17th Apr 2014 10:51
LONDON (Alliance News) - Standard Life Investment Property Income Trust Thursday said its net asset value per share and total return increased in its last financial year, as it moves ahead with its conversion to a UK-based real estate investment trust (REIT).
The company registered in Guernsey said its net asset value per share rose 13.5% to 65.5 pence in 2013, from 57.7 pence while its net asset total return amounted to +25.2% compared with -2.9% a year earlier.
During the period, the firm said it purchased four properties, included a large office building close to the M25 in Rickmansworth, for a combined GBP22.6 million and sold two properties for GBP15.7 million.
At the period-end the company's portfolio was valued at GBP176.4 million and with a cash balance of GBP12.3 million its total assets amounted to GBP191.6 million up from GBP176.0 million.
Last year, Standard Life said it was considering the tax efficiency of its present structure. It conducted a review which has now been completed and has decided to convert into a UK based REIT.
Steps are therefore being taken to address the requirements of possible conversion and, once concluded, it will send details of the scheme to all shareholders. If the proposals receive consent, conversion could take place by the end of December.
Looking ahead, the firm said there is strong demand from investors for well let property but the occupational market is more fragile. Standard Life said it will therefore "need to be alert to keep our good tenants and to fill voids by lettings to companies that have a positive long term future."
The stock was trading at 76.34 pence Thursday morning, up 0.59 pence or 0.8%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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