Standard Life Investments Property Income Trust has posted an 18.2% fall in net asset value to 50.5p per share for the six months to 30 June.
In its half-year results today, the company said the fall in the value of commercial property, together with the impact of gearing, accounted for much of the decline.
Its total return on property was -5.6%, compared with the IPD Monthly Index return of -9.6%.
“While the remainder of 2009 is likely to be another challenging year for commercial property, the prospects for 2010 and beyond look more promising,” the company said.
“Income preservation is likely to be key for investors going forward and hence prime assets in the best locations with tenants on strong covenants and long leases will be at a premium.”
The company said its assets were valued on a quarterly basis by Jones Lang LaSalle and at 30 June, its property portfolio was valued at £122.2m, compared with £123m at 31 December.
The June valuation includes an £11m property purchase during the period.
