abrdn Property Income Trust Limited

Actively managing UK real estate looking for higher yield and capital growth

Daily prices as of 01 Jul 2022

Share Price 79.50p

Estimated NAV ex income 105.50p

Premium / (Discount) to NAV ex income -27.8%

Dividend Yield 4.7%

Source: Morningstar

Online presentation

In advance of the AGM, the Board of abrdn Property Income Trust held an interactive online presentation on Tuesday 14 June 2022. This online event took the form of a short introduction from the Chairman, followed by a more detailed presentation from the Manager, Jason Baggaley and an interactive Q&A session.

A recording of the event is now available to watch below.

Watch on demand now >

About us

Find out more about our investment objective, approach, portfolio and performance.

Insights

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Latest news 

An update from our investment manager, Jason Baggaley - 29 April 2022 

The pandemic has had a significant impact on the UK real estate market, but the Company’s portfolio has been well positioned to benefit from some of the structural changes. In particular, the industrial sector has benefited from the surge in online retail, accelerating a trend that had begun already. With many people likely to continue to work from home at least partially, this trend is likely to continue, as the thorny problem of the last mile delivery is solved by having someone to answer the door. The boom in online retail has, of course, been at the expense of physical retail. In particular, high street and shopping centre investments have suffered, and we do not yet think they will recover in the short term. Retail warehouse investments, however, have already seen a pick-up in demand and values, and we believe this should continue throughout 2022. Demand for offices remains an area of great debate as many people became used to working from home. It will take several years to fully play out, but hybrid working appears to be here to stay, and many employers are looking to upgrade their offices to attract and encourage skilled employees to come into the office. The Board and Investment Manager have reviewed the Company’s office holdings to focus on assets that they believe will continue to meet occupier needs. Four office disposals were made during the year to realign the portfolio. Environmental, Social and Governance (ESG) issues have continued to increase in importance and focus. APIT has actively embraced this, through activities at asset level, investment decisions, and the purchase of land for reforestation. The Board has created a Sustainability Committee that sits alongside the Audit and Property Valuation Committees to give greater focus to the Company’s activities and responsibilities in this space. Inflation has started to rear its ugly head again, something we have not had to contend with for many years now. Real estate can offer a partial hedge against inflation as a real asset, with some leases having rents linked to CPI or RPI. At APIT, we believe that owning good quality assets with prospects for rental growth is one of the best defences against inflation.

About us

The objective of the Company is to provide shareholders with an attractive level of income together with the prospect of income and capital growth. The Board intends to achieve the investment objective by investing in a diversified portfolio of UK commercial properties. The majority of the portfolio will be invested in direct holdings within the three main commercial property sectors of retail, office and industrial although the Company may also invest in other commercial property such as hotels, nursing homes and student housing. Investment in property development and investment in co-investment vehicles, where there is more than one investor, is permitted up to a maximum of 10% of the property portfolio. In order to manage risk, without compromising flexibility, the Board applies the following restrictions to the property portfolio, in normal market conditions:

    ▸ No property will be greater by value than 15% of total assets.
    ▸ No tenant (excluding the Government) will be responsible for more than 20% of the Company’s rent roll.
    ▸ Gearing, calculated as borrowings as a percentage of gross assets, will not exceed 65%.

The Board’s intention is that the Company’s loan-to-value (LTV) ratio (calculated as borrowings less all cash as a proportion of property portfolio valuation) will not exceed 45%.

Key people

121037036_Jason Baggaley 166A8222 250x350

Jason Baggaley

Fund Manager

Jason Baggaley manages the Guernsey registered and London-listed abrdn Property Income Trust. Jason, who joined the company in 1996, has 30 years' industry experience and is a Member of the Royal Institution of Chartered Surveyors.

Mark Blyth

Mark Blyth

Deputy Fund Manager

Mark Blyth is the Deputy Fund Manager on the abrdn Property Income Trust. Mark joined the company in 2011 and has 20 years of industry experience and is also a Member of the Royal Institution of Chartered Surveyors.

  • 121037036_Jason Baggaley 166A8222 250x350

    Jason Baggaley

    Fund Manager

    Jason Baggaley manages the Guernsey registered and London-listed abrdn Property Income Trust. Jason, who joined the company in 1996, has 30 years' industry experience and is a Member of the Royal Institution of Chartered Surveyors.

  • Mark Blyth

    Mark Blyth

    Deputy Fund Manager

    Mark Blyth is the Deputy Fund Manager on the abrdn Property Income Trust. Mark joined the company in 2011 and has 20 years of industry experience and is also a Member of the Royal Institution of Chartered Surveyors.

121037036_James Clifton-Brown 166A8163 250x350

James Clifton-Brown

Chairman

James Clifton-Brown is a UK resident. He joined CBRE Global Investors in 1984 as a fund manager on the Courtaulds Pension Scheme Account (now Akzo NobelPension Scheme) and became the firm’s UK Chief Investment Officer (“CIO”) in 1996. He retired from this role on 30 April 2017. In his role as UK CIO, James had responsibility for the firm’s UK house strategy and risk management as well as client and investor relationship management. Since 2004, he has also been a director on a number of boards relating to CBRE Global Investors Limited. He is a voting member on the USA and European Investment Committees of CBRE Global Investors.

121037036_Mike Balfour 166A8256 250x350

Mike Balfour

Board Member

Mike Balfour is a UK resident. He is a member of the Institute of Chartered Accountants of Scotland and was chief executive at Thomas Miller Investment Ltd from 2010 to January 2017. Prior to this, he was chief executive at Glasgow Investment Managers and chief investment officer at Edinburgh Fund Managers Limited. Mike has 30 years of investment management experience and was appointed to the Board on 10 March 2017. He is also a director of Fidelity China Special Situations PLC, BSC Social Impact Trust plc and chairs the Investment Committee of TPT Retirement Solutions.

Mike Bane

Michael Bane

Board Member

Appointed a Director on 1 February 2022, Mike retired as an assurance partner in Ernst & Young LLP ("EY") on 30 June 2018. He has over 35 years' experience in practice with a focus on the asset management and real estate industries. He was a member of EY's EMEIA Wealth and Asset Management Board and was responsible for EY's services to those industries in the Channel Islands. He moved from London to Guernsey in 1997, where he has been resident ever since. Mike is a non-executive director, and chairman-designate, of HICL plc. In addition, he is a non-executive director of The Health Improvement Commission for Guernsey & Alderney LBG.

121037036_Jill May 166A8365 250x350

Jill May

Board Member

Jill joined the Board in March 2019 and chairs the Nominations and Remuneration Committee. She is an External Member of the Prudential Regulation Committee of the Bank of England and is also a Non-Executive Director of JP Morgan Claverhouse Investment Trust plc, Ruffer Investment Company and Alpha FMC. Jill was a Non-Executive Director of the CMA from its inception in 2013 until October 2016. Prior to that, she spent 25 years in investment banking, 13 years in mergers & acquisitions with SG Warburg & Co. Ltd. and 12 years at UBS AG. She is a UK resident.

Sarah Slater

Sarah Slater

Board Member

Sarah Slater is a UK resident. She is the Chief Executive of The Eyre Estate, a private family trust, a trustee of Dulwich Estate and was a board member of GRIP REIT Plc, one of the UK's largest residential REITs. During her career, Sarah held senior positions at The Canada Pension Plan Investment Board (CPPIB), ING Real Estate Investment Management (now CBRE GI) and Henderson Global Investors (now Nuveen) with responsibility for the delivery of major real estate programmes.

  • 121037036_James Clifton-Brown 166A8163 250x350

    James Clifton-Brown

    Chairman

    James Clifton-Brown is a UK resident. He joined CBRE Global Investors in 1984 as a fund manager on the Courtaulds Pension Scheme Account (now Akzo NobelPension Scheme) and became the firm’s UK Chief Investment Officer (“CIO”) in 1996. He retired from this role on 30 April 2017. In his role as UK CIO, James had responsibility for the firm’s UK house strategy and risk management as well as client and investor relationship management. Since 2004, he has also been a director on a number of boards relating to CBRE Global Investors Limited. He is a voting member on the USA and European Investment Committees of CBRE Global Investors.

  • 121037036_Mike Balfour 166A8256 250x350

    Mike Balfour

    Board Member

    Mike Balfour is a UK resident. He is a member of the Institute of Chartered Accountants of Scotland and was chief executive at Thomas Miller Investment Ltd from 2010 to January 2017. Prior to this, he was chief executive at Glasgow Investment Managers and chief investment officer at Edinburgh Fund Managers Limited. Mike has 30 years of investment management experience and was appointed to the Board on 10 March 2017. He is also a director of Fidelity China Special Situations PLC, BSC Social Impact Trust plc and chairs the Investment Committee of TPT Retirement Solutions.

  • Mike Bane

    Michael Bane

    Board Member

    Appointed a Director on 1 February 2022, Mike retired as an assurance partner in Ernst & Young LLP ("EY") on 30 June 2018. He has over 35 years' experience in practice with a focus on the asset management and real estate industries. He was a member of EY's EMEIA Wealth and Asset Management Board and was responsible for EY's services to those industries in the Channel Islands. He moved from London to Guernsey in 1997, where he has been resident ever since. Mike is a non-executive director, and chairman-designate, of HICL plc. In addition, he is a non-executive director of The Health Improvement Commission for Guernsey & Alderney LBG.

  • 121037036_Jill May 166A8365 250x350

    Jill May

    Board Member

    Jill joined the Board in March 2019 and chairs the Nominations and Remuneration Committee. She is an External Member of the Prudential Regulation Committee of the Bank of England and is also a Non-Executive Director of JP Morgan Claverhouse Investment Trust plc, Ruffer Investment Company and Alpha FMC. Jill was a Non-Executive Director of the CMA from its inception in 2013 until October 2016. Prior to that, she spent 25 years in investment banking, 13 years in mergers & acquisitions with SG Warburg & Co. Ltd. and 12 years at UBS AG. She is a UK resident.

  • Sarah Slater

    Sarah Slater

    Board Member

    Sarah Slater is a UK resident. She is the Chief Executive of The Eyre Estate, a private family trust, a trustee of Dulwich Estate and was a board member of GRIP REIT Plc, one of the UK's largest residential REITs. During her career, Sarah held senior positions at The Canada Pension Plan Investment Board (CPPIB), ING Real Estate Investment Management (now CBRE GI) and Henderson Global Investors (now Nuveen) with responsibility for the delivery of major real estate programmes.

Financial calendar

Year End 31 December
Accounts published April
Annual General Meeting June
Dividend Paid February, May, August, November

Trust details

abrdn Property Income Trust Limited

Registered Office:
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 3QL

Registered in Guernsey as an Investment Company Number 41352

Launch Date: 19 December 2003
Risk warning
Risk warning
The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. Please refer to the relevant Key Information Document (KID) prior to making an investment decision. Please be aware of scams that can affect investors.