Abrdn Property Income Share Discussion Threads

[skyship] 21/3/2024 20:52

I think its an appalling sell-out by a totally incompetent Chairman; however I've decided to accept the CREI bid as CREI itself now extremely good value in its own right.

[strocketman] 21/3/2024 20:47

Sheer madness based on 2 sales near to NAV. With the CREI offer you still hold the API portfolio and you get a propotion of the CREI discounted portfolio too. For API shareholders it will increase dividends by 7%, and they will be fully covered. It all depends if you want uncertainty that has driven us this low. Why would a shareholder want that when there is a very viable -alternative?
If shareholders reject the CREI bid, the shareprice will most likely be shorted back to the mid 40s. Gone will be the 8% dividends, and management charges will eat into the returns.
Its not a scenario I relish.

[raj k] 21/3/2024 16:45

hxxps://citywire.com/investment-trust-insider/news/ex-laxey-activist-pops-up-at-abrdn-property-to-demand-wind-down/a2438536?re=118492&refea=461223

Just noted this article re: API over at citywire.

[pavey ark] 21/3/2024 10:40

!/2/24
"Following new leases totalling £1.3m pa in Q3 further lettings completed in Q4 totalling £1.1m pa. Despite these lettings the void rate only reduced to 7.6% from the Q3 level of 8% as we had the tenant of a logistics unit leave in late November. We have now placed the unit under offer to sell to an owner occupier. The sale figure is approximately 10% ahead of the end December valuation. The lettings demonstrate the appeal of the API assets to occupiers, but office demand remains muted, and no lettings were completed in this sector during Q4."

"....Terms were also agreed for the sale of our City of London office and Manchester Office for a combined £14.75m (year-end valuation £15.35m) reducing office exposure by 3.5% to 13%. Sales have also been agreed of two industrial assets for a total of £24.4m (year-end valuation £22.4m). We are also exploring the sale of the open moorland at Far Ralia with encouraging indications of value above the year-end valuation (£8.25m)."

[pavey ark] 21/3/2024 09:19

The numbers/margins here are very, very substantial.
In three months we have had £62m of disposals at a hair above book value.

As I pointed out the Hagley Rd property and the moorland should command a premium and the offices remaining are an ever decreasing factor.

In three months they have sold properties worth £62m at above book and 40% of this was office space.

It is not difficult to see a very large part of the remaining portfolio achieving book value (give or take) and if there were "difficult" sales .....everything has its price.

An overall sales total at 10% less than book would give a share value 30% above today's price.
Given that there are many properties that will achieve book (small +/-)you would have to discount the remainder by a very large amount to even get to 10%.

[mindthestash] 21/3/2024 09:02

Manager put foxes board. Announce sale of assets at close to NAV. Demonstrates idiocy of accepting low ball offers.
Not sure this means they will behave responsibly from now on though. Why has chair at least not resigned

[nickrl] 21/3/2024 08:23

@RajK don't see that the BoDs will sit there and take the fees without a care in the world. Like EPIC the BoDs have sold us down the river and i don't understand their behaviour if they didn't like what Baggley was doing they should have sorted that issue.

[raj k] 21/3/2024 07:57

If they do a managed wind down i hope it is exactly that and sales are done at the right time in the interest of shareholders first and foremost. My concern is that it will be a quick fire sale and they will compromise on the valuations to get it over and done with?

[spooky] 21/3/2024 07:49

I suggest that whoever is writing/authorising their RNS statements should resign and move on. It would be useful to have someone who is genuinely looking after the interests of shareholders.

[spectoacc] 21/3/2024 07:06

"If the CREI Merger is not approved by the requisite majority of API Shareholders, the API Board has made clear that a Managed Wind-Down is the next best alternative, but API Shareholders should not expect the same sale values as for ordinary course disposals."


Almost hope it is the managed wind-down, just to demonstrate that.

[riverman77] 20/3/2024 17:02

No surprise there - their renewed offer was so lame it almost felt they wanted to get out of it.

[dr biotech] 20/3/2024 17:00

No offer from SHED then. They said no at 16:12

[pavey ark] 20/3/2024 10:35

Since December the total disposals have come to £62m ,this total at a hair over book value
Offices are down to 10%
We have had Hagley rd simply marked down with all offices even though occupancy is now well over 90% (multi let with some substantial tenants).
Interest in the moorland so we could be looking at a substantial premium (£3m/£5m) over both sales......certainly book value...all day long.

Sell Hagley Rd and offices are c.6%

From these disposals and even allowing for a write down on a few properties it looks possible to get 70p+/share on an organised sell down programme.

[spectoacc] 20/3/2024 09:01

Too right @Flyer61, albeit always in these cases you've got to assume it's the better, more saleable stuff that's getting sold. Remember EPIC's offices experience..

[pavey ark] 20/3/2024 09:00

I wonder what is really going on here ?

These sales have shown that NAV can be achieved although there are obvious places where this can be exceeded.

The LTV of this well run REIT must now be safely under 20%.

When the management used the RCF to buy properties that they wanted to buy (the purpose of a RCF) and complete Knowsley there was much nonsense from the usual sources now this has been paid off by selective disposal.....silence on the zero RCF!?

I am pretty sure that Hagley Rd and the moorland could be sold at a premium and with the previous office disposals this would make the "Portfolio 2" almost insignificant........leaving "portfolio 1" as a bargain giveaway !!!

These asset sales show that a managed selloff is the way forward to maximise shareholder value.....I mean API shareholder value !!!

[flyer61] 20/3/2024 08:46

It is almost like Mark and Jason saying to the board...

you have no excuse not to get a deal near NAV as we seem to be able to do it...why not you...

[skyship] 20/3/2024 08:34

Mark & Jason doing the right thing for shareholders. The BoD on the other hand for some reason intent on selling us down the drain at a large discount to API's true worth.

---------------------------

Mark Blyth, Deputy Fund Manager of API commented: "These two sales continue the disposal strategy that was implemented at the end of last year, with the proceeds being used to pay down the Company's Rolling Credit Facility which has a floating interest rate. It follows on from the sale in December of the industrial asset in Livingston and demonstrate the continued appeal of the API assets to investors at prices close to NAV."

[flyer61] 20/3/2024 08:21

nice way of putting it Spec.

Now if CLI could be realised at - 7.1% wouldn't we all be happy....

[spectoacc] 20/3/2024 07:58

The market in a nutshell - 7.1% down on the office, 5.5% up on the Industrial.

[cwa1] 20/3/2024 07:56

Hmmmm...

20 March 2024

Double asset disposal

abrdn Property Income Trust ("API") has contractually agreed the sale of two
assets for a combined price of £16.55m, reflecting a -0.3% discount to the
December 2023 valuation.

Contracts have been exchanged for the sale of 15 Basinghall Street in London,
with completion scheduled for Friday 22nd March. The c17,500 sq.ft office
building is multi-let to 7 tenants with a weighted average unexpired lease term
of approximately 1.5 years. The agreed sale price of £9.8m reflects a net
initial yield of 8.25% and is a 7.1% discount to the September 2023 valuation.

Opus 9, Warrington is a prominently positioned industrial estate let to two
tenants, Verizon and Teckentrup. Extending to c53,100 sq.ft, it has a weighted
average unexpired lease term of just over 5 years. The sale has completed with
the price of £6.75m reflecting a net initial yield of 5.91%, which is a 5.5%
premium to the September 2023 valuation.

Mark Blyth, Deputy Fund Manager of API commented: "These two sales continue the
disposal strategy that was implemented at the end of last year, with the
proceeds being used to pay down the Company's Rolling Credit Facility which has
a floating interest rate. It follows on from the sale in December of the
industrial asset in Livingston and demonstrate the continued appeal of the API
assets to investors at prices close to NAV."

[spectoacc] 19/3/2024 16:08

Voted mine for CREI, come on CREI..

[arbus5000] 18/3/2024 14:55

SHED's offer is ludicrous, although you cannot blame them for trying.

[mindthestash] 18/3/2024 12:05

She'd have the right idea but no cash. If API board had any sense, clearly they haven't, they'd put Portfolio 1 up for sale. Then if a buyer appears with cash and does a deal winddown portfolio. might get close to NAV?

[nickrl] 18/3/2024 11:47

@sky agree but this is the flaw in the reits spun out the larger investment firms that the people who realky ought to be in charge are left subservient to BoDs who realky are showing they aren't worth the money.