Standard Life Investment... Share Discussion Threads

[ec2] 04/2/2020 13:13

I also had problem selling in size. In the end my broker did the trade over the phone directly with the market maker in one shape but slightly off the touch.

[ramellous] 04/2/2020 10:17

same here. Put it into VSL

[dr biotech] 04/2/2020 10:17

Has to be said I have been very impressed with the way this has been run - they have largely avoided retail and occupancy levels are high (and gearing is low). But I can't see any reason for the premium to NAV.

I had a bit of an issue selling up this morning too. I couldn't sell my total holding in one go, had to have three sales (each less than 10k) instead.

[ec2] 04/2/2020 10:03

Based on the recent strong run and high valuation I've decided to sell out and take my profit.

[speedsgh] 04/2/2020 09:20

Thought the Investment Manager's commentary & outlook statement was noticeably more cautious that the noises coming from many of his peers...

Unaudited Net Asset Value as at 31 December 2019 -

"Lagging indicators continue to show slowing momentum in the UK economy, despite the initial positive reaction to the election of a Conservative government with a large majority. We expect fiscal stimulus to come through and steadily feed into growth, with a boost to consumer spending. However, as the UK looks set to drift further from EU economic and regulatory alignment, we do not envisage a material pick-up in investment..."

"The political clarity derived from the election result has prompted a noticeable increase in the level of optimism from agents in the market, particularly towards Central London offices. However, as we enter a critical period for Brexit negotiations, we see very little justification to be taking on unnecessary risk at this stage of the UK real estate cycle. The focus remains on asset-level risk and income prospects to identify attractive long term investment opportunities in the UK real estate market."

[dr biotech] 04/2/2020 08:46

I’ve sold out today after holding these for 6-7 years. May get back in if the premium drops back down - selling something for 110% of it’s worth makes sense. Or may go for another reit.

[ramellous] 03/2/2020 14:15

I would imagine STandard Life would be buying these as the property segment of some of their funds?

[r4end] 03/2/2020 12:51

I have had these for a while now, for the div. Maybe something big is in the air or maybe a takeover? Who knows?

[ec2] 03/2/2020 09:28

These are at a ten year high and on an over 10% premium which I've never seen before. What's going on??

[caradog] 09/12/2019 10:35

John Baron has got his figures wrong. Retail forms 12% of NAV.

Because the total portfolio is geared, the portfolio is valued at more than 100% of net asset value - a figure that takes debt into account.

Retail forms 8.5% of the value of the property portfolio itself, excluding debt.

[ec2] 08/12/2019 18:30

You are definitely confused with a Standard Life Aberdeen open ended fund as apposed to SLI which is a closed end investment trust. SLI is extremely well managed with the assets conservatively valued within the NAV calculation.

[petewy] 08/12/2019 14:36

Thanks Speed

[speedsgh] 08/12/2019 14:07

Pete - Haven't got time to look at this properly now but are you mixing up the SLA OEIC (Standard Life Investments UK Real Estate) with the investment trust (SLI)?

[petewy] 08/12/2019 11:33

Sunday Times story people selling out of SLA property trust after M&G.

"£57m Flowing out on Thursday" "Almost 50% of Fund is invested in retail" Yet according to Factsheet 2019 on;y 2% in retail:
There has been a lot of sales this week.see
hxxps://portfolio-adviser.com/retail-de-rating-could-compound-problems-for-uk-property-funds.

maybe I am panicking: sere John Baron This week's IC
SLI has a balanced geographical exposure, which is focused on industrial assets, with office being the next largest sub-sector – retail/other being less than 10 per cent of net asset value (NAV)

[r4end] 25/10/2019 15:20

Supportive article in DT today though it didn't mention that some divi subject to tax deduction. OK if in ISA and can be claimed back.

[speedsgh] 28/8/2019 15:59

Unaudited Net Asset Value as at 30 June 2019 -

Net asset value ("NAV") per ordinary share was 91.1p (Mar 19 - 91.1p), resulting in a NAV total return, including dividends, of 1.3% for Q2 2019...

The portfolio valuation (before CAPEX) increased by 0.3% on a like for like basis, whilst the IPD/MSCI Monthly Index dropped by 0.7% over the same period...

Prudent LTV* of 23.4% at the quarter end, one of the lowest in the Company's peer group and the wider REIT sector...

Investment outlook

* Durable income will remain the key focus for investors in the current
risk-off environment. It is highly unlikely that there will be any material
change to the investment themes playing out in UK real estate market until
more clarity is provided on the macroeconomic outlook.
* Significant weight of capital targeting long secure income is supporting
pricing at levels which are out of reach for most balanced funds, but
remains supportive for liability-driven investors where inflation linked
income in other assets classes does not match the required income yield.
* The wide dispersion in returns at the sector level is expected to continue
in the short term. This is driven by the structural shift into logistics
and multi-let industrials to the detriment of retail.

[mam fach] 26/5/2019 11:03

Old taboos were Politics and Religion.
New ones Boris and Brexit.

[pavey ark] 24/5/2019 10:02

Recently sold here (ex-div).
Like this trust and they seem to know what they're doing but I think we are due for a return to a discount.
(Current slight premium to NAV and pleased to see that the dividend is now covered (104%)).

The Q1 update did spell out the management's view of near term prospects and it did give me pause for thought.
Commercial/industrial property does seem the best place to be but the prospect of Boris as PM has me looking further afield.......REALLY !!! ....BORIS!!!!....what world do Telegraph readers live in??...I may have answered my own question.

As someone once said "I'll be back".....perhaps.

[speedsgh] 01/2/2019 17:57

from Unaudited Net Asset Value as at 31 December 2018...

Investment outlook

* Brexit-related uncertainty is reducing liquidity and visibility of pricing
in most areas of the market. It is even now affecting the industrial sector
after a very strong run of performance. The principal exception to this is
assets with long, secure income streams, which remain highly sought after
and in short supply.
* We are conscious that many of the buyers of such properties are not focused
on performance relative to the wider real estate market and have different
targets, sometimes radically so. This is making assets let to annuity-grade
covenants more challenging to access for investors with targets linked to
real estate market returns.
* If the change in momentum during the fourth quarter is sustained and we
observe more distress and weaker liquidity in the market during the first
quarter of 2019, it is likely that this will create some opportunities.
Those with capital to invest may be able to access good-quality real estate
at prices that are attractive in the long term. As ever, it is vitally
important to assess asset-level risk and income prospects to identify such
opportunities.

[speedsgh] 01/2/2019 17:56

from Unaudited Net Asset Value as at 31 December 2018...

Market commentary

* UK economic growth has been fairly uneven this year. After a weak,
weather-affected start to the year, third quarter growth was well above
trend at 0.6%. However, this appears to be a temporary spike rather than a
decisive strengthening of the economy, with indicators in the fourth
quarter turning down sharply.
* The ongoing uncertainty surrounding Brexit negotiations appears to be
restraining business investment and household spending. With trend growth
estimated to be lower, the output gap largely closed, and a relatively weak
global backdrop, it is hard to see a substantial acceleration in economic
growth.
* Occupational markets continue to behave quite differently across sectors,
with structural forces being the key drivers. The familiar pattern of
falling retail rents, modest upticks in office rents and robust growth in
industrials is little changed. The risk of more serious declines in the
retail sector is palpable and clearly affecting investor sentiment.
* The industrial sector continues to be the stand-out performer in the UK
real estate market. Although IPD/MSCI data suggests that rental growth is
beginning to moderate, with vacancy rates remaining exceptionally low and
interest in available space healthy, the necessary drivers are still in
place to support further rental growth for the sector.
* The long-term structural challenges facing the retail sector are now
beginning to be reflected in IPD/MSCI data. The outlook for retail tenants
has become more challenging as time has gone on and this is now weighing on
performance, with all forms of retail experiencing declining rental values.
With few retailers, aside from the value operators, expanding and further
distress in the sector widely anticipated, it is expected that this trend
will continue through 2019.

* Capital values declined in Q4 2018, according to the IPD/MSCI Monthly
Index, with sharp declines in retail and slowing growth in the industrial
sector. It is our observation that liquidity became increasingly impaired
towards the end of the fourth quarter and that the number of buyers has
thinned out across the market.
* The listed sector has seen discounts to NAVs widen over the quarter, which
in part reflects the wider equity market sell-off experienced over the
fourth quarter, but it is also a function of slowing NAV growth rates in
the second half of this year. The hierarchy of preferred sectors remains
largely unchanged with industrials and income-focussed real estate stocks
remaining the top picks, and ever wider discounts for retail specialists.
Intu and Hammerson shares were down 55% and 40% respectively in 2018.

[speedsgh] 01/2/2019 17:55

Unaudited Net Asset Value as at 31 December 2018 -

Key Highlights

Solid Performance

* Net asset value ("NAV") per ordinary share was 91.0p (Sep 18 - 91.4p), a
fall of 0.4%, resulting in a NAV total return, including dividends, of
0.9% for Q4 2018;

* The portfolio valuation (before CAPEX and transaction costs) increased by
0.7% on a like for like basis, whilst the IPD/MSCI Monthly Index dropped by
0.2% over the same period.

Investment and letting activity

* Purchase of a multi let office on the Hagley Road in Birmingham for GBP
23.75m, reflecting an initial yield of 7.6%. The building has an average
lease length to earliest of break or expiry of 4.3 years with 30% of the
income from the Government.
* Sale of the Company's largest void unit, an industrial property in Oldham
for GBP6.3m. The sale price was just under 13% above the valuation as at 30
June 2018.
* Letting of the Company's largest vacancy, a logistics unit in Swadlincote.
The 141,000sqft unit, which became vacant in July 2018, has been let at a
rent of GBP813,000pa on a new five year lease subject to a lease break after
the third year to a 3rd party logistics company. This represents a 21%
increase on the previous passing rent.

Strong balance sheet with prudent gearing

* Prudent LTV* of 24.4% at the quarter end, one of the lowest in the
Company's peer group and the wider REIT sector...

[pavey ark] 31/1/2019 09:04

Sold 40% of my holding this morning but this was largely due to the fact that I bought more than I intended when the price fell to 78p and thought I had better not look a gift horse in the mouth.

A bit disappointed that the dividend was not fully covered but then realised that the improvements in voids and the new purchases don't produce instant revenue and certainly not over the entire quarter.
I am pretty sure that the dividend is now or soon will be fully covered.

Happy with the low LTV and reassured by the six year average lease to break figure.

Will now hold my original share and expect to have them for some time.

[dragonsteeth] 28/1/2019 17:09

Ah I know that feeling PA, it’s the recovery time that’s doing for me as I get older. But I’ve had a steady resurrection in the past few years, more running less time spent on shares/ITs . Even managed my first marathon in twenty years back in 2017 , which was also my best year in terms of total returns/ beating indexes for some time..... there’s a lesson there re more time enjoying other things, less time worrying about stocks and making unnecessary changes !