Standard Life Investments Property Income Trust Limited posts full year results

Standard Life Investments Property Income Trust Limited posts full year results

Jason Baggaley

Standard Life Investments Property Income Trust Limited (SLI), a company managed by abrdn, has posted its full annual results for the year ended 31 December 2021.

The company reported financial resources of £50 million as at 31 December 2021 (2020: £55 million) available for investment to enhance earnings in the form of the company’s low cost revolving credit facility.

A low loan-to-value rate of 19.2% (2020: 23.0%) was declared at the year end with scope to increase gearing through available revolving credit facilities.

The company paid out dividends of 3.7725p in the year, compared to 3.8080p in 2020, with a further increase announced for Q4 2021 to an annualised rate of 4.0p per share.

Dividends paid in 2021 equated to a yield of 4.6% based on the share price at 31 December 2021, compared to the FTSE Index yield of 3.1% and the FTSE All-Share REIT Index yield of 2.6%.

The company’s NAV total return stood at 28.6%, compared to -4.6% in 2020, as valuations recovered. NAV has outperformed the AIC peer group over the longer term delivering a total return of 188.9% compared to AIC peer group total return of 54.6% over 10 years.

SLI also revealed a share price total return of 43.4% (2020: –29.8%) as sentiment improved towards the UK commercial real estate sector. The share price has delivered strong returns over the longer term with a share price total return over 10 years of 184.8% compared to the AIC peer group of 40.9%.

Commenting on the outlook, Jason Baggaley, fund manager, Standard Life Investments Property Income Trust Limited, said: “It is clear that we have entered 2022 with significant uncertainty, as geopolitical concerns weigh on the global economy.

“Whilst it appears we have now passed the worst of the COVID-19 pandemic, the outbreak of conflict in Ukraine in February 2022 has sent shockwaves throughout the world. Prior to the outbreak of the conflict, there were already significant concerns over rising inflation and tightening of monetary policy, and the conflict has skewed risks even further to the upside.”

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