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SLI - the next to look anomalously cheap...
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- Lemon Slice
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SLI - the next to look anomalously cheap...
Standard Life Property Income Trust (SLI) dipped to 51.5p last week, recovered to 55p; but have fallen back again to 52.5p. At this level they look anomalously cheap for a trust which historically used to trade at cNAV level, now trading at a 34% discount.
What particularly catches my eye is that the directors have recently bought in reasonable volume in the 54p/55p range.
The property portfolio is mainly Office & Industrial, with very low exposure to Retail.
The LTV is 26.2%, the debt cost is 2.59% and they just this month had the confidence to pay a 2nd Interim Dividend.
Well worth a little investigation. The shares have recently swung post the crash level of 50p, up to 80p, down to 58p, up to 70p; now trading hopefully a base in the low 50s.
IMO they look good for a 10%-15% short-term trade.
What particularly catches my eye is that the directors have recently bought in reasonable volume in the 54p/55p range.
The property portfolio is mainly Office & Industrial, with very low exposure to Retail.
The LTV is 26.2%, the debt cost is 2.59% and they just this month had the confidence to pay a 2nd Interim Dividend.
Well worth a little investigation. The shares have recently swung post the crash level of 50p, up to 80p, down to 58p, up to 70p; now trading hopefully a base in the low 50s.
IMO they look good for a 10%-15% short-term trade.
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- Lemon Quarter
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Re: SLI - the next to look anomalously cheap...
SKYSHIP wrote:Standard Life Property Income Trust (SLI) dipped to 51.5p last week, recovered to 55p; but have fallen back again to 52.5p. At this level they look anomalously cheap for a trust which historically used to trade at cNAV level, now trading at a 34% discount.
What particularly catches my eye is that the directors have recently bought in reasonable volume in the 54p/55p range.
The property portfolio is mainly Office & Industrial, with very low exposure to Retail.
The LTV is 26.2%, the debt cost is 2.59% and they just this month had the confidence to pay a 2nd Interim Dividend.
Well worth a little investigation. The shares have recently swung post the crash level of 50p, up to 80p, down to 58p, up to 70p; now trading hopefully a base in the low 50s.
IMO they look good for a 10%-15% short-term trade.
Now at 49.50p. Yield: 9.71%. Discount to NAV -38.81%
Dare I top up?
https://www.hl.co.uk/shares/shares-sear ... ust-ord-1p
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
richfool wrote:Now at 49.50p. Yield: 9.71%. Discount to NAV -38.81%
Dare I top up?
https://www.hl.co.uk/shares/shares-sear ... ust-ord-1p
The latest dividend seems to have been re-based to 0.714p so yield of (0.714*4)/49.5 = 5.77% might be more realistic. I've been tempted to get back in myself. I managed to get out at 94p in Feb. Dumb luck more than anything.
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
Richfool - In my experience you should never, ever trust HL stats. Always when needing to calculate key indicators such as NAV or Yield, go to the recent company announcements on ADVFN & extract stats for yourself.
I agree with the above poster re the dividend. For the time-being my spreadsheet assumes 2.856p; but with a likely annual total of 3.332p.
Like many of these REITs, seek to buy on a dull day and sell into strength. I was lucky enough to make a couple of purchases a few days ago, averaging 48p; having sold a week earlier at 52.2p!
RGL were down at 60p at the same time...another opportunity to trade...
I agree with the above poster re the dividend. For the time-being my spreadsheet assumes 2.856p; but with a likely annual total of 3.332p.
Like many of these REITs, seek to buy on a dull day and sell into strength. I was lucky enough to make a couple of purchases a few days ago, averaging 48p; having sold a week earlier at 52.2p!
RGL were down at 60p at the same time...another opportunity to trade...
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- Lemon Quarter
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Re: SLI - the next to look anomalously cheap...
SKYSHIP wrote:Richfool - In my experience you should never, ever trust HL stats. Always when needing to calculate key indicators such as NAV or Yield, go to the recent company announcements on ADVFN & extract stats for yourself.
I agree with the above poster re the dividend. For the time-being my spreadsheet assumes 2.856p; but with a likely annual total of 3.332p.
Like many of these REITs, seek to buy on a dull day and sell into strength. I was lucky enough to make a couple of purchases a few days ago, averaging 48p; having sold a week earlier at 52.2p!
RGL were down at 60p at the same time...another opportunity to trade...
Agreed. I only use such sources as a guide.
I hold both SLI and RGL which are of course both very well down. I was indeed aware that both had cut their dividends. My ponderings are more along the lines of which has more exposure to industrial warehousing and least exposure to High Street Retail and offices, and dare I top up either of them.
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
Well, my spreadsheet of 17 REITs includes the portfolio allocation, so I can constantly remind myself when an sp appears to be in anomalously cheap mode.
However, one has to start from a correct (IMO!) analysis as to which sector to hold:
# Clearly NOT RETAIL; but retail warehouse appears to be the turn-round kid according to recent footfall stats
# Industrial warehouse overbought and prices coming off the boil
# Office - a major difference between City offices (esp. London) and regional offices. The latter may well be a beneficiary of office disbursement to the regions
SLI's port. mix is: Office- 32%; Industrial - 53%; Retail - 2%; Retail W'hse - 6%; Spec/Alt - 7%
IMO - current Best Buys are: AIRE, EPIC & SREI
However, one has to start from a correct (IMO!) analysis as to which sector to hold:
# Clearly NOT RETAIL; but retail warehouse appears to be the turn-round kid according to recent footfall stats
# Industrial warehouse overbought and prices coming off the boil
# Office - a major difference between City offices (esp. London) and regional offices. The latter may well be a beneficiary of office disbursement to the regions
SLI's port. mix is: Office- 32%; Industrial - 53%; Retail - 2%; Retail W'hse - 6%; Spec/Alt - 7%
IMO - current Best Buys are: AIRE, EPIC & SREI
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- Lemon Quarter
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Re: SLI - the next to look anomalously cheap...
SKYSHIP wrote:Well, my spreadsheet of 17 REITs includes the portfolio allocation, so I can constantly remind myself when an sp appears to be in anomalously cheap mode.
However, one has to start from a correct (IMO!) analysis as to which sector to hold:
# Clearly NOT RETAIL; but retail warehouse appears to be the turn-round kid according to recent footfall stats
# Industrial warehouse overbought and prices coming off the boil
# Office - a major difference between City offices (esp. London) and regional offices. The latter may well be a beneficiary of office disbursement to the regions
SLI's port. mix is: Office- 32%; Industrial - 53%; Retail - 2%; Retail W'hse - 6%; Spec/Alt - 7%
IMO - current Best Buys are: AIRE, EPIC & SREI
But you prefer SLI to RGL then?
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
As always, it depends on price...at least it does for those of a short-term disposition....which, I admit, is me/?$!
RGL: Sp 65p - NAV disc = 36.6%; Yld = 9.2%
SLI: Sp 51p - NAV disc = 35.9%; Yld = 5.6%
Youy already hold these two, so diversify a little. Go for one of the others I mentioned.
Best pick? .......perhaps EPIC ahead of the Q3 Update
EPIC: Sp 49.9P - NAV disc = 44.7%; Yld = 8.02%
RGL: Sp 65p - NAV disc = 36.6%; Yld = 9.2%
SLI: Sp 51p - NAV disc = 35.9%; Yld = 5.6%
Youy already hold these two, so diversify a little. Go for one of the others I mentioned.
Best pick? .......perhaps EPIC ahead of the Q3 Update
EPIC: Sp 49.9P - NAV disc = 44.7%; Yld = 8.02%
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
Some great rises since that last post.
EPIC up 30% to 65p; RGL up 27% to 83p (now 18%); SLI up 25% to 64p (now just 8%).
Perhaps keep an eye on SLI - could be a good trade again @ 55p, certainly if they go lower...
EPIC up 30% to 65p; RGL up 27% to 83p (now 18%); SLI up 25% to 64p (now just 8%).
Perhaps keep an eye on SLI - could be a good trade again @ 55p, certainly if they go lower...
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- Lemon Quarter
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Re: SLI - the next to look anomalously cheap...
Date: 20 April 2021
Company: Standard Life Investments Property Income Trust Limited
LEI: 549300HHFBWZRKC7RW84
Subject: Dividend Declaration
Fifth Interim Dividend
On 3 February 2021, recognising the importance of dividends to shareholders, the Board indicated that a further interim dividend would be payable in order to comply with the REIT rules to distribute at least 90% of its annual property income within 12 months of the year end. The Board is therefore pleased to declare that a further property income dividend will be payable by the Company in respect of the year ended 31 December 2020 as follows:
Dividend per Share - 0.381p
Ex-Dividend Date - 29 April 2021
Record Date - 30 April 2021
Payment Date - 18 May 2021
Following the payment of this dividend, shareholders will have received payments totalling 3.713 pence per share in relation to the year ended 31 December 2020, representing 78% of the 2019 level. Based on this dividend level, dividend cover was 110% for 2020.
https://uk.finance.yahoo.com/news/stand ... 00802.html
Isn't that a reduction in dividend compared to previous quarters, or is that an additional dividend relating to the year?
Current SP 66.40p (up a whisker +0.20p).
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
Hi richfool
I have interpreted that as an additional property income dividend payable in respect of the year 2020 to December 31st., NOT the first quarterly dividend of 2021.
They did headline the payment as a "Fifth Interim Dividend "
Weird as we would be expecting a first quarter dividend, January to March, 2021 - around the end of May.
midgesgalore
I have interpreted that as an additional property income dividend payable in respect of the year 2020 to December 31st., NOT the first quarterly dividend of 2021.
They did headline the payment as a "Fifth Interim Dividend "
Weird as we would be expecting a first quarter dividend, January to March, 2021 - around the end of May.
midgesgalore
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
# SLI: 66.5p - Discount 18.9% & yield 5.58%
# SREI: 41.6p - Discount 29.3% & yield 6.01%
SREI remains the best value REIT.
# SREI: 41.6p - Discount 29.3% & yield 6.01%
SREI remains the best value REIT.
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
# SLI: 73.0p - Discount 14.4% & yield 4.89%
# SREI: 49.0p - Discount 18.9% & yield 5.27%
# BREI: 71.2p - Discount 28.2% & yield 5.27% prospective
BREI now best value after great rises by the first two. See new BREI thread...
# SREI: 49.0p - Discount 18.9% & yield 5.27%
# BREI: 71.2p - Discount 28.2% & yield 5.27% prospective
BREI now best value after great rises by the first two. See new BREI thread...
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- 2 Lemon pips
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Re: SLI - the next to look anomalously cheap...
But BREI average discount over last year is 37% so it is at a narrower discount than usual. Difficult to value office space that maybe nobody wants to go to work in.
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
everhopeful
# ALL REITs are standing at lower discounts than a year ago; as the whole sector has enjoyed great recovery
# Part of the reason for the recovery is that it is now accepted that offices will still be needed; so valuations
are recovering too
Look at all the propcos & REIT threads I've instigated over the past year. You will see the sector has been
vastly profitable for all who have looked at the numbers and invested accordingly.
BREI will do the same.....IMO.....
# ALL REITs are standing at lower discounts than a year ago; as the whole sector has enjoyed great recovery
# Part of the reason for the recovery is that it is now accepted that offices will still be needed; so valuations
are recovering too
Look at all the propcos & REIT threads I've instigated over the past year. You will see the sector has been
vastly profitable for all who have looked at the numbers and invested accordingly.
BREI will do the same.....IMO.....
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- Lemon Quarter
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Re: SLI - the next to look anomalously cheap...
SLI gets a mention in this AIC article:
https://theaic.turtl.co/story/compass-o ... 1/page/4/1
Also, cross post here:
viewtopic.php?p=450350#p450350
Such a large, double-digit discount shows how unfashionable this sector continues to be - and suggests there is scope for further recovery in future. Looking under the bonnet, ‘industrial property’ - or factories, rather than offices and shops - accounts for half of SLI’s assets. These industrial properties should remain largely unaffected by adverse trends in online retail or WFH. Here and now, SLI yields dividend income of 4.9 per cent which, although not guaranteed, gives shareholders a substantial reason to hang
https://theaic.turtl.co/story/compass-o ... 1/page/4/1
Also, cross post here:
viewtopic.php?p=450350#p450350
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- Lemon Slice
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Re: SLI - the next to look anomalously cheap...
Did I get the wrong end of the stick, or is SLI to be wound up? I got my usual email from Citywire today to the effect abrdn is to ditch a large number of open and closed-ended funds, SLI among them. I hope I'm wrong, it's done quite well for me, I don't want to have to find another home for the cash.
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- Lemon Quarter
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Re: SLI - the next to look anomalously cheap...
Still, circa 50% in less than 18 months (52.5p- > 79p) is pretty good. Nice one SKYSHIP.
Shame I didn’t join in.
Shame I didn’t join in.
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- Lemon Quarter
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Re: SLI - the next to look anomalously cheap...
For Information, the ticker of SLI has now changed to API and the name to Abrdn Property Income trust.
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