Do Institutions Own Standard Life Investments Property Income Trust Limited (LON:SLI) Shares?

By
Simply Wall St
Published
November 03, 2020

If you want to know who really controls Standard Life Investments Property Income Trust Limited (LON:SLI), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Standard Life Investments Property Income Trust is not a large company by global standards. It has a market capitalization of UK£216m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Standard Life Investments Property Income Trust.

Check out our latest analysis for Standard Life Investments Property Income Trust

LSE:SLI Ownership Breakdown November 3rd 2020

What Does The Institutional Ownership Tell Us About Standard Life Investments Property Income Trust?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Standard Life Investments Property Income Trust does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Standard Life Investments Property Income Trust's historic earnings and revenue below, but keep in mind there's always more to the story.

LSE:SLI Earnings and Revenue Growth November 3rd 2020

We note that hedge funds don't have a meaningful investment in Standard Life Investments Property Income Trust. Looking at our data, we can see that the largest shareholder is Brewin Dolphin Limited with 14% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.4% and 7.3%, of the shares outstanding, respectively.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Standard Life Investments Property Income Trust

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that Standard Life Investments Property Income Trust Limited insiders own under 1% of the company. It appears that the board holds about UK£424k worth of stock. This compares to a market capitalization of UK£216m. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are mostly retail investors, collectively hold 55% of Standard Life Investments Property Income Trust shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Standard Life Investments Property Income Trust better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Standard Life Investments Property Income Trust (including 1 which is is a bit concerning) .

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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