Abrdn Property Income Share Discussion Threads

[skyship] 18/3/2024 10:33

The totally incompetent BoD should resign en masse and leave it up to Jason Baggaley

[pavey ark] 18/3/2024 10:28

"a ready buyer"..... SHED are not prepared to "BUY" the logistics unit .
It would make sense if ABRDN took this PORTFOLIO 1 and said "okay ...if you want it here's the price.....we will sell it at this price to you or anyone else who comes up with the cash"

API's share price along with most other REITs has been trashed in the recent past but things look a bit brighter now and especially in API's case as the recent and impending sales have effectively removed the expensive RCF.
The LTV is heading for the very low 20s and the term loan (£85m) is capped at 4%(5.5%)

My point is that there is little stress or distress but the board appear to be operating under different criteria than those aimed at maximising shareholder value.

[nickrl] 18/3/2024 10:02

CREI clearly has a ready buyer of the logistic assets if they win which seems likely now as nobody else has come sniffing.

[joey52] 18/3/2024 09:42

I decided to sell at 55.6p last week. Saw the price and took it.

[flyer61] 18/3/2024 09:02

Yes there will be plenty of others interested in the good bits, so SHED off you go...and find some cash.

[spooky] 18/3/2024 07:36

The offer is totally ludicrous unless i have missed something. They are offering to buy the parts of API that they want at a 30% discount to NAV. Leaving Current API management to wind down the rump. They aren't even offering cash, API shareholders will receive SHED shares. Sounds like the worst of all worlds.

[spectoacc] 18/3/2024 07:30

Isn't this the same offer SHED made to API, and API announced, post their first offer?

There's too much to wade through but basically SHED buys the bits it wants - ie the good part of API - and API wind down the rest. Rejected by API previously, can't see they've improved it, particularly since the purchase of the good part is still in SHED shares (I think).

Clearly API shareholders would be better served if the board auctioned off the good bit (ie industrial/RPs), rather than gave it to SHED for weakened shares.

[dr biotech] 18/3/2024 07:24

Interesting suggestion from SHED this morning. Think that looks to be a better offer but I’ve not done the maths

[arbus5000] 14/3/2024 17:48

none of the API board's actions so far suggest that they are maximising returns for existing shareholders.

[spectoacc] 14/3/2024 16:22

SHED now have until the 20th, another extension to the PUSU.

[mindthestash] 14/3/2024 16:09

The reason they are both interested is that they want the API sheds. If they take the rest with it then they want a big discount and it's paper only

Pull the sheds out take offers for them

This shareholder is prepared to wait till we get a better deal. Most revealing was API boards description of uncertainty plaguing us poor fretting little idiots (aka SHAREHOLDERS) who can't get over the idea that negotiations can be tricky to navigate successfully. Any fool can agree a quick deal.

[pavey ark] 14/3/2024 15:51

"Keep taking the medicine. Though you might want to switch from the blue pill sometime."

I see your wit is on a par with your financial insight.

Perhaps better you stick to your day job of repeated posts on any number of shares and topics whither you hold or not......it gets your day in.....bless!!

[spectoacc] 14/3/2024 15:31

@Pavey Snark:

"Strange that CREI and SHED are very, very interested.....perhaps they don't your [sic] real insight into API or indeed your rare insight into every share, economic theory and financial strategy."


So very, very interested that they've bid paper, neither have increased their bids, and both offers are at a substantial NAV discount?

And if neither get it, API will do the decent thing and wind itself up?

Even the Board can see it, albeit it's taken them far too long.

Keep taking the medicine. Though you might want to switch from the blue pill sometime.

[spittingbarrel] 14/3/2024 15:11

Who will win the Abrdn property trust bidding war?

[mindthestash] 14/3/2024 14:42

I hope the API board replied book value to shed on the sheds only deal
RNS extract

Urban Logistics made a further indicative, conceptual proposal (the "ULR Alternative Proposal") involving a break-up of API, pursuant to which API's industrial and retail warehouses portfolios ("Portfolio 1") would be acquired by Urban Logistics on a share-for-share basis based on the original exchange ratio multiplied by the pro rata share of API's portfolio represented by Portfolio 1, and the remaining properties ("Portfolio 2") would remain within API, with the intention that API should dispose of the properties and return capital to API Shareholders. API's other assets and liabilities would be apportioned between the two portfolios

If I were chair I'd pull both deals.
I'd put the sheds up for sale as a single entity and incentivise current mahager on selling out the rest with a small oversight board.
MLI went for a premium to book if I remember correctly....

[mindthestash] 14/3/2024 14:15

I'd be interested in the numbers on the table from SHED to take the logistics (hot property currently) and leave API to dispose of the remainder. If SHED are offering anything like book value for the industrials this might look like a better deal all round imo.
I'll read the RNS

[spectoacc] 14/3/2024 10:55

I'd love SGRO to go for SHED, albeit it'd be a slight departure for them - SHED are more individual, last-mile.

What SHED clearly aren't is API, and I'll be exiting SHED when the dust has blown over. Always rated the management highly, but no more.

As for API - it'll be good riddance, whatever the outcome. Near the bottom of the REITs pile.

[nickrl] 14/3/2024 10:14

@PaveyArk its clear CREI aint going to offer anymore and API are recommending it. SHED look unlikely to either although having been rebuffed on a part disposal they may yet come back but that risks further deterioration to their share price and with SGRO recently gaining some big fire power wouldn't be surprised if they aren't on the radar now.

[pavey ark] 14/3/2024 09:58

2 to 3 years .....really !!!

Sell down the biggest and best very quickly and at a premium then the remainder could be sold at a slight discount as a manageable purchase for any number of REITs.

No matter what problems and disadvantages are put forward (real or imagined) we are talking about a very large percentage of shareholder value here and this shouldn't be dismissed in the interest of neatness and convenience.

If CREI or SHED can't come up with the total cash purchase they could make a cash plus share offer.

[nickrl] 14/3/2024 09:31

@PaveyArk for sure API are on a far better footing now but an orderly wind down will take 2-3 years and risk any benefit being lost in running an ever less efficient inv mgr and BoD structure. Might as well just leave well alone.

Separately am beginning to think that REITs with separate boards and inv mgrs is a flawed concept as like EPIC BoDs don't seem to truly understand their business as they are too disconnected from it.

[pavey ark] 14/3/2024 08:56

The recent disposals have greatly reduced the RCF and have been done at an overall premium to book.
The moorland sale and the sale of the recently vacated industrial unit (under offer) should wipe out the RCF.
With the recent sales the LTV is in the very low 20s and these additional sales would put it under 20%.

Sales across the REIT section have shown that recent survey values have been overly harsh and an orderly wind down would very likely give a greater return than the current listed NAV......and certainly represent greater value to API shareholders.

[nickrl] 14/3/2024 08:48

Why say they will consider an orderly wind down now other than to protect their independence and get a few more years of fees?

Edit: reading the RNS i see SHED have informally indicated they would take the logistics assets off API in exchange of shares in SHED and leave the rump assets for API dispose perhaps thats where the managed wind idea gained traction.

Anyhow 27th March will tell us now.