Standard Life Investment Property Income Trust (SLI) reported a 4.0% increased in net asset value (NAV) in the first quarter of 2021.
The group, which owns a diverse portfolio of property assets heavily weighted to the industrial and logistics sector, said NAV at 31 March 2021 was 85.3p (Dec 2020: 82.0p) resulting in a NAV total return (including dividends) of 4.9%.
The jump in NAV was mainly down to a 2.5% like-for-like increase in the value of its portfolio and the impact of its share buyback programme at significant discount to NAV.
The company said it would increase its dividend for the quarter by 25% to 0.8925p per share. This follows strong rent collection figures for 2020 of 94.1% and quarterly collection rates in 2021 of 87% and 86% so far this year.
In an analyst call this morning, portfolio manager Jason Baggaley said it would take out some form of legal action on around 10 to 15 tenants to recoup arrears.
The property sector was handed a boost in this regards in recent weeks following the successful High Court judgment in favour of landlords in the battle for unpaid rent during the COVID pandemic.
Portfolio activity
During the quarter SLI made further restructuring of the portfolio with three sales – two offices (Derby: £4.65m and Dartford: £3.1m) and a retail warehouse in Bradford for £2.65m.
It also completed the lease renewal of the entire office building in Kidlington, Oxford for 10 years securing rent of £429,000 per annum and let the whole office in Bishops Stortford on a 10 year lease at £290,000 per annum.
Financial position and gearing
SLI has £55m of financial resources available for investment in the form of a revolving credit facility plus uncommitted cash of £9m.
As at 31 March 2021, the company had a Loan to Value (LTV) of 21.3%. The debt currently has an overall blended interest rate of 2.725% per annum.
SLI : Standard Life Investments Property Income upbeat on future