Standard Life Investments: Active Property Investment
Edison | Sep 04, 2016 02:54AM ET
Standard Life Investments Property Income Trust (LON:SL) is an actively managed fund aiming to generate an attractive level of income, with the prospect of income and capital growth via direct investment in commercial property. Since mid-2014, the trust has grown significantly via acquisition; the most recent was a portfolio of 22 complementary property assets in December 2015. NAV total return has been ahead of the benchmark over one, three and five years. Following the EU referendum, similar to peers, SLI’s shares have moved from a premium to a discount to NAV, while its prospective yield of 5.9% ranks among the highest in the peer group.
Investment strategy: Active property investment
Managed by Jason Baggaley since September 2006, SLI invests directly in a diversified portfolio of commercial property. Asset management is a key element of the investment process, which typically involves negotiating new leases with existing or new tenants and refurbishments before re-letting. Historically, new leases are struck at higher rental levels, which increase the value of the underlying property. Unlike most industry participants, SLI collects its own rents, thus forming closer relationships with its tenants. As a result, it has a strong record of rent collection and a voids ratio of roughly half the industry level.
To read the entire report Please click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.