Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Standard Life Property trust pushes ahead with Reit conversion

Standard Life Property trust pushes ahead with Reit conversion

The Standard Life Property Income trust is to be converted into a real estate investment trust (Reit), in a move the board said would bring ‘significant advantages’ to shareholders.

After reviewing the ‘tax efficiency’ of its current structure, the trust’s board decided it was in the best interests of the ‘vast majority’ of shareholders to convert. Subject to shareholder approval, this will be completed by year-end.

The rules covering conversion to Reits were relaxed in 2012, meaning trusts no longer have to pay a 2% entry charge. They are also exempt from UK corporation tax on rental profits and capital gains, so can often offer improved returns to shareholders.

The board also aims to grow the £200 million trust, which is currently trading at a 16.4% premium to net asset value.

‘While the financial size of the company has increased significantly over the year, it remains below the level that some investors find attractive,’ chairman Paul Orchard-Lisle noted in the trust’s final results, announced last week.

The trust has returned 41.1% in share price terms over one year versus the MSCI ACWI/Real Estate index’s 23.35% gain.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter