Business
Unaudited Net Asset Value as at 30 September 2020
Unaudited Net Asset Value as at 30 September 2020.
About this update from Abrdn Property Income Trust Limited
[{"type":"text","content":"\n \n 4 November 2020\n STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED (LSE: SLI)\n LEI: 549300HHFBWZRKC7RW84\n Unaudited Net Asset Value as at 30 September 2020\n Net Asset Value and Valuations\n · Net asset value (“NAV”) per ordinary share was 78.8p (Jun 2020 – 79.6p), a decline of 1.0%, resulting in a NAV total return, including dividends, of -0.1% for Q3 2020;\n · The portfolio valuation (before CAPEX) reduced by 0.4% on a like for like basis, whilst the MSCI Monthly Index dropped by 0.7% over the same period.\n Investment and letting activity\n · On 4 September, the Company completed the purchase of a B&Q Retail Warehouse in Halesowen for £19.5 million, financed by its low cost revolving credit facility. The purchase reflects an initial yield of 7.5% and is let to B&Q Ltd for a further 11 years to lease expiry, providing secure income given the strong tenant covenant and good unexpired lease term.\n · 2 new lettings were completed in the quarter securing £185,000pa, with a further letting securing £82,500 in October.\n · 6 lease regears were agreed on leases with a rental value of £1.17m pa.\n · 2 rent reviews were completed, on a food store and an industrial unit with increases of 13% and 38% respectively.\n Financial Position and Gearing\n · Strong balance sheet with significant financial resources available of £20 million (£35 million currently drawn from £55 million low cost, revolving credit facility).\n · As at 30 September 2020, the Company had a Loan to Value (“LTV”) of 29.4%*. The debt currently has an overall blended interest rate of 2.43% per annum. \n *LTV calculated as debt less cash divided by portfolio value\n Rent collection\n Rent collection remains challenging, given the varied levels of restrictions which makes it difficult for tenants to accurately understand the trading environment they are operating in. Our Investment Manager is continuing to find that most of our tenants seek to honour their lease contract where they can. Of those who can’t, the majority are open to dialogue to agree a solution, from waiving rent for some of the smallest and most impacted tenants, to deferments, or rent free periods in return for lease extensions. Some tenants, however, can pay but won’t, or are unwilling to engage to find a solution. The Government restrictions on enforcing lease covenants curre...