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Home  »  Front page news  »  Industrial sector contributes to Standard Life Property Income’s performance

Industrial sector contributes to Standard Life Property Income’s performance

06
2018
April

Industrial sector contributes to Standard Life Property Income’s performance – The portfolio total return of Standard Life Property Income (SLI) was 12.1% representing a significant margin over the benchmark return. This outperformance was driven by an above benchmark portfolio income return of 6.3% and a capital return of 5.5%. The capital return was achieved despite the drag of transaction costs resulting from a total turnover in the portfolio during the year of £122 million. This positive portfolio performance, combined with a conservative level of gearing, helped the group achieve an attractive NAV total return of 14.5%.

The company’s shares continued to trade at a premium, which stood at 6.4% to NAV at the year end, underlining investors’ appetite for attractive, secure income returns

Financial Highlights

  • NAV total return of 14.5% in the year, driven by strong portfolio performance due to overweight exposure to outperforming Industrial sector.
  • Strong share price total return over the year of 13.7% compared to the total return on the FTSE All-Share REIT Index of 12.2% and the FTSE All-Share Index of 13.1% with the company’s shares trading at a premium to NAV of 6.4% as at 31 December 2017.
  • The company has continued to reduce gearing with an LTV of 18.0% at year end (31 Dec 2016: 26.0%) at an attractive interest rate of 2.7%.
  • Dividend cover of 104% over the year as the company continued to pay a covered dividend.
  • The yield on the company’s share price as at 31 December 2017 stood at 5.1% which compares favourably to the FTSE All-Share REIT Index (3.6%) and FTSE All-Share Index (3.4%) at the same date.
  • Since 1 January 2017 to date a total of 22.425 million shares were issued under the Company’s blocklisting facility generating net proceeds of £20 million for investment into the portfolio.
  • Overall, the company, with a market capitalisation of £368 million as at 31 December 2017, has a secure and growing balance sheet, significant financial resources and a portfolio of assets that continues to underpin an attractive and covered dividend for shareholders.

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