Update research from QuotedData

RNS Number : 3552K

abrdn Property Income Trust Ltd

20 December 2022

 

abrdn Property Income Trust - Update research from QuotedData

20^th December 2022

Laser focus on the basics

Share price discounts to net asset values (NAVs) amongst commercial real estate companies has widened dramatically since the end of September after the disastrous 'mini'-budget spooked gilt markets and sent bond yields above property yields (implying that property yields will rise, and values fall). Things have since calmed down to some degree and even though the repricing of real estate has further to play out, the near 50% discount to NAV that abrdn Property Income Trust's (API - formerly Standard Life Investments Property Income Trust) shares trade on seems excessive.

Higher debt refinancing costs secured at the height of the volatility (when raised interest rate expectations were elevated) were disappointing but have since been reworked on better terms. The manager has a strong track record of long-term performance and has a laser focus on doing the basics well - that being growing rental income. API's portfolio has 23.0% of reversion (rental growth) potential, equivalent to £6.2m of additional annual rent, whilst recent letting deals and space under offer would boost earnings and bring its vacancy rate below 5%.

Full research:

https://quoteddata.com/research/abrdn-property-income-trust-laser-focus-basics-qd/

This research is also available free on our website www.quoteddata.com where you will also find news, performance data and factsheets on every London listed Investment Company. QuotedData writes and distributes research on a number of quoted companies, facilitates meetings between those companies and existing and potential investors and assists in raising additional capital where required.

NB: Marten & Co was paid to produce this note on abrdn Property Income Trust and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

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