abrdn Property Income Trust Limited Disposal, Asset Management and Valuation Update

 
TIDMAPI 
 
abrdn Property Income Trust Limited 
 (an authorised closed-ended investment company incorporated in Guernsey with 
                          registration number 41352) 
                       LEI Number: 549300HHFBWZRKC7RW84 
 
                                5 October 2022 
 
                DISPOSAL, ASSET MANAGEMENT AND VALUATION UPDATE 
 
abrdn Property Income (API) has completed the sale of an industrial investment 
in Rainham, East London for £21.65m, reflecting a yield of 2.84%. The property 
was the lowest yielding asset in the portfolio, and the sale price represented 
a discount to the end June valuation of 2.7%. The asset was purchased in late 
2007 for £7.5m and has provided a return of 14.5% per annum from purchase to 30 
June 2022. The sale follows the disposal of an office in Kidlington earlier in 
the quarter above valuation. Proceeds of the sales are being used to pay down 
the drawn RCF. 
 
On 30 June the portfolio vacancy rate was 10.2%. Since that date the Company 
has completed two exciting lettings.  Firstly, a logistics unit representing 
1.8% of portfolio income has been let subject to the Company completing a 
refurbishment (lease completion expected June 2023). The refurbishment will 
lead to an operational carbon net zero EPC A unit let at a rent 59% above the 
previous rental level. Secondly, the Company has also completed the letting of 
another logistics unit that has been refurbished to become EPC A and 
operational net zero carbon. The new rent represents 1% of fund ERV, again 
demonstrating strong growth on the previous rent at the property. 
 
Markets are obviously very volatile at the moment and this is likely to 
continue. The Company's portfolio has been valued as at 30 September, which 
will form the basis of the 30 September NAV to be announced in early November. 
The property valuation has decreased 4.2% on a like-for-like basis, which we 
believe will be similar to the MSCI index. 
 
Jason Baggaley, Fund Manager of API commented "The sale of the asset in Rainham 
was a bitter-sweet moment for me. It was the first asset I bought for the 
Company, back in 2007. A year after purchase, as we went through the financial 
crisis, that purchase did not look so great, but as we exit now, it is a good 
reminder that, despite short term bumps along the road, well located assets 
that meet the needs of occupiers perform well over the longer term. We are in 
another "bump" currently, with a lot of uncertainty, but I remain confident 
that the portfolio continues to offer good quality, well located properties 
that are affordable, and meet occupier needs. The recent successful lettings of 
the two logistics units further demonstrate that." 
 
All Enquiries: 
 
Jason Baggaley - Real Estate Fund Manager, abrdn 
Tel:  07801 039463 or jason.baggaley@abrdn.com 
 
Mark Blyth - Real Estate Deputy Fund Manager, abrdn 
Tel: 07703 695490 or mark.blyth@abrdn.com 
 
 
 
END

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