Standard Life Investment... Share Discussion Threads

[alanji] 18/7/2011 17:32

So what if the covenant on Plantation Place has been breached. It does not affect IFD as the worst case scenario is that IFD's share is worth nothing - which is what it is valued at currently in the IFD nav. I think IFD will get something back but that will be a bonus.

[ferries5] 18/7/2011 15:51

Sorry skyship, but if plantation place deal falls through even though it is an off balance sheet and and non recourse item, it could indeed pull ifd into covenant breaches.




The building is owned by a consortium including Invista Foundation Property Trust and Stobart Group, which bought it for £525m ($857m) in 2006. A drop in the value of the building caused a breach in the loan-to-value covenant.

[skyship] 18/7/2011 13:22

Very seldom drop in here as SLI is so overvalued.

Do have to comment however as I have just read the total twaddle posted by ferries5 back on 31st May!

IFD has NO bank covenant breaches and has lower borrowings than SLI. LTV net of cash @ IFD = 37% versus 40.6% for SLI.

Reading the numbers correctly may be beyond him; but just so others know:

SLI yields 6.8% and stands at 0% NAV Discount; LTV = 40.6%
IFD yields 9.3% and stands at 31% NAV Discount; LTV = 37%

The switch I recommended on 31st May has already paid off; but is still worth doing.

[eithin] 18/7/2011 12:27

No announcement. With an offer price of 64.69p looks like did'nt get off the ground !!!

[eithin] 18/7/2011 10:26

Outcome of open offer due today ?? Trade Friday ???

[ferries5] 31/5/2011 19:43

6 million 25p preference shares converted to ord shares, to be used to pay down debt, + attempting to raise 25 million pounds by the issue of more ord shares for the purchase of properties, all at a premiun to nav. Sounds sensible to me as there are a glut of comercial properties on the market at the moment with all the banks unloading
.

Lot more risk at IFD, with Bank covenant breaches, and debt, that is why they are at a discount.

[skyship] 31/5/2011 11:48

Yes - massively over-valued. Stands at the NAV, or even a premium. Yields 6.5%.

A great switch would be into IFD where the yield is 9% and the NAV discount = 31%!

Still, I've been wrong on this before as I clearly haven't given full cognisance to the Standard Life support maintaining the share price.

[eithin] 31/5/2011 11:36

Proposed conversion, any thoughts ????????

[investinggarden] 22/2/2010 10:26

Standard Life boosts Property Income Trust assets

[nickcduk] 26/8/2009 10:05

Valuation is a little silly compared to both IFD and IRET. Especially when those 2 have more leverage to rises in valuation. Would help explain why I am short SLI and long the other 2.

[skyship] 26/8/2009 09:45

At 54p the yield on 4p/annum is an attractive 7.4%.....BUT @ a 7% PREMIUM to the 50.53p NAV this stock is going nowhere but down. Has to be sold surely!

[nickcduk] 23/4/2009 17:11

I think the overhang is pretty much cleared after today's large trades. The recent IMS confirmed the company still has plenty of headroom against further falls in property value and that recurring income is running around 5p a year. More than enough to cover the 4p dividend. Once IPD starts to rise I would imagine they would up that to 5p. Hopefully that should occur before the end of the year.

[qwazi] 08/4/2009 09:28

The zeros are wholly owned by Standard Life. They are 6%ers, so nice cheap financing for the company.

[nickcduk] 07/4/2009 16:21

I think they have plenty of headroom versus covenants with LTV even after the acquisition below 40%. The comparison I would make for SLI would be IRP and IPT. They trade on pretty narrow discounts and have low LTV ratio's. The zeros aren't listed as far as I know (couldn't find them either) but expire a couple of years out. Property markets should be in much better shape by then. Im in a slightly different position to you in that I am hugely underweight and need to get on board a few. SLI looks very cheap compared to its peers and is putting its money to work at the right time. The same will apply to UKCM and FCPT when they finally do the same.

[skyship] 07/4/2009 16:11

Hi Nick - just started looking at these since you mentioned elsewhere. I've been taking money off the table - so in no hurry. First comment would be how much would the NAV/share be impaired by a £10m write-down for Q1'09. 8% would seem to be a realistic figure. Second comment is are the Zero Dividend Prefs listed? - can't seem to find them...

[nickcduk] 07/4/2009 14:47

Should add that the reason why price has been hammered is there is a large overhang in the stock. Once cleared I am sure it will be back towards 40p. Ive picked up another 100k today so am doing my bit to clear it!

[nickcduk] 07/4/2009 14:28

Pretty much thinking martincc. Likes of IRP and IPT have shot up recently and are trading roughly where they were at the start of the year. SLI trading at a huge discount to Jan price and yielding more than those 2. It also has considerable cover on the dividend as opposed to those 2 which are uncovered. A quarter of flat IPD returns for the 2nd quarter should encourage them to go and spend more of that cash on acquisitions. A return to 6p in dividends could be back on the cards with another acquisition like today's.

[martincc] 07/4/2009 14:09

nickcduk,

looks a very good deal, the advantage of having cash at times like these.
They have locked in a good yield,& still have £33m cash

Have been researching these and bought in.

From the recent fins on 30/03/09 -
Dividend reset to 4p pa pd quarterly, 12.5% p/a yield.
NAV 61.7p LTV 32.4%
Property income return 6.5%
Cash £44.5M

And some interesting comments-

'Should the Company's forecasts for 2009 prove to be overly
conservative this will not preclude payment of a further special or enhanced
dividend by the Company in early 2010 commensurate with its policy as an income
fund.
The Company was in compliance with its banking covenants as at 31 December
2008 and the Board is confident that this should continue to be the case for
2009.'

[nickcduk] 07/4/2009 12:05

Seems as though the acquisition was a cracker. Dividend cover at around 125% equates to earnings of 5p. Yield on current dividend of about 12.5%. If they increase it to 5p it would equate to 15.5%. LTV still comfortable. Pretty much the most attractive property trust on the market at present.

[washbrook] 22/8/2008 09:02

Results out today Nav from 31.12.07 decreased by 9% whist the share price over the same period decreased by 17%.

[lucifer666] 21/8/2008 11:45

SLI and FCPT
These two Property Investment Trusts have traded very closly over the current year.
SLI has outperformed FCPT three times over 10% and its worst performance versus FCPT is minus 0.4%.
At last nights close it is outperforming FCPT by 2%.
SLI yld is 11.16% and FCPT is 8.68%.

Over the last 12 months starting on 20.8.07
The two stocks have been a range of plus 6% to minus 10%.