Standard Life Investments

Standard Life Investments Property Income Trust Limited

Mex ID: ITSLI SEDOL: 3387528 Reuters: SLI.L

Price
87.00
NAV
81.00
Premium/(Discount)
7.41%
Daily Price Change
0.00p (0.00%)
Change date
27/03/2017

Figures above are updated every business day after the close of trading and those displayed are to the close of the previous business day. Figures are shown in pence (GBP) and the data is provided by, and copyright @2016, FE.

General Trust Information

Objective

The companies investment objective is to provide Ordinary Shareholders with an attractive level of Income with the prospect of income and capital growth.

Profile

The companies investment objective is to provide Ordinary Shareholders with an attractive level of Income with the prospect of income and capital growth.The fund will acheive the investment objective by investing in a diversified fund consisting of UK commercial properties. The majority of the portfollio will be invested in direct holdings within the three main commercial property sectors of retail, office and industrial.

Fund Manager

Jason Baggaley

Jason Baggaley

Jason Baggaley, a qualified chartered surveyor, joined Standard Life Investments in 1996 and has over 17 years of real estate fund management experience. In addition to managing the Standard Life Investments Property Income Trust Limited, Jason also manages two major segregated property funds offering strong performance track records.

Awards

What Investment – Best Investment Trust for Income – Standard Life Equity Income.

What Investment – Best Investment Trust for Income – Standard Life Equity Income.

Performance

Trust Performance (on a bid to bid basis)

Powered by data from FE

Past performance is not a guarantee of future returns. The value of investments may go down as well as up and you may receive back less than you invested. Your capital and income is not guaranteed.

Trust Performance & Returns

(on a bid to bid basis)
Fund performance
Sector performance
 Last 1 month*Last 6 months*Last 1 year*Last 3 years*Last 5 years*
Fund performance
Sector performance

Past performance is not a guarantee of future returns. The value of investments may go down as well as up and you may receive back less than you invested. Your capital and income is not guaranteed.

* Values to-

Monthly Valuation

There are no items to display

Performance (on a bid to bid basis)

Powered by data from FE

Trust Performance(on a bid to bid basis)

(on a bid to bid basis)
Fund performance
Sector performance
 Last 1 month*Last 6 months*Last 1 year*Last 3 years*Last 5 years*
Fund performance
Sector performance

Past performance is not a guarantee of future returns. The value of investments may go down as well as up and you may receive back less than you invested. Your capital and income is not guaranteed.

* Values to -

** n/a indicates that fund performance information is not available for this period due to the date the fund was launched.

Current details

All prices displayed in p (GBP). Figures below updated at 02:42 pm. Figures are provided by, and copyright @2016, FE on a delayed basis.
EPIC code:SLI
Market sector:IT Property - Direct UK
Mid price:87.1250
Bid price:87.0000
Offer:87.2500
Opening price:87.7500
Daily high:87.7500
Daily low:86.5000
Previous day's close:87.0000
Daily change:0.1250 (0.14%)

LSE Announcements

Video

Jason Baggaley talks about investment trusts in general, the specifics around the Property Income Trust he manages and gives a short-term outlook for the asset class.

SLI Property Income Trust

How to Invest

How to Invest

Shares in Standard Life Investments' range of investment trusts are listed on the London Stock Exchange. As with any public quoted company, investment trust shares can be bought and sold on the stock market. This can be done through directly through a platform provider such as Standard Life or via a stockbroker, financial adviser or wealth manager.

We recognise professional financial advice is important before taking any investment decision. We recommend investors seek financial advice before taking any decisions. If you'd like to find an adviser in your area, take a look at www.unbiased.co.uk.

Alternatively, there are a number of platform providers who offer an online ‘execution only’ service, some of these are listed below.

You should note that by clicking any of the above links, you will leave Standard Life Investments' website and go to another website. We are not responsible for the content or accuracy of external websites.

The value of investments and the income from them can go down as well as up and is not guaranteed; an investor may get back less than their original investment.

Insight

Riders on the storm – property trusts show their mettle

November 2016

UK commercial real estate is gradually returning to normality following the surprise outcome of the UK’s referendum. Economic data has been better than initially feared and real estate transaction volumes, which fell amid the uncertainty, have stabilised. In addition, most of those real estate funds in which trading was suspended in the immediate aftermath of the ‘Brexit’ outcome have since reopened.

While the short-term impact of the ‘leave’ vote has been more muted than many were anticipating, uncertainty over the longer-term economic and regulatory landscape remains. As a result, we expect lower returns from real estate than in the previous few years, as economic fundamentals soften further. Despite this, we still believe that the long-term benefits of investing in UK commercial real estate remain intact. For example, it continues to provide a steady income for investors through the rents paid by tenants, resulting in a higher yield than many other asset classes.

For those investors who consider the current environment as an opportunity to buy into real estate, investment trusts could be a prudent way to gain access. Their closed-ended structure means the manager is in control of the fund’s cashflow and is not challenged by the balancing of redemptions or strong cash inflows.

At Standard Life Investments, we believe our Property Income Trust (SLIPIT) is particularly well placed. In a world of low interest rates, and where yield is increasingly difficult to find, the Trust has a very attractive current dividend yield of 5.8% (as at 30 September 2016 paid quarterly). The dividend was increased in Q1 2016 and is fully covered.

The Trust is certainly delivering on its income objective and this is testament to the experience and expertise of Jason Baggaley, who has managed the Trust since August 2006. Following significant acquisitions in 2015, which increased the Trust’s size by around 50%, Jason’s focus has been on integrating these new assets and identifying opportunities for active management throughout the portfolio, including lease renewals, regears and refurbishment. Minimising voids is also a priority and the Trust’s void rate is currently around half the market average. So where does Jason see the most compelling opportunities for the Trust in the current environment?

In terms of sector positioning, the Trust has a significant weighting in industrials, where inherent value is underpinned by strong fundamentals. There are also emerging opportunities led by the exponential growth in ecommerce. For example, the Trust holds a number of smaller distribution warehouses on the edge of major conurbations that are suitable for ‘final mile delivery’. Additionally, there is limited supply of the types of smaller units the Trust favours, which is driving up their rents.

The Trust has a relatively high weighting in the office sector, where Jason’s preference is for the area around central London, the so-called doughnut, which he believe has the most attractive supply/demand dynamics. The outlook for the retail sector, however, is less compelling. Nevertheless, opportunities still exist for the savvy investment manager and Jason’s interest is in smaller units adjacent to dominant retail parks, which offer strong footfall and are suitable for increasingly-popular click-and-collect purchases. Robust demand for these units is providing a good source of income for the Trust.

Its impressive performance and the resilience of its dividend yield make the Trust a compelling proposition for income-seeking investors in the current low-growth environment, and is a good example of the liquidity benefits that investment trusts offer investors over listed structures. Despite the current uncertainty, we remain firm in our opinion that an allocation to commercial real estate could pay dividends for investors.

Jason Baggaley, Fund Manager