LSE:SLI

Stock Analysis Report

Standard Life Investments Property Income Trust

Executive Summary

Standard Life Investments is a leading asset manager with an expanding global reach.

Rewards

Trading at 31.1% below its fair value

Pays a high and reliable dividend of 5.03%

Risk Analysis

Large one-off items impacting financial results

Profit margins (74.8%) are lower than last year

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Standard Life Investments Property Income Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SLI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

SLI

0.3%

GB REITs

-1.1%

GB Market


1 Year Return

9.7%

SLI

15.7%

GB REITs

11.8%

GB Market

Return vs Industry: SLI underperformed the UK REITs industry which returned 16.2% over the past year.

Return vs Market: SLI underperformed the UK Market which returned 12.4% over the past year.


Shareholder returns

SLIIndustryMarket
7 Day-0.4%0.3%-1.1%
30 Day4.0%-0.4%-0.8%
90 Day5.8%4.7%5.2%
1 Year15.7%9.7%20.7%15.7%17.7%11.8%
3 Year28.5%9.7%32.5%13.8%21.3%5.8%
5 Year52.9%16.8%27.2%1.9%40.0%7.7%

Price Volatility Vs. Market

How volatile is Standard Life Investments Property Income Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Standard Life Investments Property Income Trust undervalued compared to its fair value and its price relative to the market?

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLI (£0.94) is trading below our estimate of fair value (£1.36)

Significantly Below Fair Value: SLI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SLI is poor value based on its PE Ratio (15.5x) compared to the REITs industry average (15.2x).

PE vs Market: SLI is good value based on its PE Ratio (15.2x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SLI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SLI is overvalued based on its PB Ratio (1x) compared to the GB REITs industry average (1x).


Next Steps

Future Growth

How is Standard Life Investments Property Income Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.0%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Standard Life Investments Property Income Trust has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Standard Life Investments Property Income Trust performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLI has a large one-off gain of £4.4M impacting its June 30 2019 financial results.

Growing Profit Margin: SLI's current net profit margins (74.8%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: SLI's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: SLI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SLI had negative earnings growth (-38.7%) over the past year, making it difficult to compare to the REITs industry average (-21.1%).


Return on Equity

High ROE: SLI's Return on Equity (6.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Standard Life Investments Property Income Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SLI has a high level of physical assets or inventory.

Debt Coverage by Assets: SLI's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: SLI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SLI has a sufficient allowance for bad loans.

Low Risk Liabilities: SLI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SLI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SLI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SLI has an appropriate level of bad loans.


Next Steps

Dividend

What is Standard Life Investments Property Income Trust's current dividend yield, its reliability and sustainability?

5.03%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.8%markettop25%5.0%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SLI's dividend (5.06%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: SLI's dividend (5.03%) is in the top 25% of dividend payers in the UK market (4.97%)


Stability and Growth of Payments

Stable Dividend: SLI's dividends per share have been stable in the past 10 years.

Growing Dividend: SLI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82%), SLI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Standard Life Investments Property Income Trust's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Norman Skeoch (62yo)

4.4yrs

Tenure

0

Mr. Norman Keith Skeoch has been the Chief Executive at Standard Life Aberdeen plc since March 13, 2019 and its Executive Director since May 25, 2006. Mr. Skeoch has been the Chief Executive Officer at Sta ...


Management Age and Tenure

7.0yrs

Average Tenure

60yo

Average Age

Experienced Management: SLI's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

63yo

Average Age

Experienced Board: SLI's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Management Team

  • Norman Skeoch (62yo)

    Chief Executive Officer of Standard Life Aberdeen Plc

    • Tenure: 4.4yrs
  • Colin Walklin (65yo)

    Group Chief Operating Officer

    • Rod Paris (60yo)

      Chief Investment Officer

      • Tenure: 13yrs
    • Julian Coutts

      Chief Scientific Officer

      • Andrew Milligan

        Head of Global Strategy

        • Tenure: 20yrs
      • Guy Stern

        Global Head of Multi-Asset & Macro Investing

        • Tenure: 11.8yrs
      • Jason Baggaley (50yo)

        Fund Manager

        • Amanda Young (46yo)

          Head of Responsible Investment

          • Tenure: 6.3yrs
        • Richard Charnock (60yo)

          Chief Executive Officer of Standard Life Wealth

          • Tenure: 7yrs
        • Jonathan Kennedy

          Director of Change & Technology

          • Tenure: 3.8yrs

        Board Members

        • Robert Henry Peto (68yo)

          Independent Chairman of the Board

          • Tenure: 3.6yrs
          • Compensation: UK£42.00k
        • Mike Balfour (70yo)

          Non-Executive Director

          • Tenure: 2.8yrs
          • Compensation: UK£33.50k
        • Huw Evans (60yo)

          Senior Independent Director

          • Tenure: 0.6yrs
          • Compensation: UK£33.50k
        • James Clifton-Brown (63yo)

          Non-Executive Director

          • Tenure: 3.4yrs
          • Compensation: UK£33.50k
        • Jill May (57yo)

          Non-Executive Director

          • Tenure: 0.8yrs
        • Sarah Slater

          Non-Executive Director

          • Tenure: 0.2yrs

        Company Information

        Standard Life Investments Property Income Trust Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Standard Life Investments Property Income Trust Limited
        • Ticker: SLI
        • Exchange: LSE
        • Founded: 2003
        • Industry: Diversified REITs
        • Sector: Real Estate
        • Market Cap: UK£383.949m
        • Shares outstanding: 405.87m
        • Website: https://www.slipit.co.uk

        Location

        • Standard Life Investments Property Income Trust Limited
        • Trafalgar Court
        • Les Banques
        • Saint Peter Port
        • GY1 3QL
        • United Kingdom

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        SLILSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2003
        SLILBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2003

        Biography

        Standard Life Investments is a leading asset manager with an expanding global reach. Our wide range of investment solutions is backed by our distinctive Focus on Change investment philosophy, disciplined risk management and shared commitment to a culture of investment excellence. As active managers, we place significant emphasis on rigorous research and a strong collaborative ethos. We constantly think ahead and strive to anticipate change before it happens, ensuring that our clients can look to the future with confidence. Standard Life Investments manages £275.2 billion* on behalf of clients worldwide. Our investment capabilities span equities, fixed income, multi-asset, private markets, real estate, liquidity and private wealth. Headquartered in Edinburgh, Standard Life Investments employs more than 1,700 talented individuals. We maintain a presence in a number of locations around the world including Boston, Hong Kong, Paris, London, Beijing, Sydney, Dublin and Seoul. In addition, we have close relationships with leading domestic players in Asia, including HDFC Asset Management in India and Sumitomo Mitsui Trust Bank in Japan. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 20:43
        End of Day Share Price2020/01/23 00:00
        Earnings2019/06/30
        Annual Earnings2018/12/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.