Abrdn Property Income Share Discussion Threads

[spectoacc] 03/4/2024 08:57

Thanks, fingers crossed - albeit there's still a seller around atm.

[skyship] 03/4/2024 08:56

"I bought a lot yesterday below 50p as posted" - Ah, missed that. Good buys and should gain a plentiful reward.

[spectoacc] 03/4/2024 08:42

Took over a year for EPIC to sell their 3rd office, and only after the 3rd drop in the price, but fair point about early returns, which skew the calculation in holders' favour.

I bought a lot yesterday below 50p as posted, & more than happy to sit on them.

But c.£400m is still rather a lot, on top of what everyone else is selling - how many buyers will there be for that £18m Morrisons site.

[skyship] 03/4/2024 08:34

Specto - the final workings of a wind-down tend to delay the final 3%-5% of assets. We will already have had 95% of our cash returned, some far, far earlier.

As for that much property hitting the market - £400m is a rounding-up figure compared to the total annual trade; so no, not an issue.

Get some perspective; and get some API when you see big figure 4 again.

[spectoacc] 03/4/2024 07:24

@SnArk, why not filter me if I bother you so? Save your blood pressure.

@Boystown - not sure it is "too good to be true" in this market - similar returns around eg GABI. Potential downsides are whether the vote passes; whether that much property hitting the market at once affects price/timescale (the Industrial will be popular, but who has the cash rather than paying shares?). The non-Industrial, which the Board have said won't be easy to sell. And what the economy does - plenty of uncertainties.

For me, it's mainly timescale - yet to be involved with one of these that didn't draw out, in one case for 2 years beyond the deadline due to a minor VAT dispute.

But I'd say the risk is in the price.

[williamcooper104] 02/4/2024 22:13

Pretty much It's the market; REITs are an unloved part of a wider UK unloved market The discount to NAV isn't alarming This won't be the only reit that gets wound up

[boystown] 02/4/2024 21:53

So what do the experts think is achievable (guesstimates) over what sort of timescale (ditto). Thanks in advance, by the way, but I'm a bit out of my depth - and when "something seems too good to be true" etc etc - but to my simple logic, it looks like a 40% profit could be achievable over a couple of years even if they decide to sell things for less than they're worth for expediency???

[williamcooper104] 02/4/2024 17:09

My take is that it won't take 30 months unless possibly for some assets where you could spend 1-2 years on asset management - but in that case they should then be worth more than current NAV

[skyship] 02/4/2024 16:07

Jason B. confirms:

"The vote to wind up will be a 50% hurdle as it is a change to the investment strategy."

[spectoacc] 02/4/2024 15:37

You've been consistently off the mark on API. Perhaps consider why they're now winding up.

Spending c.£18m of expensive RCF on a Morrisons site, let alone then having to sell it barely a year later, is not a "..Measured long/md term outlook..". It was a daft purchase even before the winding-up proposal, probably again influenced by the abrdn view on rates.

[pavey ark] 02/4/2024 15:19

(There was quite a lot you didn't understand or appreciate about API.)

I bought more today but I had quite a few at an under 50p average so happy to add at under 50p this afternoon.

I have always appreciated the management here and their rather old fashioned view of assembling a quality portfolio of properties and taking a measured long/med term outlook which I rather naively thought matched the investment views of people buying high yielding REITs.

Even though I had a fair number I did add as I am in the happy position of appreciating that the quality and value of the portfolio will be realised at a fairly full price (certainly well above my average)........AND if the wind-down vote isn't passed then I am more than happy to hold.

[skyship] 02/4/2024 15:16

I'm now at my 10% allocation max; though may add more after the vote has gone through for a wind-down.

[spectoacc] 02/4/2024 14:29

Never understood that Morrisons purchase - and said so at the time - so hope they prove me completely wrong and sell it for more than the £18.3m they paid a year ago.

Seemed bizarre when there was an RCF to clear.

50% - hope so - and is there a turnout requirement?

[raj k] 02/4/2024 14:17

Want going to buy anymore API but didnt listen to myself and did . Increased holding size by a further 25% @ 49.5p. Fingers crossed it all work's out

[skyship] 02/4/2024 13:55

Thnx for posting Wc.

"Given that the board is recommending that shareholders vote in favour and only 50% support is required, it looks highly likely that approval will be forthcoming."

50% - Great news for those of us wanting to see a wind-down.

Can anyone confirm that figure?

[spectoacc] 02/4/2024 11:21

Based on how many I've bought today, there's a big seller around.

A lot of uncertainty around the vote - what does management do next if it fails? - and whether the likes of SHED, obviously interested in the industrial, are still interested if it's cash not paper.

Surprised the merger failed, it wasn't a sell-out on the cheap when both the upside from API's portfolio and from CREI's was still with shareholders (unlike at EPIC).

But struggle to see much downside. Probably timescale more than sale prices (when do these things not take far longer than intended).

[skyship] 02/4/2024 11:05

Certainly skittish - 52p bid then back down, so final top-up @ 49.9p.

[williamcooper104] 02/4/2024 10:22

Did better than me - got filled at 51.6

[strocketman] 02/4/2024 10:05

I will be voting against the sell off. Happy to wait a few years to get back to NAV instead of incurring high charges as they wind down and flog off cheap to SHED and other vultures.
The funds voting against the CREI bid were mad IMO.
Happy to hold tho and see how this turns out. Seems quite safe at this level.

[dr biotech] 02/4/2024 09:44

I couldn't easily vote either. Some platforms are better than others. API has a lot of smaller investors so it was always possible that one or two of the larger holders would be able to disproportionately affect the vote and thats how it turned out. Hopefully a larger vote to to wind it up.

A couple of decent sales at CREI this morning, although these had been previously flagged. Think I'll hold these for another 8-12 months. They should be able to flog off the best properties at close to NAV fairly quickly, giving rise to some over optimism, whilst the less attractive assets will take longer and sell below par. At least thats my theory.

Will look for another REIT to house the cash.

[citytilidie] 02/4/2024 09:37

I hold shares in a SIPPs as well as Isas and we don’t get the opportunity to have a vote. I bet there are many like me, which is why the percentages were skewed to look like it was apathy.

[skyship] 02/4/2024 08:36

Annoyingly had to pay 50p for a top-up this morning...

Bought 20k; wanted more but no more cash!