Standard Life Investments Property Income Trust has recorded a 4.1% increase in net asset value per share to 82p during its fourth quarter.
The increase, from 78.8p in September 2020, has resulted in a NAV total return of 5% for the quarter ending 31 December.
Before capex, the value of its portfolio rose by 3.3% on a like-for-like basis.
During the quarter the fund sold four multilet industrial estates for £37.8m, as well as a small office in Derby for £4.3m and small retail warehouse for £3.6m, let to Smyth’s Toys. The proceeds were used to repay £35m drawn under its revolving credit facility.
So far in Q1 it has collected nearly three-quarters of rent owed, growing to 79% when factoring in monthly payments. Rent collection declined over 2020, from 99% in Q1 to 87% in Q4.
The fund said that going into Q2 it expects the impact of lockdown restrictions at the start of the year will continue to have a significant impact on many companies.
The property income trust’s LTV stands at 23%.
The fund said that although its investment manager has an “interesting pipeline of potential purchases”, the timing and amount of future income from these remains uncertain.
It will pay out a fourth interim dividend of 0.714p, similar to the amount paid out in the previous quarter.
The fund’s investment manager noted that the office sector is most likely to experience mispricing during 2021, as “the true nature of post-Covid occupational requirements gradually becomes more distinct”.
“It is easy to believe that the vaccine will bring an end to the misery many people have been suffering, and with that a return to growth, however performance across the different sectors, and indeed within the sectors, is likely to remain very polarised,” it added.
“Offices remain an area of significant change, where there will undoubtedly be winners and losers.”
The fund manager also expects ongoing outperformance from logistics and supermarkets, with fashion retail “continuing to lag”.
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