Abrdn Property Income Share Discussion Threads

[speedsgh] 29/11/2023 14:02

@RajK - Nature of API distributions varies.

Q3 (Nov 23) - 1.00p (1.00p non-PID)
Q2 (Aug 23) - 1.00p (1.00p PID)
Q1 (May 23) - 1.00p (1.00p PID)
----------------------------------
TOTAL FY 2022 - 4.00p
Q4 (Feb 23) - 1.00p (1.00p non-PID)
Q3 (Nov 22) - 1.00p (0.1806p PID, 0.8194p non-PID)
Q2 (Aug 22) - 1.00p (1.00p PID)
Q1 (May 22) - 1.00p (1.00p PID)
----------------------------------
TOTAL FY 2021 - 3.6775p
Q4 (Feb 22) - 1.00p (0.791p PID, 0.209p non-PID)
Q3 (Nov 21) - 0.8925p (0.2519p PID, 0.6406p non-PID)
Q2 (Aug 21) - 0.8925p (0.8925p PID)
Q1 (May 21) - 0.8925p (0.8925p PID)
----------------------------------
TOTAL FY 2020 - 3.713p
supplementary (May 21) - 0.381p (0.381p PID)
Q4 (Feb 21) - 0.714p (0.714p PID)
Q3 (Nov 20) - 0.714p (0.714p PID)
Q2 (Aug 20) - 0.714p (0.714p PID)
Q1 (May 20) - 1.19p (0.952p PID, 0.238p non-PID)

[cc2014] 29/11/2023 13:56

You are correct.

PID gets taxed as interest, non-PID gets taxed as dividend

[raj k] 29/11/2023 13:25

i see in the API latest results they announced the dividend was 100% non-pid. Are all API distrubutions non-PID? I want to add some more but it will need to be in a GIA and as far as im aware Non pid gets taxed as dividend income rather than at income tax rate,.

[skyship] 29/11/2023 10:04

Actually on offer @ 47.75p - I bt a few at that today.

[skyship] 16/11/2023 10:28

XD 1p divi today

[giltedge1] 14/11/2023 10:19

Q3 NAV Total valuation gain 5M & then cap ex & swap writedown to make a negative quarter. Seems odd to write off Knowsley unit as creating a new A rated asset. Does this unit get added back when completed?. Anyway on track with new office lettings, maybe signed after quarter end, so valuer could not use in valuation. Washington completed for new lease & Knowsley hopefully Q1 2024. Great 8% yield secure & high occupancy 96%.

[yump] 12/11/2023 19:21

While you’re there can you ask the Republicans if they’d like some XL Bully dogs to go with their assault rifles.

[spectoacc] 12/11/2023 17:12

Hello from sunny Florida. Same-old from API, quelle surprise. Quarter after quarter.

[pavey ark] 07/11/2023 10:41

Rather surprised by the office valuation decline.
I can only assume that Hagley Rd is still valued at c. £23m but with 140k sq ft, 90+% occupancy and £20/sq ft rental this looks rather low.

The figures today are still lagging the improvement in occupancy rates and using previous published figures for void costs and assuming a rental yield of 6% I calculated a £2m+ per year lift from a 4% improvement in occupancy.....rent free incentives have still to run out.

Hefty £8m cap ex but that should fall off on the Knowsley project being completed soon.

Knowsley costs are put at £12m-£14m so a big lump of the RCF (expensive) so the likelihood of c. £850k rental is welcome.

£750k uplift on Scottish land value as the planting has started.

Uncovered dividend costs are £760k for Q3 and a bit higher than I thought (£600k) but this would only be a problem if investors expected this to continue long term.

Lower Voids, increased rental, rent free periods decreasing, capital projects coming on stream, massive discount , reasonable gearing.....Vs......the economy tanking

hmmm...."you pays your money you takes your chance "

[nickrl] 07/11/2023 10:32

@raj good spot why make it easy just need to reverse engineer it! Anyhow that suggests my 28m forecast could be on high side as they only mention another 0.54m of new lettings post period end thus divi cover continues below 90% for a while yet.

[raj k] 07/11/2023 09:58

@nickrl

Doesnt this line tell you what the current contracted rent is i.e 26.7 million?


The portfolio ERV of £34.1m is £7.4m (27.7%) above the current contracted rent, demonstrating the significant reversionary potential.

I dont know if that includes what if any are currently free rent periods offered to tenants

[nickrl] 07/11/2023 08:22

Q3 NAV confirms divi cover remains uncovered at 79.9% as expected although i thought would have been low 80's. As usual with most of these they like to tell us how much ERV they have in the assets but not much use today as i want to know what the contracted rent is now. My take is its c28m which i reckon will get us to c90% coverage once any rent frees run off so no scope for further increase but if you bought in sub 50p does that really matter.

Offices being squeezed by valuers here despite them having some good asset mgt updates in that class.

[flyer61] 02/11/2023 22:02

Yes an amazing day.

[skyship] 02/11/2023 21:05

Well, that cycle swing happened in a day! Average yield across those three (API, EBOX & SREI) now at 8.2% after an average rise of 8.9% in just one day!

[skyship] 02/11/2023 21:04

Well, that cycle swing happened in a day! Average yield across those three (API, EBOX & SREI) now at 8.2% after an average rise of 7%!

[dr biotech] 02/11/2023 17:10

Perhaps this is the day where the interest rate cycle has reached the top? - or has been called the top. Shame the rise here wasn't replicated across all my shares too, but after a dismal Oct, Nov is already looking better.

[giltedge1] 02/11/2023 16:07

Nice rise by API & SREI, now in profit, pity couldn't add last few days. Sentiment changed in a day, look forward to NAV reports & maintained dividends.

[skyship] 01/11/2023 14:28

Adae - agreed, so much looks cheap as the UK institutions have ditched UK equities to ride stronger markets elsewhere. Also the retail investor in full scale retreat.

Such an extreme of negativity does of course provide the opportunity of a profitable reversal.

As I posted earlier, my REIT trio of API, EBOX & SREI now provides an average yield of 8.9% at a discount of 43%. Happy to hold, bank the dividends and wait for the cycle to swing. It always does.

[nickrl] 01/11/2023 14:13

@paveyark there step down on voids has certainly changed my view on them as there is pathway to divi coverage. Hoping NAV update will provide lates contracted income as that will account for what they dont say on RNSs.

[adae] 01/11/2023 12:01

API seems inexpensive here. But so does much else.

[pavey ark] 01/11/2023 11:14

giltedge1, thanks for that.... I was about to say exactly the same.

Spent some time looking at the letting update and the recent results and perfectly happy to hold ....over 8% dividend and massive discount.

The void rate has fallen quarter on quarter from over 10% to 4.4% and the cash benefits are significant....both in reduced void costs and increased rental income.

People certainly go on about cover but I would suggest that the maximum cash required to cover H2 dividend is c. £600k.....how much pearl clutching can one squeeze into £600k when the property estate is c. £450m

It is also rather disingenuous to go on about short term cover when very long and good looking leases are being signed with relatively short rent free incentives holding back full cover.

No property sales at the moment but hinted at.

Knowsley looks good and no major cap ex on the horizon

Just a final point :Hagley Road, almost fully let...rental £2.5m ...short term potential £2.8m (fully let) but book value c £23m (?)

[skyship] 01/11/2023 09:34

giltedge - thnx for that - a good summation.

Looking forward to the Q3 Update - any day now (3rd Nov. last yr).

[spectoacc] 01/11/2023 09:33

Thanks both. Suspect it's the difference between being a holder, and not, because I see recession, CVAs, voids, empty rates. May not happen of course - have been predicting it a while.

Always worth remembering - whether a holder or not - that all these REITs love to RNS the good news, but never RNS the bad news (eg UKCM losing OCDO). You hear the lettings, you don't hear the exercised breaks (until much later).

API over-distributing but agree that in a Goldilocks scenario, they can keep going with the same divi.

[giltedge1] 01/11/2023 09:05

Hello Specto,
Agree with nickrl, 2023 not covered by earnings, maybe cashflow. (operation cash flow less interest, excluding cap ex). Actually covered at interims, but one offs credits, working capital, swap receipt, so not representative for whole year. 2024 definitely covered by cashflow. Signed some great leases in last 3 months, void dropped from 8.4% to 4.4% & new unit in Knowsley expected to be completed & let end of 2023. All in all about £2M extra (assuming Knowsley let) + savings in void costs as well. Signed some meaty 15+ year leases, Washington, St Helens, Morrisons (25 years CPI). Also upgrades to 'A', Industrial, doing great most cap ex behind, maybe a £5m buyback on the cards?. Offices obviously worry with any REIT, but managed to let in all buildings, some now full & exposure 18% of portfolio, Office Leases more to 5 years, can understand tenants have a lot of choice. Also if you read quoted data article in RNS gives all details + increase ERV another £2M odd on top!. So expect 4p next 4 years at least as LTV low & interest rate capped. I will add wating for funds, hope doesn't rise too much while I wait.

[skyship] 01/11/2023 08:53

frazboy - agreed - seems a reasonable scenario.

I have no problem topping up the dividend out of capital. It is after all what the supremely well-managed AEWU does on a regular basis.