to sustain and help them develop. B2B customers conduct due diligence on their suppliers as inputs also have to be assessed. These three factors converge and impact SLI who presumably are looking to lease to businesses with strong covenants; conducive to reliable rent receipts and low voids.

@ speedsgh. Thank you for the mapping.

@ nickrl. Well spotted. What development limits on the 3.5 acre development site might be imposed by the 275kV national grid pylons did you have in mind; beyond those of constraints on construction location & footprint?

[nickrl] 10/12/2021 11:29

So St Helens has strong ESG credentials but Washington needs some ESG investment? If the 3.5acre development site is to rear of premises its sitting under a 275kV national grid pylon route which will limit what they can do with the site.

Anyhow keeping the funds deployed in reasonable income earning assets is good to see.

[speedsgh] 10/12/2021 08:05

Griffith Textile Machines site:

[speedsgh] 10/12/2021 08:04

Purchases -

Standard Life Investments Property Income Trust (“SLIPIT or the Company”) has completed two purchases totalling £22.79m, financed out of existing cash reserves.

The first is a forward funding in St Helens, where SLIPIT has acquired the site and will fund the development of an industrial unit with a total commitment of £15.05m. The premises are pre-let to St Helens Borough Council for a 15 year term with 5-yearly index-linked rent reviews generating a net initial yield of 4.25%. The unit will be used as a research and development facility, focussing on improving the environmental impact of glass manufacture.

The second acquisition is of an existing industrial unit in Washington let to Griffith Textile Machines Ltd until September 2035. The purchase price of £7.735m reflects a net initial yield of 5.75%.

Mark Blyth, Deputy Fund Manager of SLIPIT commented: “We are delighted to have completed on both of these purchases in quick succession. The St Helens funding offers SLIPIT 15 year, index-linked, Government income from an asset with strong ESG credentials and providing a good risk-adjusted income return.

The Washington acquisition is an example of SLIPIT buying into an asset with not only a strong income return, but also the potential to drive further value. Included with the building is a 3.5 acre development site, which not only offers the opportunity to grow the income through expansion of the existing occupier or development, but also provides scope to implement ESG initiatives.”

[spectoacc] 10/12/2021 07:23

Purchases look good, but will we ever get another SLI RNS that doesn't mention ESG at least twice? It's a REIT.

[flyfisher] 09/12/2021 16:48

Big volume in the closing sets auction, has there been an overhang.

[skyship] 09/12/2021 11:46

Nothing that I can see. Agreed, they still look good value and that dividend can only increase as they move their LTV back up to the stated 20%-30% range.

Chart looks good too, with a breakout to the 80p level in course of playing out...

[flyfisher] 08/12/2021 16:59

I am attracted to this.

It looks to have a lower borrowing cost than others, good quality assets at a 20% discount, strong asset value growth in the most recent quarter, middling yield of 4.8% but with recent letting news and arrears payment indicating an increase, manager seems ahead of the game on ESG matters, an intention to increase leverage, which should flow through to the dividend, historically traded around asset value and voids are on the high side..

Having talked myself into it, what hidden issues am i missing?

[nickrl] 28/11/2021 10:57

Energy efficiency requirements on buildings are being tightened up considerably from 2028 when you won't be able to let a building with less than C rating its E at the moment. Mind you, like cars, there is a risk it gets pulled forward in pursuit of net zero. Also with there appears to be a premium being placed on organisations that are carbon free the ability to rent property that can deliver this is worth something to some organisation namely big brands and organisations but so sure your man in a small industrial unit is really that bothered unless forced into it. So Baggley maybe front running the curve here in buying a forest and investing in solar panels in that he gets in whilst its cheap.

That said I agree with Sky over the annual report and its not just ESG section most of them are full of useless information but guess saving garce is i only read them on line these days!

[panshanger1] 28/11/2021 09:19

What Mr Baggaley says and what he actually does with his time may be too different things Sky You have to have to play the ESG gameStill think he's a quality manager

[ramellous] 28/11/2021 07:24

One mans meat I suppose in some ways. If it keeps the share price of BATS or IMB et al subdued due to ESG concerns, it’s good for income investors keeping those yields up.

[rambutan2] 27/11/2021 20:08

SKY, will have to disagree with you. Mr Baggaley can see what is coming down the track and that is why he is spending time and brain power on it. To my mind, that is active management of the portfolio.

ESG is here and is not going away, in fact the opposite. Property owners/managers who try to ignore its implications will increasingly be putting their investors money at peril, whether that be from govt legislation, investor sentiment or public expectation. imho.