Abrdn Property Income Share Discussion Threads

[dr biotech] 11/4/2023 16:55

It makes up c6% of the whole portfolio. I'm comfortable with that. Looks like a reasonable size that another supermarket could takeover should Morrisons go to the wall. And I'm not expecting them too.

[m_kerr] 11/4/2023 16:34

i reckon rent on that morrisons is about £1.3-1.4m, meaning a yield of about 7.5%.

tallies with what one analyst says, which is that a tesco or Sainsbury's would go for about £30m, whereas an identical morrisons goes for £22m. meaning 5.5% yield SBRY / TESC, 7.5% for morrisons.

as long as the underlying real estate is sound, they should be able to relet or sell to one of the other big 4. there's many worse ways to spend that money IMV.

must say, very sad what PE have done to a fine british institution. remember before CD&R got their grubby mitts on morrisons, they previously had the strongest asset base and balance sheet of all the grocers.

[nickrl] 31/3/2023 19:21

Guess Morrisons put a hold on disclosing yield so other sales don't get compromised.

Wonder if SUPR was offered and and said no thanks?

Used to use our Morrisons every week for years as i liked the fact that they had many own produced products that were keenly priced and pretty tasty. Weve largely given up now partly due to product range has being diluted but also pricing issues but have to say the last couple of times ive been down there ive been staggered and how much clearance price stuff they have available which is an indicator of reduced sales.

[killing_time] 31/3/2023 17:12

Hi hindsight, I haven't got a clue, you would need to ask someone who deals with real estate.

[hindsight] 31/3/2023 16:02

killing_time, can I ask what you think development land is worth in your area ?
We know it £18m less garage value ? for 5.5 acres

[spectoacc] 31/3/2023 14:25

Thanks all.

@killing_time - my local Morrisons also in a great town centre location, would also make good housing, also on a big site. Some of the shutters at the front stopped working a few months ago - stuck half down at an angle. They're still stuck half down at an angle, and now others have joined them.

Lol re roof leak. At least the fish must feel at home.

Sad to see Morrisons being treated this way. PE will sweat it as long as possible, then chuck a few million at it to lower prices, create a bump in sales, then flog it back to the market so your pension fund managers can buy it.

Another great argument for SIPPs.

c.11% ASDA, c.14% Morrisons - and wouldn't buy either bond.

[hindsight] 31/3/2023 14:10

Possibly 14%

[killing_time] 31/3/2023 14:04

Ha ha, my local supermarket, just 5-10 mins walk.
Good location, if they left the site it would be turned into housing as its surrounded by new build. Big site usually busy but people tend to shop at the other supermarkets now because they are expensive.
The roof is shagged and every time it rains it pours in at the back of the shop, so much so that they don't turn the lights on above the fish counter.
Petrol station very busy as cheapest in WGC.

[cc2014] 31/3/2023 14:00

I don't think Morrisons is a good move.

No idea on Morrisons debt but Asda is surely less risky.

Asda 2026 senior secured 4.5% coupon 11.4% YTM
Asda 2026 senior secured 3.25% coupon 10.7% YTM


And that's the issue really for the whole REIT sector.
1. Credit risk behind the tenants
2. LTV's and debt renewal costs

[spectoacc] 31/3/2023 13:35

Morrisons a disaster area atm, investing next to nothing in the stores, nothing in the product, whacking up prices. It's surely got to be the most expensive supermarket now.

But yes, will I'm sure still be around in 25yrs - perhaps after a pre-pack.

Hopefully all that's reflected in the price API have paid - don't know the site. There ought to be a lot of Morrisons property up for sale & leaseback as the PE boys seek a way out, so you'd think buyers can drive hard bargains.

ASDA could get very interesting too. Always the last deals done at the top of the market that come unstuck. Issa brothers were over-geared even in the good times.

@CC2014 - what's the yield on Morrisons & ASDA debt atm?

[essentialinvestor] 31/3/2023 13:22

Will Morrison's be around in 25 years?.

It's a question not a statement before anyone
takes offence.

[cwa1] 31/3/2023 13:17

31 March 2023

PURCHASE OF PROPERTY

abrdn Property Income Trust (“API”) has completed the purchase of a Morrison’s supermarket in Welwyn Garden City for £18.29m. Due to commercial sensitivities, we are unable to disclose the yield on purchase at present but will update in future.

The acquisition was a sale and leaseback, with Morrison’s entering into a new 25-year lease with rent reviews linked to CPI. The purpose-built c60,000 sq.ft supermarket sits on a 5.5-acre site and has an 8-pump petrol filling station.

Mark Blyth, Deputy Fund Manager of API commented: “We are very pleased to have completed this off-market acquisition within the first quarter of the year. In addition to the long lease to Morrison’s, we were attracted to the strong-trading history and the dominance of the store in the local market. The pricing and rent review structure will offer API an attractive income stream that is accretive to dividend cover.”

[hugepants] 22/3/2023 22:47

This is falling off a cliff again. At 55p the yield is 7.25% and discount to NAV is 35%. LTV 22.6%

[pavey ark] 09/3/2023 16:10

Sorry, 57.69p...."lucky" but not that lucky !!

[skyship] 09/3/2023 15:58

56.69p - hadn't seen them down that far. Good trade!

[pavey ark] 09/3/2023 15:55

Well I thought about a bigger purchase but would have to sell first so came in with 9500 @ 57.69

One of my "lucky" share and have always done well with it but I suppose I'm pushing my luck by saying that.

If it slips further I will come back for more.

Watching REIT prices coming back so may stock up with others but not a sector I'm big in.

[skyship] 09/3/2023 15:33

Well, decided to catch the falling knife with an initial 30k @ 57.88p.

Whole sector being slammed today. Topped up my SREI; but took the profit in SERE which has been holding up really well.

[skyship] 04/3/2023 14:27

Hi PH - re EPIC - a Strong Hold. At 67p the Yield great at 7.46%; but discount has dropped to just 17.2%. So personally won't be adding; though already fully committed in any event.

IMO current BEST BUY has to be EBOX. At 66.1p the Discount (Sept'22) is 45.8% and the now covered yield is 6.69%. The Dec'22 NAV won't be revealed until the May Interims; but by running a comparison to ASLI the Q4 fall may be limited to 8%, so discount would still be 41%.

[panshanger1] 03/3/2023 13:54

Calm down @SKYSHIP !!It's not like you getting too excited..Off topic what's your thinking of Epic at these levels

[skyship] 03/3/2023 13:31

Finger getting twitchy on the BUY button; but not yet perhaps...


free stock charts from uk.advfn.com

[skyship] 28/2/2023 14:47

Getting down to more interesting levels; but the downtrend and indicators looking as though this should move below the 60p level, so will continue to watch and wait.


free stock charts from uk.advfn.com

[flyer61] 15/2/2023 22:10

Thank you gents...

[skyship] 15/2/2023 20:58

Doh!....agreed - c24% to the 84.80p NAV as at Dec'22. Will definitely hold off for now!

[nickrl] 15/2/2023 18:59

@mushypeas agree i have it at 24.8% on todays closing price

[mushypeas] 15/2/2023 16:46

The discount here is currently 24%. Not that it is a particuarly useful metric.