18th Apr 2019 10:25
LONDON (Alliance News) - Standard Life Investments Property Income Trust PLC on Thursday kept its annual dividend in line with the year before as net asset value.
Standard Life Investment Property's net asset value total return was 9.6%, due to an overweight position in the industrial property sector, it said.
This compared to the FTSE All-Share REIT Index's negative return of 8.3%, and the FTSE All-Share Index's negative return of 12.4%.
Net asset value per share as at December 31 increased by 3.1% to 91.0 pence from 87.6p on the same date the year before. The trust's share price was 81.1 pence, reflecting a discount to net asset value of 10.9%.
Shares in the commercial property trust were up 0.3% on the day Thursday at 91.50 pence, having improved since the year-end.
Standard Life's property total return was 8.5%, ahead of the IPD benchmark total return of 6.8%. The property income return also outperformed at 5.0%, compared to the IPD benchmark's income return of 4.6%.
As at the end of December the trust's portfolio was valued at GBP499.1 million compared to GBP433.2 million for the same period the prior year.
Standard Life Investments Property declared a total dividend at 4.76 pence per share, in line with 2017.
"It is pleasing to report your company has continued to deliver both strong portfolio and NAV returns in 2018. These returns have been driven by a portfolio that is strategically weighted to the outperforming industrial sector, with low exposure to the struggling retail sector," said Chair Robert Peto.
"The commercial real estate market is not immune to the Brexit-related uncertainty. While the real estate fundamentals are strong - comparatively high yields compared with other asset classes, prudent leverage, limited development and lower than average vacancy rates - uncertainty is reducing liquidity and visibility of pricing in most areas of the market," Peto added.
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