7th
November 2024
abrdn
PROPERTY INCOME TRUST LIMITED (LSE: API)
LEI:
549300HHFBWZRKC7RW84
Unaudited
Net Asset Value as at 30 September
2024
Net
Asset Value and Valuations
·
Net asset
value (“NAV”) per ordinary share was 65.0p (Jun 2024 – 73.3p), a decrease of 11.3% for Q3
2024 and a NAV total return of -10.1%.
The main
component of the NAV movement is a reduction to reflect the
realisable value of the property portfolio associated with the sale
of abrdn Property Holdings Ltd to GoldenTree Asset Management LP
(excluding Far Ralia) announced on 27th
September 2024 (“Portfolio Sale”).
·
On a
like-for-like basis, the Company saw a fall in the value of the
portfolio of 1.5% over the quarter with valuation declines in the
office and retail sectors. This accounted for 1.4p of the 8.3p
decline in the NAV over the quarter.
·
Following
the Shareholder vote placing the Company into a managed wind-down
the Company prepares its financial information on a non-going
concern basis without accruing for future operating costs. The
estimated costs of realising the portfolio were factored into the
Q2 NAV.
Following
the agreement for the Portfolio Sale this estimate has been
reassessed and reduced, increasing the NAV by 0.6%
(0.4p).
·
The cash
consideration for the purchase of the portfolio of assets is
£351million which represents a 6.7% discount to the September
valuation.
The final
net proceeds are subject to normal adjustments including
those arising
from the completion process and final
distributions to shareholders are, in addition, subject to future
operating costs and other matters as previously announced. There is
no material change to the previously guided pro-forma NAV of
64p.
Investment
activity.
·
As
reported previously, two sales completed during the quarter
totaling £13.8million.
·
The
Company has exchanged contracts for the sale of the shares in abrdn
Property Holdings and its subsidiaries. Completion is expected on
29 November 2024.
Dividends
A dividend
of 1p will be paid for the third quarter for shareholders on the
register on 15 November and will be paid on 29 November.
Net
Asset Value (“NAV”)
The
unaudited net asset value per ordinary share at 30 September 2024 was 65.0p. The net asset value
is calculated under International Financial Reporting Standards
(“IFRS”) as amended for the Company operating on a non-going
concern basis.
The net
asset value incorporates the external portfolio valuation by Knight
Frank LLP at 30 September 2024 of
£386.3 million.
Breakdown
of NAV movement
Set out
below is a breakdown of the change in the unaudited NAV over the
period from 30 June 2024 to
30 September 2024.
|
|
Per
Share (p)
|
Attributable
Assets (£m)
|
%
Opening NAV
|
Comment
|
|
Net assets
as at 30 June 2024
|
73.3
|
279.5
|
100.0
|
|
|
Unrealised
movement in valuation of property portfolio
|
-1.4
|
-5.3
|
(1.9)
|
Like for
like decrease of 1.5% in portfolio value.
|
|
Realised
Loss on sale
|
-0.1
|
-0.4
|
(0.1)
|
Associated
with sale of two assets in Q3.
|
|
Portfolio
Sale price discount to valuation
|
-6.6
|
-25.3
|
(9.0)
|
|
|
Adjustment
to estimated costs of disposal of portfolio
|
0.4
|
1.6
|
0.6
|
The
estimated costs of selling the portfolio have been
reduced.
|
|
CAPEX in
the quarter
|
-0.1
|
-0.3
|
(0.1)
|
|
|
Net income
in the quarter after dividend
|
-0.4
|
-1.6
|
(0.6)
|
Rolling
12-month dividend cover 76.4% excluding non-recurring items
associated with Corporate Activity.
|
|
Interest
rate hedge mark to market revaluation
|
-0.1
|
-0.4
|
(0.1)
|
Interest
rate cap valuation movement
|
|
Other
movements in reserves
|
0.0
|
0.1
|
0.0
|
Movements
in lease incentives.
|
|
Net assets
as at 30 September 2024
|
65.0
|
247.9
|
88.7
|
|
|
European
Public Real Estate
Association
(“EPRA”)
|
30
Sep 2024
|
30
Jun 2024
|
|
EPRA Net
Tangible Assets
|
£247.2m
|
£278.1m
|
|
EPRA Net
Tangible Assets per share
|
64.9p
|
73.0p
|
The Net
Asset Value per share is calculated using 381,218,977 shares of 1p
each being the number in issue on 30
September 2024.
Investment
Manager Review and Portfolio Activity
During the
quarter the Company completed the sale of two separate assets – an
office in Princess St Manchester and
an industrial asset in Dover.
The
Company exchanged contracts (with completion due on 29 November 2024) to sell its interest in abrdn
Property Holdings Ltd (and its subsidiaries). The sale includes all
property assets in the Company apart from the land at Far Ralia.
The land at Far Ralia is being marketed for sale separately and
updates will be provided to shareholders when
appropriate.
Following
completion of the Portfolio Sale the Board will communicate with
shareholders on the process and timing to liquidate API, delist the
shares and return capital to shareholders.
Net
Asset analysis as at 30 September
2024 (unaudited)
|
|
£m
|
%
of net assets
|
|
Industrial
|
223.9
|
90.3
|
|
Office
|
47.9
|
19.3
|
|
Retail
|
68.0
|
27.4
|
|
Other
Commercial
|
36.5
|
14.7
|
|
Land
|
10.0
|
4.0
|
|
Total
Property Portfolio
|
386.3
|
155.7
|
|
Adjustment
for lease incentives
|
-8.5
|
-3.4
|
|
Portfolio
sale price discount to valuation
|
-25.3
|
-10.2
|
|
Estimated
costs of disposal
|
-5.1
|
-2.0
|
|
Fair
value of Property Portfolio
|
347.4
|
140.1
|
|
Cash
|
6.6
|
2.6
|
|
Other
Assets
|
21.2
|
8.6
|
|
Total
Assets
|
375.2
|
151.3
|
|
Current
liabilities
|
-14.4
|
-5.8
|
|
Non-current
liabilities (bank loans)
|
-112.9
|
-45.5
|
|
Total
Net Assets
|
247.9
|
100.0
|
Except as
described above, the Board is not aware of any significant property
events or transactions which have occurred between 30 September 2024 and the date of publication of
this statement which would have a material impact on the financial
position of the Company.
The
information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014). Upon the publication
of this announcement via Regulatory Information Service this inside
information is now considered to be in the public
domain.
Details of
the Company may also be found on the Investment Manager’s website
at: www.abrdnpit.co.uk
For
further information:-
For
further information:-
Jason Baggaley – API Fund Manager, abrdn
Tel:
07801039463
or
jason.baggaley@abrdn.com
Mark Blyth – API Deputy Fund Manager, abrdn
Tel:
07703695490 or
mark.blyth@abrdn.com
Craig Gregor - Fund Controller, abrdn
Tel:
07789676852 or
craig.gregor@abrdn.com
The
Company Secretary
Northern
Trust International Fund Administration Services (Guernsey)
Ltd
Trafalgar
Court
Les
Banques
St Peter
Port
GY1
3QL
Tel: 01481
745001