Abrdn Property Income Share Discussion Threads

[riverman77] 24/5/2023 16:00

Of the diversified REITs, API is closest to CTPT - high industrial weighting and similar market cap. Hopefully we're next!

[skyship] 24/5/2023 14:29

52p...and counting!

[pavey ark] 24/5/2023 13:33

Sky, lunch in the Queen's Head (Troutbeck) always makes me happy.

Also happy that my ability in basic arithmetic is still with me.

[skyship] 24/5/2023 13:14

Now above 51p - Happy Pavey?

[skyship] 24/5/2023 11:28

Good - back up above 50p. Crazy low yesterday - but already over-allocated.

[giltedge1] 24/5/2023 10:49

Paid £1.8 m in Void costs last year, why such a large amount?. 600K vacant costs & £1.1M service charges unable to be billed, presume this relates to empty offices. Hopefully will be halved in 2023, with recent lettings. Anyway more cash for dividends.

[nickrl] 24/5/2023 09:07

@pavey ark they've certainly done well since start of calendar c +2.9m by my calcs and certainly helps in putting the refi fiasco behind them. They've earnt the right to say the dividend is "substantially covered" but of course what they don't say is what tenants have gone West all credit to RGL who do.

[pavey ark] 24/5/2023 08:00

Good passing rental to good tenants.
Hagley Rd now almost fully let with a possible further 10k-12k sqft still available.

For any actual shareholder the news is obviously very positive.....over £1m new office rental income in Q2 ....
I would imagine that all new lettings carry some incentives but not all vacancies are filled.

[skyship] 24/5/2023 07:50

LMP share exchange offer for CTPT - 35% premium to market.

Won't be the last of these sector bids; hopefully API next!

[spectoacc] 24/5/2023 07:25

"The recent activity has been despite a challenging letting environment and is
testament to the quality of the space API has to offer."


I'd edit that to:

"The recent activity has been despite a challenging letting environment and is
testament to the 'length of rent-frees & incentives' API has to offer."


But good to remove voids/empty rates.

[cwa1] 24/5/2023 07:19

abrdn Property Income Trust (API) has completed a trio of lettings within its
office portfolio, securing £321,200 p.a. in rent. A lease to The Birmingham
Chamber of Commerce and Industry and an agreement for lease to FCN Group Ltd
have completed at 54 Hagley Road in Birmingham, whilst a letting to OneStream
Software Ltd has completed at 15 Basinghall Street in London.

Mark Blyth, Deputy Fund Manager of API commented: "The lettings at 54 Hagley
Road follow the 21,500 sq.ft deal we exchanged in April, and account for a
further 8,200 sq.ft of space and secured £178,386 p.a. in rent. These recent
lettings show significant progress with our business plan at the property, with
the building now over 90% let. The letting at 15 Basinghall Street in London was
for the 2,892 sq.ft 2nd floor, and now means the building is fully-let following
a successful refurbishment and letting campaign.

The recent activity has been despite a challenging letting environment and is
testament to the quality of the space API has to offer. It also points to the
positive work API's asset management team have undertaken ensuring that our
buildings meet current tenant expectations. In addition to other contracted
lettings, the overall fund occupancy rate will exceed 95%, demonstrating strong
letting momentum."

[riverman77] 23/5/2023 19:14

I think more likely to be rebalancing than redemptions as the clients of these wealth managers tend to be fairly sticky. They tend to apply their asset allocation across the board, so if they've decided to reduce exposure to property/diversified REITs then there'll probably be a few funds that need to sell.

[hindsight] 23/5/2023 18:02

They maybe getting redemptions

At least they make me not feel completely hopeless at property investing

[nickrl] 23/5/2023 17:13

most of the selling has come from the Mattioli Woods multi asset funds although even one of the nominee accounts is down. The fund mgr is saying this about property in its May overview of markets

"The temptation to bracket all property sub sectors together is unhelpful as there are niche opportunities here and resilient areas among the more vulnerable. Still, we would not yet look to add, even at these lower valuations, as the possibility of interest rates remaining at elevated levels poses challenges for some business models in the asset class"

[pavey ark] 23/5/2023 17:01

By my calculations that's 4m shares sold by Mattioli Woods.
As the average daily volume over the last month was 1.13m then 4m sold over a similar period would have an effect on the share price
Over the last month the share price has dropped from 56p to 48p ....ex div would account for 1p of this.

Is this good news or bad news.....could be either ??....."you pays your money you takes your chance "

[riverman77] 23/5/2023 16:57

Mattioli are a wealth manager who run a load of model portfolios - basically fund of funds, so anyone who invests in these gets ripped off with 2 sets of management fees (and very mediocre returns looking at the factsheets just now). Anyway, their Property Securities Fund commentary on latest factsheet says they are reducing exposure to some of the diversified REITs in order to add to names such as Segro and Tritax Big Box. I'm guessing they'll be making the same trade across any other portfolios that have property exposure. If that's what's behind it then possibly not looking to sell their entire position in API, but hard to tell for sure - they're certainly doing their clients a disservice by selling API at these levels.

[cwa1] 23/5/2023 16:20

Mattioli Woods seem to be the(a) seller. Long way to go if they ARE wanting out...

[joshuam] 22/5/2023 21:29

No end to the selling……;……yet

[yump] 21/5/2023 23:23

Thanks for the summary and I get the point about the risks vs those of other types of business.

I guess ultimately INTU and HMSO were just businesses investing in the wrong sector that was in structural decline.

[skyship] 21/5/2023 13:35

Yump - as I say in the Commercial Property thread header (CP+):

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

The commercial property sector can provide rich pickings for VALUE investors prepared to spend a little time analysing the principal metrics of Yield, NAV discount and LTV; then delving into the detail of financing, tenant mix, lease lengths, sector spread, geographical spread.

The sector can be a profitable and to a degree a predictable sector to trawl – provided you can call the savage bear markets that can and do overtake the sector from time to time!

It is a sector relatively immune to the conventional trading company risks of competitor action, margin erosion, contract losses and all the other routine and unpredictable problems that so beset industrial companies.

For the property player it helps to be a contrarian in order to maximise returns – to buy when pricing anomalies present themselves. SREI was a classic example when, in Jun’12, an institutional seller (Lloyds Bank) bizarrely sold the shares down to an 11% yield and a 35% NAV discount. As soon as they had liquidated their position, the shares jumped 25% in less than 2 months.
----------------------------------------------------

In the REIT sector you can very easily research what is and what is not a safe yield. As a sector we have almost total transparency; a heap of up-to-date information on values, earnings, asset management initiatives etcertcetc.

The sector has taken a severe and rapid hit due to the spiralling interest rates; but the hit has been to valuations (NAVs), not to earnings, ergo NOT to dividends.
Rents are holding up and even increasing. Rent collections are high at pre-Covid levels.

So, IMO the API 4p annual dividend is secure; and at 49.2p that yield of 8.13% is one reason why I'm now overweight the stock.

[yump] 21/5/2023 10:48

Just having a look for income stocks. Having been caught by yield “bargains̶1; such as CLLN and INTU, am wondering where apparently cheap share prices turn into warning signs.

Is this just a Morrisons effect ?

As funds rely on reliable income for years ahead, is it just the case that they are extremely risk averse ?

[skyship] 19/5/2023 16:48

EI - "Finding markets a bit tricky to navigate atm." Likewise, a difficult year. Up 3-4%; Down 3-4%; all over the place in a narrow band & currently all square for the year. Not good when relying on an Income Drawdown SIPP.

Plenty of past growth in the bag; but impatient to make some progress in '23!

[essentialinvestor] 19/5/2023 15:32

On offices, I was pretty confident on the longer term future for London Grade A until the recent upsurge in interest re AI and how many white collar jobs roles may be at risk over the next 5-10 years.

Finding markets a bit tricky to navigate atm.

[skyship] 19/5/2023 15:13

No clear signal technically; though clearly oversold at below 30 RSI. A rebound to the falling 50day SMA at 55p likely once this tap seller exhausted.


free stock charts from uk.advfn.com

[giltedge1] 19/5/2023 14:38

Still doing DD tenants look good a timber Co in business for 70 years & largest private kitchen manufacturer.B&Q of course, a solid operator. Offices seem achilles heel, although well located. Bracknell by train station & Birmingham. Also ERV extra £6M. A few weeks ago wondering why bother with Reits, then turn around CSH quick 35% gain most welcome, ASKI bounce wiped out my losses SHED I bought at Kwasi low, so all good. Only upset UKCM luckily small holding. PRS holdings slowly rising. So in summary investments can change very quickly. Should be buying API next week good luck holders.