Standard Life Investment... Share Discussion Threads

[essentialinvestor] 08/1/2021 09:43

Due a move.


Should trade above NAV again in time.

[llef] 07/1/2021 16:14

I've added to my position here too today.

re the sales announced on 23 dec for 44m, looking back at end sep NAV results, SLI said the following

"On 4 September, the Company completed the purchase of a B&Q Retail Warehouse in Halesowen for £19.5 million, financed by its low cost revolving credit facility. The purchase reflects an initial yield of 7.5% and is let to B&Q Ltd for a further 11 years to lease expiry, providing secure income given the strong tenant covenant and good unexpired lease term."

so maybe this is they kind of purchase they meant when they said "We are considering a number of new investments that we believe will better meet the Company's needs in the future"

[essentialinvestor] 07/1/2021 14:54

Back in like Flynn.

[essentialinvestor] 23/12/2020 12:23

Speed, hindsight- thanks for the views.

[speedsgh] 23/12/2020 12:07

Not particularly, EI. However Jason Baggaley has done a pretty decent job over a number of years as the invesmtment manager of this trust so, whilst I do not currently hold (I already have a healthy exposure to the sector through other REITs & ITs), I would be happy to do so again at the right price in the future.

[essentialinvestor] 23/12/2020 12:03

speed, do you have a view on those sales?, rational etc. Thanks.

[speedsgh] 23/12/2020 12:00

A little bit of background on a couple of the disposals announced today...

Interfleet House, Derby
www.proplist.com/search/for-sale/north-shields?page=2
Property type: office
Tenant: Atkins Ltd (part of the SNC-Lavalin Group)
Rent: Lease expiry 2/2/2026 at the passing rental of £420,000 (£14.60 psf)
Guide price: £4.65m
Sold for: £4.3m
Previous valuation: £3.8m
Net yield: 9%+

Middle Engine Lane, North Shields
Property type: retail warehouse
Tenant: Smyth's Toys
Background: Purchased by SLIPIT in Dec 2015 as part of the acquisition of a portfolio of 22 commercial properties from Aviva Investors UK Real Estate Recovery II Unit Trust, a Jersey property unit trust. SLIPIT undertook a fundraising (placing + offer for subscription) to help finance the purchase and the follwoing information was provided within the fundraising prospectus...



Address: Smyth’s Toys, Middle Engine Lane, North Shields
Description & Tenure: Freehold. 1993 detached retail warehouse providing approximately 1,524 sq m (16,400 sq ft) GIA – the tenant has installed a 465 sq m (5,000 sq ft) mezzanine – plus 92 surface car parking spaces on a site of 1.51 acres.
Occupational tenancy: Let to Smyth’s Toys UK Ltd for 15 years expiring 28 March 2022 with a rent review at 29 March 2017 at RPI over the previous 10 years compounded annually multiplied by 1.2% per annum, RPI capped at 2.5% per annum, with no further reviews.
Current net annual rent receivable: £371,138

In SLIPIT's 2019 annual report the North Shields property was valued at £2m-£4m. Prior to that it had been valued at £4-£6m in each annual report since acquisition.

[essentialinvestor] 23/12/2020 11:44

They had circa £37 Million drawn on the RCF, prior to the latest transactions.

[hindsight] 23/12/2020 11:25

Or as they have started a buy back, if want to hold LTV they have to sell something. Our BTLs are up about 10% this year, one is becoming vacant, do we sell and buy property shares at -30%. Not apples and apples but same type of argument

[essentialinvestor] 23/12/2020 10:51

Neither do I, particularly when they have referenced the low cost
of this facility previously.

Something not quite adding up imv.

[nickrl] 23/12/2020 10:40

What do we infer from the inv mgr comment "We are considering a number of new investments that we believe will better meet the Company’s needs in the future given the accelerated rate of change we have seen across real estate markets in 2020"

Don't know how much rent the forgoing here with these sales but with the RCF costing 2.47% not sure i get the logic of offloading rent producing assets but anyhow clearly shows there are buyers out there who want income producing assets.

[hindsight] 23/12/2020 09:46

I brought a few at 55.5 as think short term the news is positive, longer term maybe another issue

[essentialinvestor] 23/12/2020 09:28

What yield are those properties sold on?.

More detail would have been helpful.

[hugepants] 23/12/2020 07:52

10% of the portfolio sold at book


"...Sales proceeds will be used to repay the drawn RCF debt facility and fund share buy backs whilst new investment opportunities are assessed."

[essentialinvestor] 30/11/2020 17:09

hindsight, thanks.

FX is really not my area at all. I'm hopeful there is a deal within
the next 2 weeks, although as the last 12 months has shown, the unexpected can happen.

[essentialinvestor] 30/11/2020 16:56

I tried to nab a few before the close, no joy with li it order,

could not get any quote online, even for a small size lot.

[hindsight] 30/11/2020 16:52

You can hedge FX EI
Got filled for a few @ 54.7
Seems the EU underwriter (Mrs Merkel) has now arrived at the cliff edge

[essentialinvestor] 30/11/2020 16:32

My largest holding is ULVR, which would expect to take
a hit on an EU deal because of FX movement, all be it likely a temporary dip.
Attempting to balance that position with some domestic REIT holdings, obvs the reverse
applies if talks fail this side of the NY.

[hindsight] 30/11/2020 16:29

Thanks for reply EI
Another brexit seller ruuning to the hills then

[skyship] 30/11/2020 16:17

EI - also sold BREI just now into that very decent rise. Watching here...getting tempting...though of course the discount still only 30.5%.

[essentialinvestor] 30/11/2020 15:47

Out of BREI, added few here.

[essentialinvestor] 30/11/2020 15:35

The cycle.

In recocery the sector often trades at a premium.

We are still too early for that, perhaps another year or two.


SLI was an income play for PI's, also a factor, like BCPT.


Having said the above, there have been very modest NAV falls in this cycle, at least to this point,

so scope for trading above NAV may be significantly reduced this time.

[hindsight] 30/11/2020 15:30

I still havent worked out why these use to trade at a premium

[essentialinvestor] 30/11/2020 14:07

I hold a very small amount.

What slightly deters me from adding at this point is the recent comment

on difficulty re rent collections.

This many be Jason being transparent and perhaps more so than

other REIT Managers.


Any thoughts?.