STANDARD LIFE INVESTMENTS PROPERTY INCOM

Description

Standard life Investment Property Income Trust is an investment company that carries on the business of property investment through a portfolio of freehold and leasehold commercial properties located across UK. Most of its investment is focused on direct holdings of retail, office and industrial sector and it can also invest in other properties such as student housing, hotels, and nursing homes.  The objective of the trust is to provide shareholders high and attractive level of income and capital growth.

The trust can invest in property development and investment in co-investment vehicles, maximum 10% of its portfolio, where there is more than one investor.  To invest in the diversified portfolio with a motive to manage risk and maintain liquidity and flexibility the board applied restriction for the normal market condition; no single property in the portfolio can comprises more than 15% of the total assets by value, no tenant excluding government can comprises more than 20% of the trust’s rent roll, to increase the return from its portfolio gearing can be used by the trust to the maximum of 65% of its gross assets and currently the trust’s loan to value ratio can’t exceed 45%.

The Board of the trust has outsourced its portfolio management activities to its investment manager - Aberdeen Standard Fund Management Limited. The investment manager aims to achieve superior investment performance by actively managing and researching for the investment opportunities that can deliver high value through its management, business focus, strong balance sheet and corporate governance record and don’t invest in companies just because it’s the largest listed company, it also work closely with tenants to understand their needs with the aim to improve their experience, satisfaction and retention with lower voids, higher rental values and attractive return The trust may also consider acquiring assets that can help them to meet their ESG objectives.

Its top tenants include B&Q Plc, BAE System, The Symphony group plc, public sector, Schlumberger oilfield UK Plc, Jenkins Shipping Group, Timet limited, ATOS IT Services ltd, CEVA logistics limited and ThyssenKrupp Materials and its top portfolio of properties includes 54 Hagley Road, B&Q, Symphony, Marsh Way, Pinnacle, Timbmet, Hollywood Green, New Palace place, Atos Data centre and Badentoy.