Abrdn Property Income Share Discussion Threads

[pavey ark] 19/1/2024 09:21

My largest REIT and the best performer in my income portfolio.

I have always done well with API (buying /selling at the right time ....not always for sound reasons though !!).

I have always rated the management (refinancing aside) and consider things to be on the up.

The large discount and high dividend are a result of the lack of dividend cover but given the recent improvements in the lettings I see this improving.

8% yield , a 40% discount (before today) and gearing of 29% looked attractive to me.

Will wait and see but happy with API and the management but if the CREI deal falls through I suspect someone else will come along.

(I did top up by 25% at 46p in November.....may sell that if things heat up but on balance happy to hold.....I may have a new REIT holding by default !!?? )

[hindsight] 19/1/2024 09:06

2nd largest reit here, so be a result aka wreckage recovery if goes through

[spectoacc] 19/1/2024 08:31

They've been up for sale since the fiasco with the debt :)

Good chance CREI shareholders won't want this tho, then wouldn't rule out someone else for API.

[skyship] 19/1/2024 08:25

"Why would they, when they haven't previously."

Because API have today shown they are up for sale with ABRDN's blessing.

[spectoacc] 19/1/2024 08:22

Why would they, when they haven't previously.

Again - good deal for API shareholders, gets shot of their poor managers, and should settle on a discount between CREI & API's as of yesterday. Also decent scale, likely be on a market cap of around £750m.

But not so good for CREI's shareholders, and this will apply to any lower-discount REIT merging or taking over a higher-discount one. Wouldn't surprise me if CREI's shareholders rejected it.

[skyship] 19/1/2024 07:36

Well pleased with that as API one of my 4 REIT holdings. Also should once again stimulate the whole sector. Who's next?

I suspect however this is not cut and dried; as the all share offer with a weaker CREI would mean API at c60p versus an 82.2p NAV (Sep'23 val'n).

So someone could emerge with a more credible, higher cash offer.

[dr biotech] 19/1/2024 07:23

Much needed good news this morning. Will have to decide whether to hold on post merger or not. This has been a significant income stock for me and I need to keep that aspect. Something to read after work.

[spectoacc] 19/1/2024 07:09

Looks a good deal for API shareholders, and finally get shot of the poor management.

Not sure I'd be so pleased if I was a CREI shareholder tho.

Interesting effect on API's dividend promise.

Not read it all in detail yet.

[yump] 21/12/2023 19:55

Good grief is it going to break out of the 45-50p range ?

[garbetklb] 21/12/2023 17:30

I suspect that means that the sale was at a discount to the last NAV.......

[dr biotech] 20/12/2023 13:43

Surprised they didn't give the NAV of the property. Makes sense to reduce the RCF though.

[nickrl] 20/12/2023 08:41

Marginally beneficial with sale at 6.37% yield vs 6.68% on the RCF currently.

[cwa1] 20/12/2023 08:00

20 December 2023

SALE OF ASSET

abrdn Property Income Trust ("API") has completed the sale of a two-unit
industrial asset in Livingston for £6.25m, reflecting a net initial yield of
6.37%.

Cullen Square, Livingston was constructed in two phases in 1995 and 2003 and is
let to UK Mail and Crown Worldwide, with a weighted average unexpired lease term
of just over two years. The lease to Crown has been regeared this year, with
the 2023 tenant break option being removed. Acquired in 2014, the investment
has contributed a 13.1% annualised return over the hold period. The sale
proceeds will be used to reduce the Company's Revolving Credit Facility (RCF),
which is subject to a floating rate of interest.

Mark Blyth, Deputy Fund Manager of API commented: "Following completion of the
asset management strategy with the regear of the Crown lease, and with future
capital expenditure anticipated given the age of the buildings, we determined
that now was a suitable time to exit the property."

[skyship] 15/12/2023 08:33

Breaking through the long-term downtrend and the 200day SMA. Indicators positive. Difficult to plot a specific target, though a short-term run to 55p entirely possible. At that level the discount reduces to 33.1% and the yield still at 7.27%.


free stock charts from uk.advfn.com

[giltedge1] 14/12/2023 09:12

Back to 50p not bad for 1 day +2%, beats gilts.

[skyship] 08/12/2023 10:11

Totally agree - says it all really. Great 8% yield whilst we await the capital gain sure to follow.

[giltedge1] 08/12/2023 10:03

Topped up today, reinvested dividends 0.49, Great recent lettings, Occupancy now 96%, & managing okay paying market interest rates, unlike other REITs who have Fixed Interest deals & uplift to come. Latest RNS Washington let & Market Rent on this Asset, already up 10%. The Industrial assets have great 10 - 15 year leases, so manager can concentrate on letting remaining 4%, mainly offices. Have completed most EPC upgrades already & reaping benefit of quick relets.
Should rally strongly on any hint of interest rate cuts. Happy to wait while collecting 8% yield & safety of low gearing.

[speedsgh] 06/12/2023 10:33

@RajK - re your post #250. Data is from my own personal records compiled from API's rns dividend announcements.

[nickrl] 06/12/2023 10:25

@2wild it is good update but i wish they would all just give the revised contracted income as that would tell us whether its just neutralising expires/breaks or is nett positive. Negativity aside this update is a good proxy for the state of the wider market for rents though in their main asset class.

[skyship] 06/12/2023 10:00

Getting close to breaking through the long-term downtrend and the 200day SMA. At 55p we would still be on a 33.1% discount and 7.27% yield.

free stock charts from uk.advfn.com


free stock charts from uk.advfn.com

[skyship] 06/12/2023 09:40

Agreed - still good value at a 40% discount and 8% yield.

[2wild] 06/12/2023 09:37

Impressive update, paid 49.117p. this morning.

[pavey ark] 06/12/2023 09:33

The increased rental plus Rainhill Rd makes almost £1m extra income.

Would have liked a Knowsley update but perhaps they are saving that for another day (?)

API has always done well for me in the past and with my current holding at not much above 50p I think I'll stick with it.

As the incentives run out, the voids produce income and the rent revisions continue I consider the income safe and happy to hold at 8%

[raj k] 30/11/2023 09:05

Thanks @speedsgh.

May i ask where you were able to obtain a summary of their dividend history and type of distribution. If i can do it myself in the future it would be helpful.