Abrdn Property Income Share Discussion Threads

[skyship] 28/3/2024 11:35

Bought back @ 49.3p. Looks to have fallen too far:

A 2yr wind-up delivering 70p (10.8% down on the Dec'23 NAV) would provide a GRY of 19.1% pa. An extra 3months would still deliver 16.8% pa.

[nickrl] 28/3/2024 11:35

Market certainly isn't happy time for the Chairman as a minimum to resign with immediate effect.

[raj k] 28/3/2024 10:39

My concern is that this wind down will be more like a flash sale. What assurance do we have that the board and the managers will whats right for remaining shareholders?

[riverman77] 28/3/2024 09:41

While the offer from CREI was too low, I personally wanted and expected the deal to go through as a cheap way to get exposure to CREI, which I'm sure would have rerated over the next year or so. Debating what to do now as generally don't have the patience for drawn out realisation situations - for me too much of an opportunity cost when there are so many other bargains out there right now.

There also has to be the risk that the realisation doesn't get approved, in which case this will probably be stuck on a permenantly wide discount (even though unjustified, that's probably the reality as the market clearly hates API).

[essentialinvestor] 28/3/2024 08:48

There was as good as guaranteed upside for holders, if the merger had completed - within 12 months, this morning's CREI was achievable.

Find it difficult to relate to posts saying .. I'm celebrating this result.

[markth] 28/3/2024 08:48

Good to see the back of these bidders who were trying to get my shares on the cheap. Onwards and upwards to the managed wind down vote.

[skyship] 28/3/2024 08:41

I have DMA in my IDealing a/c; but my API holding is in my SIPP with AJBell - no DMA there unfortunately.

Halved my holding at average 53.2p....will now watch and buy back if they drop to the 50p level.

[frazboy] 28/3/2024 08:30

This is an interesting one. Anyone thinking that the wind up vote is a no brainer is wrong. If this votes to continue then the board must resign. But the share price action of CREI this morning underlines one thing for me and that is the lack of love for API by the market. Despite the really good newsflow from API over the last 2 months I can see this revisiting the 40s if the wind up vote fails.Definitely trading opportunities here. I think I may also have to investigate DMA!

[pavey ark] 28/3/2024 08:27

riverman77, I agree with that.

There will be a bit of action today and tomorrow as people shuffle their positions but things will settle and I suspect there will be a few additional property sales before any formal vote.

Happy enough with the outcome and expect a more than reasonable return.

[cwa1] 28/3/2024 08:19

Slightly surprised to get 53.6 in the auction for my remaining holding this morning. Thought it might have dropped furthe...so, unusually, a fairly mature view taken by the market this morning.

Will keep my eyes peeled for any downwards blip though...

[raj k] 28/3/2024 08:18

4.67% down on opening. Chairman needs to step down, board needs to also get lost. We need a board that is aligned with the manager to do the best for us shareholders.

[nickrl] 27/3/2024 23:27

@riverman of course you can vote against the windup and just leave Baggley to continue to deliver that nice dividend stream

[riverman77] 27/3/2024 23:23

Probably the best deal all round as CREI were were wanting it too cheap. I hope API can really take their time and sell their properties for a good price - there's absolutely no rush and in fact the longer they wait the better price they should get as property markets recover (and in meantime they pick up the attractive rental streams). Do not feel you have to be forced into selling at cr"p prices.

[essentialinvestor] 27/3/2024 22:30

CREI and SHED are very unlikely to pay close to NAV, this has already cost them £££, particularly CREI - and every other buyer now knows it's now a wind up situation.

Motivated seller..is the phrase.

CREI and API also sell on NAV discounts.

[mindthestash] 27/3/2024 21:52

By the crew mean the board. Last time I looked they were a bunch of pension admin bar one. No property dealers.
In a windown only need a skeleton board and manager on same page. Managers needs incentive relating to NAV target

[nickrl] 27/3/2024 21:31

@mindthestash the in inv mgrs aren't the issue its the BoDs who have added absolutely no value.

[mindthestash] 27/3/2024 21:00

Opened another bottle. Great news. Not worried about the short term market reaction. Hold our cards. Property is re-rating as rates fall. Bide our time. Adious chairman and the rest of the crew.

[nickrl] 27/3/2024 20:52

Surprising what low participation of shareholders was here at 36% or just 142 individual shareholders took the trouble.

[dr biotech] 27/3/2024 20:20

Will be interesting to see if CREI/SHED bid for any of the API properties having already run the rule over them, and if so at what price.

Not the outcome I wanted, but probably not a disaster either.

[flyer61] 27/3/2024 20:18

Would be very disappointed at 65p. Remember not one but two were after this REIT. SHED if they had the cash would have paid NAV or thereabouts for the large portion of the REIT they were after. Lets hope they have their cheque book still available for use. I'm going to plump at 70P, just slightly less than what we got at EPIC by my calcs.

[hindsight] 27/3/2024 19:40

The docs state will be same as PCA suggest via tenders

The API Board would anticipate API returning capital proceeds to API Shareholders through a combination of on-market share buybacks and periodic returns of capital through other means (such as tender offers or compulsory partial redemptions)


Think biggest question is what will discount to NAV of windup. Be disappointing if dont get 65p+

[marketmuser] 27/3/2024 18:50

I assume the returns will be treated as capital not income.

[raj k] 27/3/2024 17:13

I presume a wind down will return cash to shareholders via special dividends , i assume taxed at the marginal income tax rate of the shareholder? How does a wind down actually work in terms of returning cash? if thats how it works id rather the trust continue .

[nickrl] 27/3/2024 17:07

CREI a bit hacked off in their RNS and pointing the finger

"In fact, shareholders accounting for just 14% of API's register proved sufficient to prevent the resolutions passing. These votes were, we understand, primarily from institutional investors who believe a 'managed wind-down' of API's portfolio will better protect shareholder value, despite the API Board clearly and publicly setting out the flaws in this conclusion. CREI wishes API and its shareholders every success in the future as API continues as an independent business"

[llef] 27/3/2024 17:01

I'd quite like API to continue as before, and to treat the last couple of months as a moment of madness on the part of teh board!