abrdn Property Income Trust (API) has published its final results for the year ended 31 December 2024, marking the final phase of its wind-down following shareholder approval to liquidate the company in May 2024. The trust posted a total loss per share of 11.25p (2023: 2.17p loss), with net assets falling from £298.1m to just £30.4m, following the disposal of nearly all its property holdings.
The standout event of the year was the sale of abrdn Property Holdings Ltd (aPH), the trust’s principal property-holding subsidiary, to GoldenTree Asset Management in November 2024. The sale comprised 39 assets and delivered net proceeds of £234.3m, representing an 8% discount to June valuations and an accounting loss of £48.2m.
In December, shareholders received a 52p return of capital through a redeemable bonus share scheme, followed by a 3p property income distribution in January 2025. As a result, API’s NAV, adjusted for distributions, fell 18.2% to 64.0p from 78.2p at the end of 2023. The current NAV sits at 8.0p per share, reflecting cash reserves and the final remaining asset.
Performance-wise, API’s NAV total return over 12 months was -19.2%, lagging the FTSE All-Share REITs Index, which it says fell 11.8%. However, its share price rose 25.6% over the year, closing the discount significantly to 13.8%.
API made six direct property disposals during the year prior to the GoldenTree transaction, generating £43.5m at close to book value. These included sales in London, Warrington, Hebburn, Bristol, Dover, and Manchester.
The trust has now exited the REIT regime and is in the final stages of liquidation. The sole remaining asset, a natural capital investment at Far Ralia, is still being marketed, though the board acknowledged the limited buyer pool due to its specialised nature (linked to carbon offset potential).
API closed the year with £36.7m in cash and is invested in the abrdn Liquidity Fund to preserve value ahead of liquidation. The board has been reduced to two directors to reflect the simplified structure post-asset sale.
The 2025 AGM is scheduled for 11 August in Edinburgh, with further distributions expected depending on the outcome of the Far Ralia sale and associated costs.
[QD comment MR: While API’s managed wind-down is nearing its final stages, it’s not been as smooth a journey as might have been hoped. However, the portfolio sale to GoldenTree achieved a clean exit, albeit at an 8% discount – highlighting how excessive discounts in this sector have been – and the 55p capital return has largely crystallised value for shareholders. The share price rerated sharply on the back of that, rewarding those who were prepared to stay the course.
The focus now shifts to the final stages: monetising the last asset, Far Ralia, and ensuring the remaining value isn’t eroded by running costs, although a reduced board helps in that regard. Shareholders will be hoping the finish line brings clarity – and no additional surprises.]
