Abrdn Property Income Share Discussion Threads

[williamcooper104] 10/5/2024 09:55

For tax I'd prefer no divi now and just return of capital/B shares

[spectoacc] 10/5/2024 09:15

I'm 95% sure the vote passes. Threshold is far lower, and the many buyers from the recent seller aren't buying to block a wind-up, they're buying for it.

Plus the major blockers of the CREI deal were arguing for wind-up being a better option.

I expect API to hold the 1p's until at least the first distribution - uncovered divis seem to be API's thing. Agree beyond that, they may just pay out the natural income.

Roll on the vote, and getting the investment properties on the market.

[nickrl] 10/5/2024 09:12

@PaveyArk RCF is c32m now with recent sales and even factoring the lower interest charges till leaves divi at c85% covered but its now a convenient means to return cash so need to cut at this stage. Of course if the vote doesn't come through for wind down then maybe things will chnage.

[pavey ark] 10/5/2024 08:47

Ex dividend next week.

At the year end the RCF stood at £56m on which they are paying 6.75%.
As the overall portfolio yield is c. 5.75% ..... if paid off this increase net income.

The moorland is up for sale (very positive noises being made)and this is NOT currently producing any income.

There is a large industrial unit currently vacant but up for sale which if sold reduces vacancy rate to a very low 4%.

As with all property companies there will be a revisionary uplift in rental income this year due to inflation.

The point I'm making is that I can see no reason to reduce dividend ....certainly not this year....unless we are to be punished for rejecting their grand plans!!!

I do expect things to be very largely finished in two years and have included a total dividend payment over two years of 6p in my calculations.....generated from the current and remaining properties.

I appreciate that things could get rather complicated further in (share buy backs, special dividends etc) but I can see no reason for a dividend reduction this year.....but it is ABRDN

[essentialinvestor] 09/5/2024 14:51

It was available at .5197 as had a look earlier, but did not add.

[spectoacc] 09/5/2024 14:45

...But only posted now, when it's higher ;)

Bon chance.

[spittingbarrel] 09/5/2024 14:42

Topped up this morning at 51.

[spindoctor111] 08/5/2024 15:44

I do like a big seller to come along in these situations. Took a few more.

[essentialinvestor] 08/5/2024 13:37

Lots of shares available on the offer ATM, I can get a 200k online buy - without the need for a telephone trade.

[nickrl] 07/5/2024 13:16

@EI suspect that if the wind down is approved it will attract a lot more interest then

[essentialinvestor] 07/5/2024 11:18

Lagging a much stronger sector.

[essentialinvestor] 03/5/2024 08:58

A bit of movement in the force.

Bought a small amount yesterday.

[spectoacc] 03/5/2024 06:58

As a SHED holder, agree it should have decent upside. Still the sector to be in.

But the difference vs API is, SHED's a maybe, API a cert. Not 40%, but even on a bad market dislocation there's money in it.

[essentialinvestor] 02/5/2024 22:18

SHED was a steal, how it got that low.. simetimes the market offers gifts.

[giltedge1] 02/5/2024 21:30

Skyship SHED will still be st a discount. Sold API 3 weeks ago, paid £1.08 SHED target £1.40 by year end, 32% gain, div 7.7p as well, 40% gain. NAV £1.60, so discount still be 12.5%. LMP similiar coy, trades at NAV, so may be Conservative.

[skyship] 02/5/2024 20:24

giltedge - 40% upside in SHED by yr end!!! A quite laughable proposition.

Just why would SHED convert from a discount to a large NAV premium. Do tell...

[giltedge1] 02/5/2024 19:32

Glad I swapped to SHED at £1.08, sold API £.50. I know holders expect to make 40% in 3 years. I am hoping with SHED 40% by year end + a positive news flow. Not an annual depressing £2m a year to overcharging advisors. Looks like SHED will pick off a few API industrial gems, low ball offers of
course, especially the vacant ones. Surprised vacancy now 10%.

[frazboy] 02/5/2024 11:34

Mindthestash did. Getting the percentage decline and the absolute decline in the industrial assets confused I think. 0.6% and £6m are the relevant numbers.

[pavey ark] 02/5/2024 11:29

frazboy, I didn't mention 6% (?)

[frazboy] 02/5/2024 11:24

Where did you get the 6% from? There's no such information like that in API's update

[pavey ark] 02/5/2024 11:16

Re: Dividend cover.
I agree that this is largely irrelevant in a wind-up but I have penciled in a decreasing dividend into my two year return calculations c. 5.5p-6p over two years.

The vacancy rate and a large part of the dividend cover is due to two large industrial units being vacant......either these can be let or sold quite easily or API are in bother and SHED and CREI are in big bother.

The moorland is interesting and if sold the money will go into reducing the RCF ....a bit of a no brainer given the interest paid in the RCF

Up until £56m of sales (RCF at year end) the dividend cover is not reduced as the portfolio yield is c. 5.7%.....RCF is over 6.5% ....so a slight gain.

Good to see that there is no early repayment penalty on either loan.

[riverman77] 02/5/2024 10:56

Because logistics seeing strong rental growth and this is the most important factor which will drive returns going forward. If rates come down you would have an additional boost.

[mindthestash] 02/5/2024 10:47

valuers say rest of UK logistics down 6%
makes you wonder why they were so keen to get API into SHED and CREI

[nickrl] 02/5/2024 09:26

Only reduced NAV by half what they've expended on the corporate action although not sure what the protocol would be to reflect such . Divi cover dropped to 78% and that was after excluding the corporate action costs although will be irrelevant if wind down is approved. Offices still down 4.5% over qtr although an improvement over previous months 8.3% but you have to wonder when the valuers will have a change of sentiment.

[spectoacc] 02/5/2024 07:10

NAV t/s reads a little more rational now the end is near, which is good. Logistics sale to former occupier fallen through, & vacant. Another 0.5p to come off NAV later for the sale process. 0.4p already off for the failed CREI merger.

"We expect to see continued valuation falls in the office sector even as interest rates start to fall and the general market conditions improve. "

Amen to that.

On the plus side - the interest rate comments are now more sensible. abrdn have a lot to answer for.