REG-abrdn Property Income Trust Limited: Unaudited Net Asset Value as at 30 September 2024

abrdn Property Income TrustAnnouncement

07/11/2024 07:15

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



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