Edison reviews Standard Life Inv. Prop. Inc.Trust
Standard Life Investments Property Income Trust (SLI) 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.
For most of the last five years, SLI's share price has traded at a premium to NAV. Following the UK's EU referendum the shares moved to a discount, which widened to 16.6% in early July 2016 before narrowing to its current level of 1.6%. SLI's dividend is fully covered and its dividend yield is one the highest in the AIC Property Direct - UK peer group. The board has proposed a 2.5% increase in the FY16 dividend to 4.76p, which implies a prospective yield of 5.9%.
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