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
- 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.